Johnson & Johnson Soars with Strong Q4 Sales and Profit
The pharmaceutical giant, Johnson & Johnson, has reported impressive fourth-quarter sales and profit, exceeding Wall Street estimates. Fresh from its $14.6 billion acquisition of Intra-Cellular, the company’s strong performance was driven by its cancer treatments.
Cancer Treatments Drive Growth
Johnson & Johnson’s quarterly sales reached $22.52 billion, a 5.3% increase from the previous year, surpassing analysts’ expectations of $22.42 billion. The company’s cancer drugs saw a significant 19% rise in sales worldwide, with Darzalex, a multiple myeloma treatment, contributing over $3 billion to the growth. This represents a 20.9% increase from the previous year.
Acquisition Spree Boosts Portfolio
Johnson & Johnson has been actively acquiring companies to strengthen its drugs and device businesses. The recent deal with Intra-Cellular, its largest acquisition in two years, will enhance its portfolio of psychiatric drugs. Last year, the company acquired heart device maker Shockwave Medical for $13.1 billion, which generated $258 million in sales for the quarter and $564 million for the year.
Segment Performance
The company’s innovative medicine unit brought in fourth-quarter sales of $14.33 billion, while its medtech unit generated $8.19 billion, representing a 4.4% and 6.7% increase, respectively, compared to the previous year.
Stelara Sales Dip, but Darzalex Shines
Sales of J&J’s blockbuster psoriasis treatment Stelara fell 14.7% to $2.35 billion in the fourth quarter, due to the launch of close copies in Europe, Canada, and other markets. However, Darzalex, the company’s biggest-selling drug, brought in annual sales of $11.67 billion, exceeding analysts’ expectations of $11.11 billion.
Guidance and Outlook
Johnson & Johnson expects 2025 sales to range between $90.9 billion and $91.7 billion, with an adjusted profit of $10.75 to $10.95 per share. This guidance is above analysts’ expectations of $90.98 billion in sales and a profit of $10.56 per share.
A Strong Finish to 2024
The company’s strong performance in the fourth quarter capped off a successful year, with total drug sales reaching $56.96 billion. As Johnson & Johnson continues to expand its portfolio through strategic acquisitions, it is well-positioned for future growth.
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