Johnson & Johnson
posted a jump in first-quarter profit, citing investments in science and technology.
Including a $15 million after-tax charge, the company earned $2.07 billion, or 69 cents a share, compared with $1.8 billion, or 59 cents a share, in the prior-year quarter. The charge relates to research and development costs associated with acquisitions. Excluding charges, the company earned $2.09 billion, or 69 cents a share. Analysts were expecting the company to earn 68 cents a share.
During the first quarter, the company announced an agreement to acquire Scios, a biopharmaceutical company with a product for cardiovascular disease. The deal is expected to close later this month. Johnson & Johnson also announced the acquisition of 3-Dimensional Pharmaceuticals, a company with a technology platform focused on the discovery and development of new drugs for the treatment of cardiovascular disorders, oncology and inflammation.
"The key to our long-term consistent performance is our ongoing investment in science and technology," said Chief Executive William C. Weldon.
Total sales rose 12.3% to $9.8 billion from $8.74 billion in the prior-year quarter. Domestic sales gained 8.9%, while international sales increased 6.9% on an operational basis. Worldwide pharmaceutical sales were $4.7 billion, an increase of 11.6%.
During the quarter, the company also received Food and Drug Administration approval for Remicade for long-term treatment of Crohn's disease.
Nonetheless, the company's shares were down 1.9% at $56.71 in early trading.