J&J’s Q2 Increase: Cardiovascular Gains and Strategic Moves Amid Vaccine Decline

In the second quarter of 2024, major pharmaceutical companies reported solid financial performance and significant pipeline advancements. Johnson & Johnson (J&J) posted a 4.3% revenue increase, with notable gains in cardiovascular products, despite a decline in COVID-19 vaccine sales.

Johnson & Johnson Achieves 4.3% Revenue Growth with Steady Gains in Cardiovascular Products

In Q2 2024, J&J’s revenue reached $22.447 billion, a 4.3% increase compared to the same period last year. The Innovative Medicine division performed particularly well in the U.S. market, with revenue reaching $8.51 billion, an 8.9% increase. The international market contributed $5.98 billion, up 1.1%. Overall, the Innovative Medicines segment’s total revenue was $14.490 billion, marking a year-over-year increase of 5.5%. However, COVID-19 vaccine sales fell by 39.7%, impacting growth in this segment.

The MedTech sector also showed solid growth, particularly in cardiovascular products, with revenue reaching $1.873 billion, a year-on-year increase of 15.6%. Meanwhile, the performance of the Surgery and Vision product lines remained stable, with revenues of $2.488 billion and $1.285 billion, respectively.

Despite overall revenue growth, J&J’s net profit was $4.686 billion, down 12.8% from the same period last year. Earnings per share (EPS) fell to $1.93 from $2.05. The company invested $3.440 billion in research and development (R&D) during the quarter, accounting for 15.3% of total revenue. J&J has maintained stable growth in its core business areas while facing challenges due to declining COVID-19 vaccine sales. Moving forward, the company plans to enhance its competitiveness through increased R&D and market expansion.

J&J’s Q2 Regulatory Approvals, Product Launches, and Strategic Acquisitions Highlight Key Industry Advances

Notable regulatory and product developments occurred in Q2. The European Commission (EC) approved BALVERSA (erdafitinib) for treating unresectable or metastatic urothelial carcinoma with FGFR3 genetic alterations. Additionally, the EC granted approval to RYBREVANT (amivantamab) combined with chemotherapy as the first-line treatment for advanced non-small cell lung cancer (NSCLC) with EGFR exon 20 insertion mutations. J&J submitted several regulatory applications, including for TREMFYA (guselkumab) for moderately to severely active Crohn’s disease and ulcerative colitis, and a subcutaneous amivantamab Biologics License Application for EGFR-mutated NSCLC. DePuy Synthes received 510(k) FDA clearance for the VELYS Robotic-Assisted Solution in unicompartmental knee arthroplasty procedures. The EC also approved CARVYKTI (ciltacabtagene autoleucel) for relapsed and refractory multiple myeloma (MM).

In terms of data releases, CARVYKTI demonstrated significant improvement in overall survival in the CARTITUDE-4 study. Nipocalimab’s Phase 3 trial showed the longest sustained disease control for myasthenia gravis patients. TREMFYA showed superiority versus STELARA (ustekinumab) in Crohn’s disease and met key endpoints in ulcerative colitis studies. J&J presented advancements in oncology and rheumatology at major conferences, and Phase 2 data for ERLEADA (apalutamide) indicated a 100% biochemical-free recurrence rate in high-risk prostate cancer patients. Additionally, TAR-210 and TAR-200 data revealed high response rates in bladder cancer patients.

Product launches included a new version of the CARTO 3 Electro-Anatomical Mapping System by Biosense Webster. J&J also expanded its pipeline through acquisitions, including Yellow Jersey Therapeutics, Proteologix, Inc., and Shockwave Medical, while planning a reorganization to resolve ovarian cancer talc claims.

Q2 Revenue Increase and Continued Oncology Developments

Overall, J&J reported a 4.3% revenue increase in Q2, driven by growth in cardiovascular products and steady performance in other MedTech sectors. The company faced a decline in COVID-19 vaccine sales. Key regulatory approvals included BALVERSA for urothelial carcinoma, RYBREVANT for lung cancer, and CARVYKTI for multiple myeloma. Product launches featured updates to the CARTO 3 Electro-Anatomical Mapping System. Strategic acquisitions included Yellow Jersey Therapeutics, Proteologix, Inc., and Shockwave Medical.

Author

Bernice Lottering