NEW YORK/BENGALURU (April 16): Johnson & Johnson's (J&J) 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 US.

Stelara sales were flat at US$2.45 billion, falling short of analysts' expectations of US$2.6 billion, according to LSEG data, and shares were off about 1% in premarket trading.

J&J chief financial officer Joe Wolk said Stelara's revenue was flat because of contracting with healthcare providers and pharmacy benefit managers, in anticipation of the drug's loss of exclusivity in the US 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 US launches of biosimilars, or close copies, of Stelara until 2025, after a key patent expired last year.

Analysts have said that 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 US$2.69 billion, about in line with expectations. The multiple myeloma treatment is expected to bring in sales of more than US$11 billion for J&J this year, according to analysts.

Revenue from Carvykti, a cell therapy cancer treatment that analysts expect to bring in US$1.15 billion this year, was US$157 million for the quarter.

Supply has been a constraint on Carvykti sales, Wolk said, but added that the company was working with the US FDA to enable increased capacity at its plants in New Jersey and Belgium.

J&J's medical devices unit reported US$7.82 billion in sales for the quarter, boosted by strong demand for Abiomed heart pumps and devices used in wound closure surgeries. That was still short of analysts' estimates of US$7.88 billion.

Two analysts pointed to a weakness in J&J's vision care products and surgical devices.

"China-related issues seemed to play a restraining role in both divisions' underperformance," said Stifel analyst Rick Wise.

J&J announced this month that it had agreed to buy Shockwave Medical for US$13.1 billion to acquire its device that uses vibrations to break down calcium deposits in heart vessels.

Wolk said operational growth in medical devices this quarter - up 6.3% from the year-ago quarter - "probably speaks to why we were seeking to add to that portfolio with the potential acquisition of Shockwave".

On an adjusted basis, J&J earned US$2.71 per share in the first quarter, beating estimates of US$2.64. It reported total revenue of US$21.38 billion, shy of estimates of US$21.40 billion.

J&J raised the low end of its 2024 forecast by five cents and now expects an adjusted profit of US$10.60 to US$10.75 per share.

It also increased its quarterly dividend by 4.2% to US$1.24 per share.

  - Reuters