Johnson & Johnson warns drug sales will slow down this year

 
Oliver Smith
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JOHNSON & Johnson saw its share price fall 1.1 per cent yesterday after the company forecast lower earnings than were expected for 2014 as its prescription drug sales aren’t expected to grow as strongly.

The healthcare company also reported profits of $3.52bn (£2.13bn) for the fourth quarter, up 4.5 per cent from 2012, on revenues of $18.36bn beating market expectations. During the company’s call with investors yesterday, finance chief Dominic Caruso warned that the rate of prescription drug sales would decelerate in 2014, after the firm’s bumper sales in 2013.

“Pharmaceuticals have been strong for a while, but medical devices and diagnostics also picked up steam versus Wall Street’s expectations,” said Edward Jones analyst Judson Clark.