J&J sees uptick in overall revenue, despite 11% profit dip for stent sales

Johnson & Johnson (J&J) has reported sales of $16.5 billion for the second quarter of 2008, an increase of 8.7 percent as compared to the second quarter of 2007. J&J’s Cordis division has seen its drug-eluting stent sales fall 11 percent in the second quarter from a year ago.

The New Brunswick, N.J.-based J&J said its worldwide Medical Devices and Diagnostics sales of $6.1 billion for the second quarter represented a 12.1 percent increase more than the prior year with operational growth of 5.7 percent and a positive impact from currency of 6.4 percent. Domestic sales increased 4 percent, while international sales increased 19.7 percent; 7.3 percent from operations and 12.4 percent from currency, according to the company.

Cordis’ worldwide business posted sales of $852 million in the quarter, even with year-ago results, with help from favorable currency rates, because U.S. sales for Cordis declined 12.3 percent.

In the U.S., sales of Cordis’ Cypher stent slipped 20 percent to $167 million, compared with the same period last year in its second-quarter earnings release, the company said

J&J estimated that Cypher’s U.S. market share at 36 percent, down from 43 percent in the first quarter of 2008 and from 46 percent in the second quarter last year, which the company attributed to Medtronic’s Endeavor drug-eluting stent (DES) entry into U.S. market in February.

J&J also estimated that its share in international markets, which have had more competitors for a longer period of time, declined to 34 percent in the recent quarter from 38 percent a year ago. J&J's DES sales in those markets declined $7 million to $227 million, with the slide softened by the impact of favorable foreign currency rates, according to the company.