Despite Setback J&J Sticks with $60bn Sales Target

Johnson and Johnson have lost their exclusive contract with Stelara for 2023. Up until now this has been their highest performing medicine by sales, producing $7.33 billion in sales as of September this year, 12% more than the first 9 months of 2021. In spite of this, company executives have stood by the $60 billion goal for 2025.

J&J’s Senior Vice President, Jennifer Taubert, stated that J&J anticipates a sustained level of growth “at least 5%” annually.

In reference to the target, she said that “you take a look at the strength of the existing portfolio, you layer in on top of that what’s coming through with the pipeline, and that’s what gives us the confidence to hit the $60 billion organically.”

Taubert continued by referencing 14 medicines lined up to achieve over $1 billion in revenue, and an additional five that have potential to generate more than $5 billion in revenue.

Joseph J. Wolk, Chief Financial Officer of the company, has stressed that J&J will continue to consider mergers and acquisitions, however they will no longer have such a dependence on it. They remain to have $34 billion cash on hand, with their goals and strategy for deal making remaining the same.

Tremfya and Darzalex were major contributors to J&J’s pharmaceutical growth in cancer and immunology, throughout the third quarter. In that time, Darzalex generated more than $2 billion in sales for J&J while growing by 38.7% globally. This positive trajectory is anticipated to continue, according to Lee Brown, Global Sector Lead for healthcare at Third Bridge.

J&J is “navigating the macroeconomic environment well, despite currency projected to push down sales by roughly $4.5 billion or nearly 5% in 2022.”

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