NEW YORK – Johnson & Johnson on Tuesday reported that third quarter oncology drug sales increased 12 percent year over year, partially driven by greater uptake of its autologous CAR T-cell therapy Carvykti (ciltacabtagene autoleucel) and other non-precision cancer therapies.
For the three months ending Sept. 30, J&J reported worldwide sales of $21.35 billion, a 7 percent increase over $20 billion in Q3 2022 and above analysts' consensus estimate of $21.03 billion for the quarter.
J&J's Innovative Medicine segment, which is the new name for Janssen Pharmaceutical Companies, contributed $13.89 billion to Q3 2023 revenues, a 5 percent increase from $13.21 billion in the year-ago quarter. The firm reported $4.53 billion in Q3 sales from its oncology unit, a 12 percent increase from $4.06 billion in Q3 2022.
During a call to discuss the firm's Q3 financial performance, Jessica Moore, VP of investor relations at J&J, highlighted that market share gains and manufacturing capacity improvements for Carvykti had contributed positively to overall revenue gains during the quarter. Revenues for Carvykti, which is available in the US and Europe for patients with heavily pretreated relapsed and refractory multiple myeloma, more than doubled to $152 million in Q3 2023, compared to $55 million in Q3 2022. The US Food and Drug Administration approved the cell therapy in March last year, and the European Commission's conditional marketing authorization followed in May.
J&J did not break out sales of its more recently approved precision oncology products, including the EGFR-MET bispecific antibody Rybrevant (amivantamab), the FGFR inhibitor Balversa (erdafitinib), and the dual-action PARP inhibitor/hormone therapy combination Akeega (niraparib and abiraterone acetate). Revenues from these drugs are compiled under its "other oncology" category, which contributed $229 million in worldwide sales in Q3 2023, compared to $100 million in Q3 2022.
In Q3, the FDA approved Akeega plus prednisone as a treatment for BRCA1/2-mutated metastatic castration-resistant prostate cancer.
Rybrevant is approved in the US for previously treated, locally advanced or metastatic non-small cell lung cancer with EGFR exon 20 insertion mutations. In the third quarter, J&J said it submitted applications in the US and Europe seeking approval for the combination of Rybrevant and chemo as a first-line option for EGFR-mutant NSCLC patients. The firm also submitted data to the FDA in Q3 to convert the accelerated approval for Balversa into a full approval as a treatment for patients with FGFR3-altered locally advanced or metastatic urothelial carcinoma who have progressed on an anti-PD-1/PD-L1 therapy in the metastatic setting or within a year of neoadjuvant or adjuvant treatment.
In Q3 2023, J&J's net earnings from continuing operations were $4.31 billion, or $1.69 per share, compared to $4.31 billion, or $1.62 per share, in Q3 2022. The firm's overall net earnings and EPS were higher than normal in Q3 because it completed the separation of its consumer health business, Kenvue, in August. On an adjusted basis, J&J reported Q3 EPS of $2.66. On average, analysts had expected $2.52 per share.
Due to the Kenvue separation, J&J also adjusted its 2023 earnings outlook. The firm is now expecting to report sales in the range of $83.6 billion to $84 billion and is expecting 2023 adjusted EPS to be between $10.07 and $10.13. The company had previously projected sales in the range of $83.2 billion to $84 billion, and EPS between $10.00 and $10.10.