Johnson & Johnson (NYSE: JNJ) raised their full-year earnings forecast after quarterly profit increased from revenue from new drugs and the divestiture of an older drug. The older drug sold was Bystolic, a hypertension treatment, to Forest Laboratories, and provided $357 million in cash, according to Bloomberg.

"The medical device and pharmaceutical units look good and are improving, which are two legs of the stool," said Matt Miksic of Piper Jaffray -- but the consumer is the missing leg. Sales fell 2.4% from a recall of an over-the-counter drug, which resulted in the shutdown of a Pennsylvania factory. He continued, "It's very difficult to predict how long it will last and how much the company will have to spend."

J&J CFO Dominic J. Caruso said that it is taking longer to return the recalled products to the shelves, and that half will be returned this year and the other half in 2013. In addition to the recall troubles, J&J was fined more than $1.1 billion after a jury found the company guilty of illegally marketing and misleading doctors about the antipsychotic medication Risperdal.

Despite the troubles that it faces, the company is still positive on its outlook.

Business section: Investing ideas
J&J has been afflicted with a few troubles, but could still continue to grow its revenue this year. Below is a list of drug companies that have seen institutional purchases over the current quarter. Do you think the smart money sees the same growth in these names?

List sorted by market cap. (Click here to access free, interactive tools to analyze these ideas.)

1. Pacira Pharmaceuticals: Engages in the development, commercialization, and manufacture of pharmaceutical products for hospitals and ambulatory surgery centers. It has a market cap of $312.77 million. Net institutional purchases in the current quarter stand at 6.5 million shares, which represents about 49.06% of the company's float of 13.25 million shares.

2. Ardea Biosciences: Focuses on the discovery and development of small-molecule therapeutics for the treatment of gout and cancer in the United States. It has a market cap of $758.73 million. Net institutional purchases in the current quarter stand at 3.7 million shares, which represents about 16.97% of the company's float of 21.8 million shares.

3. Dynavax Technologies (Nasdaq: DVAX): A clinical-stage biopharmaceutical company, discovers and develops novel products to prevent and treat infectious diseases. It has a market cap of $760.4 million. Net institutional purchases in the current quarter stand at 34.7M shares, which represents about 25.24% of the company's float of 137.49 million shares.

4. Isis Pharmaceuticals (Nasdaq: ISIS): Engages in the discovery and development of antisense drugs using antisense drug discovery platform. It has a market cap of $746.19 million. Net institutional purchases in the current quarter stand at 3.6 million shares, which represents about 3.82% of the company's float of 94.19 million shares.

5. Sucampo Pharmaceuticals: Focuses on the discovery, development, and commercialization of drugs based on prostones primarily in the Americas, Europe, and Asia. It has a market cap of $346.09 million. Net institutional purchases in the current quarter stand at 1.5 million shares, which represents about 11.77% of the company's float of 12.74 million shares.

6. DepoMed (Nasdaq: DEPO): Develops and commercializes pharmaceutical products based on its proprietary oral drug delivery technologies in the United States. It has a market cap of $349.79 million. Net institutional purchases in the current quarter stand at 2.6 million shares, which represents about 5.52% of the company's float of 47.13 million shares.

7. Pharmacyclics (Nasdaq: PCYC): Operates as a clinical-stage biopharmaceutical company focusing on developing and commercializing small-molecule drugs for the treatment of immune mediated disease and cancer. It has a market cap of $1.78 billion. Net institutional purchases in the current quarter stand at 3.5 million shares, which represents about 6.45% of the company's float of 54.27 million shares.

8. Cubist Pharmaceuticals: Operates as a biopharmaceutical company focused on the research, development, and commercialization of pharmaceutical products that address unmet medical needs in the acute care environment. It has a market cap of $2.53 billion. Net institutional purchases in the current quarter stand at 4.8 million shares, which represents about 7.66% of the company's float of 62.68 million shares.

9. Par Pharmaceutical: Through its subsidiary, Par Pharmaceutical, engages in the development, manufacture, and distribution of generic and branded drugs in the United States. It has a market cap of $1.49 billion. Net institutional purchases in the current quarter stand at 1.1 million shares, which represents about 3.08% of the company's float of 35.68 million shares.

10. Sagent Pharmaceuticals: Engages in developing, manufacturing, sourcing, and marketing pharmaceutical products, principally injectable-based generic equivalents primarily in the United States. It has a market cap of $507.97 million. Net institutional purchases in the current quarter stand at 1.5 million shares, which represents about 8.25% of the company's float of 18.19 million shares.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.