Johnson & Johnson's Earnings Buoyed By Pharma Strength
Johnson & Johnson recently released its Q1 2013 financial results. Based on the continued strength in its pharmaceuticals business and an improvement in the consumer healthcare segment, we have raised our price estimate. The company is doing well with its immunology and oncology drugs and has showed resilience against the competition from generic drugs in central nervous system therapeutic area. In addition to this, its consumer healthcare business saw substantial growth in the U.S driven by the sales of analgesics and upper respiratory products due to a reliable supply chain and a strong flu season. However, consumer healthcare continues to hold little value for J&J due to its low margins and slow expected future growth.