Despite Falling Drug Sales, Johnson & Johnson Remains Optimistic

Johnson & Johnson (NYSE: JNJ) owes much of its recent success to the strength of its pharmaceutical division. Even though the company also has extensive exposure to other parts of the healthcare field, including medical devices and over-the-counter consumer products, the drug business has been J&J's biggest growth area for years. Recently, though, Johnson & Johnson has seen its revenue growth become more sluggish, and that has some investors concerned about whether the company is suffering through a temporary slow period or dealing with longer-term structural changes that could dampen its future prospects.

Coming into Tuesday's second-quarter financial report, Johnson & Johnson investors were looking for modest gains on the top and bottom lines, as well as some favorable comments about the recent acquisition of Actelion and its impact on the company going forward. J&J's drug unit had another weak quarter, with segment sales actually declining, but the healthcare specialist was optimistic about its ability to take full advantage of its current opportunities. Let's take a closer look at Johnson & Johnson and what its latest results mean for investors.

Image source: Johnson & Johnson.

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Source: Fool.com