Johnson & Johnson (NYSE:JNJ) 43rd Annual J.P. Morgan Healthcare Conference January 13, 2024 12:00 PM ET Company Participants Joaquin Duato - Chairman & CEO Conference Call Participants Chris Schott - JPMorgan Chris Schott Good morning, everybody. I'm Chris Schott at JPMorgan, and it's my pleasure to be hosting this fireside discussion with Joaquin Duato, Chairman and CEO of JNJ. Joaquin, Happy New Year. Thanks for joining us. A lot to go through, and some – particularly, big M&A news today. So, I thought ma ...

Johnson & Johnson (NYSE:JNJ) 43rd Annual J.P. Morgan Healthcare Conference January 13, 2024 12:00 PM ET Company Participants Joaquin Duato - Chairman & CEO Conference Call Participants Chris Schott - JPMorgan Chris Schott Good morning, everybody. I'm Chris Schott at JPMorgan, and it's my pleasure to be hosting this fireside discussion with Joaquin Duato, Chairman and CEO of JNJ. Joaquin, Happy New Year. Thanks for joining us. A lot to go through, and some – particularly, big M&A news today. So, I thought ma ...

Dividend stocks are great for various reasons, and it's even better to invest in them while they are going through a rough patch, provided there are good reasons to believe they will recover. This description fits several dividend stocks on the market, among which are CVS Health (CVS 4.35%) and Johnson & Johnson (JNJ -0.15%). Although these two healthcare leaders have had their share of headwinds that have led to market-lagging performances, they have plenty of qualities dividend investors will like. Let's ...

Analyst Background and Focus - The analyst specializes in high-quality companies with competitive advantages (economic moat) and high defensibility, focusing on long-term market outperformance [1] - The analyst's coverage includes European and North American companies across all market capitalizations, from large-cap to small-cap [1] - The analyst holds a Master's Degree in Sociology with a focus on organizational and economic sociology, and a Bachelor's Degree in Sociology and History [1] Previous Analysis and Outlook - The analyst published a previous article on Johnson & Johnson (JNJ) in July 2024, rating the stock as a "Buy" due to optimism about the company's business [1] Disclosure and Position - The analyst holds a beneficial long position in Gilead Sciences (GILD) through stock ownership, options, or other derivatives [2] - The article represents the analyst's personal opinions and is not influenced by compensation or business relationships with the mentioned companies [2]

Stock Performance and Market Context - Johnson & Johnson (JNJ) stock lost about 7% in 2024, underperforming the S&P 500 index, which gained 23% for the year [1] - JNJ stock declined from $155 in early January 2024 to $144 by the end of the year [6] - Over the last four years, JNJ stock returns were 11% in 2021, 6% in 2022, -9% in 2023, and -5% in 2024 [6] Business Performance in 2024 - J&J saw an uptick in its medical devices business, driven by recent acquisitions, with electrophysiology and cardiovascular sales trending higher [3] - Market share increased for blockbuster drugs like Darzalex, Erleada, and Tremfya, with Darzalex generating around $3 billion in quarterly sales [3] - Biosimilar competition impacted key drugs like Imbruvica, which saw a 7% year-over-year decline in sales for the first nine months of 2024 [3] Acquisitions and Financial Impact - J&J acquired V-Wave for $1.7 billion, Shockwave Medical for $13.1 billion, Yellow Jersey for $1.25 billion, and Proteologix for $850 million to expand its MedTech and pharmaceutical businesses [4] - Cash position declined from $23 billion in 2023 to $20 billion as of September 2024, while overall debt increased from $29 billion to $36 billion [5] - The company increased its dividend by 4.2% to $4.96 in 2024 and spent $2 billion on share repurchases in the first three quarters [5] Outlook for 2025 - Stelara, a top-selling drug with $11 billion in annual sales in 2023, faces biosimilar competition in Europe and the U.S., potentially leading to a meaningful decline in sales [8][9] - J&J temporarily paused the use of its heart device Varipulse due to reports of neurovascular events, which was expected to generate over $1 billion in annual sales [9] - New drugs like Carvykti and Spravato are gaining market share, a trend expected to continue in 2025 [10] - Potential FDA approval for Nipocalimab and fast track designation for Posdinemab could provide growth opportunities [11] Valuation and Peer Comparison - JNJ stock is estimated to have a valuation of $172 per share, over 20% above its current levels of $142, based on a 17x forward P/E multiple [7] - The stock is trading at under 14x forward expected earnings, suggesting potential headwinds are largely priced in [12]

FDA Filing and Clinical Data - The FDA filing for nipocalimab is supported by data from the phase III Vivacity-MG3 study, which showed sustained disease control over 24 weeks in gMG patients receiving nipocalimab plus standard of care compared to placebo [1] - Vivacity-MG3 is the first and only study to achieve sustained disease control in gMG patients with anti-AChR, anti-MuSK, and anti-LRP4 positive antibodies, and it provides the longest dataset for an FcRn blocker in this indication [2] - Nipocalimab is designed to block FcRn, reduce autoantibody levels, and preserve immune function without causing broad immunosuppression [3] J&J Stock Performance - J&J's shares have lost 12% in the past year, compared to the industry's nearly 3% decline [4] Competitive Landscape in gMG - If approved, nipocalimab will compete with Argenx's Vyvgart/Vyvgart Hytrulo and UCB's Rystiggo, both of which are FcRn blockers approved for gMG [6] - Argenx's drug is approved for anti-AChR positive antibodies and chronic inflammatory demyelinating polyneuropathy (CIDP), while UCB's drug is approved for anti-AChR or anti-MuSK positive antibodies [7] Nipocalimab Development Pipeline - J&J is evaluating nipocalimab in multiple immunology and neuroscience indications, including late-stage studies for CIDP, hemolytic disease of the fetus and newborn (HDFN), and warm autoimmune hemolytic anemia (wAIHA) [9] - Mid-stage studies are ongoing for idiopathic inflammatory myopathy, Sjogren's disease, systemic lupus erythematosus, and rheumatoid arthritis [9] FDA Review Timeline - The FDA has granted priority review for nipocalimab, reducing the review period by four months, with a final decision expected in Q3 2025 [14] Other Biotech Stocks - Castle Biosciences (CSTL) has seen its 2024 bottom-line estimates improve from a loss of 8 cents per share to earnings of 34 cents per share, with shares surging 53% in the past year [12] - CytomX Therapeutics (CTMX) has narrowed its 2024 loss per share estimates from 18 cents to 5 cents, though its shares have lost 41% in the past year [13]

These companies have track records of success, increasing dividends, and fantastic growth prospects, making them all ideal portfolio anchor stocks for a long-term investor.You will want to build your portfolio the right way if you're going to make money with stocks over the long haul. You wouldn't build your house on a shaky foundation, would you?It's the same thing with investing. Those risky, lottery ticket-style stocks are fine, but only after you've laid the groundwork with proven winners. Dividends can ...

Johnson & Johnson's MedTech Unit - Johnson & Johnson's MedTech unit has temporarily paused sales of Varipulse, its pulsed field ablation (PFA) therapy for atrial fibrillation (AFib) in the United States, due to four reported cases of neurovascular events [1] - The pause on Varipulse procedures began on Jan 5, 2024, and does not impact the rollout in markets outside the United States [1][2] - Since the external rollout began until Jan 3, 2024, Johnson & Johnson completed more than 130 cases across 14 sites in the United States [2] - Globally, Johnson & Johnson has completed over 3,000 commercial cases of the Varipulse PFA system [2] Market Reaction - Johnson & Johnson's shares slipped around 2.8% on Wednesday following the announcement of the pause [2] - In the past year, Johnson & Johnson's shares have declined 12.1%, compared to the industry's 2.9% decrease [2] - Shares of rivals Boston Scientific (BSX) and Medtronic (MDT) rose 4.3% and 3.5%, respectively, as they also offer PFA systems in the United States [4] - Medtronic's PulseSelect PFA device was approved in the United States in December 2023, while Boston Scientific's Farapulse device was approved in January 2024 [4] FDA Fast Track Designation - The FDA has granted Fast Track designation to posdinemab, a phosphorylated tau-directed monoclonal antibody (mAb), for the treatment of early Alzheimer's disease [5] - The FDA had earlier granted Fast Track status to Johnson & Johnson's another candidate, JNJ-2056, an anti-tau active immunotherapy for treating preclinical Alzheimer's disease in July 2024 [5] - Both posdinemab and JNJ-2056 are being developed in phase IIb studies [5] Bristol-Myers Squibb (BMY) - In the past 60 days, estimates for Bristol-Myers' 2025 earnings have risen from $7.11 per share to $7.19 per share [7] - In the past year, shares of Bristol-Myers have risen 12.2% [7] - Bristol-Myers' earnings beat estimates in each of the trailing four quarters, with an average surprise of 15.54% [7]

Biologics License Application acceptance supported by results from the Phase 3 Vivacity-MG3 study Results demonstrate sustained disease control over 24 weeks in a broad population of antibody positive adult patients: anti-AChR, anti-MuSK, anti-LRP4 SPRING HOUSE, Pa., Jan. 9, 2025 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced the nipocalimab Biologics License Application (BLA) received Priority Review designation from the U.S Food and Drug Administration (FDA) for the treatment of antibody po ...

Johnson & Johnson Stock Performance - Johnson & Johnson (JNJ) started 2024 at the same price as it started 2020, indicating no price appreciation over four years [1] - Despite a decent dividend, the lack of price appreciation makes the stock less attractive [1] Analyst Background - The analyst focuses on long-term investing through low-risk ETFs and CEFs [1] - The analyst has nearly ten years of experience trading stocks and currencies [1] - The analyst manages a family fund and invests in real estate [1] Disclosure and Disclaimer - The analyst has no stock, option, or derivative positions in the mentioned companies and no plans to initiate any within the next 72 hours [2] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [2] - Seeking Alpha's disclosure states that past performance is no guarantee of future results and no investment advice is being given [3]