J&J Q1 profit beats estimates as Darzalex and Tremfya offset Stelara decline

Cancer and psoriasis drug demand cushions the revenue hit from Stelara's patent loss

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Briefing

Johnson & Johnson reported first-quarter profit above analyst estimates, with strong sales of cancer drug Darzalex and psoriasis treatment Tremfya more than compensating for a steep drop in Stelara revenue. The autoimmune blockbuster has faced biosimilar competition following the loss of patent protection, a transition J&J has been managing through portfolio diversification. The results suggest the company's post-Stelara growth strategy is gaining traction.

J&J Q1 Results: Portfolio Rotation Working

Johnson & Johnson posted first-quarter profit ahead of consensus estimates, with two growth-stage drugs carrying the weight that Stelara, its former autoimmune blockbuster, can no longer reliably provide.

Demand for Darzalex, J&J's multiple myeloma treatment, and Tremfya, its psoriasis therapy, more than offset what CNBC described as a steep falloff in Stelara sales. Stelara has faced intensifying biosimilar competition since losing patent protection, and the revenue decline was flagged as a disappointment relative to expectations.

The Wall Street Journal noted that J&J has been deliberately repositioning its portfolio to secure consistent growth in a post-Stelara environment. The Q1 outcome indicates that effort is advancing, with oncology now serving as a primary growth engine alongside immunology products outside the Stelara franchise.

For portfolio managers, the key question remains how durable the Darzalex and Tremfya growth trajectories are, and whether J&J's medical-device segment is contributing meaningfully to offset ongoing Stelara erosion through the remainder of the year.

Why it matters

→Darzalex's durability as a growth driver depends on its competitive position in multiple myeloma, where Johnson & Johnson faces eventual class pressure from next-generation bispecific antibodies and CAR-T therapies. If Revolution Medicines' RAS inhibitor platform expands into hematologic indications, or if Bristol-Myers or Abbvie accelerate bispecific rollout, Darzalex's growth trajectory compresses faster than the current post-Stelara offset narrative assumes, leaving J&J's revenue bridge narrower than Q1 implies.
→Stelara's biosimilar erosion rate matters for the broader pharma biosimilar trade. If the Stelara decline is tracking worse than expected, it validates that branded biologics lose share faster post-patent expiry than historical precedent suggested, a read that is negative for other large-molecule franchises approaching patent cliffs across the sector, including AbbVie's Skyrizi and Rinvoq eventually, and positive for biosimilar-focused manufacturers.

Connected Events

Earnings · 8 days ago

Revolution Medicines' RAS inhibitor nearly doubles survival in phase 3 pancreatic cancer trial

Revolution Medicines' phase 3 overall survival data in pancreatic cancer positions its RAS inhibitor platform as a potential acquirer target for large-cap pharma oncology desks. J&J, actively rebuilding its post-Stelara revenue base with Darzalex as an oncology anchor, has both the balance sheet and strategic motive to pursue RAS-pathway assets that extend its hematology and solid tumor reach.

J&J Q1 profit beats estimates as Darzalex and Tremfya offset Stelara decline

J&J Q1 Results: Portfolio Rotation Working

Why it matters

Connected Events

Revolution Medicines' RAS inhibitor nearly doubles survival in phase 3 pancreatic cancer trial

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