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J&J's New Growth Powerhouses: Immunology and Neuroscience
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Key Takeaways
J&J's Immunology sales fell 8.1% in H1 as Stelara faced biosimilar competition after losing U.S. exclusivity.
Tremfya sales surged 67.8%, while Icotyde and Imaavy posted strong launches to support immunology growth.
Neuroscience sales jumped 20.5%, driven by Caplyta and Spravato, which grew 42.0% in the first half.
Johnson & Johnson (JNJ - Free Report) is a leading player in oncology, with the segment accounting for around 29% of total company revenues and approximately 45% of Innovative Medicine sales. Beyond oncology, J&J has a strong presence in immunology and is steadily expanding its footprint in neuroscience. Both areas are emerging as important drivers of top-line growth and are helping diversify the company’s growth beyond oncology.
In the first half of 2026, Immunology contributed around 23% of Innovative Medicine sales, while Neuroscience accounted for approximately 14%. Let’s take a closer look at each segment.
Can Tremfya, Icotyde and Imaavy Fill the Stelara Gap for J&J?
J&J’s Immunology franchise is currently in a transition phase, with the rapid growth of Tremfya increasingly offsetting the steep decline in the once-blockbuster drug, Stelara, following loss of exclusivity (LOE). Several biosimilar versions of Stelara were launched in the United States in 2025 as the drug lost patent exclusivity.
In the first half of 2026, J&J’s Immunology segment generated $7.22 billion in sales, down about 8.1% year over year (on an operational basis), primarily due to Stelara LOE.
Tremfya recorded $3.65 billion in sales in the first half of 2026, up 67.8% year over year, driven by share gains across all indications, particularly the inflammatory bowel disease indications, as well as continued market growth. J&J expects Tremfya to exceed $10 billion in peak-year sales. Importantly, Tremfya is demonstrating that J&J has a credible successor to Stelara.
Meanwhile, J&J also has some new products in immunology — Protagonist Therapeutics (PTGX - Free Report) -partnered Icotyde, an oral pill for plaque psoriasis, and Imaavy for generalized myasthenia gravis, which can drive growth in the long term in immunology. On the second-quarter conference call, J&J said that it is seeing strong launches for both Icotyde and Imaavy. Icotyde and Imaavy are also being evaluated for additional indications. Imaavy recently received FDA priority review status in warm autoimmune hemolytic anemia.
J&J believes that nipocalimab has pipeline-in-a-product potential and Icotyde/icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-a-day pill. It has the potential to be J&J’s largest product ever with $10 billion sales potential.
JNJ-4804 is another key candidate in its immunology pipeline, which is in late-stage development for Crohn’s disease, ulcerative colitis and psoriatic arthritis. JNJ-4804 also has blockbuster potential.
While it may take time for Tremfya and newer launches such as Icotyde and Imaavy to fully offset Stelara’s lost revenues, J&J’s expanding immunology portfolio, additional indications and promising pipeline candidates such as JNJ-4804 provide a solid foundation for the franchise to return to growth over the long term.
J&J’s New Neuroscience Drugs Add Fresh Growth Potential
Sales in J&J’s Neuroscience segment rose 20.5% in the first half to $4.5 billion, mainly driven by rising contributions from its new products like Caplyta (added from 2025 acquisition of Intra-Cellular Therapies) and Spravato.
Spravato is becoming an increasingly important franchise. Spravato recorded sales of $1.05 billion in the first half, up 42.0% year over year, driven by strong demand trends.
Caplyta generated sales of $631 million in the first half, backed by new patient starts and continuing patient growth following its FDA approval in the adjunctive major depressive disorder indication in November 2025. J&J also received FDA approval in April 2026 for the prevention of relapse in schizophrenia. The company is also developing Caplyta for bipolar mania and pediatric psychiatric indications, creating additional potential growth avenues.
Most of the drugs discussed above, Imaavy, Caplyta and Icotyde, have the potential to deliver peak sales of $5 billion.
Conclusion
J&J’s Immunology and Neuroscience franchises are transitioning from being supporting businesses to becoming meaningful growth engines. Although Stelara’s LOE will weigh on Immunology in the near term, Tremfya, Icotyde and Imaavy provide a strong foundation for recovery. Caplyta and Spravato are accelerating Neuroscience growth. With several newer medicines offering blockbuster potential, J&J appears well positioned to offset legacy-product erosion and build a more diversified growth story.
Competition in the Immunology & Neuroscience Space
The companies that have significant immunology drug portfolios and pipelines are AbbVie, Eli Lilly (LLY - Free Report) , Amgen, Sanofi and Pfizer (PFE - Free Report) . In the neuroscience space, the key companies are Biogen, Lilly, AbbVie, Bristol Myers Squibb and Pfizer.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry so far this year. The stock has risen 26.8% year to date compared with 11.6% appreciationof the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, J&J is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.24 forward earnings, higher than 18.47 for the industry. The stock is also trading above its five-year mean of 15.65.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.59 per share over the past 60 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame.
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J&J's New Growth Powerhouses: Immunology and Neuroscience
Key Takeaways
Johnson & Johnson (JNJ - Free Report) is a leading player in oncology, with the segment accounting for around 29% of total company revenues and approximately 45% of Innovative Medicine sales. Beyond oncology, J&J has a strong presence in immunology and is steadily expanding its footprint in neuroscience. Both areas are emerging as important drivers of top-line growth and are helping diversify the company’s growth beyond oncology.
In the first half of 2026, Immunology contributed around 23% of Innovative Medicine sales, while Neuroscience accounted for approximately 14%. Let’s take a closer look at each segment.
Can Tremfya, Icotyde and Imaavy Fill the Stelara Gap for J&J?
J&J’s Immunology franchise is currently in a transition phase, with the rapid growth of Tremfya increasingly offsetting the steep decline in the once-blockbuster drug, Stelara, following loss of exclusivity (LOE). Several biosimilar versions of Stelara were launched in the United States in 2025 as the drug lost patent exclusivity.
In the first half of 2026, J&J’s Immunology segment generated $7.22 billion in sales, down about 8.1% year over year (on an operational basis), primarily due to Stelara LOE.
Tremfya recorded $3.65 billion in sales in the first half of 2026, up 67.8% year over year, driven by share gains across all indications, particularly the inflammatory bowel disease indications, as well as continued market growth. J&J expects Tremfya to exceed $10 billion in peak-year sales. Importantly, Tremfya is demonstrating that J&J has a credible successor to Stelara.
Meanwhile, J&J also has some new products in immunology — Protagonist Therapeutics (PTGX - Free Report) -partnered Icotyde, an oral pill for plaque psoriasis, and Imaavy for generalized myasthenia gravis, which can drive growth in the long term in immunology. On the second-quarter conference call, J&J said that it is seeing strong launches for both Icotyde and Imaavy. Icotyde and Imaavy are also being evaluated for additional indications. Imaavy recently received FDA priority review status in warm autoimmune hemolytic anemia.
J&J believes that nipocalimab has pipeline-in-a-product potential and Icotyde/icotrokinra has the potential to revolutionize the treatment of plaque psoriasis with a once-a-day pill. It has the potential to be J&J’s largest product ever with $10 billion sales potential.
JNJ-4804 is another key candidate in its immunology pipeline, which is in late-stage development for Crohn’s disease, ulcerative colitis and psoriatic arthritis. JNJ-4804 also has blockbuster potential.
While it may take time for Tremfya and newer launches such as Icotyde and Imaavy to fully offset Stelara’s lost revenues, J&J’s expanding immunology portfolio, additional indications and promising pipeline candidates such as JNJ-4804 provide a solid foundation for the franchise to return to growth over the long term.
J&J’s New Neuroscience Drugs Add Fresh Growth Potential
Sales in J&J’s Neuroscience segment rose 20.5% in the first half to $4.5 billion, mainly driven by rising contributions from its new products like Caplyta (added from 2025 acquisition of Intra-Cellular Therapies) and Spravato.
Spravato is becoming an increasingly important franchise. Spravato recorded sales of $1.05 billion in the first half, up 42.0% year over year, driven by strong demand trends.
Caplyta generated sales of $631 million in the first half, backed by new patient starts and continuing patient growth following its FDA approval in the adjunctive major depressive disorder indication in November 2025. J&J also received FDA approval in April 2026 for the prevention of relapse in schizophrenia. The company is also developing Caplyta for bipolar mania and pediatric psychiatric indications, creating additional potential growth avenues.
Most of the drugs discussed above, Imaavy, Caplyta and Icotyde, have the potential to deliver peak sales of $5 billion.
Conclusion
J&J’s Immunology and Neuroscience franchises are transitioning from being supporting businesses to becoming meaningful growth engines. Although Stelara’s LOE will weigh on Immunology in the near term, Tremfya, Icotyde and Imaavy provide a strong foundation for recovery. Caplyta and Spravato are accelerating Neuroscience growth. With several newer medicines offering blockbuster potential, J&J appears well positioned to offset legacy-product erosion and build a more diversified growth story.
Competition in the Immunology & Neuroscience Space
The companies that have significant immunology drug portfolios and pipelines are AbbVie, Eli Lilly (LLY - Free Report) , Amgen, Sanofi and Pfizer (PFE - Free Report) . In the neuroscience space, the key companies are Biogen, Lilly, AbbVie, Bristol Myers Squibb and Pfizer.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry so far this year. The stock has risen 26.8% year to date compared with 11.6% appreciationof the industry.
From a valuation standpoint, J&J is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.24 forward earnings, higher than 18.47 for the industry. The stock is also trading above its five-year mean of 15.65.
The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.59 per share over the past 60 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame.
J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.