Johnson & Johnson JNJ isn’t about to jump on the weight-loss drug bandwagon anytime soon. Chief Executive Officer Joaquin Duato made it loud and clear that the company’s sights are set on deeper waters—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: 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: JNJ shares are down 1.11% at $156.79 on the last check Wednesday.