Surging sales of Johnson & Johnson’s acclaimed cancer drug Darzalex have compensated for declining sales in other areas, enabling the company to surpass Wall Street expectations.
Johnson & Johnson reported a 4.3% increase in sales for the second quarter, reaching $22.4 billion, slightly above Wall Street’s forecast of $22.3 billion, according to FactSet estimates.
The rise in sales was primarily driven by Darzalex, a treatment for multiple myeloma. Darzalex sales surged 18% year over year to $2.87 billion, up from $2.4 billion in the same period last year.
Darzalex sales nearly matched those of Johnson & Johnson’s top-selling drug Stelara, which treats autoimmune conditions such as Crohn’s disease, ulcerative colitis, and plaque psoriasis. Stelara sales reached $2.88 billion in the second quarter.
This is a positive development for Johnson & Johnson, especially with the Stelara patent set to expire next year, paving the way for cheaper generic versions that will likely reduce prices.
Together, Darzalex and Stelara helped mitigate declining sales in the company’s neuroscience and infectious disease segments, which dropped by 0.6% and 13.9%, respectively.
Sales of Johnson & Johnson’s COVID-19 vaccine fell nearly 40% to $285 million in the three months ending June 30. Chief Financial Officer Joseph Wolk informed investors that the company does not expect COVID-19 sales in the third quarter.
Despite robust second-quarter sales, Johnson & Johnson revised its 2024 earnings outlook to $10.05 per share from a previous estimate of $10.68, citing potential impacts from recent acquisitions.
In the second quarter, Johnson & Johnson’s net income declined 12.8% to $4.6 billion, compared to $5.3 billion the previous year.
However, the company’s revenue increased 4.3% year-over-year to $22.4 billion from $21.5 billion.
Its diluted earnings per share were $2.82, exceeding Wall Street’s expectation of $2.71 as estimated by FactSet analysts.