Cancer drug sales lift J&J past Wall Street expectations

By Patrick Wingrove and Bhanvi Satija

(Reuters) -Johnson & Johnson raised its 2024 profit and sales forecasts on Tuesday after reporting strong sales of oncology drugs and quarterly results that beat Wall Street expectations.

Sales of J&J's oncology drugs rose nearly 19% worldwide for the quarter, driven by more than $3 billion for multiple myeloma treatment Darzalex, up 20.7% or more than $500 million from a year ago.

Analysts, who expect Darzalex to bring in revenue of about $11 billion this year, had forecast sales of $2.92 billion for the third quarter.

J&J Chief Financial Officer Joe Wolk said continued adoption of the subcutaneous version of Darzalex, which significantly reduces treatment time, and regulatory approval for additional uses helped drive sales. 

The New Jersey-based healthcare conglomerate boosted its profit forecast for the year at the midpoint by 10 cents to $10.15 per share, excluding a 24-cent charge related to its purchase of medical device maker V-Wave.

The company also said it expected to post sales of between $89.4 billion and $89.8 billion for the year, up from its prior forecast of $89.2 billion to $89.6 billion.

However, it now expects to earn between $9.86 and $9.96 per share for the year, including charges related to mergers and acquisitions. The company previously forecast a profit of $10 to $10.10 per share for 2024. 

Shares of the drug and medical device maker fell about 1% to $159.90 in premarket trading.

Sales of J&J's blockbuster psoriasis drug Stelara fell 6.6% to $2.68 billion in the third quarter, but beat analyst estimates of $2.43 billion, according to LSEG data.

Stelara has long been a key growth driver for J&J, with analysts forecasting sales of over $10 billion this year. Sales are expected to fall to about $7 billion in 2025, when it could face competition from as many as six biosimilar versions in the U.S.

Stelara began facing competition from biosimilar rivals earlier this year outside the U.S., including in Canada, the European Economic Area and Japan. 

The company's cancer cell therapy, Carvykti, brought in sales of $286 million, beating estimates of $239 million. Tight supply has limited Carvykti sales, with the company working to boost production capacity at its plants in New Jersey and Belgium.

Quarterly sales for J&J's medical devices unit rose 5.8% to nearly $7.9 billion for the quarter, but fell short of analysts' expectations of $8.05 billion, according to LSEG data.

Wolk told Reuters that J&J had hoped for "something better" in its medical technology performance this quarter but faced headwinds in the Asia Pacific region, including in China and Japan.

J&J earned $2.42 per share on an adjusted basis in the third quarter, falling 9% on the previous year but beating analysts' average estimates of $2.21, according to LSEG data.

The company's quarterly sales were $22.5 billion, ahead of analysts' expectations of $22.16 billion. 

(Reporting by Bhanvi Satija and Christy Santhosh in Bengaluru and Patrick Wingrove in New York; Editing by Matthew Lewis and Bill Berkrot)