Johnson & Johnson (J&J; NYSE: JNJ) has published its financial results for the second quarter of 2023, reporting robust sales growth of 7.5% year-on-year (YOY) in constant currency terms, reaching USD 25.5 billion. The performance was driven by all business segments, with the pharmaceutical unit Janssen expanding by 3.8% YOY to USD 13.7 billion (or 8.9% excluding SARS-CoV-2 vaccine sales), the medical device business selling USD 7.8 billion, up 14.7%, and the consumer health area jumping 7.7% to USD 4.0 billion. The consumer health area was included in the report despite its recent spinoff and IPO as Kenvue (NYSE: KVUE), due to J&J remaining the majority stockholder.
Pharmaceutical Unit Janssen’s Growth Drivers
Key growth drivers for the Pharma business included oncology treatments Darzalex (daratumumab) and Erleada (apalutamide), which saw global sales expand by 23.4% and 26.9% during the second quarter, respectively, as well as the debut of CAR-T therapy Carvykti (ciltacabtagene autoleucel). Significant contributions were also made by immunology products Stelara (ustekinumab) and Tremfya (guselkumab), pulmonary hypertension medicines Uptravi (selexipag) and Opsumit (macitentan), and the antidepressant Spravato (esketamine). In contrast, cancer drugs Zytiga (abiraterone acetate) and Imbruvica (ibrutinib), immunology treatment Remicade (infliximab), and notably the SARS-CoV-2 vaccine Ad26.COV2.S all experienced double-digit declines.
China’s VBP Impact and Medical Technology Business Growth
During the earnings call, chief financial officer (CFO) Joe Wolk commented that the company expects the impact of China’s volume-based procurement (VBP) mechanism to be higher in H2 2023 and has already incorporated this prediction into its 2023 outlook. Vice-president Jessica Moore noted that China’s recovery was a key driver for the medical technology business despite VBP headwinds, indicating the resilience and potential of J&J’s medical device segment in the face of challenges.-Fineline Info & Tech
