Johnson & Johnson Exceeds Profit Forecasts Amid Strong Drug Sales and Future Challenges
Johnson & Johnson reported strong second-quarter profits and revenue, driven by high sales of cancer drug Darzalex and psoriasis treatment Stelara. Despite upcoming competition for Stelara, J&J expects continued growth. The company lowered its annual forecast due to acquisition costs and faces ongoing legal challenges over its talc products.
![Johnson & Johnson Exceeds Profit Forecasts Amid Strong Drug Sales and Future Challenges](https://devdiscourse.blob.core.windows.net/aiimagegallery/28_05_2024_13_01_51_4110067.png)
Johnson & Johnson exceeded second-quarter profit and revenue estimates on Wednesday, buoyed by robust sales of cancer treatment Darzalex and the psoriasis drug Stelara.
Stelara, a major revenue driver, could see a decline by 2025 due to new competitors, though J&J is working to secure favorable insurance contracts. CFO Joe Wolk remains optimistic about pharmaceutical growth despite upcoming biosimilar competition. Second-quarter Stelara sales rose 3.1% to $2.89 billion, and Darzalex sales increased by 18.4% to $2.88 billion, surpassing analysts' estimates.
Total revenue reached $22.4 billion, beating the consensus estimate of $22.3 billion. Adjusted earnings per share were $2.82, above the expected $2.70. J&J anticipates 2024 sales to be between $89.2 billion and $89.6 billion. However, it lowered its annual per-share forecast due to costs from a $13 billion acquisition and other deals.
Shares dipped slightly to $150.3 amidst premarket trading. Sales in J&J's medical technology segment grew modestly but missed estimates, affected by competition and supply constraints. Investors are also awaiting resolution on numerous talc-related lawsuits. J&J remains under pressure to address ongoing legal matters and maintain growth amid potential product sales erosion.
(With inputs from agencies.)