Johnson & Johnson Navigates Stelara Patent Cliff, Unveils Growth Strategy

Johnson & Johnson (J&J) has successfully steered through the loss of exclusivity for its blockbuster drug Stelara, demonstrating resilience and strategic acumen in the face of significant market challenges. The pharmaceutical giant's multifaceted approach to maintaining growth amid the erosion of a cornerstone product offers valuable insights into the industry's dynamics and J&J's future trajectory.

Stelara's Decline and J&J's Adaptive Response

Stelara, J&J's autoimmune disease treatment, has been a critical revenue driver, accounting for 20% of innovative medicine sales in 2023. With sales peaking at $10.9 billion that year, the anticipated entry of biosimilar competitors posed a substantial threat to the company's financial health. However, J&J's proactive measures have helped mitigate the impact of this patent cliff.

Despite a 40% decline in Stelara sales over the first nine months of 2025, J&J managed to grow its global innovative medicine revenue by 5%. This growth was achieved through a combination of strategic cutbacks and targeted investments. The company made difficult decisions, including axing clinical-phase programs in hepatitis B, HIV, and respiratory syncytial virus, as well as closing an infectious disease and vaccine research site in the Netherlands.

Oncology Emerges as J&J's New Powerhouse

A key factor in J&J's ability to weather the Stelara storm has been the remarkable growth of its oncology division. In just five years, the company's oncology revenue has more than doubled, reaching $18.5 billion for the first nine months of 2025, compared to $8.9 billion in the same period five years prior.

This growth has been driven by several successful products:

• Darzalex, a multiple myeloma treatment, has seen sales soar to $10.4 billion in the first nine months of 2025, bolstered by the launch of a subcutaneous version and label expansions.
• Erleada, a prostate cancer drug approved in 2019, has become a multi-billion dollar product.
• Carvykti, a CAR T cell therapy, achieved blockbuster status in Q3 2025 with total sales reaching $1.3 billion for the year.

J&J's ambitious goal of growing oncology revenues to $50 billion by 2030 underscores the company's confidence in this therapeutic area. This target is supported by rising sales of bispecific antibodies like Tecvayli, Talvey, and Rybrevant, as well as the recent launch of Inlexzo for bladder cancer.

Strategic Acquisitions and Pipeline Development

J&J's growth strategy extends beyond internal development to include strategic acquisitions and partnerships. CEO Joaquin Duato highlighted the company's "outstanding business development model," citing the acquisition of Inlexzo through the 2019 takeover of Taris Biomedical for "a couple of hundred million dollars" as a prime example.

The company has completed over 60 similar deals in the past 18 months, alongside larger acquisitions such as the $14.6 billion takeover of Intra-Cellular Therapies. This deal brought Caplyta, a schizophrenia and bipolar depression drug, into J&J's neuroscience portfolio, helping to offset declining sales of Concerta and Invega.

As J&J continues to navigate the evolving pharmaceutical landscape, it faces new challenges, including potential price negotiations and patent expirations for Darzalex. However, the company's track record of managing such pressures while maintaining growth provides a strong foundation for future success in an industry characterized by constant change and innovation.