Johnson & Johnson (NYSE:JNJ) reported lower-than-expected quarterly revenue as sales from its leading psoriasis treatment, Stelara, underperformed amidst looming market competition.
The pharmaceutical giant saw its shares drop nearly 2% in premarket trading due to flat sales of Stelara, which amounted to $2.45 billion for the first quarter, falling short of the projected $2.6 billion.
Despite the setback with Stelara, whose key patent expired last year, J&J has managed to delay the entry of biosimilar competitors in the U.S. until 2025.
This strategic move is expected to bolster the drug’s contributions to J&J’s revenue through 2024 and 2025.
On a brighter note, J&J’s blood cancer therapy Darzalex performed well, with sales increasing by 19% to $2.69 billion, aligning closely with expectations.
Darzalex continues to be a strong performer, projected to generate over $11 billion in annual sales.
Overall, J&J earned $2.71 per share on an adjusted basis in the first quarter, surpassing the analyst estimates of $2.64.
Meanwhile, the company's total revenue was slightly below expectations at $21.38 billion compared to the forecasted $21.40 billion.
Looking ahead, Johnson & Johnson has adjusted its 2024 operating profit outlook to between $10.60 and $10.75 per share, refining the lower end of its previous forecast.
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