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J&J Third-Quarter Earnings Fall: These 4 Other Drugmakers Reporting Soon
10/20/2011 2:28:00 PM
(Written by Alexander Crawford. EPS estimates sourced from Yahoo! Finance, data sourced from Finviz.)
On Tuesday Johnson & Johnson (JNJ) reported disappointing third-quarter profits, which slipped more than 6% from one year ago. The company blamed generic competition on several key drugs of theirs, as well as increased spending on marketing new drugs.
“Bottom line” net income dropped to $3.2 billion, or $1.15 a share, from $3.42 billion, or $1.23, a year earlier, reports Bloomberg.
Johnson & Johnson is currently facing generic competition on its antibiotic Levaquin and its attention deficit disorder medication Concerta, which together had generated almost 5% of revenue last year.
On a brighter note, J&J raised its lower-end forecast for 2011 profit, and its earnings adjusted for one-time items beat analyst expectations.
The generic competitors cost J&J “a few hundred million in sales,” said Jeff Jonas, a Gabelli & Co. analyst in an interview with Bloomberg before the company’s announcement. “And they’re still investing pretty heavily to launch their new drugs.”
This disappointing earnings report may make you question whether other drugmakers will meet the same fate. After all, generic competition is affecting virtually all major drugmakers in some way today.
For a look at other major drugmakers yet to report their third-quarter earnings, here is a list of four drugmakers soon to report:
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