Johnson & Johnson reported modestly higher-than-expected earnings for its fourth quarter while acknowledging that unfavorable currency exchange rates may temper sales growth this year. The company achieved adjusted earnings per share of $2.04 in the quarter, exceeding both Wall Street expectations and estimates from Leerink Partners. Sales rose 5.3% to $22.5 billion during the period, aligning with industry forecasts.
For the full year, J&J’s revenue increased to $88.8 billion, up from $85.2 billion in 2023. However, its outlook for 2024 suggests revenue will grow between $89.2 billion and $90 billion, with a midpoint of $89.6 billion—under the broader market consensus of $91.1 billion. Shares dropped early Wednesday amid weaker-than-expected earnings, as the overall market rose.
CEO Joaquin Duato emphasized that J&J is well-positioned for “sustained growth” through this decade, noting few other companies can maintain such growth after losing exclusivity on a multibillion-dollar product. This growth will largely depend on the success of its cancer medicines, particularly Darzalex and Carvykti.
Key products showed strong performance in Q4, with sales of Darzalex jumping 21% to $3.1 billion. Meanwhile, J&J’s CAR-T treatment, Carvykti, approached $1 billion in annual sales. The company also looks to new medicines like Tecvayli and Talvey for growth.
In the oncology segment, sales reached $1.1 billion for Spravato, a 56% year-over-year increase, benefiting from expanded FDA approval later this year. J&J aims to expand its psychiatric offerings through the acquisition of Intra-Cellular Therapies, bringing its product pipeline to over 40 treatments.
This strategic focus on innovative therapies underscores J&J’s commitment to growth across multiple markets, despite challenges posed by currency fluctuations and generic competition in key markets like the U.S.
Source: https://www.biopharmadive.com/news/johnson-johnson-q4-earnings-darzalex-multiple-myeloma-stelara/737953