Three Key Takeaways From Johnson & Johnson (JNJ)’s Q2

3. The future looks brighter

Johnson & Johnson slightly increased its 2013 earnings guidance to the range of $5.40 to $5.47 – up from the $5.35 to $5.45 previously announced. And there’s reason for optimism.

The company’s new diabetes drug Invokana will hit the market as the first-in-class SGLT2 in the United States. Analysts have pegged Invokana’s potential earnings in the blockbuster territory.

Its closest competitor — Forxiga from Bristol Myers Squibb Co. (NYSE:BMY) — was delayed by FDA safety questions regarding potential cancer risks. Eli Lilly & Co. (NYSE:LLY) also has a pipeline SGLT2 drug that could make it to market, but Eli Lilly & Co. (NYSE:LLY)’s recent string of late-stage cancellations isn’t exactly encouraging.

Johnson & Johnson’s pipeline also includes promising candidates in HCV and rheumatoid arthritis. And unlike Eli Lilly & Co. (NYSE:LLY), most of Johnson & Johnson’s products make it through late-stage trials without major disappointments.

Foolish final thoughts

Johnson & Johnson’s looking stable where others are tripping over failed pipeline projects. There’s also the steadily growing 2.9% dividend to sweeten the pot. This company remains a good bet for investors who want to buy for the long term.

Brandy Betz has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson and Vertex Pharmaceuticals (NASDAQ:VRTX). The Motley Fool owns shares of Johnson & Johnson. Brandy is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Key Takeaways From JNJ’s Q2 originally appeared on Fool.com is written by Brandy Betz.

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