J&J reports Q3 results
NEW BRUNSWICK, N.J. Stock prices for drug maker Johnson & Johnson fell in morning trading Tuesday following the company’s release of a lackluster financial report.
J&J’s stock fell by $1.51, to $61.02 late in the morning after the company posted a 5.3% decline in third-quarter 2009 sales, to $15.1 billion, compared with third quarter 2008. Domestic sales decreased by 8.1%, while international sales decreased by 2.5%, though the weakness of the dollar provided a buffer against a steep decline.
Pharmaceutical sales had the steepest decline, falling by 14.1% to $5.3 billion, including a 19.2% decrease in domestic sales and a 7.1% decrease in international sales. Consumer products had sales of $4 billion, a 2.7% decline over the year before.
At the same time, individual products showed strong growth. The autoimmune drug Remicade (infliximab) sold well, as did the HIV drug Prezista (darunavir) and the multiple myeloma drug Velcade (bortezomib). J&J also got several new drug approvals, such as the Food and Drug Administration’s approval of the autoimmune drug Stelara (ustekinumab) and the European Commission’s approval of the arthritis drug Simponi (golimumab).
Among consumer products, the Aveeno line of skin care products and the artificial sweetener Splenda showed strong growth, as well as the mouthwash Listerine and the Le Petit Marseillais line of beauty care products.
“We continue to successfully manage our broad base of businesses and deliver solid earnings despite the impact of patent expirations and challenges posed by the current economic environment,” chairman and CEO William Weldon said in a statement. “We completed multiple acquisitions and strategic collaborations and received several new product approvals in the quarter that will benefit patients worldwide and drive future growth.”
Nail polish category shines as consumers bypass salons
If there’s one big story currently playing out in nail care, it is that nail polish is hot. Red hot.
According to data provided by The Nielsen Co., sales of nail polish for the 13 weeks ended Aug. 8 at food, drug and mass (including Walmart), totaled about $116.6 million, up an impressive 18.1% compared with the year-ago period.
It is likely that the economic crunch has prompted many beauty mavens to skip the pricey salon for cheaper at-home manicures and pedicures, as it has been years since nail polish has received such fanfare.
Coty Inc.’s Sally Hansen brand reported that recent IRI data showed that Sally Hansen nail color achieved a 51.1% share during the four weeks ended Aug. 16 at food, drug and mass (excluding Walmart). According to the brand, its growth has been fueled by several successful launches: Sally Hansen Insta-Dri fast drying nail color, which was introduced earlier this year and has won several beauty awards, including the recent Beauty Breakthrough Award at the Allure Best of Beauty Awards; Sally Hansen HD Hi-Definition nail color inspired by HD technology; Nail Art Pens; and new shades of Xtreme Wear.
Sally Hansen once again partnered with designer Tracy Reese during Fashion Week to create a new collection, and the Sally Hansen team manicured all of the models backstage. The brand also did manicures at Tracy’s Hudson Street store for Fashion Night Out, and participated in the CVS/pharmacy Reinventing Beauty Fashion Week Lounge by giving manicures from Sept. 12 to 17.
MODE Cosmetics, a beauty brand developed by sisters Cristina Samuels and Jennifer Isaac, is launching for its fall/winter 2009 collection a new nail enamel inspired by the hit television show “Mad Men.” In a throwback to the 1960s, the nail enamel comes in Creamy Fire Red, and will be available in December.
Keeping in line with the trend toward at-home solutions, false nails also are experiencing double-digit growth. According to data from The Nielsen Co., sales of false nails and nail decoration rose 15.4% to nearly $41 million for the 13 weeks ended Aug. 8 at food, drug and mass (including Walmart).
Joel Carden, EVP of Pacific World, told Drug Store News that the rebranding of its Nailene brand of artificial nails has proven to be a success to date, and it expects to see double-digit growth. In addition, the company is shipping this fall its new no-chip technology under the Nailene So Natural brand. “We are finding that this economy doesn’t have to hurt the nail care business,” Carden said.
Meanwhile, artificial nail manufacturer Kiss is launching for the holiday four new limited edition designs available in medium and real short lengths. The Design Everlasting Nail Kits will be on shelves Nov. 1 through Jan. 1.
First Aid Beauty line to be sold at Sephora
NEW YORK Skin care brand First Aid Beauty has partnered with Sephora to launch exclusively in Sephora stores in January its new solution-driven line of skin care products dubbed First Aid Beauty.
According to the beauty company, the FAB collection creates a new category in the prestige marketplace and “ups the ante on drug store brands aimed at problem skin by delivering innovative daily solutions and treatments, scientifically advanced and dermatologist-recommended formulations, luxurious product textures and contemporary, identifiable packaging.”
The six-SKU collection addresses such chronic conditions as severe dryness, eczema, facial redness acne and dark circles.
The products, packed in apothecary-chic packaging, will be priced between $14 and $34.