Health
J&J Slides as Device Margins Droop, Drug Sales Seen Falling
- Shares fall as CFO previews lower drug sales in second half
- Large M&A ‘does not scare us,’ CFO says in interview
This article is for subscribers only.
Johnson & Johnson shares tumbled after the company said profit margins in its medical device and technology unit fell last quarter and drug sales will be lower in the second half of the year than the first.
Medical technology margins declined due to costs of an acquisition, commodity inflation and an unfavorable product mix, executives said on an earnings call, and second-half pharma sales will slip as top-selling drug Stelara faces competition in Europe. The company affirmed its annual financial forecast, and said a US regulatory panel will look into a study of Carvykti, its Car-T treatment for multiple myeloma.