Johnson & Johnson’s (J&J) second-quarter profit surpassed Wall Street’s projections, fueled by robust pharmaceutical sales. However, the company has lowered its full-year profit forecast due to recent acquisitions. Adjusted earnings for the quarter were $2.82 per share, exceeding analysts’ expectations by 11 cents. Although medical device revenue didn’t meet estimates, drug sales slightly outperformed predictions.

J&J’s stock has declined this year amid concerns over decreasing sales of Stelara, an anti-inflammatory drug, and an ongoing lawsuit involving talc-based baby powder. CFO Joe Wolk expressed confidence in managing these issues and growing even as Stelara loses market exclusivity. Despite the stock falling 1.1% in pre-market trading, J&J anticipates a 6.4% increase in operational sales, projecting $89.4 billion in 2024, helped by its $13.1 billion acquisition of Shockwave Medical and other transactions.

The revised forecast includes adjusted operational earnings of $10.05 per share, down from the previous midpoint estimate of $10.68. J&J’s strategy involves relying on its cancer and autoimmune disease medications to offset Stelara’s decline. Notable performers like Darzalex for multiple myeloma and Tremfya for psoriasis exceeded expectations in the second quarter.

The company has proposed a $6 billion settlement over 25 years for the majority of talc claims, pending plaintiff approval by July 26. Additionally, J&J’s strategic shift, including a $35 billion acquisition spree since last year, underscores its focus on high-margin pharmaceutical and medical-device sectors. Wolk noted that J&J remains opportunistic in pursuing deals to enhance its pipeline, emphasizing a long-term growth perspective.