Company News: Johnson & Johnson, Lilly, Medicine Avenue Volume Two

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Johnson & Johnson said sales for the first quarter were up just 4% to $15.6 billion, from $15 billion, in line with Wall Street projections. The company beat analyst forecasts on earnings, which rose 28.6% to $4.5 billion, or $1.62 per share, from the $3.5 billion, or $1.26 per share, reported in the corresponding period a year ago. The beat was driven by the strong performance of RA drug Remicade, which racked up sales of over $1 billion for the quarter, as well as stronger than expected revenues across J&J's medtech franchises, except Cordis. Consumer revenues ($3.77 billion) came in below analysis consensus, though.

Eli Lilly reported first-quarter earnings of $1.18, beating analyst consensus by 8 cents, but lowered its guidance because of healthcare reform. Longer term growth is still uncertain and the most important driver of potential upside, anticoagulant Effient, has suffered from slow uptake. Lilly and Amylin plan on submitting a response to the FDA's complete response letter for Bydureon (exenatide) this week, making a Q2 2010 approval possible. Lilly also lowered its financial guidance from $4.65-$4.85 to $4.40-$4.55 to reflect the impact of recently-passed US healthcare reform, which includes a $600-700 million revenue hit in 2011. After 2011, analysts said the impact will lessen as Lilly's product mix changes due to patent expirations on Zyprexa, in 2010, and other products. “With generic Zyprexa expected for full year 2012, a big part of the large reform hit is short-lived,” said Credit-Suisse analyst Catherine Arnold in a note to investors. “Lilly's exposure to reform is high,” added Bernstein analyst Tim Anderson, also in a research note today, “because (a) it has a high revenue concentration in the US, (b) it is not very well diversified into non-human health product lines compared to some of its peers, and (c) its particular mix of products gives it high exposure to federal programs where certain aspects of healthcare reform will play out.”

Medicine Avenue Volume Two is now available through www.mahf.com. This second volume of the definitive history of medical advertising, published by the Medical Advertising Hall of Fame, can be purchased as a standalone for $20 plus shipping and handling or as part of a boxed set for $40 plus shipping and handling.
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