By Patrick Wingrove and Bhanvi Satija
(Reuters) -Johnson & Johnson on Tuesday forecast revenue growth of 5-6% for 2024, its first full year after hiving off its consumer health unit, on strong demand for cancer treatments Darzalex and Carvykti, and blockbuster psoriasis drug Stelara.
The company also forecast 2024 adjusted operating profit of $10.55 to $10.75 per share, including a 15-cent impact from its recent acquisition of private medical device maker Laminar.
"I think they can earn closer to $10.85 vs the $10.55-10.75 guidance," said Jeff Jonas, portfolio manager at Gabelli Funds, adding the company's profit per share target is "always very conservative."
Sales of Stelara in Europe are expected to come under pressure as a key patent on the drug expires next year. Stelara is also expected to face competition in the United States beginning in 2025.
J&J (NYSE:JNJ) Chief Financial Officer Joseph Wolk said the company, which is now focusing on its drugs and medical devices business, was "very well positioned" even with some Stelara biosimilars launching outside the United States in mid-to-second half of 2024.
The company expects operational revenue, excluding COVID vaccine, to grow at a compounded annual rate of 5-7% between 2025 and 2030.
Jonas said J&J will face challenges in 2025 and beyond - and "might need another acquisition or two" to help fill the sales gap from patent expirations.
J&J, which reiterated its goal of $57 billion in drug sales in 2025, said it plans to seek regulatory approvals for at least 20 new therapies and expanded use of 50 treatments by 2030.
J&J's "lofty" long-term targets for its pharmaceutical unit are "potentially achievable" with new key products, UBS analyst Danielle Antalffy said in a note.
The company said over 10 of its products had the potential to generate more than $5 billion in peak year sales - including newer cancer treatments Talvey and Tecvayli.