Johnson & Johnson (J&J; NYSE: JNJ) has released its Q3 2023 report, revealing impressive global sales of USD 63.7 billion for the first nine months of the year. This marks a 7.5% year-on-year (YOY) expansion in operational terms, reflecting robust performance across both of the company’s main business segments.
Segment Performance Highlights
In the innovative medicines sector, sales rose 5.1% YOY to USD 41.0 billion, driven by several blockbuster drugs. Leading this segment was the autoimmune disease treatment Stelara (ustekinumab), which generated USD 8.1 billion, an 11.1% increase. Multiple myeloma medication Darzalex (daratumumab) soared 23.2% to USD 7.2 billion. Schizophrenia treatment Invega Trinza/Trevicta (paliperidone) remained steady at USD 3.1 billion, while tyrosine kinase inhibitor Imbruvica (ibrutinib) saw a decline of 14.2% to USD 2.5 billion. Additionally, plaque psoriasis therapy Tremfya (guselkumab) experienced a notable 17.4% increase, reaching USD 2.2 billion.
Geographic Sales Breakdown
From a geographic perspective, J&J’s US market contributed USD 34.4 billion, reflecting a 10.5% YOY increase. The Latin America and Canada region grew by 15.0% to USD 3.4 billion, while the Asia-Pacific/Africa region increased 8.7% to USD 10.5 billion. Conversely, Europe experienced a slight decline of 1.0% to USD 15.4 billion, attributed to the loss of exclusivity for the oncology drug Zytiga (abiraterone acetate).
Challenges and Future Outlook
During the conference call, J&J noted that volume-based procurement (VBP) in China negatively impacted its medical devices business, particularly in spine, trauma, endocutters, energy, and electrophysiology, with an estimated effect of 0.6%. This impact is expected to persist through 2023 and into part of 2024. Despite these challenges, J&J anticipates continued strong growth in China and foresees no significant repercussions from recent anticorruption policies, thanks to its robust compliance culture.-Fineline Info & Tech
