Johnson & Johnson (JNJ  ) reported its third quarter results that topped Wall Street's expectations while also lifting its full year guidance fueled by a strong performance of its pharmaceutical and medical devices businesses. This is the company's first quarterly report since the biggest shakeup in its 13- year-old history when it completed the separation from its consumer health spinoff Kenvue back in August.

JNJ Reported A Better Than Expected Third Quarter

During the third quarter, JNJ generated $21.35 billion in revenue, topping the expected $21.04 billion as sales grew 6.8% YoY with JNJ earning a net income of $4.31 billion, flat compared to last year's comparable quarter. The resulting adjusted earnings per share amounted to $2.66, topping LSEG's expectation of $2.52.

Pharmaceutical And Innovative Medicine Were The Stars Of The Q3 Show

Pharmaceutical sales expanded more than 5% YoY as excluding the sales of its Covid vaccine that wasn't nearly as popular as those of its rivals like Pfizer Inc (PFE  ), the sector brought in revenue of $13.85 billion, topping StreetAccount's estimate $13.34 billion for the entire segment. The sales expansion is owed to Darzalex, a biologic for the treatment of multiple myeloma and Erleada, a prostate cancer treatment, along with JNJ's blockbuster drug Stelara that works against immune-mediated inflammatory diseases. JNJ executives noted that the pharmaceutical growth was partially offset by a decline in sales of its prostate cancer drug Zytiga and blood cancer drug Imbruvica, which is co-marketed by AbbVie Inc (ABBV  ). Along with oncology, AbbVie focuses on immunology, neuroscience, eye care and aesthetics.

Medical devices business expanded 10% YoY with sales rising to nearly $7.46 billion but it came short of StreetAccount's expectation of f $7.58 billion. The YoY rise is also the result of JNJ's acquisition of Abiomed, a cardiovascular medical technology company, it completed in December. Electrophysiological products that evaluate the heart's electrical system and help doctors understand the cause of abnormal heart rhythms also contributed to growth, along with lenses, wound closure products and devices for orthopedic trauma and serious injuries of the musculoskeletal system.

The strong results come amid investor anxiety over the thousands of lawsuits claiming that J&J's talc-based products caused ovarian cancer and several deaths due to being contaminated with asbestos. Although these products now belong Kenvue, JNJ will assume all talc-related liabilities in the U.S. and Canada.

JNJ Also Lifted Its 2023 Guidance

J&J expects full year sales in the range between $83.6 billion and $84 billion, raising its previous guidance of $83.2 billion to $84 billion it issued in August. It also raised its guidance for adjusted earnings per share from a previous forecast of $10.00 to $10.10 to the range between $10.07 to $10.13.

A Sharpened Focus On Innovative Medicine And MedTech Solutions

As JNJ continues to innovate across the spectrum of healthcare, its ambitions are to deliver the medical breakthroughs of tomorrow. But although the healthcare giant's results are considered a bellwether for the broader health sector, innovators are across the industry and moving frontiers of medicine, including its rival Pfizer. Pfizer recently revealed the FDA approved its lung cancer combination treatment. Back in August, the FDA also approved the blood cancer therapy that Pfizer developed for patients suffering from multiple myeloma, and branded as Elrexfio.

AbbVie claims to be leading one of the largest data convergence initiatives in the biopharma industry as it strives for gathering accurate information within minutes as opposed to months. Besides making this important step in digital health revolution, AbbVie is also investing in precision medicine, genetics and genomics, patient-focused drug development, therapeutic modalities and advanced technologies that includes machine learning and AI. Besides the innovations in drugs and therapies, there is also significant progress in early detection that has been made by companies such as Mainz Biomed N.V. (MYNZ  ).

Mainz Biomed is a molecular genetics diagnostic company focused on early cancer detection whose flagship product is ColoAlert®, , a user-friendly at-home test for detecting colorectal cancer. While Mainz Biomed just presented its flagship product in Copenhagen, Denmark, during the UEG Week, an event devoted to latest advancements and breakthroughs in gastroenterology, it is also developing a detection test for pancreas, PancAlert. Mainz Biomed representatives are also in Paris where they are scheduled to represent positive detailed results from its ColoFuture study at the 4th International Conference on Gastroenterology that will last until October 18th. Mainz Biomed will be presenting even better than expected results of its multi-center international clinical trial that assessed the potential of integrating mRNA biomarkers into ColoAlert®.

Therefore, just because JNJ is among the biggest giants in healthcare does not necessarily mean that it will be the one to deliver the medical breakthroughs of tomorrow. However, it did show its strength by delivering strong results despite the baby powder scandal that did not only result in lawsuits across the globe but also severe damage to its reputation. It changed its century-old logo rather quietly and making its mark in the medicine of tomorrow could certainly help restore its image, but its financial numbers are doing surprisingly well.

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