RBC maintains Outperform on JNJ shares, sees $5B Icotrokinra potential

Published 12/03/2025, 16:44
RBC maintains Outperform on JNJ shares, sees $5B Icotrokinra potential

On Wednesday, RBC Capital Markets maintained its Outperform rating on Johnson & Johnson (NYSE:JNJ) with a steady price target of $181.00. The firm’s analysis follows Johnson & Johnson’s recent analyst meeting, which highlighted the promising data from Icotrokinra (JNJ-2113) studies presented at The American Academy of Dermatology (AAD) annual meeting.

The company estimates that Icotrokinra could represent an annual sales opportunity exceeding $5 billion. This drug is expected to play a significant role in the growth of Johnson & Johnson’s Innovative Medicine franchise, potentially contributing to a 5-7% operational long-range plan (LRP) growth from 2025 to 2030.

Immunology remains a strategic focus for Johnson & Johnson, as it aims to remain competitive in the market, even with the anticipated loss of exclusivity (LOE) for its drug Stelara. Following the positive feedback from the AAD meeting, RBC Capital has reaffirmed its positive stance on Johnson & Johnson’s stock performance and growth prospects.

The reaffirmation of the Outperform rating by RBC Capital comes as Johnson & Johnson continues to innovate within its pharmaceutical division, seeking to bring new, high-value treatments to the market. The company’s commitment to immunology and the potential of new therapies like Icotrokinra underscores its strategic efforts to sustain long-term growth.

In other recent news, Johnson & Johnson has successfully completed its multi-billion euro public offerings of notes, raising significant capital for potential corporate purposes such as refinancing debt and funding acquisitions. Meanwhile, Johnson & Johnson’s Phase 2b ANTHEM-UC clinical trial for icotrokinra in ulcerative colitis showed promising results, with high clinical response and remission rates compared to placebo. In a separate development, Guggenheim Securities downgraded Neumora Therapeutics from Buy to Neutral following the discontinuation of Johnson & Johnson’s Phase 3 VENTURA program for aticaprant due to insufficient efficacy. This downgrade reflects broader concerns about Neumora’s KOASTAL program and its recent clinical setbacks. Additionally, Genmab (NASDAQ:GMAB) announced that Johnson & Johnson decided not to pursue a licensing deal for HexaBody-CD38, despite promising initial clinical data. Genmab remains focused on its pipeline, including EPKINLY® and other assets in Phase 3 development. Lastly, the healthcare sector, including Johnson & Johnson, has been highlighted by BTIG as a top performer in the S&P 500 this year, with the sector nearing a multi-month relative high.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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