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Here's a better article with more facts about the quarter, not just commentary.

"Johnson & Johnson 3rd-Quarter Net Rises 14% on Drugs (Update1)
(Adds analyst comment in 4th paragraph; updates shares.)

New Brunswick, New Jersey, Oct. 19 (Bloomberg) -- Johnson & Johnson, the world's No. 1 maker of medical products, said third- quarter profit rose 14 percent as it sold more drugs, such as the anemia treatment Procrit, and more medical devices.

Net income for the maker of Tylenol and Band-Aids rose to $1.1 billion, or 80 cents a share, from $961 million, or 70 cents, in the year-earlier period. That beat the 78-cent average estimate of analysts polled by First Call Corp. J&J said its sales rose 18 percent to $6.75 billion from $5.72 billion.

J&J's medical-devices sales rose 20 percent to $2.45 billion from $2.04 billion. Sales in the drug unit rose 24 percent to $2.6 billion from $2.1 billion, spurred by Procrit, an anemia drug licensed from Amgen Inc. New Brunswick, New Jersey-based J&J also had rising sales of the schizophrenia pill Risperdal and antibiotics such as Levaquin. ``The staple drugs, Risperdal and Procrit and Levaquin, are doing well, but beyond that, the pipeline's still a little skimpy compared to other drug companies,' said Brian Kim, an analyst with CS First Boston who has a ``hold' rating on J&J.

J&J's $3.5 billion purchase of orthopedics maker DePuy Inc. last November helped bolster its medical-devices unit after J&J fell behind in the market for angioplasty products. Sales in its consumer division, which includes non-prescription medicines and personal-care products, rose 7.4 percent to $1.7 billion from $1.59 billion.

J&J is looking to new products to raise its sales, though some of its older drugs remain the biggest contributors to profit. J&J earlier this month made its biggest acquisition, the biotech company Centocor Inc. for $4.9 billion. That gives J&J a new drug, the clot-preventer ReoPro, used in hospitals to treat people undergoing an artery-opening procedure.

Stents

J&J pioneered the use of stents, tiny metal-mesh tubes that prop open once-clogged arteries, starting what has grown in less than a decade to a market with about $2 billion in annual sales. J&J lost dominance in the stent market in the past few years as rivals such as Guidant Corp. introduced more-flexible devices. These were easier for doctors to thread into clogged and often hardened arteries.

The CrossFlex and other new stents under development will help J&J's Cordis unit better compete with rivals in the stent market, analysts said.

J&J also has introduced new products in its consumer business, including Neutrogena lipsticks. It also introduced cholesterol-reducing Benecol spreads, which are licensed from Finland's Raisio Oyj. In August, U.S. officials approved J&J's new sweetener Splenda.

Shares of J&J rose 3 3/8 to 97 7/8 in early trading. J&J shares have risen 13 percent this year, based on yesterday's closing price."


The market seems to like the earnings, and currently the stock is up over 4. J&J has done a great job of managing expectations, enabling them to beat earnings expectations every quarter this year. You would think that the analyst would catch on that J&J is growing faster, but they don't.

Spriteman

PS - I thought that the Centocor would lower earnings this year by about 15 cents a share. Did I hear that wrong, or will that "charge" occur in the fourth quarter?
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