Johnson & Johnson (NYSE:JNJ) shares declined sharply Wednesday, as the company, fresh off a $14.6-billion deal to buy neurological drugmaker Intra-Cellular (NASDAQ:ITCI), reported fourth-quarter sales and profit above Wall Street estimates on Wednesday, driven by strong sales of its cancer treatments.
The New Jersey-based drugmaker also said it expects 2025 sales of between $90.9 billion and $91.7 billion and earnings between $10.75 and $10.95 per share on an adjusted basis. Analysts were expecting sales of $90.98 billion and a profit of $10.56 per share for 2025, according to data compiled by LSEG.
J&J’s fourth-quarter sales stood at $22.52 billion, up 5.3% from a year ago and above analysts’ expectations of $22.42 billion, according to LSEG data.
On an adjusted basis, the company earned $2.04 per share in the quarter – which includes a 22 cents charge related to its acquisition of medical device maker V-Wave – nearly 11% lower than the previous year but beating analysts’ estimates of $2.01 per share.
Quarterly sales of J&J’s cancer drugs rose 19% worldwide, driven by more than $3 billion for multiple myeloma treatment Darzalex, which was up 20.9% from a year ago.
“Darzalex continues to be a pillar brand with respect to performance,” said J&J Chief Financial Officer Joe Wolk in an interview, noting that sales from Shockwave Medical also helped drive growth.
JNJ shares slipped $5.59, or 3.8%, to $142.56, while those for ITCI advanced 73 cents to $127.73.
