Company Snapshot

Investment Thesis

Johnson & Johnson pairs a resilient pharmaceutical franchise with a scaled MedTech platform. Kenvue’s separation sharpened focus on higher-growth therapeutics and devices, while pristine credit ratings and disciplined capital allocation support long-term dividend growth.

  • Immunology & Oncology: Darzalex, Stelara, and Carvykti anchor a pipeline targeting $57B in pharma revenue by 2025.
  • MedTech Momentum: Robotics, electrophysiology, and surgical vision drive above-market growth as procedure volumes normalize.
  • Balance Sheet Strength: AAA-rated debt and $25B in cash flow fund bolt-on innovation and the longest dividend growth streak in healthcare.

Business Mix

Innovative Medicine 55% of FY24 sales
MedTech 45% — surgery, vision, orthopedics
Geography 52% US, 48% International
R&D Intensity ~15% of revenue

Mix reflects Johnson & Johnson fiscal year 2024 continuing operations.

Recent Performance

MTD -0.76%
QTD +0.75%
YTD +30.15%
5Y +34.46%

Shares climbed to $190.30 on continued uptake of Darzalex and Stelara, improved MedTech procedure volumes, and guidance that highlighted margin expansion despite FX pressure.

Strategic Insights

Cell Therapy Scaling

Carvykti manufacturing partnerships are alleviating supply constraints, unlocking a multi-billion myeloma opportunity.

MedTech Robotics

Ottava robotic surgery platform progresses toward late-stage trials, broadening JNJ’s surgical ecosystem.

Legal & Capital Discipline

Ongoing talc resolution and Kenvue stake monetization provide flexibility for targeted M&A and accelerated buybacks.

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