Johnson & Johnson shares fall as sales growth slows

Shares in Johnson & Johnson, which employs 2,200 people at Irish sales facilities and plants, fell after the company reported disappointing pharmaceutical and consumer product sales.

J&J shares fell over 3.5% at one stage, in the biggest one-day percentage decline in more than eight years as the company said it expected a slower growth rate for pharmaceuticals this year.

Its manufacturing plants include Janssen Biologics, Janssen Pharmaceuticals, and DePuy Synthes in Cork, and Vistakon in Limerick.

Overall sales of $17.77bn (€16.7bn) in the quarter fell short of analysts’ average estimate of over $18bn.

The company, which is on track to close its $30bn acquisition of Actelion in the current quarter, issued a new full-year forecast to include Europe’s largest biotech. With Actelion, J&J expects 2017 sales of $75.4bn to $76.1bn. Without Actelion, J&J maintained its prior forecast for sales of $74.1bn to $74.8bn.

“We remain on track for achieving our full-year guidance,” chief financial officer Dominic Caruso said.

J&J is the first major pharmaceutical company to report quarterly results since Republican attempts to overhaul the US healthcare system failed. While forecasts do not include expectations of tax reform, Mr Caruso expressed confidence that Washington will come through with a lower US corporate tax rate at some point.

Pharmaceutical sales rose just 0.8% to $8.25bn, constrained by competition and pricing pressure, which hurt the diabetes drug Invokana and Xarelto blood thinner.

Reuters and Irish Examiner