On Tuesday, Johnson & Johnson (NYSE:JNJ) announced a sales growth forecast of 5-6% for the upcoming year, relying on robust demand for cancer treatments Darzalex and Carvykti, along with steady sales of the blockbuster drug Stelara.
Prior to an investor meeting scheduled later in the day, J&J outlined expectations for its pharmaceutical unit’s sales to grow at a compounded annual rate of 5-7% from 2025 to 2030. Following the divestiture of its consumer health unit earlier this year, the company has concentrated its efforts on its drugs and medical devices business.
The sales of the blockbuster psoriasis treatment Stelara in Europe are projected to face challenges starting next year as a crucial patent on the drug expires. Additionally, competition in the United States is anticipated to begin in 2025.
Despite these challenges, Chief Financial Officer Joseph Wolk expressed confidence, stating, “We think we’re very well positioned, even in spite of what will be the beginning of some biosimilar entrants to Stelara outside the US in mid to second half of 2024.” Wolk emphasized that the success of Stelara as a treatment for inflammatory bowel diseases (IBD) contributes significantly to its sales, and patients and physicians are hesitant to make significant changes when a successful treatment is in place.
Looking ahead, J&J, aiming to launch at least 20 new therapies by 2030, highlighted that over 10 of its products have the potential to generate more than $5 billion in peak-year sales, including newer cancer treatments such as Talvey and Tecvayli.
For the year 2024, the company expects a full-year adjusted operational profit of $10.55 to $10.75 per share, incorporating a 15-cent impact from its recent acquisition of the private medical device maker Laminar.
It’s important to note that the 2024 revenue growth forecast from J&J excludes sales of its COVID vaccine.
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Author Stephanie Bédard-Châteauneuf