Johnson & Johnson raises forecast after earnings beat on drug growth

Johnson & Johnson raised its full-year forecast after reporting stronger-than-expected quarterly results, with growth driven by key cancer, immunology and neuroscience drugs as well as early momentum from newer therapies. Sales were $24.56 billion, which beat the consensus estimate of $24.12 billion, while adjusted earnings were $2.46 per share, above the consensus estimate of $2.43.

Sales rose 9.1% from the year-ago quarter, reflecting an operational increase of 7.1% and a positive currency impact of 2.0%. Organically, excluding the impact of acquisitions/divestitures and currency, sales rose 6.1% on an operational basis. The Stelara loss of exclusivity hurt revenue growth by 650 basis points in the quarter.

The Innovative Medicines segment sales rose 10.0% year over year to $15.76 billion, reflecting a 7.9% operational increase and a positive currency impact of 2.1%. Higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains drove the segment’s growth. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato contributed significantly to growth, while lower sales of Imbruvica and generic and biosimilar competition to drugs like Stelara partially dampened growth.

In oncology, Darzalex sales rose 26.6% year over year to $3.9 billion, driven by continued share gains across all lines of therapy, particularly the front-line setting, as well as inventory dynamics and market growth. Erleada generated sales of $959.0 million in the quarter, up 22.4% year over year, driven by share gains and market growth, partially offset by the impact of Part D redesign. Carvykti recorded sales of $555.0 million, up 65.8% year over year, driven by share gains and continued capacity expansion, while Tecvayli recorded sales of $176.0 million, up 20.8% year over year, and Talvey sales were $149.0 million, up 75.8% year over year.

In immunology, Tremfya recorded sales of $1.59 billion, up 67.6% year over year. Stelara sales declined 47.7% to $1.23 billion due to the impact of biosimilar competition and Part D redesign. Imbruvica sales declined 6.5% to $684.0 million, with rising competitive pressure in the United States due to new oral competition.

The company said investment in new product launches and sales infrastructure is weighing on near-term margins but is aimed at driving future growth. Medical devices, including orthopedics and cardiovascular products, showed stronger-than-expected performance, supporting broader growth. The company said it wants to be in a place where it is providing at least half of its innovative medicines from the United States, and most of the U.S.-based innovative medicines in the United States.