BIG PHARMA EARNINGS: JOHNSON & JOHNSON

Johnson & Johnson Reports Higher-Than-Expected Earnings Fueled by Price Hikes

This week, brand name drug giant Johnson & Johnson reported earnings for the third quarter of the year. The Big Pharma giant beat Wall Street analysts’ earnings expectations after hiking prescription drug prices earlier in the year, including in its oncology portfolio.

Johnson & Johnson

• Johnson & Johnson reported earnings that topped Wall Street analysts’ expectations, driven by its prescription drug division. The company has beat consensus revenue estimates three times during the last four quarters.
• The Big Pharma giant brought in $22.47 billion in sales for the quarter, up 5.2 percent year over year and beating analyst expectations of $22.16 billion.
• The company’s Innovative Medicine unit was a main driver of its business, bringing in $14.6 billion and accounting for nearly two-thirds of total sales, with oncology drugs continuing to be a lucrative segment for the company, bringing in $5.38 billion in sales.
• Multiple myeloma drug Darzalex brought in $3.016 billion, a 20.7 percent increase in sales, while psoriasis drug Stelara brought in $2.68 billion, down by 6.6 percent.
• Prostate cancer drug Erleada brought in $790 million, up 25 percent over the same period. 

The positive earnings report from the Big Pharma company follows continued price hikes on several of its biggest blockbuster drugs, particularly its oncology portfolio, above the rate of inflation.

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.

Stay tuned as we continue to monitor third 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.