Johnson & Johnson CEO Confirms No Drug Pricing Agreement with White House Despite Ongoing Negotiations
核心洞察
Johnson & Johnson CEO Joaquin Duato confirmed during the company's third-quarter earnings call that no drug pricing agreement has been finalized with the White House, despite ongoing discussions since the administration began.
The healthcare giant has not secured a Most Favored Nation drug pricing deal like competitors Pfizer and AstraZeneca, who received reprieve from threatened pharmaceutical tariffs through their agreements.
J&J reported strong third-quarter pharmaceutical performance with $15.6 billion in revenue, led by multiple myeloma (搜索) drug Darzalex generating $3.7 billion worldwide sales with nearly 22% growth.
Johnson & Johnson CEO Joaquin Duato confirmed during the company's third-quarter earnings call Tuesday that no drug pricing agreement has been finalized with the White House, despite ongoing negotiations that have been underway "since day one, even before day one" of the current administration.
The announcement comes as J&J remains one of the few major pharmaceutical companies without a secured drug pricing deal, while competitors Pfizer and AstraZeneca have recently announced collaborations with the administration that provided them reprieve from President Donald Trump's threatened pharmaceutical tariffs.
Ongoing Negotiations Without Resolution
When asked by analysts about whether J&J has secured a Most Favored Nation drug pricing deal, Duato emphasized that discussions continue but offered no timeline for resolution. "As far as the discussions those are ongoing, I don't have anything to share today, but I am optimistic that we are going to land in a place which is going to create common ground between the administration and ourselves," Duato stated.
The CEO highlighted J&J's commitment to U.S. manufacturing, noting the company's $55 billion manufacturing investment and efforts to provide middle-class jobs domestically. Duato confirmed that all of J&J's advanced medicines used in the U.S. will be manufactured there as part of this investment strategy.
Strong Pharmaceutical Performance Amid Policy Uncertainty
Despite the ongoing policy negotiations, J&J demonstrated robust pharmaceutical performance in the third quarter. The pharmaceuticals segment generated $15.6 billion in revenue, compared to $14.6 billion in the same period the previous year.
Darzalex, indicated for multiple myeloma (搜索), emerged as J&J's best-selling drug with $3.7 billion in worldwide sales—representing nearly 22% growth year-over-year. This performance positions Darzalex as the successor to Stelara, the inflammatory disease (搜索) drug that brought in $10.4 billion in 2024 but experienced a 4.6% decline.
"Some were not convinced we could grow through the loss of exclusivity, but we were confident, and we have now unequivocally answered that question," Duato said, addressing previous concerns about replacing Stelara's revenue.
Portfolio Expansion and Acquisitions Drive Growth
Several other drugs contributed to J&J's strong quarter. Spravato outperformed expectations with worldwide sales of $459 million, representing more than 60% growth year-over-year. The company also benefited from its $14.6 billion acquisition of Intra-Cellular Therapies, with the acquired schizophrenia (搜索) and bipolar disorder (搜索) medicine Caplyta generating $240 million in worldwide sales.
Duato emphasized the company's innovation focus: "The success of our portfolio pipeline is proof that our relentless focus on innovation is doing more than fueling progress. It is accelerating."
However, some products underperformed analyst expectations. Guggenheim noted that while the immunology portfolio showed particular strength, antipsychotic Invega and prostate cancer (搜索) medication Erleada were "notably light."
Strategic Restructuring with Orthopedics Spin-Out
J&J announced plans to spin out its orthopedics unit as part of ongoing strategic restructuring. The process will take approximately 18 to 24 months, ultimately establishing DePuy Synthes as a standalone company by 2027.
The orthopedics unit, which includes knee, hip, spine and trauma products, generated approximately $9.2 billion in sales in 2024. William Blair analysts noted that the standalone company will become the largest and most comprehensive orthopedics-focused company in the market.
Guggenheim viewed the spin-out positively, stating: "We expect investors to be pleased with that decision, as it allows JNJ to continue its trend of moving away from slower growth areas of MedTech, while focusing on higher areas such as Cardiovascular."