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  • Summary

  • Companies

  • Darzalex, Tremfya drive pharmaceutical growth

  • Abiomed business hurt by UK study on Impella pumps

  • J&J raises full-year sales and profit outlook

July 15 (Reuters) - Johnson & Johnson (JNJ.N), opens new tab said on Wednesday that its medical device unit underperformed in the ​second quarter, even as strong sales of Tremfya for autoimmune conditions and cancer treatment Darzalex helped it ‌beat Wall Street estimates.

U.S. demand for its Impella heart pumps, acquired through its $16.6 billion 2022 buyout of Abiomed, dropped in the second quarter by 2% after having grown 14% during the first quarter, it said.

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CFO Joseph Wolk said in an interview that Abiomed revenue took a hit following ​the release of a UK study that raised questions about the use of Impella pumps during certain high-risk ​coronary procedures.

Wolk said J&J expects the franchise to return to growth, aided by additional data expected ⁠in the first half of next year that could further demonstrate the usefulness of the pumps.

"When you have 28 ​platforms that generate at least $1 billion in revenue on an annual basis, we're not dependent on one asset," Wolk said.

Shares ​of the company closed 2.7% lower at $247.02.

BROAD MEDTECH DEMAND STABLE

Still, the company said it is not seeing evidence of a slowdown of procedures using its medical devices after Hospital operator HCA Healthcare (HCA.N), opens new tab warned on Tuesday of weaker surgical volumes and more patients dropping out of Affordable Care Act ​plans. That pushed shares down in J&J and other medtech companies such as Stryker (SYK.N), opens new tab and Intuitive Surgical (ISRG.O), opens new tab.

"Procedure volumes continue ​to be stable," J&J Executive Vice President Tim Schmid said in a conference call with investors. "We have not observed any meaningful impact on ‌procedure ⁠volumes across our portfolio related to the ACA."

Sales at J&J's medtech unit came in at $8.93 billion, below analysts' average estimate of $8.97 billion, according to data compiled by LSEG.

"Overall medtech procedures were solid as shown by strength in ortho, vision and stability in surgery," Evercore ISI analyst Vijay Kumar said.

Kumar said the results could help ease concerns around broad demand for medical ​devices.

RAISES ANNUAL SALES FORECAST

J&J's second-quarter ​sales grew nearly 7% to $25.31 ⁠billion, above analysts' average estimate of about $25.05 billion.

The pharmaceutical unit helped boost total sales. It generated $16.38 billion in quarterly sales, ahead of analysts' estimate of $16.1 billion.

Adjusted earnings per share stood ​at $2.90, topping an expectation of $2.85.

The company now expects annual sales of about $101.1 billion at the midpoint, ​compared with $100.8 billion ⁠previously. It also raised its adjusted earnings per share forecast to $11.68 at the midpoint, from $11.55 per share previously.

Stelara sales fall after patent loss, Darzalex and Tremfya sustain growth

Sales of its psoriasis and inflammatory bowel disease drug, Tremfya, jumped 72.5% to $2 billion, well above the estimate of $1.74 billion. Tremfya has become increasingly important as J&J works to ⁠replace ​lost sales from Stelara.

Revenue from Stelara, which treats psoriasis, Crohn's disease and ​other autoimmune conditions, fell more than 55% to $740 million in the quarter.

Reporting by Michael Erman in New Jersey ​and Mariam Sunny and Puyaan Singh in Bengaluru; Editing by David Gregorio, Shinjini Ganguli, Caroline Humer, Nick Zieminski and Pooja Desai

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