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Johnson & Johnson (JNJ) beat estimates for second-quarter profit and revenue on Wednesday, driven by strong sales of its drugs, including cancer treatment Darzalex and blockbuster psoriasis drug Stelara. Stelara has long been a key driver of revenue growth for J&J, with analysts forecasting sales of over $10 billion this year. But this could fall to about $7 billion in 2025 when as many as six close copies of the drug are due to launch in the U.S. Shares of the drug and medical device maker were up nearly 3% at $155.4 in morning trading.
In the second quarter, Stelara sales rose 3.1% to $2.89 billion, topping analysts' estimate of $2.77 billion according to LSEG data. Sales of blood cancer drug Darzalex rose 18.4% to $2.88 billion, edging past LSEG estimates of $2.86 billion. J&J Chief Financial Officer Joe Wolk said he expected to finalize contracts within the next three months that would determine favorable U.S. insurance coverage for Stelara in 2025. "I'll remind you that we are still calling for growth in our pharmaceutical business despite the biosimilar competition that we intend to encounter next year," he said.
Market Overview:
- J&J beats profit and revenue estimates on strong drug sales.
- Stelara and Darzalex drive revenue growth.
- Shares up nearly 3% in morning trading.
Key Points:
- Stelara sales rose 3.1% to $2.89 billion.
- Darzalex sales increased by 18.4% to $2.88 billion.
- J&J expects to secure favorable U.S. insurance coverage for Stelara by 2025.
Looking Ahead:
- Anticipation of Stelara biosimilars entering the U.S. market in 2025.
- J&J's pharmaceutical business expected to grow despite competition.
- Ongoing resolution of talc-related lawsuits impacting stock performance.
ABT SYK MDT
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
