Johnson & Johnson at Morgan Stanley conference: growth story broadens

On Monday, September 14, 2026, Johnson & Johnson (JNJ) delivered a growth-focused presentation at the Morgan Stanley 24th Annual Global Healthcare Conference. The company highlighted new drug launches, a concentrated portfolio, and a pipeline that management claims is becoming less risky. CEO Joaquin Duato stated that JNJ has one of the clearest growth profiles within the sector.

The company projects annual revenue exceeding $100 billion for the first time and expects a 6.5% adjusted operational sales growth in 2026. Duato further explained that JNJ anticipates double-digit growth by the end of the decade, even without significant mergers and acquisitions.

New launches in immunology, oncology, and MedTech are playing a more significant role in JNJ's growth story. These include icotrokinra, DARZALEX combinations, and OTTAVA. To counter biosimilar competition, JNJ has shifted patients to the subcutaneous form of DARZALEX, called FASPRO. The company described the policy environment as more stable in 2026 than in 2025, with no major pricing issues expected in the near term.

For 2026, JNJ's outlook includes 6.5% adjusted operational sales growth, 7.3% adjusted EPS growth, and more than $100 billion in total revenue for the first time. The stock is currently trading at $268 per share, a 52.51% return over the past year. JNJ's P/E ratio stands at 31.06, which analysts consider overvalued relative to its Fair Value.

The company has a strong market position with an AAA credit rating, reflecting discipline and a balanced balance sheet. JNJ is also an aristocrat in dividend growth, boasting a current yield of 2.02% and a record of 55 consecutive years of dividend increases.

JNJ's business is organized around three core areas within Innovative Medicine and three in MedTech. Innovative Medicine focuses on oncology, immunology, and neuroscience, while MedTech covers vision, surgery, and cardiovascular health. The company now boasts a more focused portfolio, combining existing products, new launches, and pipeline assets that support a longer growth cycle.

Twelve molecules have already demonstrated proof of concept, advancing to Phase III trials, and are deemed de-risked. Ten marketed medicines remain in early life cycles and are experiencing growth.

DARZALEX remains the company's top medicine and a cornerstone therapy in myeloma. About 90% of DARZALEX patients have already transitioned from IV treatment to the subcutaneous FASPRO version. Inlexzo, an intravesical drug release system for bladder cancer, is set for launch. RYBREVANT is launching in lung cancer, with an expansion in head and neck cancer planned. Nipocalimab is targeting rheumatology, and OTTAVA, a soft tissue robotic surgical system, has received FDA approval and is in limited market release.

The company also announced several recent transactions and partnerships designed to support growth over the next decade. In 2024, JNJ acquired Halda Therapeutics, which brings the RIPTAC platform targeting the androgen receptor in prostate cancer. The platform includes 14 projects at various stages of lead optimization. Additionally, JNJ acquired Firefly Bio for its antibody-degrader conjugates platform, with a pan-KRAS degrader expected in preclinical development by early 2025.

A collaboration with Sail aims to develop a non-viral in vivo CAR T approach using mRNA and engineered lipid nanoparticles, expected to enter the clinic later in 2024. Finally, a viral lentivirus approach for in vivo CAR T, developed using JNJ's own lentivirus platform, is anticipated for clinic entry in early 2025.