J&J raises 2016 profit forecast after drug sales increase

(Bloomberg) — Johnson & Johnson increased its full-year profit and sales forecast after second-quarter profit topped analysts’ estimates, driven by growth in the pharmaceutical division, home to blockbuster products such as arthritis treatment Remicade.

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The shares rose 3.1 percent to $127 at 7:18 a.m. in New York, before the markets opened. The stock has been trading at all-time highs as J&J relies on prescription medicines like Remicade and psoriasis drug Stelara to drive sales and stem a slowdown from the medical devices division. Remicade accounted for about 20 percent of drug revenue for the New Brunswick, New Jersey-based company last quarter.

The world’s biggest maker of health care products raised its earnings forecast to $6.63 to $6.73 a share, excluding some items, from $6.53 to $6.68 previously. Analysts anticipated $6.61.

In the second quarter, earnings were $1.74 a share, excluding some items, compared with the $1.68 average of 20 predictions compiled by Bloomberg. Drug sales increased 8.9 percent during the period, helping offset a decline in consumer products, while revenue from medical devices were little changed.

Here are the highlights for the second-quarter:

Sales were up 3.9 percent to $18.5 billion. Analysts anticipated $18 billion. Net income declined 11 percent to $4 billion, or $1.43 a share, from $4.52 billion, or $1.61 a share