Johnson & Johnson's Stock Falls Despite Earnings Beat
Key Points:
* JNJ stock declined over 3% after reporting Q4 and full-year 2024 earnings.
* Generic competition for Stelara, ongoing talc lawsuit, and weaker medical device demand in China impacted the company.
CFO Outlook:
* CFO Joe Wolk acknowledged investor concerns but expressed confidence in JNJ's ability to manage headwinds.
* Company projects 3% top-line and 9% operational growth despite challenges.
* Talc lawsuit seen as manageable given financial resources.
Stelara Competition:
* Investors await the impact of generic competition on Stelara.
* AbbVie's experience with Humira indicates potential for muted impact, with Humira maintaining market share despite competitors.
* Medicare price negotiations may present additional challenges.
Growth Strategies:
* JNJ investing in neuroscience space, targeting Alzheimer's and other areas.
* Company acquires Intra-Cellular for $14.6 billion to strengthen mental health portfolio.
* Neuroscience franchise expected to drive future growth.