J&J profit edges past Street view after deals delay Stelara competition By Reuters

© Reuters. Johnson & Johnson firm places of work are proven in Irvine, California, U.S., October 14, 2020. REUTERS/Mike Blake/ File Picture

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 predicted to face recent U.S. competitors from biosimilar variations subsequent yr.

A key patent for Stelara expired in america final yr, however J&J (NYSE:) struck offers with rivals 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 stated 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 stated 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:) stated, including that the corporate’s pharmaceutical phase was properly 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 substitute and different surgical procedures delayed in the course of the COVID-19 pandemic, generated income of $7.67 billion, topping estimates of $7.49 billion, in keeping with LSEG knowledge.

Chief Monetary Officer Joseph Wolk in an interview stated 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 undertaking, J&J plans to exit sure markets and cease promoting some orthopedic merchandise.

J&J’s most cancers therapy Carvykti, which had gross sales of $159 million for the quarter, belongs to a category referred to as CAR-T therapies which have come beneath scrutiny over a security situation.

The corporate stated it was working with the U.S. Meals and Drug Administration to replace its prescribing info 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 stated the drugmaker stills expects Carvykti to achieve 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 keeping with 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% previously 12 months, have been flat at $161.92 in premarket buying and selling.