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Does Long Term Psoriasis Data Change The Bull Case For Johnson & Johnson Stock (JNJ)?

Simply Wall St · 2d ago
  • Johnson & Johnson reported new two-year Phase 3 ICONIC-TOTAL results showing ICOTYDE maintained skin clearance and a consistent safety profile through Week 112 in adults and adolescents with high-impact plaque psoriasis, including scalp, genital, hand and foot and nail involvement.
  • The durability of response across difficult-to-treat psoriasis sites reinforces Johnson & Johnson's immunology portfolio at a time when loss of exclusivity and litigation costs are pressuring the wider business mix.
  • The focus now turns to how this long-duration ICOTYDE data could reshape Johnson & Johnson's broader investment narrative in immunology.
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Johnson & Johnson Investment Narrative Recap

To own Johnson & Johnson, you need to be comfortable with a story where losses from STELARA’s patent expiry and ongoing talc cases are offset by newer immunology and oncology drugs, plus a steadier MedTech arm. The ICOTYDE psoriasis data fits that belief. It supports the idea that the Innovative Medicine pipeline can help carry the load.

For the near term, the key swing factor remains how quickly newer products scale as older ones face competition and litigation costs flow through earnings. The ICOTYDE update helps sentiment around that handoff. It does not change the central risk that patent cliffs or legal outcomes could pressure margins more than expected.

Among recent announcements, the ICOTYDE two year ICONIC TOTAL readout is most relevant. Johnson & Johnson now has data out to Week 112 showing clear or almost clear skin rates of 70% and no new safety signals in high impact plaque psoriasis, including scalp, genital, hand or foot and nail disease.

For you as a shareholder, that matters because it gives more operational backing to the idea that post STELARA immunology has legs. It also aligns with management commentary that Innovative Medicines is offsetting a softer MedTech contribution. Execution risk remains around pricing, access and real world uptake, but this dataset strengthens the psoriasis pillar of that thesis.

Johnson & Johnson's current analyst story points to revenues of US$120.5b and earnings of US$28.6b by 2029. That setup implies forecast revenue expansion of 7.2% a year and an earnings increase of about US$7.6b from US$21.0b today.

Uncover why Johnson & Johnson's fair value indicates a 6% potential upside to its current price that may not last much longer.

NYSE:JNJ 1-Year Stock Price Chart
NYSE:JNJ 1-Year Stock Price Chart

Exploring Other Perspectives

One alternative view treats pricing pressure as the real swing factor for Johnson & Johnson rather than the ICOTYDE pipeline strength. The most optimistic analysts were already penciling in US$125.9b of revenue and US$39.2b of earnings by 2029 before this data. You can decide whether these new psoriasis results justify that more upbeat script.

Explore 8 other Johnson & Johnson fair value estimates, including one that suggests there could be as much as 43% upside from the current price!

The Verdict Is Yours

Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

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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.