Johnson & Johnson
The company reported fourth-quarter revenues of $11.2 billion, 19.7% higher than those reported in the fourth quarter of 2002. Net income came in at $1.85 billion, or $0.62 per share, compared to $1.38 billion, or $0.46 per share. Pharmaceutical and medical device sales grew 16% and 25%, respectively.
One sour note was flagging sales of Johnson & Johnson's Procrit medication, one of its major drugs; sales dropped 12% in the fourth quarter. Both Amgen
If anything's putting a damper on things going forward, it's the competition facing many of the drugs that helped make J&J's fourth quarter so successful. For example, rival Boston Scientific
Johnson & Johnson plans a double-digit increase in research and development expenditures in 2004, Reuters said, for those looking for efforts to reinforce the pipeline. Dow Jones reported that the J&J's Chairman and Chief Executive William Weldon prognosticated that between now and 2005, patent protection will have faltered for 8% of its current revenue base.
Today, Johnson & Johnson shares increased nearly 3% in early trading. Things may look good today, but soon investors will start looking for proof that of more successful drugs to come to replace any rival-ravaged revenues.
Is the looming competition scaring you away from J&J? Or are you confident that the company will come up with new blockbuster drugs to offset any lost sales? Talk it over with other Fools on the Johnson & Johnson discussion board.
Alyce Lomax welcomes your feedback via e-mail.