(Reuters) -Johnson & Johnson on Wednesday forecast double-digit profit growth for 2023 after spinning off consumer health company Kenvue (NYSE:KVUE), unveiling the first outlook for its standalone drugs and medical device businesses.
J&J (NYSE:JNJ) finalized the biggest shake-up in its 137-year history earlier this month through an exchange of its shares with Kenvue's, leaving the pharmaceutical giant with a reduced 9.5% stake in its former unit.
Kenvue debuted on the New York Stock Exchange in May and has a market capitalization of nearly $79 billion, with J&J generating $13.2 billion in cash proceeds as a result of its debt offering and initial public offering.
"The main driver for this transaction always has been the strategic rationale of having both companies be more agile, flexible and focused for success in their respective industries," J&J CFO Joseph Wolk said in a pre-recorded investor call.
J&J expects 2023 adjusted reported earnings per share of $10 to $10.10, which is 12.5% higher at the midpoint compared with 2022.
The company also said it would present its consumer health business as discontinued operations and record a gain of $20 billion in the third quarter as a result of the spinoff.
J&J in July expressed optimism for strong growth this year, saying it expected demand for joint replacement and other surgeries to rebound with COVID-19 and inflation tempering.