BIG PHARMA EARNINGS: JOHNSON & JOHNSON AND NOVARTIS

Big Pharma Giants Top Wall Street Expectations After Hiking Prices on Prescription Drugs Earlier This Year

Last week, brand name drug giants Johnson & Johnson and Novartis reported earnings for the second quarter of the year. Both companies topped Wall Street analysts’ earnings expectations after hiking prescription drug prices earlier this year. Novartis’ earnings were so strong that the company raised its forecast for the year – the second time this year the company has done so as a business-as-usual approach to price-gouging patients continues to pay off for Big Pharma giants.

Johnson & Johnson

• Johnson & Johnson reported earnings and profit that topped Wall Street analysts’ expectations.
• The Big Pharma giant brought in $22.45 billion in sales for the quarter.
• The company’s pharmaceutical division outperformed expectations, bringing in $14.5 billion – up 5.5 percent year over year.
• The pharmaceutical division’s strong performance was driven by multiple myeloma drug Darzalex, which brought in $2.88 billion – up 18 percent year over year and prostate cancer treatment Erleada, which generated $763 million – up 29 percent year over year.
• Cancer drug Stelara brought in another $2.89 billion for the Big Pharma giant.
• Johnson & Johnson increased prices on all three of these drugs by at least five percent to start the year – as part of a batch of more than 25 price increases.

Novartis

• Novartis reported Q2 earnings that exceeded Wall Street analysts’ expectations.
• The Big Pharma company reported sales of $12.5 billion in the quarter, up 11 percent.
• The company’s best-selling drugs – heart treatment Entresto and arthritis treatment Cosentyx – brought in $1.8 billion and $1.5 billion, respectively.
• Novartis’ multiple sclerosis treatment Kesimpta beat expectations, bringing in $799 million – up a whopping 65 percent year over year.
• Due to a strong Q2 performance, Novartis raised its profit guidance for the year.
• So far this year, Novartis has increased prices on 65 prescription drugs in its portfolio, including on arthritis treatment Cosentyx and multiple sclerosis treatment Kesimpta by seven percent and Entresto by three percent.

The strong earnings report from both Pharma companies come as they have continued to increase prices on their biggest blockbuster drugs above the rate of inflation, driving their continued strong earnings’ reports.

Johnson & Johnson

• Johnson & Johnson has hiked prices on almost 29 prescription drugs so far in 2024, including Darzalex by 6.3 percent, and Erleada and Stelara by five percent each.
• Johnson & Johnson engaged in 36 price hikes in 2023, including a 4.5 percent increase on Darzalex, a five percent increases on Erleada and a 4 percent increase on Stelara.
• According to a December 2023 ICER report, price hikes that were unsupported by new clinical evidence on multiple myeloma drug Darzalex and breast cancer drug Ibrance led to additional consumer spending of $248 million and $151 million.
• The Big Pharma manufacturer also hiked prices on nearly 30 prescription medications in 2022 – at an average rate of five percent.
• Spending on the company’s blockbuster cancer drug Imbruvica is expected to exceed $41 billion between 2027-2036 thanks to an anti-competitive patent scheme that extended a monopoly on the high-priced cancer drug by more than nine years. Imbruvica costs an eye-popping $180,000 per year.

Novartis

• Novartis increased prices on more than 60 prescription drugs in its portfolio so far this year, including arthritis treatment Cosentyx by seven percent and heart treatment Entresto by three percent.
• Novartis hiked prices on almost 70 prescription medications in January last year, including breast cancer drug Kisqali by eight percent.
• The drug maker also increased prices on an additional 10 products last summer.
• Novartis began 2022 by hiking prices on more than 20 prescription drugs, including a seven percent increase on Kisqali. That summer, Novartis increased prices on another 50 prescription drugs across its portfolio.
• Novartis increased prices on more than 20 prescription drugs in January of 2021 and 2020, including a seven percent hike on blockbuster psoriasis drug Cosentyx each year.

Stay tuned as we continue to monitor second quarter earnings calls from brand name drug companies in the coming weeks.

Learn more about solutions to lower prescription drug prices and hold Big Pharma accountable HERE.