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Johnson & Johnson (JNJ) is facing significant challenges including potential losses from expiring drug patents, ongoing legal battles over talc powder, and broader macroeconomic uncertainties. Key among these issues is the loss of U.S. patent exclusivity for its major product, Stelara, in 2025, which previously accounted for approximately 18% of J&J’s Innovative Medicine unit sales in 2024.
In 2025, J&J is expected to see a 40% decline in Stelara sales, projecting revenues to drop from nearly $11 billion in 2023 to around $3 billion by 2027 due to biosimilar competition from companies like Amgen and Teva. Furthermore, the company anticipates a negative revenue impact of about $2 billion in 2025 due to changes from the Medicare Part D redesign, which has affected pricing for its drugs, including Stelara.
Additionally, J&J is contending with over 73,000 lawsuits linked to its talc products, alleging that they contain asbestos. A bankruptcy court in Texas rejected J&J’s plan to settle these lawsuits, leading the company to revert to traditional litigation. In its MedTech segment, sales are also being hampered by China’s government-driven cost containment efforts, affecting overall performance.
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