© Reuters. Johnson & Johnson firm places of work are proven in Irvine, California, U.S., October 14, 2020. REUTERS/Mike Blake/ File Photograph
By Bhanvi Satija and Patrick Wingrove
(Reuters) -Johnson & Johnson on Tuesday reported quarterly outcomes simply above Wall Avenue expectations, helped by robust gross sales of its blockbuster psoriasis drug Stelara, which is anticipated to face recent U.S. competitors from biosimilar variations subsequent yr.
A key patent for Stelara expired in the US final yr, however J&J (NYSE:) struck offers with opponents to delay the launches of their biosimilars till 2025. Amgen (NASDAQ:) would be the first to launch its near-copy, Wezlana, subsequent yr.
Analysts have mentioned the delay in biosimilar launches would make Stelara a bigger contributor to J&J’s 2024 and 2025 gross sales than beforehand anticipated.
Gross sales of the drug are anticipated to be $10.54 billion in 2024, down 3% from the $10.86 billion in 2023. Fourth-quarter Stelara gross sales got here in at $2.75 billion, topping analysts’ estimates of $2.63 billion.
J&J mentioned it expects entry of Stelara biosimilars in Europe towards the center of 2024.
The fourth-quarter outcomes didn’t reveal any “main surprises,” JP Morgan analyst Chris Schott (ETR:) mentioned, including that the corporate’s pharmaceutical section was nicely positioned to generate mid-single-digit progress regardless of pending Stelara competitors.
J&J’s medical system enterprise, which has benefited from a resurgence in demand for joint alternative and different surgical procedures delayed throughout the COVID-19 pandemic, generated income of $7.67 billion, topping estimates of $7.49 billion, in response to LSEG knowledge.
Chief Monetary Officer Joseph Wolk in an interview mentioned not solely had demand for medical gadgets rebounded for the reason that finish of the pandemic, however that it had risen additional in December.
J&J recorded an $84 million cost within the quarter associated to a restructuring program for its orthopedics enterprise. As a part of that mission, J&J plans to exit sure markets and cease promoting some orthopedic merchandise.
J&J’s most cancers remedy Carvykti, which had gross sales of $159 million for the quarter, belongs to a category referred to as CAR-T therapies which have come below scrutiny over a security difficulty.
The corporate mentioned it was working with the U.S. Meals and Drug Administration to replace its prescribing data after the company despatched a discover requiring CAR-T remedy makers so as to add a critical security warning over a possible hyperlink to secondary malignancies.
Wolk mentioned the drugmaker stills expects Carvykti to succeed in peak gross sales of not less than $5 billion, regardless of that security warning.
The healthcare conglomerate posted a fourth-quarter revenue of $2.29 per share that topped analysts’ expectations by one cent, in response to LSEG knowledge.
Quarterly income of $21.40 billion narrowly beat estimates of $21.01 billion.
J&J additionally reaffirmed its adjusted working revenue forecast of $10.55 to $10.75 per share for 2024.
Shares of the corporate, which have shed 3.7% prior to now 12 months, have been flat at $161.92 in premarket buying and selling.