Johnson & Johnson’s blockbuster cancer drug Darzalex has seen surging sales, which offset declining sales of some of the pharmaceutical giant’s other drugs, helping the company surpass Wall Street expectations.
Johnson & Johnson announced on Wednesday that its sales in the second quarter increased by 4.3% to $22.4 billion, exceeding Wall Street’s estimate of $22.3 billion, as per a consensus estimate from FactSet.
The company’s impressive sales figures were driven by the soaring sales of its multiple myeloma treatment, Darzalex.
Darzalex sales surged 18% year over year to $2.87 billion in the second quarter, compared to $2.4 billion in the same period the previous year.
Darzalex sales nearly matched those of Johnson & Johnson’s best-selling drug Stelara, which is used to treat autoimmune conditions like Crohn’s disease, ulcerative colitis, and plaque psoriasis. Stelara sales reached $2.88 billion in the second quarter.
This is positive news for the pharmaceutical company, as its patent on Stelara is set to expire next year, allowing cheaper generic alternatives to enter the market and potentially lower prices.
Together, Darzalex and Stelara helped counterbalance declining sales in Johnson & Johnson’s neuroscience and infectious disease segments, which fell 0.6% and 13.9%, respectively.
Notably, sales of the company’s COVID-19 vaccine dropped nearly 40% year over year to $285 million in the three months ending June 30.
Johnson & Johnson’s chief financial officer, Joseph Wolk, informed investors on a call on Wednesday that the company does not anticipate any COVID-19 sales in the third quarter.
Despite strong sales performance in the second quarter, Johnson & Johnson adjusted its 2024 earnings outlook to $10.05 per share, down from a prior projection of $10.68. The company attributed this adjustment to expected impacts from recent acquisitions.
Johnson & Johnson’s second quarter, by the numbers:
The company’s net income fell 12.8% to $4.6 billion in the three months ending June 30, compared with $5.3 billion in the same period the previous year.
The company’s revenue increased 4.3% year over year to $22.4 billion in the second quarter, up from $21.5 billion.
Its diluted earnings per share were $2.82, exceeding Wall Street expectations of $2.71, according to a consensus estimate from analysts surveyed by FactSet.