Johnson & Johnson has made significant changes in recent years, focusing on streamlining its business units and emphasizing its presence in the pharmaceutical industry. The company has been shedding major divisions, starting with the sale of its consumer unit, now known as Kenvue, in 2023. This move allowed J&J to redirect resources towards innovation in pharma and medtech, setting the stage for future growth.
Continuing on this path, J&J recently announced the spin-off of its orthopedics unit, which will operate under the name DePuy Synthes after a transition period of up to two years. This division, which generated around $9.2 billion in sales last year, includes products for hip and knee replacements, trauma, and spine health. With these changes, J&J aims to focus on pharmaceutical R&D and strengthen its presence in key areas like oncology, immunology, and neuroscience.
In the oncology space, J&J’s cancer treatments have been a major revenue driver, with Darzalex leading the way in the multiple myeloma market. The company also saw success with Carvykti, a CAR-T cell therapy for multiple myeloma, which has shown significant sales growth since its approval in 2022. Additionally, Inlexzo, a drug-device combo for bladder cancer acquired through the purchase of Taris Biomedical, has further demonstrated J&J’s commitment to innovation in pharmaceuticals and medtech.
In the immunology sector, J&J faces challenges due to biosimilar competition impacting its megablockbuster Stelara. However, the company has been able to offset this decline with the rapid growth of Tremfya, positioning it as the next big innovation in the field. With ongoing R&D efforts and promising pipeline assets like icatrekibart for plaque psoriasis, J&J remains optimistic about the future of its immunology portfolio.
In the neuroscience arena, J&J is making strides with products like Spravato, a ketamine-based treatment for depression, which has seen a significant increase in sales. The acquisition of Intra-Cellular Therapies has also bolstered J&J’s presence in this space, with Caplyta showing promise for schizophrenia and bipolar disorder, and potential approval for major depressive disorder on the horizon.
Overall, J&J’s strategic shifts towards a more focused and innovative approach in pharmaceuticals and medtech are positioning the company for accelerated growth. By prioritizing breakthrough innovation and capitalizing on key therapeutic areas, J&J is paving the way for a new era of success in the healthcare industry.
