J&J 4Q sales rise despite COVID-19; charges cut profits
A big jump in prescription drug sales boosted fourth-quarter revenue at Johnson & Johnson, despite the coronavirus pandemic cutting into sales of products from contact lenses to surgical equipment and other medical devices used in procedures at hospitals swamped with COVID-19 patients.
Profits dove 57% because of higher research spending, plus litigation and other one-time charges totaling $2.4 billion, but the results still cruised past Wall Street expectations. J&J shares added $5.18, or 3.1%, to hit $171.16 in early afternoon trading Tuesday.
The company didn’t give any updates on its coronavirus vaccine research, but executives on a conference call to discuss the quarterly results repeatedly told analysts that J&J expects to share results from its late-stage study of its experimental COVID-19 vaccine — the first requiring only one dose — “by early next week.”
The vaccine could become the third to receive emergency use authorization in the U.S., likely in February, following partners Pfizer and BioNTech, who won the first Food and Drug Administration emergency clearance, and Moderna. Both those vaccines were granted emergency use authorization in December.
