Even though Johnson & Johnson’s sales of famous immunology drug Remicade and baby care products are declining, the company has almost 40 late-stage programs that offer a promising growth opportunity in the future. Investors should pay special attention to the company’s drug called Stelara and Tremfya, prostate cancer drug Darzalex, cancer drug lazertinib and multiple sclerosis drug ponesimod.
In July, Johnson & Johnson said its coronavirus candidate Ad26.COV2-S showed positive results in pre-clinical studies on non-human primates. The company is also testing a vaccine candidate on humans in a phase 1/2a clinical trial in the U.S. and Belgium. J&J will start late-stage trial testing a potential coronavirus vaccine in September. The company’s trial would be the largest testing of a coronavirus vaccine yet, with 60,000 participants. In August, The European Commission conducted exploratory talks with Johnson & Johnson about a potential contract to supply up to 200 million doses of its COVID-19 vaccine to member states.
Apart from the company’s vaccine efforts, Johnson & Johnson’s medical device segment also offers some promising products, which target areas like joint reconstruction, trauma, sports medicine and biomaterials.
Investment insights platform Trefis estimates that Johnson & Johnson has a valuation of up to $176, mainly because of its drug revenue growth in the future. Trefis is bullish on Imbruvica, Darzalex, Stelara, and Simponi, which it estimates will likely account for $22.3 billion total sales in 2021, up almost 30% as compared to 2019.