From CNBC:

Johnson & Johnson’s fourth-quarter earnings and revenue slightly beat Wall Street’s expectations. The company forecasts full-year sales of $87.8 billion to $88.6 billion and adjusted earnings of $10.55 to $10.75 per share for 2024. J&J’s total sales for the fourth quarter of 2023 were $21.40 billion, a 7.3% increase from the same quarter in 2022. The company’s net income was $4.13 billion, or $1.70 per share.

J&J faces issues with price negotiations for its drugs with the federal Medicare program. President Joe Biden’s Inflation Reduction Act enabled Medicare to negotiate down drug prices for the first time. J&J signed an agreement to participate in the price talks, even after suing the Biden administration to halt the process in July. The negotiated prices for the drugs will go into effect in 2026.

Investor concern continues over lawsuits claiming that J&J’s talc-based products were contaminated with asbestos, causing ovarian cancer and deaths. J&J offloaded its talc liabilities into a new subsidiary, which filed for Chapter 11 bankruptcy protection. However, a federal bankruptcy judge rejected J&J’s second attempt to resolve those lawsuits in bankruptcy. J&J has said the new subsidiary intends to appeal the decision.



Read more: Johnson & Johnson (JNJ) earnings Q4 2023