Biotech
Tuesday, January 23rd, 2024 6:37 pm EDT
Key Points
- Earnings Report and Guidance: Johnson & Johnson (J&J) reported Q4 2023 earnings and revenue that slightly exceeded Wall Street’s expectations. The company provided full-year guidance for 2024, forecasting sales between $87.8 billion and $88.6 billion and adjusted earnings per share of $10.55 to $10.75. Despite the positive results, J&J’s stock fell more than 2% following the announcement.
- Segment Performance: J&J focused on its pharmaceutical and medical devices divisions to drive growth. The medical devices business generated sales of $7.67 billion in Q4, up 13.3% from the same period in 2022. Growth was attributed to the acquisition of Abiomed and increased demand for nonurgent surgeries. The pharmaceutical division reported $13.72 billion in sales, marking 4.2% YoY growth, driven by products like Darzalex, Erleada, and Stelara.
- Challenges and Future Outlook: While J&J faces challenges such as declining sales of certain drugs and ongoing lawsuits related to talc-based products, the company is optimistic about future growth. J&J expects stronger pharmaceutical sales in the first half of 2024, with biosimilar competition for Stelara entering the European market. The company plans to launch at least 20 new therapies by 2030 and anticipates a compounded annual growth rate of 5% to 7% in its pharmaceutical unit between 2025 and 2030. Additionally, J&J will engage in price talks with Medicare over drugs like Stelara and Xarelto under President Biden’s Inflation Reduction Act.
Johnson & Johnson (J&J) reported fourth-quarter earnings and revenue that slightly surpassed Wall Street’s expectations, leading to a more than 7% increase in the company’s stock. The financial results, considered indicative of the broader health sector, revealed total sales of $21.40 billion for Q4 2023, reflecting a 7.3% increase compared to the same period in 2022. Net income for the quarter was $4.13 billion, or $1.70 per share, up from $3.23 billion, or $1.22 per share, in the year-ago period. J&J provided full-year guidance for 2024, forecasting sales between $87.8 billion and $88.6 billion and adjusted earnings per share of $10.55 to $10.75. The results come six months after J&J’s separation from its consumer health unit Kenvue. The company is focusing on pharmaceutical and medical devices divisions to drive growth. The medical devices business saw sales of $7.67 billion, up 13.3%, driven by the acquisition of Abiomed and increased demand for nonurgent surgeries. The pharmaceutical division reported sales of $13.72 billion, marking 4.2% YoY growth, with contributions from drugs like Darzalex, Erleada, and Stelara. Despite losing patent protections on Stelara, J&J signed settlement agreements to delay biosimilar competition until 2025. The company expects stronger pharmaceutical sales in the first half of the year, with biosimilar competition for Stelara entering the European market in mid-2024. J&J is set to begin price talks with Medicare over Stelara and blood thinner Xarelto under President Biden’s Inflation Reduction Act, which empowers Medicare to negotiate drug prices. The financial results also coincide with concerns over lawsuits related to talc-based products. J&J will assume talc-related liabilities in the U.S. and Canada, while talc-related products fall under Kenvue. In 2021, J&J offloaded talc liabilities into LTL Management, which filed for Chapter 11 bankruptcy protection, but a federal judge rejected J&J’s attempt to resolve the lawsuits in bankruptcy.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/23/johnson-johnson-jnj-earnings-q4-2023.html
