Categories Analysis, Health Care

Johnson & Johnson (JNJ): Postponement of procedures hits medical devices unit hard in Q2

The company plans to start a late-stage human trial for the coronavirus vaccine ahead of schedule in late September

Johnson & Johnson (NYSE: JNJ) saw revenue and earnings decline for the second quarter of 2020 but both the top and bottom line numbers came in better than analysts’ projections. The company raised its guidance for the full year of 2020 based on strength in the pharmaceutical division, which was the only unit to register an increase in sales during the quarter. After staying in red territory for most of the day on Thursday, the stock saw an uptick during afternoon hours.   

Quarterly performance   

During the second quarter, J&J’s medical devices unit took the biggest hit, dropping nearly 34% on a reported basis. The main reason for the decline was the postponement of elective surgeries during the quarter due to the coronavirus outbreak. In orthopaedics, declines were visible in hips, knees and spine. Lower levels of travel, recreation and general activity led to a reduction in trauma.

Surgery saw declines in both the general and advanced categories, with endocutters and biosurgery seeing double-digit declines. In vision, contact lenses saw less consumption by existing users and lower number of new users due to the ongoing health crisis.

In the consumer health segment, declines in beauty, baby care, women’s health and wound care were offset by growth in OTC and oral care. The OTC segment benefited from an increase in market and share growth in Pain due to the pandemic while oral care gained from increased demand for LISTERINE mouthwash.

The pharmaceutical segment saw total sales growth of 2.1% during the quarter on a reported basis, with a nearly 6% gain in the US offsetting a 2.4% decline in international. The company saw growth in immunology, which was driven by strength in STELARA in Crohn’s Disease and ulcerative colitis as well as TREMFYA in psoriasis. Infectious diseases and neuroscience witnessed growth fueled by strength in SYMTUZA and INVEGA while oncology saw gains in DARZALEX and IMBRUVICA.   

COVID-19 vaccine

Last month, J&J announced that it accelerated the initiation of its Phase 1/2a first-in-human clinical trial for its COVID-19 vaccine, which was earlier set for September, to the second half of July. On Thursday, during its Q2 earnings conference call, the company said it plans to start a late-stage human trial for the vaccine ahead of schedule in late September.

“Thanks to the tireless work of our colleagues around the world and our broad range of capabilities, we continue to successfully navigate the external landscape, and we remain focused on advancing the development of a vaccine to help address this pandemic and save lives.” – Alex Gorsky, Chairman and CEO

The Phase 1 human trial scheduled to start next week will include more than 1,000 participants. J&J is also planning to conduct a Phase 2 study in the Netherlands, Spain and Germany. The company is also working on expanding its manufacturing capacity worldwide, and if the vaccine proves to be safe and effective, J&J is looking to supply over 1 billion doses globally through the course of 2021.

Pipeline

On Tuesday, the US FDA approved TREMFYA for the treatment of active psoriatic arthritis in adults. J&J also received approval from the European Commission for its Ebola vaccine regimen earlier this month. The company’s subsidiary Janssen Pharmaceutical is collaborating with WHO on facilitating broader access to the vaccine.

Click here to get access to the transcript for Johnson & Johnson Q2 2020 earnings conference call

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Comments

  1. Pingback: Arie Baisch
  2. Pingback: Chirurgie Tunisie
  3. Pingback: Campus facilities
  4. Pingback: Finance degree
  5. Pingback: Politics
  6. Pingback: Vortex
  7. Pingback: Academic Advising
  8. Pingback: Academic Advising
  9. Pingback: fue
  10. Pingback: Future University
  11. Pingback: Future University
  12. Pingback: MBA in FUE
  13. Pingback: Academic Year
  14. Pingback: Centrifuges
  15. Pingback: Dental Conferences
  16. Pingback: engineering jobs
  17. Pingback: cage a squat
  18. Pingback: Fiverr Earn
  19. Pingback: Fiverr Earn
  20. Pingback: Fiverr Earn
  21. Pingback: fiverrearn.com
  22. Pingback: fiverrearn.com
  23. Pingback: fiverrearn.com
  24. Pingback: flatbed broker
  25. Pingback: shipping broker
  26. Pingback: weather tomorrow
  27. Pingback: designer dogs
  28. Pingback: cavapoos
  29. Pingback: jute rugs
  30. Pingback: bitcoin
  31. Pingback: bewerto
  32. Pingback: weather new hope
  33. Pingback: phone repair
  34. Pingback: future university
  35. Pingback: bulldogs puppy
  36. Pingback: fue
  37. Pingback: french bulldog
  38. Pingback: six sigma
  39. Pingback: FUE
  40. Pingback: FUE
  41. Pingback: Discreet moving
  42. Pingback: Moving assistance
  43. Pingback: bali indonesia
  44. Pingback: Classic Books 500
  45. Pingback: FiverrEarn
  46. Pingback: Fiverr.Com
  47. Pingback: Fiverr.Com
  48. Pingback: FiverrEarn
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: pupuk
  53. Pingback: partners
  54. Pingback: Economics
  55. Pingback: Sport analysis
  56. Pingback: FiverrEarn
  57. Pingback: FiverrEarn
  58. Pingback: live sex cams
  59. Pingback: live sex cams
  60. Pingback: FiverrEarn
  61. Pingback: FiverrEarn
  62. Pingback: FiverrEarn
  63. Pingback: FiverrEarn
  64. Pingback: FiverrEarn
  65. Pingback: pearl
  66. Pingback: Slot Gacor
  67. Pingback: Slot Online
  68. Pingback: Kuliah Termurah
  69. Pingback: FiverrEarn
  70. Pingback: FiverrEarn
  71. Pingback: FiverrEarn
  72. Pingback: cheap sex cams
  73. Pingback: live sex cams
  74. Pingback: rare breed-trigger
  75. Pingback: 늑대닷컴
  76. Pingback: One Peace AMV
  77. Pingback: One Peace AMV
  78. Pingback: superslot
  79. Pingback: 918kiss
  80. Pingback: หวย24
  81. Pingback: Cleansing skincare
  82. Pingback: pg slot
  83. Pingback: menang slot
  84. Pingback: megagame
  85. Pingback: apply evisa online
  86. Pingback: 44 mag ammo
  87. Pingback: SaaS Law Firm
  88. Pingback: itsMasum.Com
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top