Johnson & Johnson (J&J; NYSE: JNJ), a US major, has released its financial results for the fourth quarter and full year of 2023. Fourth-quarter global sales increased by 7.2% excluding currency impacts to USD 21.4 billion, while full-year revenues rose by 7.4% year-on-year (YOY) to USD 85.16 billion.
Both the pharmaceutical and medtech businesses performed strongly, with innovative medicines up 9.5% in Q4 and 7.2% for the full year (excluding the impact of COVID-19 vaccine sales) to USD 13.72 billion and USD 54.76 billion, respectively. The medtech business saw growth of 13.4% YOY in Q4 and 12.4% over the full year to USD 7.67 billion in Q4 sales and USD 30.4 billion for the 12 months—marking the first time the MedTech business has surpassed USD 30 billion annually.
Geographical performance is detailed in report data Notably, China’s volume-based procurement (VBP) tendering, particularly for medical devices, continues to impact the firm’s performance. In 2024, some of the VBP impact will be absorbed for certain product types, generating a positive comparison going forward. CFO Joseph Wolk noted during the earnings conference call: “We anticipate China VBP pricing for surgical IOLs and orthopedic sports to begin in 2024, with impacts from 2023 VBP in electrophysiology, endocutters, energy, spine, and trauma beginning to anniversary throughout 2024.”
In terms of the performance of key blockbusters for J&J over the 12-month period, auto-immune disease drug Stelara (ustekinumab) generated a substantial USD 10.85 billion, up 9% YOY, although growth may now plateau after the first biosimilar was approved in Europe in January this year. Anti-CD38 antibody Darzalex (daratumumab), used to treat multiple myeloma (MM), reached USD 9.74 billion, up 22.2% YOY. Prostate cancer drug Erleada (apalutamide) enjoyed growth of 27.5% to USD 2.39 billion. The Invega (paliperidone) family of schizophrenia drugs generated USD 4.12 billion, but with growth flat at 0%. And plaque psoriasis drug Tremfya (guselkumab) saw USD 3.15 billion in sales, up 18.3% YOY.
Drugs with falling sales included Xarelto (rivaroxaban) and Imbruvica (ibrutinib) due to competitive pressures, Zytiga (abiraterone acetate), Remicade (infliximab), and Prezista (darunavir) due to loss of exclusivity.
Carvykti reached USD 500 million in sales, on track for USD 5 billion.
Among the firm’s new launches, chimeric antigen receptor (CAR) T cell therapy Carvykti (ciltacabtagene autoleucel), in-licensed from China’s Legend Biotech, was a strong performer, with sales reaching USD 500 million during the year, up from USD 133 million in 2022. CEO Joaquin Duato highlighted that “with more than 2,000 patients treated with Carvykti, it’s already the fastest-launched CAR-T in the market overall.”
J&J has filed a supplementary filing seeking a new indication for Carvkyti as a second-line or later MM therapy, with a PDUFA date of April 4, 2024. Before the regulatory decision, the drug faces a meeting with the FDA’s ODAC (Oncologic Drugs Advisory Committee), with J&J confident that data from the CARTITUDE-4 study is sufficient to support the expanded use of the CAR-T. J&J has taken steps to expand its lentivirus manufacturing capabilities in the US, as well as operating sites in the Netherlands and Switzerland to meet the expected growing demand for the therapy. Duato noted, “We remain confident in… both the risk-benefit of Carvykti in the indication that is being studied and at the same on the potential of Carvykti to be a USD 5 billion plus asset at peak year sales.”
Outlook
Although there were no blockbuster multi-billion dollar acquisitions during 2023, J&J has worked quietly to strongly expand its pipeline. CFO Wolk underlined the firm’s deal-making during the year, when USD 3 billion was deployed for licensing and acquisitions. That included the purchases of antibody drug conjugate (ADC) specialist Ambrx for USD 2 billion and atrial fibrillation medtech firm Laminar for USD 400 million, “as well as more than 50 smaller early-stage licensing deals and partnerships that complement our current Innovative Medicine and MedTech pipelines.” The firm expects another strong year of 5%-6% growth in 2024.- Flcube.com
