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Johnson & Johnson Keeps Q1 Balanced Amid Stelara Slump
Johnson & Johnson started Tuesday by showing that pressure on one major product was not enough to knock the broader business off course. First-quarter sales rose 9.9% to $24.1 billion, adjusted diluted earnings per share came in at $2.70, and the company beat earnings expectations while raising its full-year outlook to roughly $100.8 billion in sales at the midpoint and $11.55 in adjusted EPS. Taken together, those results showed that even as one important drug weakened, the company as a whole stayed on firm footing.
Most of the pressure came from Stelara, whose sales fell nearly 60% year over year after the loss of exclusivity opened the door to biosimilar competition and lower-cost alternatives. Johnson & Johnson also continued to face pressure from Imbruvica, another aging franchise that no longer contributes the way it once did. What kept the call from turning into an extended apology was the strength elsewhere in the portfolio. Innovative Medicine sales rose 11.2% to $15.4 billion, supported by Darzalex, which generated about $4.0 billion in sales, Tremfya, which reached about $1.6 billion, Carvykti, Erleada, the Rybrevant-Lazcluze combination, and Spravato. MedTech sales also increased 7.7% to $8.6 billion, with growth led by electrophysiology, Abiomed, Shockwave in cardiovascular, and trauma in orthopaedics. The quarter also offered a look at how Johnson & Johnson is trying to replace fading revenue from older products with support from newer parts of the portfolio. Management highlighted recent approvals across both pharmaceuticals and MedTech, including ICOTYDE in the U.S. for moderate to severe plaque psoriasis and VARIPULSE Pro in Europe. The company also said ICOTYDE was off to a promising start, with about 1,500 prescriptions written shortly after its March approval. Those developments matter less as standalone wins than as evidence that the broader business is still producing fresh contributors. That gives the company a more credible basis for saying double-digit gains remain achievable by the end of the decade. A large pharmaceutical company absorbing a major product slowdown is one thing. Doing it while beating earnings expectations and raising guidance is a more convincing show of strength. Sales grew in both Innovative Medicine and MedTech, and the quarter made clear that Johnson & Johnson still has enough productive assets across the portfolio to offset pressure in older franchises. It was not a perfect quarter, but it did show that the business can take a hit, keep growing in the right places, and still justify a higher outlook. SPONSORED CONTENT
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