Johnson & Johnson Reports Record 2018 Revenue of $81.6 Billion; Stelara Surpasses $5 Billion in Sales

On January 22, Johnson & Johnson announced its 2018 financial results, reporting total annual revenue of $81.582 billion, a 6.7% increase compared to 2017. Total research and development expenditure amounted to $10.775 billion, accounting for 13.2% of revenue, representing a 1.7% increase from 2017.

In terms of geographic revenue distribution, the Asia-Pacific and Africa regions were Johnson & Johnson’s fastest-growing markets in 2018, with a growth rate of 10.5%, followed by Europe at 9.5%.

In terms of revenue composition by business segment, the pharmaceuticals segment contributed $40.734 billion in revenue, a year-on-year increase of 12.4%, remaining the primary driver of Johnson & Johnson’s performance growth; revenues from the consumer health products and medical devices segments were $13.853 billion (1.8%) and $26.994 billion (1.5%), respectively.

A Brief Introduction to the Performance of Selected Products:

Stelara (ustekinumab) is a classic standard therapy for psoriasis. Benefiting from the overall rapid expansion of the autoimmune disease drug market, particularly the expanded coverage for patients with Crohn’s disease, Stelara surpassed $5 billion in sales for the first time in 2018, demonstrating strong vitality and effectively offsetting the market shrinkage of Remicade due to competition from biosimilars and increased discounts/rebates. Meanwhile, Tremfya (guselkumab), launched by Johnson & Johnson to compete with IL-17A inhibitors, also delivered impressive results, contributing $544 million in revenue in 2018 (see: Johnson & Johnson’s Guselkumab Makes an Aggressive Entry, Intensifying Competition in the Psoriasis Market).

Darzalex (daratumumab) is the first monoclonal antibody drug (anti-CD38) approved for the treatment of multiple myeloma. Initially launched in late 2015 as a fourth-line therapy, its indications were subsequently expanded to include second- and third-line treatments within the following two years. Within two years of its launch, it became a blockbuster drug with annual sales reaching $1.2 billion. On May 7, 2018, the FDA approved daratumumab in combination with bortezomib, melphalan, and prednisone as a first-line therapy for patients with multiple myeloma who are ineligible for autologous stem cell transplantation. With market penetration in Japan and Latin America, the eligible patient population has further expanded. Sales revenue reached $2 billion in 2018, demonstrating strong growth momentum.

On October 19, 2018, Johnson & Johnson submitted a marketing application for daratumumab to the NMPA in China, which was included in the priority review process, with approval expected in Q3 2019 (see: “These 17 Blockbuster New Drugs Will Launch in China in 2019”).

As recently as January 22, Janssen submitted a new supplemental application to the FDA seeking approval for daratumumab in combination with lenalidomide and dexamethasone as first-line treatment for patients with multiple myeloma who are ineligible for high-intensity chemotherapy and autologous stem cell transplantation, aiming to further expand the indicated population for daratumumab.

Johnson & Johnson holds the development rights for Imbruvica (ibrutinib) in markets outside the United States and successfully obtained marketing approval for Imbruvica in China on August 30, 2017, for the second-line treatment of B-cell lymphomas such as chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) and mantle cell lymphoma (MCL). The broad indications and expanding geographic reach have supported Imbruvica’s strong growth, with Johnson & Johnson generating $2.615 billion in revenue from Imbruvica in 2018.

Zytiga (abiraterone) experienced essentially stagnant performance over the previous two years due to competition from generic drugs and enzalutamide in the United States; however, it saw a significant surge in the European market in 2018, with annual growth of 39.6%, reaching nearly $3.5 billion. Building on abiraterone, Johnson & Johnson launched Erleada (apalutamide), a second-generation highly selective androgen receptor antagonist, which was approved by the FDA in February 2018 as the first novel oncology drug to gain approval based on the clinical endpoint of metastasis-free survival (MFS). However, Erleada’s financial performance was not disclosed in this year’s financial report.

Xarelto (rivaroxaban), overshadowed by apixaban, was forced to increase discounts and rebate compensations to maintain its market share. After its performance growth slowed to 10% in 2017, results did not improve in 2018, declining slightly by 0.9%.

Invokana/Invokamet faced market pressures similar to those encountered by Xarelto. Due to the adverse impact of side effects, they had to rely on measures such as increasing discounts and enhancing medical care rebate compensation to compete with other SGLT-2 inhibitors, resulting in continued shrinkage of performance in 2018. However, in Q4 2018, the FDA approved a new indication for canagliflozin, aimed at reducing the risk of major cardiovascular events in patients with type 2 diabetes and cardiovascular disease.

Opsumit (macitentan) and Tracleer (bosentan), among other pulmonary arterial hypertension medications, have maintained robust growth rates following their acquisition by Johnson & Johnson. Notably, macitentan received approval for launch in China in October 2017, providing new treatment options for patients with this rare disease in the country. In 2018, Opsumit nearly doubled its sales, surpassing the $2 billion mark.

Source:PharmaceuticalsRubik's Cube