BUZZ-Street View: New drug launches, ITCI deal to boost J&J's growth

Reuters
01-23
BUZZ-Street View: New drug launches, ITCI deal to boost J&J's growth

** Johnson & Johnson JNJ.N, fresh off a $14.6 bln deal to buy neurological drugmaker Intra-Cellular ITCI.O, reported fourth-quarter revenues and profit above Wall Street estimates on Wednesday, driven by strong sales of its cancer treatments

** Median PT of 24 brokerages covering the stock is $169.5- LSEG data

SALES OUTLOOK LOOKS ACHIEVABLE

** J.P.Morgan ("neutral," PT: $185) sees JNJ's innovative medicines segment poised for growth, and ITCI acquisition will enhance its business

**Despite challenges in China and a pause in the Varipulse used to treat irregular heartbeats launch in the U.S., JPM expects the MedTech segment to grow steadily over time as it shifts towards higher-growth areas

** TD Cowen ("buy," PT: $185) sees JNJ's sales guidance achievable and expects numerous planned product launches to support growth in the latter half of the year

** Leerink Partners ("outperform," PT: $169) expects low double-digit global sales in 2025; says price drop in Tremfya, used to treat certain inflammatory conditions, in late 2024 was due to a mix of factors

** Morningstar (fair value: $164) expects JNJ's growth to slow in 2025 due to competition from biosimilars for Stelara, used to treat inflammatory bowel disease $(IBD)$

(Reporting by Akriti Shah in Bengaluru)

((akriti.shah@thomsonreuters.com))

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