Sales of J&J’s med devices fall short
Company strikes deal to delay launch of generics for Stelara until 2025
Johnson & Johnson’s first-quarter revenue missed Wall Street estimates for medical devices on Tuesday and sales of its blockbuster psoriasis drug Stelara came in lower than expected as the company prepares for its loss of exclusivity in the U.S.
J&J’s large medical devices business reported $7.82 billion in sales for the quarter, boosted by strong demand for Abiomed heart pumps and devices used in wound closure surgeries.
That was still short of analysts’ estimates of $7.88 billion.
Two analysts pointed to a weakness in J&J’s vision care products and surgical devices.
“China-related issues seemed to play a restraining role in both divisions’ underperformance,” said Stifel analyst Rick Wise.
Sales of Carvykti, a cell therapy cancer treatment that analysts expect to bring in $1.15 billion this year, was $157 million for the quarter, missing Wall Street estimates of $200 million.
Supply has been a constraint on Carvykti sales, J&J Chief Financial Officer Joe Wolk said, but he added that the company was working with the Food and Drug Administration to enable increased capacity at its plants in New Jersey and Belgium.
J&J has doubled its manufacturing capacity for cell processing since 2023, a company executive said on an investor call. The drugmaker expects sales of Carvykti to continue to grow this year, particularly in the second half, as it expands capacity.
Sales of cancer drug Darzalex jumped 19% to $2.69 billion, about in line with expectations. The multiple myeloma treatment is expected to bring in sales of more than $11 billion this year, according to analysts.
Stelara sales were flat at $2.45 billion, falling short of analysts’ expectations of $2.6 billion, according to LSEG data.
Wolk said Stelara revenue was flat because of contracting with health care providers and pharmacy benefit managers in anticipation of the drug’s loss of exclusivity in the U.S. next year.
“We probably expect this year to be flattish, maybe a little bit up in the United States, as we prepare for some contracts to preserve volume, but maybe give a little bit on price for the longer term,” Wolk said.
J&J has struck deals to delay U.S. launches of biosimilars, or close copies, of Stelara until 2025, after a key patent expired last year.
Analysts have said the delayed competition will make the drug a larger contributor for J&J’s 2024 and 2025 revenue than previously anticipated.
Stelara biosimilars are expected to be launched elsewhere later this year. J&J reached an agreement with Alvotech in February to launch its version in Japan, Canada and Europe this year. The Luxembourg-based drugmaker began selling the medicine in Canada last month under the name Jamteki and can launch in Japan in May.