Johnson & Johnson Exceeds Forecasts with Strong Drug Sales in Q2
Johnson & Johnson's second-quarter profits and revenues exceeded estimates, driven by strong sales of key drugs including Darzalex and Stelara. The company's total revenue reached $22.4 billion, with adjusted earnings of $2.82 per share. J&J also updated its annual sales and earnings forecasts, reflecting recent acquisitions and market expectations.
Johnson & Johnson exceeded second-quarter profit and revenue expectations, driven by robust sales of its cancer treatment Darzalex and the blockbuster psoriasis drug Stelara.
Shares of the medical giant rose 1.4% to $153.15 in premarket trading. Revenue hit $22.4 billion, above the consensus estimate of $22.3 billion. Adjusted earnings per share were $2.82, beating analysts' predictions of $2.70 per share.
Stelara sales rose by 3.1% to $2.89 billion, surpassing the estimated $2.77 billion. Darzalex sales also increased by 18.4% to $2.88 billion, closely aligning with expectations. J&J revised its total 2024 sales forecast to $89.2 billion to $89.6 billion, up from the prior projection of $88.7 billion to $89.1 billion. The company adjusted its annual per-share earnings forecast to $10 to $10.10 from $10.60 to $10.75, incorporating costs from its $13 billion acquisition of Shockwave and other mergers.
Despite a 2.2% rise in its medical technology business revenue to $7.96 billion, it fell short of the $8.17 billion expected. Stelara may face competition from biosimilars by 2025, which could impact its $10 billion annual sales. J&J remains optimistic about growth despite anticipated market challenges. Darzalex sales, expected to exceed $11 billion this year, remain a strong revenue driver. Meanwhile, tight supply has limited sales of its cancer cell therapy Carvykti, although efforts are underway to boost production capacity.
(With inputs from agencies.)