Johnson & Johnson Halts Phase 2 Trial for Nipocalimab in Rheumatoid Arthritis Due to Inefficacy.

Johnson & Johnson has terminated a Phase 2 clinical trial for nipocalimab, a treatment for refractory rheumatoid arthritis, due to insufficient efficacy. The trial was evaluating a combination of nipocalimab and an anti-TNF inhibitor. No new safety issues were identified, but the company will not continue clinical development for this indication. J&J remains enthusiastic about other clinical programs for nipocalimab, estimating annual sales potential at over $5bn.

Johnson & Johnson (J&J) has announced the termination of a Phase 2a clinical trial evaluating the combination of its nipocalimab antibody and a therapy based on tumor necrosis factor (anti-TNF) inhibitors in the treatment of refractory rheumatoid arthritis. The decision was made due to insufficient efficacy demonstrated by the trial after 12 weeks of treatment [1].

In a press release, J&J stated that the innovative approach, which targeted a difficult-to-treat population, did not provide significant health benefits for patients compared to anti-TNF inhibitors alone. Consequently, the company has decided not to continue the clinical development of nipocalimab in combination with an anti-TNF inhibitor for this indication. Despite this setback, J&J remains optimistic about other ongoing clinical programs evaluating nipocalimab in various potential indications related to rheumatic diseases, certain rare autoimmune diseases, and maternal-fetal conditions [1].

The company continues to estimate its annual sales potential for nipocalimab at over $5bn, highlighting its long-term growth prospects. This news comes amidst a positive outlook from Wall Street analysts, who have raised their price targets for J&J stock. Analysts from Barclays and Royal Bank of Canada have increased their targets to $176.00 and $185.00, respectively, indicating confidence in the company's growth prospects [2].

Johnson & Johnson also recently announced a quarterly dividend of $1.30 per share, with an upcoming payment on September 9th. This reflects a 2.9% yield based on its annualized dividend of $5.20. The company's strong earnings report for the second quarter, with an earnings per share (EPS) of $2.77, further underscores its financial health [2].

References:

[1] https://www.marketscreener.com/news/j-j-phase-2-clinical-trial-in-rheumatoid-arthritis-halted-ce7c50ddd88ef125
[2] https://www.marketbeat.com/instant-alerts/filing-corebridge-financial-inc-decreases-stock-holdings-in-johnson-johnson-jnj-2025-08-25/