J&J Exceeds Profit Estimates with Strong Pharma Unit

Johnson & Johnson exceeded Wall Street's expectations for fourth-quarter profit, with strong performance attributed to the popularity of its psoriasis treatment Stelara and the success of its medical device unit.

Anticipating increased revenue, the company looks to its multiple myeloma drug Darzalex and newer oncology medications, such as Carvykti and Tecvayli, to achieve its pharmaceutical sales target of $57 billion by 2025.

Despite facing potential competition from biosimilar versions of Stelara in 2025, the drug's sales for the quarter reached $2.75 billion, surpassing the average analyst estimate of $2.63 billion, according to LSEG data.

While a key patent for Stelara expired in the U.S. last year, Johnson & Johnson secured agreements with competitors to delay biosimilar launches until 2025.

Analysts predict that this delay will contribute more significantly to J&J's 2024 and 2025 sales than initially expected.

Amgen's Wezlana is anticipated to be the first Stelara biosimilar to launch in the U.S. next year, while biosimilars outside the U.S. are expected to debut in the second half of 2024.

The company's medical device business experienced a boost last year, benefiting from increased demand for delayed joint replacement and other surgeries during the pandemic.

Johnson & Johnson achieved an adjusted profit of $2.29 per share for the quarter, slightly surpassing Wall Street's projected figure of $2.28 per share.

Quarterly revenue amounted to $21.40 billion, exceeding market expectations of $21.01 billion.

Overall, Johnson & Johnson's diverse portfolio, encompassing pharmaceuticals and medical devices, contributed to a successful quarter that surpassed both profit and revenue expectations.