Written by Patrick Wingrove and Bhanvi Satya
(Reuters) – Johnson & Johnson (JNJ) just signed a $14.6 billion deal to acquire neurological drug maker Intra Cellular, driven by strong sales of its cancer drug. The company on Wednesday reported fourth-quarter sales and profits that beat Wall Street expectations.
J&J stock rose more than 1% before the bell Wednesday.
The New Jersey-based drug company also said it expects 2025 sales to be between $90.9 billion and $91.7 billion, and adjusted earnings per share between $10.75 and $10.95. Analysts had expected sales of $90.98 billion and earnings per share of $10.56 in 2025, according to data compiled by LSEG.
J&J’s fourth-quarter sales were $22.52 billion, up 5.3% from a year earlier and beating analysts’ expectations for $22.42 billion, according to LSEG data.
On an adjusted basis, the company reported earnings per share of $2.04 for the quarter, which included a 22 cent charge related to the acquisition of medical device maker V-Wave, and was down nearly 11% from a year earlier. That beat analysts’ expectations of $2.01 per share. Share.
J&J’s cancer drug sales rose 19% globally for the quarter, led by more than $3 billion for its multiple myeloma drug Darzalex, up 20.9% from a year ago.
“Darzalex continues to be a pillar brand in terms of performance,” J&J Chief Financial Officer Joe Walke said in an interview, noting that sales of Shockwave Medical also contributed to the growth.
The company is driving growth in its medical devices segment through deals focused on heart health, including the $13.1 billion deal to acquire Shockwave Medical.
J&J said Shockwave had sales of $258 million in the quarter and $564 million for the year.
J&J’s Innovative Medicines segment had fourth-quarter sales of $14.33 billion, and its Medical Technologies segment had sales of $8.19 billion, up 4.4% and 6.7%, respectively, from the year-ago period.
Fourth-quarter sales of J&J’s blockbuster psoriasis drug Stelara fell 14.7% to $2.35 billion. Analysts had expected revenue of $2.25 billion, according to LSEG data.
Similar copies of Stelara were launched in Europe, Canada, and several other markets last year. Several Stelara biosimilars are expected to launch in the United States this year.
Stelara’s full-year sales were $10.36 billion, accounting for more than 18% of J&J’s total drug sales of $56.96 billion in 2024. Analysts had expected sales of $10.59 billion.
Annual sales of the drug are expected to fall to about $7 billion this year.