J&J exceeds Wall Street expectations with cancer drugs sales

NEW BRUNSWICK, New Jersey: Johnson & Johnson (J&J) raised its 2024 profit and sales forecasts on October 15, thanks to strong sales of oncology drugs, particularly Darzalex, a treatment for multiple myeloma.

The healthcare giant's third-quarter results surpassed Wall Street expectations. Darzalex sales rose 20.7 percent to over US$3 billion, exceeding analysts' estimates of $2.92 billion. Analysts predict the drug will generate about $11 billion in revenue this year.

J&J Chief Financial Officer Joe Wolk attributed the sales growth to the continued adoption of the subcutaneous version of Darzalex, which shortens treatment time, and additional regulatory approvals.

The company increased its full-year profit forecast, excluding certain charges, to $10.15 per share, up 10 cents from earlier projections. J&J also raised its sales outlook for the year to between $89.4 billion and $89.8 billion, slightly above its previous range.

Despite these gains, shares of J&J fell about 1 percent in premarket trading to $159.90. The company's psoriasis drug Stelara, another key product, saw a 6.6% decline in sales, totaling $2.68 billion for the quarter. However, this still beat analyst expectations of $2.43 billion. Stelara's sales are expected to drop significantly by 2025 when biosimilar competition is anticipated to enter the U.S. market.

J&J's cancer cell therapy, Carvykti, outperformed expectations with $286 million in sales, surpassing forecasts of $239 million. Supply constraints have limited its growth, but the company is working to expand production capacity in New Jersey and Belgium.

The company's medical devices unit reported a 5.8 percent increase in quarterly sales, reaching nearly $7.9 billion, though this fell short of analysts' predictions of $8.05 billion. Wolk noted that challenges in the Asia Pacific region, particularly in China and Japan, impacted the unit's performance.

J&J earned $2.42 per share on an adjusted basis, beating the analysts' average estimate of $2.21. Quarterly sales totaled $22.5 billion, surpassing expectations of $22.16 billion.