This Johnson & Johnson Analyst Turns Bullish On Shifting Focus From Stelara Concerns To Innovative Medicine

Core Viewpoint - Goldman Sachs believes that the concerns regarding Johnson & Johnson's Stelara loss of exclusivity are overstated, leading to an upgrade in the stock rating from Neutral to Buy and an increase in the price target from $157 to $172 [1][2]. Group 1: Financial Performance - Johnson & Johnson's Innovative Medicine business contributes approximately 65% of the company's revenues and accounts for 83% of its profits, highlighting its significance for the stock's materiality [2]. - At the time of publication, Johnson & Johnson's shares had declined by 2.91% to $145.63 [4]. Group 2: Product Pipeline and Market Position - Despite the impending loss of exclusivity for Stelara, Johnson & Johnson has multiple new product cycles in large markets, including inflammatory bowel disease (IBD), psoriasis, neuropsychological conditions, multiple myeloma, bladder cancer, and EGFR mutated non-small-cell lung cancer [3]. - Historically, pharmaceutical stocks tend to reach their lowest point about a year before a major loss of exclusivity, which could indicate a positive outlook for Johnson & Johnson if this trend continues [3].