J&J's CFO: Talc Lawsuit, Stelara Competition Risks 'Manageable'

Johnson & Johnson (JNJ) Chief Financial Officer (CFO) Joseph Wolk has reassured investors that the company can manage the downside risks associated with the ongoing talc lawsuit and the upcoming competition from Stelara biosimilars. In a recent earnings call, Wolk emphasized that JNJ's diversified portfolio and strategic initiatives will help mitigate these challenges.

The talc lawsuit, which alleges that JNJ's talc-based baby powder contained asbestos and caused cancer, has been a significant burden for the company. Wolk acknowledged the potential financial impact of the lawsuit but expressed confidence in JNJ's ability to navigate the situation. "We are focused on driving long-term growth by investing in high-impact areas that address unmet medical needs and improve patient outcomes," Wolk said.

The upcoming competition from Stelara biosimilars, such as Amgen's Wezlana, also poses a risk to JNJ's revenue and market share in the immunology segment. However, Wolk believes that the company's strategic initiatives, such as new product launches and expansion into new indications, will help offset the impact of biosimilar competition.

JNJ's recent financial results reflect the company's ability to manage these risks. In the fourth quarter of 2024, the company reported adjusted earnings per share (EPS) of $2.04, surpassing analysts' expectations of $1.99. Quarterly revenues reached $22.52 billion, representing a 5.3% year-over-year increase and meeting Wall Street estimates.



Wolk also discussed JNJ's plans for 2025, projecting operational sales growth between 2.5% and 3.5% and adjusted operational EPS between $10.75 and $10.95. These projections indicate that JNJ is confident in its ability to overcome headwinds associated with U.S. biosimilar entries for Stelara, Medicare Part D redesign, and macroeconomic pressures in China.



In conclusion, JNJ's CFO Joseph Wolk has reassured investors that the company can manage the downside risks associated with the talc lawsuit and Stelara biosimilar competition. With a diversified portfolio and strategic initiatives, JNJ is well-positioned to navigate these challenges and maintain growth in the immunology segment. The company's recent financial results and projections for 2025 support Wolk's optimistic outlook.