Surging sales of Johnson & Johnson’s blockbuster cancer drug Darzalex offset declining sales of some of the pharma 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 forecast of $22.3 billion, according to FactSet’s consensus estimate.
The rise in sales was largely driven by the impressive performance of its multiple myeloma treatment, Darzalex.
Darzalex sales surged 18% year over year to $2.87 billion in the second quarter, up from $2.4 billion in the same period last year.
The sales of Darzalex nearly matched those of Johnson & Johnson’s best-selling drug Stelara, which treats autoimmune conditions like Crohn’s disease, ulcerative colitis, and plaque psoriasis. Stelara sales reached $2.88 billion in the second quarter.
This development is positive for the company as its patent on Stelara is set to expire next year, opening the market to cheaper generic alternatives, which are expected to lower prices.
The strong performances of Darzalex and Stelara helped mitigate declining sales in Johnson & Johnson’s neuroscience and infectious disease segments, which dropped 0.6% and 13.9%, respectively.
Sales of the company’s COVID-19 vaccine saw a significant decline, falling nearly 40% year over year to $285 million in the three months ending June 30.
Johnson & Johnson’s Chief Financial Officer Joseph Wolk mentioned in a call with investors on Wednesday that the company does not expect any COVID-19 vaccine sales in the third quarter.
Despite strong sales in the second quarter, Johnson & Johnson adjusted their 2024 earnings outlook to $10.05 per share, down from an earlier projection of $10.68. The company attributed this adjustment to the anticipated impacts of recent acquisitions.
In the second quarter, Johnson & Johnson’s net income decreased by 12.8% to $4.6 billion, compared to $5.3 billion in the same period the previous year.
The company’s revenue rose 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, beating Wall Street’s expectations of $2.71, based on FactSet’s consensus estimate from surveyed analysts.