J&J shrugs off tariff worries, lifts 2025 outlook as cancer drug sales soar

USA – Johnson & Johnson (J&J) has raised its 2025 sales forecast following a strong first-quarter performance, brushing aside growing concerns over possible U.S. tariffs on pharmaceutical goods.

The healthcare giant now expects operational revenue between US$ 91.6 billion and US$ 92.4 billion—an increase of US$ 700 million from its previous estimate.

This upward revision is credited to J&J’s recent acquisition of Intra-Cellular Therapies and the addition of Caplyta, a drug used for treating bipolar disorder and schizophrenia.

Reported revenue for the year is now projected to range from US$ 91 billion to US$ 91.8 billion, up from earlier expectations of US$ 89.2 billion to US$ 90 billion.

“Our diverse portfolio proved its strength this quarter,” said CEO Joaquin Duato. “It gives us confidence in our full-year guidance and future growth.”

Tariffs loom, but tax policy favored

Despite the positive forecast, J&J acknowledges a potential US$ 400 million hit in 2025 due to tariff changes—mostly affecting U.S.-made medical devices exported to China. Chief Financial Officer Joseph Wolk noted that China’s 125% retaliatory tax on U.S. imports is the biggest challenge in this scenario.

U.S. Commerce Secretary Howard Lutnick recently stated that pharmaceutical tariffs may be rolled out within the next two months as part of a plan to bring more drug manufacturing back to American soil.

Duato cautioned against relying on tariffs, arguing that they could create drug shortages by disrupting global supply chains.

Instead, he advocated for policy tools like tax incentives. “If the goal is to boost U.S. manufacturing, smarter tax policy—not tariffs—will get us there,” he said.

He highlighted the success of the 2017 tax reform in fueling domestic investment. J&J plans to invest US$ 55 billion over the next four years in U.S. facilities. “By then, nearly all advanced medicines used in the U.S. will be made here,” Duato added.

Oncology powers Q1 gains

J&J’s pharmaceutical unit posted solid numbers for Q1 2025, with overall drug sales rising 2.3% to US$ 13.9 billion.

The standout performer was its oncology portfolio, which soared nearly 18% year-over-year to hit US$ 5.7 billion. Darzalex led the charge, raking in US$ 3.2 billion—up 20.3% from the previous year.

Other oncology drugs, including Tecvayli (US$ 151 million), Talevy (US$ 86 million), and Carvykti (US$ 369 million), also showed impressive growth.

Carvykti, a CAR-T therapy developed with Legend Biotech, more than doubled its revenue compared to Q1 2024.

However, not all segments fared equally well. Immunology revenue dropped nearly 13% to US$ 3.7 billion, mainly due to biosimilar competition affecting Stelara sales, which fell by 33.7% to US$ 1.6 billion.

Tremfya offered a bright spot in this segment, rising over 18% to bring in US$ 956 million. Total company revenue grew 2.4% to US$ 21.9 billion, slightly ahead of analysts’ expectations.