BIG PHARMA EARNINGS WATCH: JOHNSON & JOHNSON
Prescription Drug Price Hikes Help Fuel Massive 32 Percent Boost to Profits For Big Pharma Giant
As millions of Americans struggle to afford the medications they need, the first earnings report from a Big Pharma giant demonstrates the industry continues to rake in sky-high profits by shamelessly hiking prices.
Just yesterday, brand name drug company Johnson & Johnson announced a massive 32 percent jump in profits in Q4 – kicking off what is sure to be another profitable earnings season for Big Pharma as the industry continues to place profits over people while evading responsibility for their egregious behavior.
The Big Pharma giant boasted better than expected Q4 profits amid ongoing legal struggles.
- Johnson & Johnson’s fourth-quarter profit jumped 32 percent higher thanks to “higher prescription drug sales,” – beating Wall Street’s fourth quarter expectations.
- The company reported $20.75 billion in revenue, beating last quarter’s report.
- Pharmaceutical sales increased 3.5 percent to about $10.55 billion – driven by blockbuster drugs Stelara, cancer drugs Darzalex and Imbruvica and schizophrenia drug Invega Sustenna.
- For 2019, the brand name drug giant reported sales of a whopping $82.06 billion.
Johnson & Johnson’s better than expected earnings come as the company has continued to hike prices on their prescription drugs, despite a growing crisis of affordability.
Johnson & Johnson
- In 2019, Johnson & Johnson hiked the prices of nearly 100 drugs by an average of 6.8 percent – nearly three times the rate of inflation.
- Johnson & Johnson raised the price of its best-selling drugs Stelara and Invega Sustenna, by nearly seven percent this past year.
- The company’s block buster cancer drug Imbruvica costs an eye-popping $180,000 a year. Sales of Imbruvica jumped 24.5% this quarter, accounting for $875 million in sales.
- In 2018, Johnson & Johnson sought to triple the price of Imbruvica, only to ultimately back down amid fierce public blowback.
Stay tuned as we continue to monitor Q4 earnings announcements from brand name drug makers over the coming weeks.