J&J's Medtech Struggles Despite Strong Drug Sales: A Second-Quarter Snapshot

Johnson & Johnson's medtech unit saw a decline in performance in Q2, although strong sales of Tremfya and Darzalex helped surpass Wall Street expectations. Despite a drop in Impella heart pump demand due to a UK study, J&J anticipates recovery with future data. The company raised its annual sales forecast as pharmaceutical sector performance bolstered overall growth.

Johnson & Johnson announced that their medical device unit underperformed during the second quarter, despite strong performances from their pharmaceutical products such as Tremfya and Darzalex, which exceeded Wall Street's expectations. The decline in U.S. demand for the Impella heart pumps, a product acquired in last year's $16.6 billion Abiomed buyout, contributed to this underperformance.

Chief Financial Officer Joseph Wolk cited a recent UK study as a factor in Impella's decreased demand, with a 2% drop following a 14% growth in the first quarter. Notably, shares of J&J dropped 2.7% in response. Wolk remains optimistic, anticipating future data to demonstrate the pump's efficacy in high-risk coronary procedures.

On a positive note, the company's pharmaceutical unit continued robust sales, helping J&J to raise its annual sales forecast to approximately $101.1 billion. The demand for Tremfya, used for psoriasis and inflammatory bowel disease, surged by 72.5%, compensating for the slowdown of its predecessor, Stelara.