By Patrick Wingrove and Bhanvi Satija
(Reuters) -Johnson & Johnson’s first quarter revenue missed Wall Street estimates on Tuesday with sales of its blockbuster psoriasis drug Stelara coming in lower than expected as the company prepares for its loss of exclusivity in the U.S.
Stelara sales were flat at $2.45 billion, falling short of analysts’ expectations of $2.6 billion, according to LSEG data, and shares were off about 1% in premarket trading.
J&J (NYSE:) Chief Financial Officer Joe Wolk said Stelara revenue was flat because of contracting with healthcare providers and pharmacy benefit managers in anticipation of the drug’s loss of exclusivity in the U.S. next year.
“We probably expect this year to be flattish, maybe a little bit up in the United States, as we prepare for some contracts to preserve volume, but maybe give a little bit on price for the longer term,” Wolk said.
J&J has struck deals to delay U.S. launches of biosimilars, or close copies, of Stelara until 2025, after a key patent expired last year.
Analysts have said the delayed competition will make the drug a larger contributor for J&J’s 2024 and 2025 revenue than previously anticipated.
Stelara biosimilars are expected to launch elsewhere later this year. J&J reached an agreement with Alvotech in February to launch its version in Japan, Canada and Europe this year. The Luxembourg-based drugmaker began selling the medicine in Canada last month under the name Jamteki and can launch in Japan in May.
Sales of cancer drug Darzalex jumped about 19% to $2.69 billion, about in line with expectations. The multiple myeloma treatment is expected to bring in sales of more than $11 billion for J&J this year, according to analysts.
On an adjusted basis, J&J earned $2.71 per share in the first quarter, beating estimates of $2.64. It reported total revenue of $21.38 billion, shy of estimates of $21.40 billion.
J&J raised the low end of its 2024 forecast by 5 cents and now expects an adjusted profit of $10.60 to $10.75 per share.
It also increased its quarterly dividend by 4.2% to $1.24 per share.
Click Here to Read the Full Original Article at All News…
