J&J Surpasses $15 Billion in Quarterly Pharmaceutical Sales, Offsetting Stelara Decline

Johnson & Johnson (J&J) has reported a record-breaking quarter for its pharmaceutical division, with sales exceeding $15 billion for the first time. This milestone comes despite the loss of market exclusivity for Stelara, previously one of the company's top-selling drugs. The strong performance, particularly in oncology, has led J&J to raise its operational growth expectations for 2025.

Oncology Drives Growth Amid Stelara Decline

J&J's oncology business has emerged as the primary driver of growth, effectively counterbalancing the sharp decline in Stelara sales. Oncology drug sales reached $6.3 billion in the second quarter, representing an increase of over $1 billion compared to the same period last year. Darzalex, a multiple myeloma treatment, accounted for more than half of this total, highlighting J&J's strong position in blood cancer therapies.

CEO Joaquin Duato emphasized the company's unique achievement, stating, "No other healthcare company has grown through the loss of exclusivity of a multibillion-dollar product in the first year, in our case Stelara." While Stelara sales fell by 43% year-over-year to $1.7 billion, J&J's newer drug Tremfya saw a 30% increase in sales, reaching $1.2 billion as it gains traction in treating Crohn's disease and ulcerative colitis.

Future Outlook and Strategic Focus

J&J has set ambitious targets for its oncology business, predicting annual sales of $50 billion by the end of the decade. This forecast significantly exceeds current Wall Street estimates. Jennifer Taubert, head of J&J's pharmaceuticals business, pointed to Darzalex and the cell therapy Carvykti as key contributors to this goal.

The company is also placing high expectations on TAR-200, a drug-device combination for non-muscle invasive bladder cancer. Taubert noted a significant discrepancy between internal forecasts and market expectations for this asset, stating, "If you take a look at 2028 consensus, we actually see our numbers at least three times higher."

Financial Performance and Market Response

J&J's overall second-quarter sales increased by 4.6% on an operational basis, totaling $23.7 billion and surpassing Wall Street forecasts. In response to these strong results, the company has increased its guidance range for both adjusted sales and earnings per share for 2025.

The market reacted positively to J&J's earnings release, with shares jumping by more than 6% on Wednesday morning. Additionally, J&J has revised its estimates for the impact of U.S. tariffs, now anticipating a reduced hit of approximately $200 million, exclusively within its medical device unit.