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Johnson & Johnson’s Big Pharma CEO Says No Thanks to Weight-Loss Drug Bandwagon, Touts Different Game Plan Instead

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Johnson & JohnsonΒ JNJ isn’t about to jump on the weight-loss drug bandwagon anytime soon. Chief Executive OfficerΒ Joaquin DuatoΒ made it loud and clear that the company’s sights are set on deeper watersβ€”namely, expanding its footprint in neurology and oncology.

At the firm’s investor day, Duato painted a picture of a pharma powerhouse with its eyes firmly fixed on other, more promising horizons.

Also Read:Β Johnson & Johnson’s Strategic Forecast: Targets 5%-6% Operational Sales Growth For FY24.

But let’s not slam the door shut completely just yet. Duato did leave a tiny window slightly ajar for a re-think, as Bloomberg reported. He hinted that if J&J spots an opportunity to stand out in the weight-loss market with a unique asset in line with its mission, the company might just turn the ship around.

It’s not hard to see why the weight-loss drug arena is less appealing to J&J at the moment. Eli Lilly & Co and Novo Nordisk A/S already have a heavyweight presence there.

The obesity treatment market is abuzz with big moves. Just last week, Roche Holdings AG snapped up obesity-focused Carmot Therapeutics for a cool $2.7 billion in cash, with the equity holders also eligible for up to $400 million in milestone payments. Meanwhile, Altimmune Inc’s stock surged following positive results from its 48-week MOMENTUM Phase 2 obesity trial.

On the flip side, Pfizer Inc’s shares took a hit after unsatisfactory results from a Phase 2b trial of danuglipron, with more patients dropping out from the study compared to those on placebo.

Price Action:Β JNJ shares are down 1.11% at $156.79 on the last check Wednesday.

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