J&J Sets Record Quarter for Innovative Medicines Amid Stelara Biosimilar Competition

Johnson & Johnson (J&J) has reported a record-breaking quarter for its innovative medicines division, achieving over $15 billion in sales for the first time. This milestone comes as the company navigates the entry of biosimilars for its blockbuster drug Stelara in the U.S. market.

Strong Performance Across Multiple Therapeutic Areas

J&J's impressive second-quarter results were driven by strong performances in oncology, immunology, and neurology. The company's total sales reached $23.7 billion, representing a nearly 6% increase compared to the same period in 2024.

Key contributors to this growth include:

• Darzalex: The cancer drug saw a 23% increase in sales, reaching $3.5 billion.
• Carvykti: Another oncology treatment, recording sales of $439 million.
• Erleada: Sales rose 23% to $908 million.
• Tremfya: The immunology drug grew sales by 31% to $1.2 billion, benefiting from recent approvals in ulcerative colitis and Crohn's disease.

Jennifer Taubert, J&J's EVP of innovative medicine, highlighted that 13 brands experienced double-digit growth in the quarter, positioning them as key growth drivers through the end of the decade.

Stelara Biosimilar Impact and Strategic Response

Despite the overall positive results, Stelara sales plummeted by more than $1.2 billion year-over-year due to biosimilar competition. The inflammatory medication posted worldwide sales of approximately $1.7 billion, a 43% decrease compared to Q2 2024.

J&J's strategic response to this challenge includes:

1. Focusing on the growth of other innovative medicines
2. Expanding indications for existing drugs like Tremfya
3. Advancing its oncology portfolio with the goal of becoming the leading oncology company by 2030

Future Outlook and U.S. Investments

Based on the strong second-quarter performance, J&J has raised its full-year sales guidance to between $92.7 billion and $93.1 billion, a $2 billion increase from its April forecast.

The company also praised the passing of President Donald Trump's new bill, which provides certainty for J&J's previously announced $55 billion investment commitment in the United States. CFO Joe Wolk highlighted favorable provisions in the bill, including permanent expensing for domestic R&D spend and 100% expensing of qualified production property, which will benefit J&J's planned facility in North Carolina.