JNJ gets Wall Street boost as blockbuster drug bets ignite growth hopes
Investing.com -- Analysts at Leerink Partners upgraded Johnson & Johnson from “Market Perform” to “Outperform,” citing accelerating growth prospects driven by a wave of new drug launches and expanding oncology and immunology franchises. The brokerage also raised its 12-month price target to $265 from $252, implying roughly 18% upside from the stock’s recent close.
Leerink said the pharmaceutical giant is entering a period of stronger revenue expansion led by four key products: Icotyde, Inlexzo, Rybrevant, and Tremfya. The firm now forecasts Johnson & Johnson’s revenue compound annual growth rate at 7.2% between 2026 and 2031, above Wall Street consensus expectations of about 6%.
At the center of Leerink’s bullish thesis is Icotyde, an oral IL-23 therapy launched in April 2026 for psoriasis. Analysts described the drug as potentially “one of the largest products ever” for the company, citing strong efficacy data and the convenience of oral dosing compared with injectable biologics. Leerink projects Icotyde sales could reach $10.5 billion by 2032, substantially above current consensus forecasts.
The report also highlighted optimism around Inlexzo, Johnson & Johnson’s bladder cancer therapy marketed through the TAR-200 delivery system. Analysts pointed to strong patient demand, favorable reimbursement following a permanent U.S. J-code assignment in April, and expanded treatment recommendations from the National Comprehensive Cancer Network. Leerink estimates Inlexzo could generate $5.8 billion in annual sales by 2032.
Another growth driver identified in the note was Rybrevant, the company’s lung cancer treatment. Leerink said the December 2025 approval of a subcutaneous formulation significantly improved the drug’s safety and convenience profile, potentially accelerating adoption in first-line EGFR-mutated non-small cell lung cancer. U.S. sales rose 22% sequentially in the first quarter of 2026, according to the report.
Meanwhile, psoriasis and inflammatory bowel disease drug Tremfya continues to post robust prescription growth, supported by strong uptake in inflammatory bowel disease indications.
Leerink expects several upcoming clinical milestones in 2026 to further support investor sentiment, including late-stage data readouts for Icotyde, Inlexzo, and multiple myeloma therapies Talvey and Tecvayli.
Despite the optimistic outlook, the brokerage cautioned that risks remain, including potential setbacks in clinical trials, weaker-than-expected launches, litigation exposure tied to talc liabilities, and broader drug pricing pressures.