Promising Amivantamab Injection Data Might Change the Case for Investing in Johnson & Johnson (JNJ)

• Johnson & Johnson recently announced promising results from its Phase 1b/2 OrigAMI-4 study, demonstrating that the new subcutaneous formulation of amivantamab achieved a 45% overall response rate in HPV-unrelated, recurrent or metastatic head and neck squamous cell carcinoma after progression on checkpoint inhibitors and platinum chemotherapy.
• This subcutaneous version, which allows for a five-minute manual injection, may improve patient convenience compared to intravenous alternatives and signals progress in Johnson & Johnson’s oncology pipeline.
• We’ll now examine how the advancement of a subcutaneous amivantamab highlights the company’s innovation efforts and pipeline potential.

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Johnson & Johnson Investment Narrative Recap

To be a shareholder in Johnson & Johnson, you need to believe in the company’s ability to deliver long-term growth through continued innovation in its pharmaceutical and MedTech businesses. While the positive results from the OrigAMI-4 study of subcutaneous amivantamab reinforce confidence in the oncology pipeline and innovation focus, they do not materially change the biggest current catalyst, successful replacement of revenue from products like STELARA as it faces biosimilar competition, nor the key risk, which remains legal uncertainty related to talc litigation.

The most pertinent recent announcement, in light of J&J’s progress in oncology, is the completion of its Q3 earnings release that showed solid increases in both revenue and net income year over year. This underscores the company’s ongoing execution across its diverse segments, but the impact of revenue at risk from biosimilar entrants to STELARA remains an important consideration for investors focused on the near-term growth outlook.

However, investors should be aware that ongoing legal challenges related to historical products could ...

Read the full narrative on Johnson & Johnson (it's free!)

Johnson & Johnson's outlook anticipates $104.1 billion in revenue and $22.9 billion in earnings by 2028. This reflects an expected annual revenue growth rate of 4.7% and a modest earnings increase of $0.2 billion from the current $22.7 billion.

Uncover how Johnson & Johnson's forecasts yield a $185.13 fair value, a 4% downside to its current price.

Exploring Other Perspectives

Twenty-three fair value estimates from the Simply Wall St Community range from US$143.62 to US$432.55 per share. While some see significant upside, the focus on new oncology treatments also brings attention to the ongoing need to offset biologic competition in J&J’s key franchises.

Explore 23 other fair value estimates on Johnson & Johnson - why the stock might be worth over 2x more than the current price!

Build Your Own Johnson & Johnson Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Johnson & Johnson research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Johnson & Johnson research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Johnson & Johnson's overall financial health at a glance.

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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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