Johnson & Johnson Reports Q2 2024 Revenue of $22.4 Billion, Driven by Strong Performance in Innovative Medicine and MedTech

Jul 18, 2024 14:35 CST Updated 14:35

Johnson & Johnson

Medical Device R&D and Manufacturer

Source of the article: Siyu MedTech; Editor: Sophia

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On July 17, 2024, Johnson & Johnson announced its Q2 2024 financial report, global revenue$22.4 billion(Approximately 162.624 billion RMB), a year-on-year increase from the $21.5 billion in the second quarter of 2023Growth of 4.3%。

# Highlights of Financial Report

Global sales in the second quarter of 2024 were$22.4 billion,Sales increased by 4.3%, with growth in the United States at 7.8%;

Operational growth was 6.6%, adjusted operational growth was 6.5%; adjusted operational growth excluding the COVID-19 vaccine was 7.1%.

Q2 2024Earnings Per Share (EPS) is $1.93, adjusted earnings per share were due to a 5.9% decrease in one-time special charges.$2.82, increased by 10.2%;

Significant progress in the new product pipeline, including TREMFYA IBD and subcutaneous application, RYBREVANT subcutaneous application, and VARIPULSE admIRE data release;

The company raised its full-year 2024 operational sales guidance (due to the acquisition of Shockwave Medical) and updated its full-year 2024 adjusted operational earnings per share guidance.

Due to Johnson & Johnson's recent strategic acquisitions, related costs have risen significantly.

# Performance Analysis

Innovative Medicine

Innovative PharmaceuticalsRevenue in the second quarter was $14.49 billion,Global Sales Report (Excluding COVID-19 Vaccines)Year-on-year growth5.5%。

Among them,TumorAndImmunityThe revenue share of innovative pharmaceuticals business is respectively35.1%And32.6%, and the year-on-year growth rates are respectively15.7%And7.3%。

DARZALEX (daratumumab), ERLEADA (apalutamide) in the field of oncology;

TREMFYA (guselkumab) and STELARA (ustekinumab) in the fields of oncology and immunology, as well as SPRAVATO (esketamine) in neuroscience, have driven growth.

Medical Technology Business (MedTech)

Medical Technology Business Q2 Revenue$7.957 billion, increasing by 2.2% year-on-year. The four business lines are relatively balanced, among whichCardiovascular business line increased by 15.6% year-on-year.

Sales growth was primarily driven by electrophysiology products and Abiomed (formerly known as interventional solutions) in the cardiovascular field, as well as wound closure products in the general surgery sector.

# Acquisition Chronicle

Innovative Pharmaceutical Field

Johnson & Johnson focused on introducing projects in the immunology field, particularly in atopic dermatitis, with two acquisitions related to it in the second quarter.

On May 16, 2024, Johnson & Johnson announced that it had reached a definitive agreement to acquire Proteologix, Inc. for $850 million in cash, with the potential for additional milestone payments in the future.

Proteologix is a biotechnology company focused on researching bispecific antibodies for immune-mediated diseases.

The product portfolio under development by Proteologix includesPX128And PX130：

PX128 It is a bispecific antibody targeting IL-13 and TSLP.，Intended forModerate to Severe Atopic Dermatitis and Moderate to Severe AsthmaThe treatment is currently ready for Phase I clinical research;

PX130A bispecific antibody targeting IL-13 and IL-22，Intended for moderate to severe atopic dermatitis,Currently in the preclinical stage.Both of these drugs are designed with a lower dosing frequency to enhance the convenience of treatment for patients.

The inclusion of these new pipelines demonstrates Johnson & Johnson's strategy to build a differentiated and complementary bispecific antibody portfolio to address multiple pathogenic pathways.

On May 28, Johnson & Johnson announced the signing of a definitive agreement with Numab Therapeutics to acquire Yellow Jersey Therapeutics, a subsidiary of Numab Therapeutics, for $1.25 billion in cash.

According to the terms of the deal, upon completion of the acquisition, Johnson & Johnson will obtainA Dual-Antibody Dermatological Drug NM26. The transaction is expected to be completed in the second half of 2024.

NM26 bispecific antibody was discovered and designed using Numab's proprietary MATCH™ technology platform, which is aimed at advancing a new generation of multispecific antibody candidates, primarily...In the fields of inflammation and oncology.

NM26 targets IL-4Rα (Type I and Type II receptors) and IL-31.To address the pathophysiological characteristics of atopic dermatitis.NM26 has initiated Phase I clinical trials in 2023 and is planned to advance to Phase II research.

Johnson & Johnson stated in a statement:Compared with existing atopic dermatitis therapies (including Sanofi and Regeneron's Dupixent and AbbVie's Rinvoq), NM26 is expected to have "unique advantages."

The targets of this drug are two proteins associated with inflammatory diseases, IL-4Ra and IL-31. NM26 has the potential toA specialized treatment method for patients with skin inflammation accompanied by severe itching.

Medical Technology Field

May 31, 2024Johnson & Johnson Announces Completion of Acquisition of Shockwave Medical for $13.1 Billion, Strengthening Leadership in Cardiovascular Healthcare

Shockwave is the world's first company to provide Intravascular Lithotripsy (IVL) for the treatment of calcified lesions in Coronary Artery Disease (CAD) and Peripheral Artery Disease (PAD), dedicated to offering innovative solutions.

Before this acquisition, Johnson & Johnson had already carried out a series of acquisitions in the cardiovascular field. These included the $16.6 billion acquisition of Abiomed in 2022 and the $400 million acquisition of Laminar in November last year.

The addition of Shockwave's commercially available intravascular lithotripsy platform will complement Johnson & Johnson's Abiomed heart recovery and Biosense Webster electrophysiology technologies.。

# Major Developments in the Second Quarter

New Product Launch

Biosense Webster LaunchesNew Version CARTO 3 Electroanatomical Mapping System；

Regulatory Progress

CHMP Adopts Positive Opinion for BALVERSA (erdafitinib) in Adult Patients with Unresectable or Metastatic Urothelial Cancer Harboring Susceptible FGFR3 Gene Alterations;
RYBREVANT (amivantamab) in combination with chemotherapy isThe first one approved by the EUFor the activation of EGFR exon 20 insertion mutations in patients with advanced non-small cell lung cancerFirst-line treatment drugs;
Johnson & Johnson submitted to the U.S. FDA,European Medicines AgencySubmit the application,Seeking approval for TREMFYA (guselkumab) for the treatment of moderate to severe active Crohn's disease;
Subcutaneous Injection of Amivantamab Biologics License Application Submitted to U.S. FDA for EGFR-Mutated Non-Small Cell Lung Cancer Patients;
DePuy Synthes VELYS Robotic-Assisted Solution for Unicompartmental Knee ArthroplastyObtained FDA 510(k) Approval；
CARVYKTI (ciltacabtagene autoleucel; cilta-cel) is the first BCMA-targeted therapy approved by the European Commission for patients with relapsed and refractory multiple myeloma who have received at least one prior line of treatment.

Data and Research

TREMFYA (guselkumab) Study Highlights ItsMay become the only IL-23 inhibitor that offers both subcutaneous and intravenous induction;
TREMFYA (guselkumab) Demonstrates Superiority Over STELARA (ustekinumab) in Phase 3 Crohn's Disease Program;
Phase 2 Data Show ERLEADA (Apalutamide) in Combination with Androgen Deprivation Therapy for High-risk Localized Prostate Cancer Patients After Radical ProstatectomyThe biochemical recurrence-free rate was 100% after two years of surgery;
TAR-200 Monotherapy in High-Risk Non-Muscle-Invasive Bladder Cancer PatientsComplete remission rate exceeds 80%;
Biosense Webster Presents Latest Data from the admIRE Clinical Trial at the Annual Meeting of the Heart Rhythm Society.

# Conclusion

Johnson & Johnson Chairman and CEO Joaquin Duato stated, "The second-quarter performance of Johnson & Johnson reflects the company's continued focus and efforts on medical innovation. Our product pipeline will become even stronger with RYBREVANT and TREMFYA nearing regulatory approval, along with the integration of Shockwave Medical’s products. I believe that Johnson & Johnson has a solid foundation for both near-term and long-term growth."

Editor-in-Chief | Zhao Qing Reviewed by | Yi He