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

Intra-Cellular Therapies

23/01/2025 12:00

** 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))