Johnson & Johnson Reports Q1 2025 Earnings: Net Profit Soars 237.9% Amid Stelara Sales Halved

On April 15, Johnson & Johnson released its Q1 2025 financial report，Operating Revenue$218.93 billion, a year-on-year increase of 2.4%. Exceeding Wall Street expectations$21.58 billion; net profit reached$10.999 billion, a sharp increase year-on-year237.9%，Mainly due to the high-profit contribution of the innovative drug business and optimized cost control.Adjusted earnings per share$2.77, a year-on-year increase of 2.2%, also higher than market expectations. The company simultaneously announced a 4.8% increase in dividends, marking the 63rd consecutive year of raising shareholder payouts.。 

Image Source: Johnson & Johnson Official WeChat Account

Revenue of the Innovative Drug Department$13.873 billion (accounting for 63% of total revenue), a year-on-year increase of 2.3%.Among which, the sales revenue in the oncology field$5.678 billion, up 17.9% year-on-year, far exceeding the overall business growth rate. This growth was primarily driven by three key products:

1."Billions of Dollars Miracle Drug"CD38 Antibody Darzalex: As the world's first monoclonal antibody targeting CD38, Darzalex broke through the 10 billion US dollar sales mark for the first time in 2024. Its indications have gradually expanded from multiple myeloma to autoimmune diseases, becoming Johnson & Johnson's "cash cow" in the oncology field.

2.BCMA CAR-T Therapy CARVYKTI® (Cilta-cel): Co-developed with Legend BiotechCAR-TProduct Q1 Sales Reached3.69Billion USD, approximately26.5billion yuan, a year-on-year increase of135%Among which, the revenue from the U.S. market3.18Billion USD, Year-over-Year Growth127%This therapy, with the approval of second-line indications and capacity expansion, has become the first innovative therapy to challenge traditional stem cell transplantation in the frontline treatment of multiple myeloma.

In April 2024, CARVYKTI® was approved by the U.S. FDA for second-line treatment of multiple myeloma (MM), expanding the patient population from later lines (4th line and above) to earlier relapsed or refractory patients (1-3 lines of therapy), potentially increasing the applicable population by 3-5 times. Clinical trial CARTITUDE-4 demonstrated that, compared to standard therapy, CARVYKTI® reduced the risk of disease progression or death by 59% (HR=0.41) and significantly extended median progression-free survival (PFS).。

The product will be launched in China in mid-2024 and on March 11, 2025,Legend Biotech Issues Announcement, ItsCAR-T Therapy CARVYKTI® Net Trade Sales for Q4 and Full Year 2024 Approximately $334 Million and $963 Million, Respectively.

3.EGFR/cMET Bispecific Antibody Rybrevant:Through its widespread application in combination with chemotherapy for non-small cell lung cancer (NSCLC), Rybrevant has become a first-line chemotherapy-free treatment option for patients with EGFR mutations, further solidifying Johnson & Johnson's competitiveness in the lung cancer field. The clinical response rate is three times higher than that of traditional chemotherapy, potentially making it the next billion-dollar product. Chief Executive Officer Joaquin Duato specifically highlighted on Tuesday morning that Rybrevant (Amivantamab) was one of the "key contributors" to Johnson & Johnson’s success this quarter.

Mabtolimumab (Rybrevant and Lazcluze, the combination therapy for small cell lung cancer, have achieved significant clinical milestones. In a Phase III head-to-head trial whose results were announced in March, this "golden duo" outperformed AstraZeneca's leading lung cancer drug Tagrisso (Osimertinib), showing a significant improvement in overall patient survival. The sales of this combination therapy also surged from $47 million in the same period last year to $141 million, marking an impressive achievement.

Q1 2025: Johnson & Johnson's Autoimmune Segment Revenue$3.707 billion, a year-on-year decrease12.7%, becoming the only segment with negative growth in the innovative drug business. This decline is mainly attributed to core products.Stelara (Ustekinumab)Patent expiration and biosimilar competition.Stelara's Q1 sales reached only $1.63 billion, plummeting 34% year-over-year, with 61% of its revenue coming from the U.S. market, while the European market has already been impacted by the biosimilar SB17 developed through a collaboration between Samsung Biologics and Sandoz.

However, Johnson & Johnson throughTremfya (Guselkumab)The rapid growth partially offset the downturn:Tremfya Q1 Sales Reach $956 Million, Becoming a New Pillar in the Autoimmune FieldTremfya, as the world's first selective IL-23 inhibitor, exceeded market expectations in Q1 2025 sales growth year-over-year. Its success is attributed to the expansion of indications.

In response toJohnson & Johnson Adopts "External M&A + Internal R&D" Dual-track Strategy to Address Stelara Revenue Gap：

1. Invested $1 billion to introduce from ProtagonistIt is expected to submit a psoriasis indication marketing application in 2025, with peak sales potentially reaching $5 billion.

2. Through the acquisition of Proteologix and Yellow Jersey, acquiring pipelines such as PX128 (IL-13/TSLP bispecific antibody) and NM26 (IL-31/IL-4Rα bispecific antibody), targeting niche markets like atopic dermatitis (AD) and asthma.

3. Acquired for $6.5 billion in 2024 from MomentaNipocalimab (Nicarimab), has been submitted for myasthenia gravis (MG) listing application, and expanding to indications such as Sjögren's Syndrome (SjD), with expected peak sales of 5 billion USD,对标Argenx的Efgartigimod（2024年销售额21.86亿美元）.

Johnson & Johnson Announces $55 Billion Investment in the U.S. Over the Next Four Years, Targeting Three Strategic High Grounds:

1.Cell Therapy"Arms Race": Invest 3 billion US dollars to expand the CAR-T production base, aiming to compress the production cycle from 120 days to 60 days, reducing patient waiting time by 50%.

2.Surgical Robot"Overtaking on a Curve"Ottava Minimally Invasive Robot Receives FDA Breakthrough Device Designation, Challenging Intuitive Surgical's Da Vinci System in Prostate Surgery Precision with 6-DOF Robotic Arm Technology.

3."ADC Drug 'All-In Layout'": Acquired site-specific conjugation technology through the purchase of Ambrx. The Phase III clinical data for ARX788 targeting HER2-low breast cancer is about to be unblinded, potentially becoming the next breakthrough.

Behind Johnson & Johnson's glossy financial report, multiple risks are accumulating:

Talcum Powder Litigation"Bottomless Pit": The total settlement amount exceeds$8.9 Billion: New Jersey Court's Latest Ruling May Trigger a New Wave of 53,000 Lawsuits.

The "Sword of Damocles" in CAR-T：FDA Receives 127 Reports of CARVYKTI®-Related Neurotoxicity, Including 9 Fatal Cases Potentially Leading to Indication Usage Restrictions.

Medical Insurance Negotiation"Price Strangulation": The first batch of the U.S. Inflation Reduction ActLanding of 10 Drug Price Negotiations: Johnson & Johnson's Anticoagulant Xarelto Faces Up to 68% Price Cut Pressure.

Oncology drug sales surged 17.9% year-on-year, contributing more than half of the growth, while the sales of the off-patent immunological drug Stelara plummeted 34%, dragging down overall growth by 8.1 percentage points. The exceptional increase in net profit to $10.99 billion was driven by "surgical" cost optimization involving cutting 15 inefficient production lines and closing three factories, as well as an increased share of high-margin CAR-T therapies.

When $5.678 billion in oncology drug revenue is backed by a $55 billion transformation bet and $8.9 billion in legal risks, every strategic choice made by this century-old giant is writing a new survival textbook for the industry.

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