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What's in Store for J&J's (JNJ) Segments & Pipeline in 2022?
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J&J’s (JNJ - Free Report) Pharma segment is performing above market despite currency headwinds and the impact of biosimilar and generic competition on sales of some key drugs like Remicade and Zytiga. Pharmaceutical segment sales rose 13.6% in 2021 on an organic basis despite the coronavirus pandemic. The sales increase was led by J&J’s blockbuster drugs, Darzalex and Stelara and contribution from newer drugs, Erleada and Tremfya and its COVID-19 vaccine. Meanwhile, other core products like Simponi/Simponi Aria and Invega Sustenna are also contributing to growth. J&J continues to expect its Pharmaceutical business to deliver market-leading sales growth in 2022 driven by drugs like Darzalex, Tremfya, Stelara, Erleada and the newly launched Rybrevant. J&J has a long-term goal of growing the Pharmaceutical unit into a $60 billion segment by 2025.
Sales of the Consumer unit are improving, withstanding external supply constraints due to raw material availability and labor shortages. These constraints hurt sales of the skin health and beauty franchise in the fourth quarter of 2021. J&J expects the supply constraints to continue in 2022 with the majority of the impact expected in the first half, primarily in skin health and beauty segments.
J&J has started instituting price increases across its Consumer Health portfolio in 2022 due to the impact of inflationary pressure, including higher input costs. J&J expects price increases to enable it to remain competitive in 2022.
As far as its Medical Devices segment is concerned, the Omicron variant softened recovery trends in medical and surgical procedures, especially toward the end of the fourth quarter. The negative impact is expected to continue in the first half of 2022. However, J&J expects the market recovery to accelerate as the year progresses as global health systems treat new patients and work through procedure backlogs. The market recovery coupled with contribution from new product launches is expected to lead to better performance in the second half of 2022. J&J launched 20 major products in 2021.
Importantly, J&J’s single-shot COVID-19 vaccine has become a key contributor to the top-line. The vaccine was approved for emergency/conditional use in some countries in 2021 and vaccinations are in full swing. A booster shot of the vaccine was authorized for all adults in October 2021. The COVID-19 vaccine generated sales of around $2.4 billion in 2021.
Among other vaccine makers, Pfizer (PFE - Free Report) and BioNTech’s (BNTX - Free Report) booster dose or “third dose” was granted emergency approval by the FDA in December for all adults 18 years of age and older, following the completion of primary vaccination with any FDA-authorized or approved COVID-19 vaccine. Later the EUA was extended to allow its use in individuals 16 and 17 years of age and thereafter in adolescents 12 to 15 years of age.
Pfizer/BioNTech’s booster shot is the only one authorized for use in children below the age of 18.
A booster dose of Moderna’s (MRNA - Free Report) mRNA-based COVID-19 vaccine, Spikevax has been granted EUA for use in all adults in the United States at least six months after the completion of primary vaccination with any FDA-authorized or approved COVID-19 vaccine. In Europe, Moderna’s booster dose can be given at least three months after the second dose for people aged 18 years and older. Meanwhile, pivotal studies are ongoing for the Omicron-specific booster candidate on Moderna.
J&J is also making rapid progress with its pipeline and line extensions. It gained FDA approval for its BCMA-directed CAR-T cell therapy, Carvykti (ciltacabtagene autoleucel) for previously treated relapsed or refractory multiple myeloma in February. An FDA decision on teclistamab for relapsed or refractory multiple myeloma and an EU decision on ciltacabtagene autoleucel is expected this year. Several pivotal data readouts are also expected in 2022.
J&J also plans to take a more aggressive stance for M&A activity as it expects its strong cash position to help it pursue tuck-in M&A to grow its business.
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What's in Store for J&J's (JNJ) Segments & Pipeline in 2022?
J&J’s (JNJ - Free Report) Pharma segment is performing above market despite currency headwinds and the impact of biosimilar and generic competition on sales of some key drugs like Remicade and Zytiga. Pharmaceutical segment sales rose 13.6% in 2021 on an organic basis despite the coronavirus pandemic. The sales increase was led by J&J’s blockbuster drugs, Darzalex and Stelara and contribution from newer drugs, Erleada and Tremfya and its COVID-19 vaccine. Meanwhile, other core products like Simponi/Simponi Aria and Invega Sustenna are also contributing to growth. J&J continues to expect its Pharmaceutical business to deliver market-leading sales growth in 2022 driven by drugs like Darzalex, Tremfya, Stelara, Erleada and the newly launched Rybrevant. J&J has a long-term goal of growing the Pharmaceutical unit into a $60 billion segment by 2025.
Sales of the Consumer unit are improving, withstanding external supply constraints due to raw material availability and labor shortages. These constraints hurt sales of the skin health and beauty franchise in the fourth quarter of 2021. J&J expects the supply constraints to continue in 2022 with the majority of the impact expected in the first half, primarily in skin health and beauty segments.
J&J has started instituting price increases across its Consumer Health portfolio in 2022 due to the impact of inflationary pressure, including higher input costs. J&J expects price increases to enable it to remain competitive in 2022.
As far as its Medical Devices segment is concerned, the Omicron variant softened recovery trends in medical and surgical procedures, especially toward the end of the fourth quarter. The negative impact is expected to continue in the first half of 2022. However, J&J expects the market recovery to accelerate as the year progresses as global health systems treat new patients and work through procedure backlogs. The market recovery coupled with contribution from new product launches is expected to lead to better performance in the second half of 2022. J&J launched 20 major products in 2021.
Importantly, J&J’s single-shot COVID-19 vaccine has become a key contributor to the top-line. The vaccine was approved for emergency/conditional use in some countries in 2021 and vaccinations are in full swing. A booster shot of the vaccine was authorized for all adults in October 2021. The COVID-19 vaccine generated sales of around $2.4 billion in 2021.
Among other vaccine makers, Pfizer (PFE - Free Report) and BioNTech’s (BNTX - Free Report) booster dose or “third dose” was granted emergency approval by the FDA in December for all adults 18 years of age and older, following the completion of primary vaccination with any FDA-authorized or approved COVID-19 vaccine. Later the EUA was extended to allow its use in individuals 16 and 17 years of age and thereafter in adolescents 12 to 15 years of age.
Pfizer/BioNTech’s booster shot is the only one authorized for use in children below the age of 18.
A booster dose of Moderna’s (MRNA - Free Report) mRNA-based COVID-19 vaccine, Spikevax has been granted EUA for use in all adults in the United States at least six months after the completion of primary vaccination with any FDA-authorized or approved COVID-19 vaccine. In Europe, Moderna’s booster dose can be given at least three months after the second dose for people aged 18 years and older. Meanwhile, pivotal studies are ongoing for the Omicron-specific booster candidate on Moderna.
J&J is also making rapid progress with its pipeline and line extensions. It gained FDA approval for its BCMA-directed CAR-T cell therapy, Carvykti (ciltacabtagene autoleucel) for previously treated relapsed or refractory multiple myeloma in February. An FDA decision on teclistamab for relapsed or refractory multiple myeloma and an EU decision on ciltacabtagene autoleucel is expected this year. Several pivotal data readouts are also expected in 2022.
J&J also plans to take a more aggressive stance for M&A activity as it expects its strong cash position to help it pursue tuck-in M&A to grow its business.