Wednesday, Johnson & Johnson (NYSE:JNJ) reported a second-quarter adjusted EPS of $2.82, up 10.2% Y/Y, beating the consensus of $2.70.
RBC Capital Markets anticipates a favorable second-quarter environment for companies outside of China. They expect the third quarter to follow typical seasonal patterns without backlog issues, with robust MedTech markets projected for 2024 and beyond.
Johnson & Johnson maintains its consistent M&A strategy, affirming continuity even after acquiring Shockwave Medical. The company asserts confidence in its ability to explore diverse opportunities moving forward.
Johnson & Johnson has stated that while it is open to opportunities across all sectors and sizes, it prefers areas with existing expertise and capabilities.
It emphasized its long-term approach to mergers and acquisitions, prioritizing sustainable growth over short-term gains.
The RBC analyst adds that in the second quarter, both businesses showed sequentially increasing growth on a stacked 2-year basis, indicating improved fundamentals compared to the first quarter.
Johnson & Johnson anticipates faster sales growth in its Medical Technology sector in the second half of 2024. However, it foresees a slowdown in sales growth for Innovative Medicine, mainly due to the entry of a biosimilar for Stelara in Europe.
RBC Capital maintains the Outperform rating with a price target of $175.
Truist Securities says the management noted Imbruvica continues to experience competitive pressure, including Jaypirca, which was developed by Eli Lilly And Co (NYSE:LLY).
"In our view, this may reflect physician demand for novel options that can address resistance to older and less efficacious molecules such as Imbruvica," Truist analyst writes.
Johnson & Johnson reports strong Tecvayli demand despite slower growth following FDA approval for a longer dosing interval. Pfizer Inc's (NYSE:PFE) Elrexfio allows biweekly dosing after week 24, contrasting with Tecvayli's weekly dosing regimen.
This suggests a potential positive signal for Elrexfio. Meanwhile, attention is on Regeneron Pharmaceutical Inc's (NASDAQ:REGN) linvoseltamab, anticipated to offer a best-in-class profile with promising response rates (71% ORR and 46% CR or better).
Price Action: JNJ Stock is down 0.42% at $155.92 at last check Thursday.
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