Johnson & Johnson Reports 238% Surge in Q1 Net Profit Amid $400M Tariff Loss Warning

　　【Pharmaceutical Network Enterprise News】Thanks to the profit contribution from the innovative drug business and optimized cost control, net profit surged 238% year-on-year! Johnson & Johnson recently announced good news in its Q1 2025 earnings report. However, the company also issued a warning of a $400 million tariff loss, which undoubtedly casts a shadow over Johnson & Johnson's future development.
 

According to Johnson & Johnson's Q1 financial report, the company's revenue in Q1 2025 increased by 2.4% year-over-year to $21.893 billion, surpassing Wall Street's expectation of $21.58 billion; net profit surged 237.9% year-over-year to reach $10.999 billion. The company forecasts full-year sales between $91 billion and $91.8 billion.
 

According to the financial report, Johnson & Johnson's innovative drug division achieved a year-on-year revenue increase of 2.3% in the first quarter, reaching $13.873 billion, accounting for 63% of the total revenue. Sales in the oncology sector increased by 17.9% year-on-year to $5.678 billion, far exceeding the growth rate of the overall business. This growth was mainly driven by key products such as the CD38 monoclonal antibody Darzalex, the BCMA CAR-T therapy CARVYKTI (Ciltacabtagene Autoleucel), and the EGFR/cMET bispecific antibody Rybrevant.
 

Among them, Cilta-cel is a CAR-T product co-developed by the company and Legend Biotech. The product's sales revenue in the first quarter increased by 135% year-on-year, reaching 369 million US dollars, approximately 2.65 billion yuan. Among this, the revenue from the US market was 318 million US dollars, a year-on-year increase of 127%. It is reported that with the approval for second-line indications and capacity expansion, this therapy has become the first innovative treatment to challenge traditional stem cell transplantation in the frontline treatment of multiple myeloma.
 

Johnson & Johnson's Darzalex indications have gradually expanded from multiple myeloma to autoimmune diseases, becoming the "cash cow" in the company’s oncology sector. Data shows that the product's sales exceeded the $10 billion mark for the first time in 2024. In Q1 2025, the product's revenue increased by 20% year-over-year to $3.24 billion, far exceeding market expectations of $3.05 billion.
 

Despite a decent performance in the first quarter, Johnson & Johnson warned in its earnings report that tariffs are expected to result in a $400 million profit loss for the company by 2026, with the medical device division being hit the hardest. Relevant sources indicated that the $400 million loss includes the impact of various tariffs, such as import duties from Canada and Mexico that exceed the scope of the North American trade agreement, as well as international steel and aluminum tariffs (which have a relatively smaller impact). However, the tariffs between China and the U.S. undoubtedly account for the largest portion, significantly affecting American products exported to China.
 

Reportedly, in order to enhance its competitiveness in the U.S. market from multiple aspects and mitigate the negative impact of tariff policies through strengthened local production, Johnson & Johnson has announced a $55 billion investment in the U.S. over the next four years, targeting three strategic high grounds. First, cell therapy: an investment of $3 billion to expand the CAR-T production base, aiming to reduce the production cycle from 120 days to 60 days, cutting patient waiting time by 50%. Second, surgery...Robot: Ottava's minimally invasive robot receives FDA Breakthrough Device Designation, challenging Intuitive Surgical's Da Vinci system in prostate surgery precision with 6 degrees of freedom robotic arm technology. Third, ADC drugs: Obtained site-specific conjugation technology through the acquisition of Ambrx, and the Phase III clinical data for ARX788 targeting HER2-low breast cancer is about to be unblinded.
 

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