J&J raises profit forecast as it bets on cancer drugs, medical devices

(Reuters) -Johnson & Johnson raised its 2023 profit forecast on Thursday, banking on the strength in its medical devices business and demand for its cancer drugs such as Darzalex.

Shares of J&J (NYSE:), which recently spun off its consumer health unit to focus on drugs and medical devices, rose about 2% in premarket trading.

J&J’s blockbuster arthritis drug, Stelara, which is going off patent, is expected to face competition from cheaper copies in 2025, and the company has been leaning on newer drugs such as cancer therapy Carvykti to replace a potential loss in sales.

The company recently signed settlements to delay the launch of biosimilar versions of Stelara.

Sales of its multiple myeloma drug, Darzalex, came in at $2.4 billion, in line with Wall Street estimates, according to an average of two analysts polled by Refinitiv.

Stelara, its top selling anti-inflammatory drug, also met analysts expectations with sales of $2.8 billion in the quarter.

J&J said it now expects to earn between $10.70 and $10.80 per share on an adjusted basis for 2023, compared with its prior forecast of $10.60 and $10.70.

Analysts were expecting a profit of $10.65 per share, according to Refinitiv data.

The drugmaker also posted better-than-expected second-quarter earnings of $2.80 per share, compared with analysts’ expectations of $2.62.