On Monday, RBC Capital maintained its optimistic stance on Johnson & Johnson (NYSE:JNJ), affirming both its Outperform rating and a $175.00 price target for the healthcare giant's shares. The endorsement comes after Johnson & Johnson presented encouraging data at a recent analyst meeting, which followed the 2024 American Society of Clinical Oncology (ASCO) Annual Meeting.
During the meeting held on Thursday last week, Johnson & Johnson showcased positive results from the PALOMA-3 study, which involves the combination of Rybrevant and lazertinib, as well as new data from Darzalex, Carvykti, and Tecvayli. These drugs are seen as significant growth drivers for the company's Innovative Medicine franchise, with each expected to generate over $5 billion in annual sales.
The company has highlighted its oncology portfolio as a key area for growth and is positioning itself to be a leader in the space. Johnson & Johnson estimates that these innovative oncology treatments will contribute to a 5-7% operational long-range plan (LRP) growth from 2025 to 2030.
Following the positive updates shared at the post-ASCO analyst gathering, RBC Capital has reiterated its confidence in Johnson & Johnson's stock performance. The firm's $175 price target remains unchanged, signaling continued support for the healthcare company's growth trajectory in the oncology market.
In other recent news, Johnson & Johnson's DePuy Synthes received FDA clearance for its VELYS Robotic-Assisted Solution for partial knee replacements. This clearance expands the application of the VELYS robotic platform, which is already in use for total knee replacements. In related news, Johnson & Johnson has finalized its acquisition of Shockwave Medical (NASDAQ:SWAV), a move that Citi analysts predict will result in a slight earnings dilution in 2024 and 2025, but will become accretive to earnings in 2026.
On the legal front, Johnson & Johnson has been ordered to pay $260 million in an Oregon talc case, while also working on a proposed $6.48 billion settlement to resolve the majority of talc-related lawsuits. In the pharmaceutical sector, AbbVie (NYSE:ABBV)'s arthritis drug Humira continues to dominate the market despite competition from nine biosimilars, with experts calling for regulatory reforms to increase competition.
Finally, US lawmakers have requested a briefing from the FBI regarding GenScript Biotechnology Co and its ties to China. GenScript collaborated with Johnson & Johnson to develop the cancer cell therapy Carvykti.
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