J&J Aims for $57bn Sales Target with Darzalex and New Oncology Drugs

Summary

  • Through its new oncology medicines like Carvykti and Tecvayli, and multiple myeloma drug Darzalex, it is projected that the company will accomplish its 2025 pharmaceutical sales goal of $57 billion.
  • The first biosimilar iterations of its blockbuster psoriasis treatment, Stelara, are expected to offer fresh competition in 2025.
  • Stelara’s patent in the U.S. expired last year, fostering a wave of biosimilars, but J&J struck agreements to postpone their launch until 2025, a move that will likely increase Stelara’s contribution to J&J’s 2024 and 2025 sales.
  • Amgen’s Wezlana is predicted to be the first near-copy of Stelara to launch next year in the U.S whilst other international biosimilars are expected to hit shelves in mid or late 2024.
  • J&J’s medical device arm also profited from the rising demand for postponed operations like joint replacements.

Rising Revenue

With the help of its multiple myeloma drug, Darzalex, and newer cancer drugs such as Carvykti and Tecvayli, the company is anticipated to reach its 2025 pharmaceutical sales goal of $57 billion.

Competitive Market

In 2025, it is anticipated to experience new competition from the debut of biosimilar versions of its highly successful psoriasis treatment, Stelara.

Stelara’s Market Performance

The anti-inflammatory drug, Stelara, accumulated sales of $2.75 billion for the quarter, surpassing analysts’ average estimation of $2.63 billion (LSEG data). Despite the US patent for Stelara expiring last year, agreements were brokered by J&J with competitors to postpone the launch of their biosimilars until 2025.

Expected Growth

Financial analysts have noted that this delay could cause Stelara to contribute more to J&J’s sales in 2024 and 2025 than initially forecasted.

New Entrants

Amgen’s biosimilar Wezlana is forecasted to be the first near-identical version of Stelara to be introduced in the U.S market in the following year. Biosimilar versions of Stelara outside the U.S. are also expected to launch in the mid-to-second half of 2024.

Medical Device Business

The medical device sector of J&J also experienced growth last year due to a resurgence in surgeries such as joint replacement that had been postponed during the pandemic. The company reported an adjusted profit of $2.29 per share, marginally beating Wall Street’s predictions of $2.28 per share.

Financial Results

The company’s quarterly revenue was $21.40 billion, exceeding the market’s expectations of $21.01 billion.

In relation to forex or trading, these developments could potentially impact the performance of healthcare-related stocks and assets in the upcoming years, particularly those in the pharmaceutical and medical-device sectors.

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