Tremfya, Carvykti sales rise ahead of J&J's Stelara patent expiration

Johnson & Johnson's cancer treatment Carvykti and immune disease medication Tremfya experienced a significant increase in sales during the third quarter, as reported by the company on Tuesday. This surge can be attributed to new approvals which have expanded the market reach of these two drugs. As Johnson & Johnson braces for upcoming biosimilar competition for its second top-selling drug, Stelara, in January 2025, the company is witnessing changes in its sales dynamics. Biosimilars have already made their way into the European market, and combined with larger-than-anticipated insurer rebates, Stelara's third-quarter sales saw a 7% decline from the previous year.

Despite analysts considering the performance of Johnson & Johnson's medical device division to be less than stellar, the company remained optimistic and slightly increased its operational sales guidance for the full year. This positive outlook led to a rise in the company's shares during Tuesday morning trading.

Replacing a product like Stelara, which generated nearly $11 billion in sales in 2023, is challenging once it loses patent protection. AbbVie, for example, is navigating the loss of market exclusivity for its rheumatoid arthritis drug Humira but has benefited from the introduction of two new products, Skyrizi and Rinvoq, which treat some of the same conditions as Humira.

Stelara, a biologic drug used to treat autoimmune digestive and skin disorders, is expected to face U.S. competition starting January 1 from Amgen's Wezlana, which has an interchangeability designation allowing pharmacists to substitute it directly. Additional competitors may enter the market in February.

The sales trend of Humira, which dropped over 30% in 2023 after the entry of U.S. biosimilars, serves as a useful comparison for what could happen with Stelara, according to Joe Wolk, Johnson & Johnson's chief financial officer, during the company's earnings call on Tuesday.

Jennifer Taubert, Johnson & Johnson's head of innovative medicines, expressed confidence in Tremfya's potential to become as successful as Stelara, if not more so. Although quarter-on-quarter growth in the U.S. was limited to 9% due to the same rebate issues that affected Stelara, Tremfya has received expanded approval for treating ulcerative colitis. The company is also aiming to extend its use to Crohn's disease.

Meanwhile, Johnson & Johnson's cancer cell therapy Carvykti received a significant boost with the FDA's approval for use in multiple myeloma patients who have relapsed after one line of treatment. This approval represents an expansion into earlier treatment stages from its previous authorization.

The approval of two manufacturing sites, one in New Jersey and another in Europe, has increased production capacity and enabled Johnson & Johnson to serve more patients, according to Taubert. Manufacturing is a critical constraint for CAR-T cell therapies like Carvykti, as they require the genetic engineering of each patient's immune cells.

Through strategic expansions and new approvals, Johnson & Johnson continues to adapt to market changes and remains confident in the future growth of its innovative therapies.