Johnson & Johnson (J&J), a global healthcare behemoth, has recently outlined an ambitious long-term strategy, signaling a robust 6% sales growth projection for the upcoming year. The company’s strategic focus is set to intensify within its medical technology (medtech) sector, particularly in the realms of cardiovascular, robotics, and digital innovations, as well as within its pioneering medicine portfolio, which includes the psoriatic arthritis treatment Stelara.
During an investor meeting on Tuesday, J&J presented its strategic vision and financial forecast, spotlighting a quartet of promising products—Tecvalyi, Spravato, Talvey, and JNJ-2113—as pivotal to its anticipated growth trajectory. Despite the looming presence of biosimilars for its blockbuster drug Stelara, which generated a staggering $9.7 billion in 2022, J&J remains optimistic, projecting a minimum of 3% operational sales growth in 2025.
Stelara, a cornerstone of J&J’s sales since 2019, is facing patent expirations this year, prompting the company to strategically safeguard its market share. In a defensive maneuver, J&J initiated legal action against Amgen over a biosimilar in November 2022, culminating in a settlement that effectively bars the competitor’s drug from the market until 2025. This legal victory was shadowed by the Department of Health and Human Services’ (HHS) consideration of Stelara for Medicare price negotiations, although the potential for biosimilar competition might lead to its removal from the negotiation list.
In a competitive twist, AbbVie’s Skyrizi demonstrated promising Phase 3 results, challenging Stelara’s clinical efficacy. Conversely, J&J received a reprieve when Alvotech’s biosimilar faced FDA rejection due to facility inspection deficiencies.
Following the spinoff of its consumer health division into Kenvue, J&J has sharpened its focus on the medtech sector. The company’s strategic blueprint includes an expansion into high-growth markets and an ambitious goal to derive one-third of its sales from new medtech products by 2027. J&J anticipates a 5% to 7% annual increase in operational sales through 2027.
Looking ahead, J&J is committed to enriching its pipeline with novel therapies, aiming to launch approximately 20 new drugs and 50 product expansions by 2030. The company’s Innovation Medicine pipeline is expected to contribute a 5 to 7% operational sales growth from 2025 to 2030.
J&J’s CEO, Joaquin Duato, expressed confidence in the transformative potential of science and technology to advance human health significantly in the coming decade, leading to more effective, personalized treatments, and less invasive healthcare solutions. “We are excited to share today how the breadth of our scientific capabilities, diverse portfolio, and robust pipelines uniquely position J&J to be a leader in this next wave of innovation while delivering strong financial performance,” Duato remarked.
As the pharmaceutical industry continues to evolve, J&J’s strategic initiatives underscore the company’s commitment to innovation and financial strength, positioning it as a formidable player in the healthcare sector’s future landscape.
