Johnson & Johnson (JNJ) reported stronger-than-expected fourth-quarter sales and profit on Wednesday, driven by robust performance in its cancer drugs segment, including multiple myeloma treatment Darzalex, which saw a 20.9% year-over-year sales increase. The New Jersey-based pharmaceutical giant forecasted 2025 revenue of $90.9 billion to $91.7 billion and adjusted earnings per share of $10.75 to $10.95, surpassing Wall Street expectations. However, a projected 25-cent-per-share impact from foreign currency fluctuations surprised investors and sent J&J shares down 4% in early trading.
J&J’s recent $14.6 billion acquisition of Intra-Cellular Therapies to expand its portfolio of psychiatric drugs highlights its aggressive push to grow its pharmaceutical and medical device businesses. The company also noted contributions from its 2023 acquisition of Shockwave Medical, which added $258 million in quarterly sales. Despite headwinds from biosimilar competition, J&J remains optimistic about long-term growth, forecasting compounded annual sales growth of 5%-7% through 2030, excluding currency impacts.
Market Overview:- Johnson & Johnson beats Q4 sales and profit estimates.
- Darzalex sales drive 19% growth in cancer drug revenues.
- Shares drop 4% due to unexpected foreign currency impact.
- J&J forecasts 2025 EPS of $10.75-$10.95, surpassing analyst estimates.
- Shockwave Medical acquisition adds $258 million in quarterly sales.
- Stelara biosimilar launches pose challenges to U.S. market share.
- J&J plans to counter biosimilar competition with new product launches.
- Darzalex set to maintain its position as the company’s top-selling drug.
- Currency fluctuations may continue to affect financial performance.
- Johnson & Johnson’s Q4 results showcased strong performance in its oncology segment, with Darzalex sales growing 20.9% year-over-year, driving a 19% increase in cancer drug revenues.
- The company’s forecasted 2025 adjusted EPS of $10.75-$10.95 surpasses Wall Street expectations, signaling confidence in its growth trajectory despite industry challenges.
- Strategic acquisitions, including the $14.6 billion purchase of Intra-Cellular Therapies and the $13.1 billion Shockwave Medical acquisition, bolster J&J’s portfolio in high-growth areas like psychiatric drugs and cardiovascular health.
- J&J’s compounded annual sales growth projection of 5%-7% through 2030 reflects a robust pipeline and strong positioning in pharmaceuticals and medtech.
- Darzalex’s position as J&J’s top-selling drug, with annual sales of $11.67 billion, highlights the company’s ability to capitalize on high-demand treatments for multiple myeloma.
- J&J’s shares dropped 4% following the earnings report, driven by investor concerns over a projected 25-cent-per-share impact from foreign currency fluctuations.
- Biosimilar competition for Stelara poses significant headwinds, with annual sales expected to decline from $10.36 billion to approximately $7 billion in 2025.
- The company’s 2025 revenue guidance of $90.9-$91.7 billion fell short of analysts’ expectations of $91.18 billion, raising concerns about near-term growth potential.
- Rising R&D and acquisition-related costs may pressure margins, as evidenced by a 17% decline in net earnings for Q4 compared to the previous year.
- Currency fluctuations and global economic uncertainties could continue to impact J&J’s financial performance, creating challenges in meeting long-term growth targets.
Johnson & Johnson’s Q4 results underscore the company’s resilience amid industry challenges, with its oncology portfolio serving as a critical growth driver. Strategic acquisitions, including Shockwave Medical and Intra-Cellular Therapies, bolster its position as a leader in pharmaceuticals and medtech. Despite currency-related setbacks and biosimilar pressures, J&J’s forward-looking strategy and pipeline provide a robust foundation for sustained growth.
The company highlighted the success of its innovative medicine and medtech units, which saw quarterly sales growth of 4.4% and 6.7%, respectively. However, the ongoing impact of Stelara biosimilars in Europe and their anticipated U.S. arrival this year will likely challenge J&J’s earnings in the short term. Nonetheless, Darzalex remains a standout performer, cementing its status as the company’s best-selling drug.
