Johnson & Johnson (NYSE:JNJ) FDA Panel Supports DARZALEX FASPRO®? for High-Risk Multiple Myeloma

Johnson & Johnson (NYSE:JNJ) recently garnered attention when the FDA's Oncologic Drugs Advisory Committee voted favorably on the use of DARZALEX FASPRO® for high-risk smoldering multiple myeloma. This announcement comes amid a broad market environment where the S&P 500 has faced slight declines. The company’s shares increased 3.52% over the last week, possibly bolstered by these positive regulatory outcomes. As broader market factors weighed on indices, with the S&P 500 also navigating rising Treasury yields and general market jitters, DARZALEX FASPRO®'s promising developments may have offered some counterbalance in Johnson & Johnson's share performance.

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The FDA's favorable vote on DARZALEX FASPRO® could potentially strengthen Johnson & Johnson's narrative of growth in oncology and immunology. As the company faces the loss of exclusivity for STELARA, this regulatory development may offer a counterbalance by enhancing its future revenue streams in high-risk smoldering multiple myeloma treatments. Analysts forecast the company's revenue to grow annually by 3.7% over the next three years, largely supported by developments like DARZALEX FASPRO® and substantial investments in next-gen therapies. These factors might also influence earnings forecasts, with projections suggesting an increase to US$22.9 billion by May 2028.

Over the past five years, Johnson & Johnson's total return, including dividends, stood at 21.47%. In contrast to recent one-year performance, where it exceeded the US Pharmaceuticals industry that returned a 10.1% decline, this long-term growth provides a robust backdrop for assessing current movements. Although current share prices have shown positive responsiveness to news, they remain below the consensus analyst price target by approximately 9.1%. The projected price target of US$169.98 suggests a reasonable appreciation from the present share price of US$154.47, provided assumptions regarding future growth and earnings materialize. While the company's performance has outstripped the industry over the past year, the path to reaching the price target depends significantly on the successful implementation of its ongoing initiatives and favorable market conditions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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