Johnson & Johnson (JNJ) announced the discontinuation of its Phase 3 SunRISe-2 trial for TAR-200, a potential treatment for muscle-invasive urothelial carcinoma (MIBC), in combination with cetrelimab versus standard chemoradiation. The decision was based on a recommendation from the Independent Data Monitoring Committee (IDMC) following an interim analysis, which determined that the treatment did not demonstrate superiority over conventional chemotherapy.
Despite this setback, Johnson & Johnson remains optimistic about the future of the TARIS platform, highlighting its potential value of over $5 billion. Data from the SunRISe-4 study, recently presented at the 2024 European Society for Medical Oncology Congress, showcased the potential of TAR-200 in treating MIBC.
The company is on track to file for FDA approval of TAR-200 monotherapy (SunRISe-1) for non-muscle invasive bladder cancer in early 2025, with ongoing trials SunRISe-3 and SunRISe-5.
Meanwhile, Johnson & Johnson is gearing up to release its third-quarter 2024 earnings on Wednesday, October 15. Analysts are projecting adjusted earnings per share (EPS) of $2.20 and revenue of $22.13 billion. Goldman Sachs has maintained its Neutral rating on JNJ, while raising its price target from $155 to $162. The firm anticipates that the pharmaceutical giant will report third-quarter results aligning with consensus expectations, with revenue expected to reach $22.26 billion, representing a year-over-year growth of +4.4%. This slightly decelerates from the growth witnessed in the first half of 2024.
Goldman Sachs’ overall outlook for the quarter remains largely consistent, with a minor upward revision to its Innovative Medicine forecast compared to estimates following the second-quarter results. This adjustment is attributed to potentially less impact from introducing biosimilar Stelara in Europe during the third quarter. This helps offset a slight reduction in the MedTech segment forecasts.
The analyst anticipates that management will reaffirm its guidance for FY25 revenue growth outlook at +3% or more, and that longer-term targets, including Innovative Medicine growth at a CAGR of 5-7% from 2025-30 and growth at the upper end of the 5-7% CAGR for MedTech from 2023-27, will remain unchanged.
As of Tuesday’s close, JNJ stock was down 0.21% at $159.20.
