Johnson & Johnson under pressure despite solid figures

Johnson & Johnson has released its quarterly and annual results for 2024, exceeding Wall Street expectations, which, however, did not prevent investors from dropping the stock. On Wednesday morning, the stock was trading at about $143 per share. The company reported total revenue of $88.8 billion for 2024, representing a 4.3% increase compared to the previous year. The renewed growth figures are surprising, particularly considering the declining COVID-19 vaccine sales, a trend also felt by other manufacturers this season. Nonetheless, ongoing talc-related litigation weighs on the company. A trial in Texas is upcoming, the outcome of which could have significant implications for the future course of Johnson & Johnson. Simultaneously, pressure is mounting due to the entry of generics into the market for the top-selling drug Stelara. The acquisition of drug manufacturer Intra-Cellular earlier this month could enrich the portfolio. CEO Joaquin Duato also emphasizes the importance of external innovation as a component of the corporate strategy, with acquisitions remaining an essential part of the growth plan. Overall, J&J expects that exchange rate effects and a slowdown in the medical technology sector could weigh on the business, while its own debt is expected to be reduced by future free cash flows of around $12 billion.