Johnson & Johnson Reports Q3 2019 Revenue of $20.7 Billion, Driven by Strong Performance in Immunology and Oncology

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Johnson & Johnson Releases Q3 2019 Financial ResultsRecently, Johnson & Johnson released its financial report for the third quarter of 2019, reporting sales of $20.729 billion, a 1.9% increase compared to the same period last year. Domestic sales in the United States grew by 1.2%, while international sales increased by 2.6%. Excluding the net impact of acquisitions, divestitures, and currency exchange fluctuations, operational sales growth reached 5.2% globally, with domestic U.S. sales growing by 3.4% and international sales rising by 7.3%.

By business segment, the Consumer Health business reported sales of $3.469 billion, the Pharmaceutical business $10.877 billion, and the Medical Devices business $6.383 billion. Excluding the net impact of acquisitions and divestitures, adjusted operational sales grew by 1.3%, 6.4%, and 5.3% year-over-year, respectively.

Pharmaceutical Business Segment, by disease area: Immunology grew 10.3%, Oncology grew 8.8%, Neuroscience grew 8.2%, Infectious Diseases grew 3.6%, Pulmonary Arterial Hypertension grew 0.5%, and Cardiovascular & Metabolic & Other declined 4.8%.

Notably, several drugs in the immunology segment demonstrated strong performance, including Stelara (+30.9%), Tremfya (+70.3%), and Simponi/Simponi Aria (+10.8%), while Remicade declined by 16.9%. Furthermore, multiple drugs in the oncology segment showed remarkable results, including Darzalex (+56.6%) and Imbruvica (+33.5%), whereas Zytiga and Velcade decreased by 21.2% and 44.4%, respectively.

In the report, Johnson & Johnson also reviewed pipeline updates for the third quarter:

——Regulatory Approval:Xarelto received FDA approval for thrombosis prophylaxis in patients with acute medical illnesses; Invokana received FDA approval for the treatment of diabetic kidney disease; Darzalex combination therapy received FDA approval as a first-line treatment for transplant-eligible multiple myeloma; Erleada received FDA approval for the treatment of metastatic castration-sensitive prostate cancer; Stelara received EC approval for the treatment of moderately to severely active ulcerative colitis; Imbruvica received EC approval in combination with obinutuzumab as a first-line treatment for chronic lymphocytic leukemia, and in combination with rituximab for the treatment of Waldenström’s macroglobulinemia.

—— Regulatory Submission:Spravato CII nasal spray for the rapid reduction of depressive symptoms in adult patients with major depressive disorder (MDD) and acute suicidal ideation or behavior (US); Stelara for the treatment of pediatric patients with moderate-to-severe plaque psoriasis (US); Tremfya for the treatment of adult patients with active psoriatic arthritis (US); once-monthly long-acting intramuscular two-drug regimen of cabotegravir/rilpivirine for HIV (EU); Darzalex new subcutaneous formulation (EU).

— Others:Niraparib was granted Breakthrough Therapy Designation (U.S.) for the treatment of metastatic castration-resistant prostate cancer; an investigational preventive vaccine was granted Breakthrough Therapy Designation (U.S.) for the prevention of respiratory syncytial virus in older adults; the industry’s first powered circular stapler, ECHELON CIRCULAR, was launched; and the ATTUNE cementless knee system was launched.

Johnson & Johnson’s pharmaceutical business has maintained consistent growth over the years; however, in 2019, billions of dollars in sales were at risk due to competition from generic drugs and biosimilars. Nevertheless, strong performance and sustained sales growth of multiple drugs within its pharmaceutical portfolio will help bridge the gap created by the patent cliff.

Currently, Johnson & Johnson’s prostate cancer drug Zytiga, rheumatoid arthritis drug Remicade, anemia drug Procrit, and other medications are facing competition from generic drugs. Previously, the company stated that it expected $3 billion to $3.5 billion in sales in 2019 to be impacted by generic and biosimilar drugs. However, during a conference call on Tuesday, Jennifer Taubert, Worldwide Chairman of Pharmaceuticals at Johnson & Johnson, indicated that the current estimate for the impact of generics in 2019 is $2 billion. Next year, generic drugs will continue to adversely affect the company’s business.

On the other hand, Johnson & Johnson saw double-digit sales growth in as many as 10 drugs in the third quarter, with Stelara, Darzalex, Imbruvica, Tremfya, and Erleada posting sales increases of 30.9%, 56.6%, 33.5%, 70.3%, and 95%, respectively. Among these, the multiple myeloma drug Darzalex shows strong potential, having already entered the second-line and later-line treatment markets. It was approved in June and September of this year for first-line treatment of patients ineligible for stem cell transplantation and those eligible for transplantation, respectively.

In addition, the anticoagulant Xarelto successfully halted its sales decline in the third quarter, and this Monday, the drug received FDA approval for its eighth indication.See details: 8th Indication in the US! Xarelto Approved for Prevention of Venous Thromboembolism）。

Driven by strong performance in the third quarter, Johnson & Johnson raised its 2019 sales guidance from the previous range of $82.4–$83.2 billion to $83.7–$84.2 billion, representing a growth rate of 2.5%–3%.

References:

1、Johnson & Johnson's bridging its $2B patent cliff gap, with help from Stelara, Darzalex

2、Johnson & Johnson Reports 2019 Third-Quarter Results