J&J Navigates Post-Stelara Landscape with Strategic Investments and Portfolio Diversification

Johnson & Johnson (J&J) has successfully maneuvered through the loss of exclusivity for its blockbuster drug Stelara, demonstrating resilience and strategic foresight in the face of significant market challenges. The company's multi-pronged approach, involving targeted investments, portfolio reshaping, and strategic acquisitions, has positioned it for continued growth in the pharmaceutical sector.

Adapting to Stelara's Decline

Stelara, J&J's cornerstone autoimmune disease treatment, saw its sales peak at $10.9 billion in 2023, accounting for 20% of the company's innovative medicine sales. However, with the introduction of biosimilar competition, Stelara's revenue has experienced a sharp decline, falling 40% in the first nine months of 2025. Despite this setback, J&J managed to grow its global innovative medicine revenue by 5% during the same period.

To prepare for the erosion of Stelara's market share, J&J implemented a series of strategic measures:

1. Selective cost-cutting, including the termination of clinical-phase programs for hepatitis B, HIV, and respiratory syncytial virus.
2. Closure of an infectious disease and vaccine R&D site in the Netherlands.
3. Increased investment in promising areas such as oncology and immunology.

Oncology: The New Growth Engine

J&J's oncology division has emerged as the company's primary growth driver, with sales surging from $8.9 billion in the first nine months of 2020 to $18.5 billion in the same period of 2025. This remarkable growth is attributed to several key factors:

1. The continued success of Darzalex, a multiple myeloma treatment, which saw sales reach $10.4 billion in the first three quarters of 2025.
2. The development of Erleada, a prostate cancer drug, into a multi-billion dollar product.
3. The emergence of Carvykti, a CAR T cell therapy, as J&J's latest cancer blockbuster, with sales of $1.3 billion in Q3 2025.
4. Promising growth of bispecific antibodies Tecvayli, Talvey, and Rybrevant.
5. The recent launch of Inlexzo, a bladder cancer treatment with projected annual sales exceeding $5 billion.

J&J has set an ambitious target of growing oncology revenues to $50 billion by 2030, significantly outpacing analyst estimates.

Strategic Acquisitions and Business Development

J&J's growth strategy heavily relies on its "outstanding business development model," as highlighted by CEO Joaquin Duato. The company has completed over 60 deals in the past 18 months, ranging from early-stage acquisitions to major takeovers. Notable examples include:

1. The acquisition of Taris Biomedical in 2019, which brought Inlexzo into J&J's pipeline.
2. A $14.6 billion takeover of Intra-Cellular Therapies, adding the schizophrenia and bipolar depression drug Caplyta to its neuroscience portfolio.

These strategic moves have allowed J&J to diversify its product lineup and offset losses from patent expirations.

Looking Ahead: Challenges and Opportunities

As J&J navigates the post-Stelara landscape, the company faces new challenges, including potential price negotiations and patent expirations for its current star drug, Darzalex. However, with a track record of successfully managing similar pressures over the past decade, J&J appears well-positioned to maintain its growth trajectory.

The company's broad-based approach, encompassing oncology, immunology, neuroscience, and other therapeutic areas, provides a solid foundation for future growth. As the pharmaceutical industry continues to evolve, J&J's demonstrated ability to adapt and innovate will likely remain crucial to its ongoing success.