J&J Q1 results: Profit beats expectations on cancer drugs strength

Johnson & Johnson reported a first-quarter profit above Wall Street estimates on Tuesday, helped by strong sales of its cancer drugs including top-selling blood cancer treatment Darzalex.

Sales of its blockbuster psoriasis drug Stelara were flat at $2.45 billion in the first quarter, while sales of Darzalex jumped about 19% to $2.69 billion.
 

Darzalex, a blood cancer therapy launched in 2015, is expected to bring in sales of more than $11 billion for J&J this year, according to analysts.
 

J&J has struck deals to delay U.S. launches of close-copy versions of Stelara until 2025, a key patent for which 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 launch elsewhere later this year. J&J reached an agreement with Alvotech in February to launch its close-copy in Japan, Canada and Europe this year. The Luxembourg-based drugmaker can enter the Canadian market in the first quarter of this year and Japan in May.
 

On an adjusted basis, J&J earned $2.71 per share in the first quarter, compared to analysts' estimates of $2.64, according to LSEG data.
 

The company reported total revenue of $21.38 billion, compared to estimates of $21.40 billion.
 

J&J now expects adjusted operating profit per share between $10.60 and $10.75 for 2024, compared with its previous forecast of $10.55 to $10.75.
 

The company's cancer cell therapy Carvykti, which recently received approval for use in less severely affected patients with a type of blood cancer, brought in sales of $157 million in the first quarter.
 

Tecvayli, another blood cancer treatment, accounted for $133 million in quarterly sales.
 

Carvykti and Tecvayli are among ten products J&J expects will generate peak sales of more than $5 billion.