This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Earnings Preview: J&J To Cite Deals, Drugs Okayed

LINDA A. JOHNSON

TRENTON, N.J. (AP) â¿¿ Health care giant Johnson & Johnson likely will discuss its pipeline, recent drug approvals and several important deals when it reports its third-quarter results before the stock market opens Tuesday.

WHAT TO WATCH FOR: Executives will tout progress addressing problems behind an embarrassing string of product recalls that's hurt J&J's revenue and image, and their plans to get some of J&J's many recalled consumer health products back on the market. Last month, J&J said it resumed shipping Tylenol Cold & Flu Severe caplets, just ahead of cold season.

Since September 2009, the company has issued more than 25 recalls, including a few prescription medicines, contact lenses and defective hip replacements, for reasons ranging from improper potency to glass or metal shards in liquid medicines. The latest recall, on Sept. 23, affected 200,000 syringes of anemia drug Eprex sold outside the U.S., because of inconsistent potency.

The company may give updates on several pending deals.

Its biggest acquisition ever â¿¿ $21.3 billion to buy U.S.-Swiss medical device maker Synthes Inc. and boost its position in the growing market for orthopedic surgery products â¿¿ is still expected to close in the first half of 2012.

In late September, J&J paid $175 million to buy out Merck & Co.'s half interest in their 22-year-old joint venture, Johnson & Johnson-Merck Consumer Pharmaceuticals Co., which sells over-the-counter versions of former prescription drugs, including stomach medicines Pepcid, Mylanta and Mylicon. J&J will rename the business McNeil Consumer Pharmaceuticals Co.

A $345 million agreement to sell dermatology businesses that make products including wrinkle and acne cream Retin-A to Canada's Valeant Pharmaceuticals International Inc. is still expected to close by year-end, although the Federal Trade Commission has asked for more information. And J&J's Ethicon Endo-Surgery business agreed in late September to buy privately held SterilMed Inc. It repairs and sterilizes used medical devices such as those made by J&J's biggest division, medical devices and diagnostics.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs