BIG PHARMA EARNINGS WATCH: JOHNSON & JOHNSON
Big Pharma Giant Kicks Off Q1 Earnings After Hiking Prices More Than 40 Times in 2023
This week, brand name drug giant Johnson & Johnson kicked off the first round of Big Pharma earnings calls for the first quarter of 2024. The company surpassed Wall Street analysts’ earnings expectations after hiking prescription drug prices more than 40 times last year. The Big Pharma giant’s first quarter profit beat consensus estimates, and the company estimated 2024 sales will top $88 billion.
Johnson & Johnson
- Johnson & Johnson reported earnings that topped Wall Street analysts’ expectations.
- The Big Pharma giant brought in $21.4 billion in sales for the quarter and updated their 2024 profit forecast after better than expected Q1 earnings.
- The company’s pharmaceutical division outperformed expectations, bringing in $13.56 billion.
- The pharmaceutical division’s strong performance was led by multiple myeloma drug Darzalex and prostate cancer treatment Erleada, while cancer drug Stelara posted sales of $2.45 billion for the quarter.
The strong earnings report comes as the Big Pharma giant has continued to price-gouge patients, with more than 30 price hikes in two consecutive years leading up to 2024. Johnson & Johnson also has a history of engaging in anti-competitive practices to block its blockbuster products from facing competition, such as the company’s settlement with fellow drug maker Amgen to delay the entry of biosimilar competition to its blockbuster cancer drug Stelara until at least 2025.
Johnson & Johnson
- Johnson & Johnson engaged in more than 40 price hikes in 2023.
- According to a recent ICER report, price hikes that were unsupported by new clinical evidence on multiple myeloma drug Darzalex and breast cancer drug Ibrance led to additional consumer spending of $248 million and $151 million.
- The Big Pharma manufacturer also hiked prices on nearly 30 prescription medications in 2022 – at an average rate of five percent.
- Spending on the company’s blockbuster cancer drug Imbruvica is expected to exceed $41 billion between 2027-2036 thanks to an anti-competitive patent scheme that extended a monopoly on the high-priced cancer drug by more than nine years. Imbruvica costs an eye-popping $180,000 per year.
Stay tuned as we continue to monitor first quarter earnings calls from brand name drug companies in the weeks ahead.
Learn more about solutions to lower prescription drug prices and hold Big Pharma accountable HERE.
