Johnson & Johnson JNJ has a strong R&D pipeline, with primary focus areas being immunology, oncology and neuroscience.
J&J rapidly advanced its pipeline in 2025, attaining significant clinical and regulatory milestones that will help drive growth through the back half of the decade. In 2025, it gained approval for new products like Inlexzoh/TAR-200 for treating high-risk non-muscle invasive bladder cancer and Imaavy (nipocalimab) for treating generalized myasthenia gravis.
The positive trend of new drug approvals continued in 2026 with the FDA approving J&J and partner Protagonist Therapeutics’ PTGX Icotyde (icotrokinra), an oral targeted peptide inhibitor of the IL-23 receptor, for treating moderate-to-severe plaque psoriasis (PsO) in the United States, earlier this month. Icotyde was co-discovered by Protagonist and J&J, with the latter holding exclusive global rights for its late-stage development and commercialization across multiple indications.
Inlexzoh is a first-of-its-kind drug-releasing system that provides sustained local delivery of cancer treatment directly into the bladder. Nipocalimab, an FcRn blocker, is also being evaluated for various immune-mediated conditions. It is under review in the United States for warm autoimmune hemolytic anemia, in late-stage studies for hemolytic disease of the fetus and newborn, and Sjogren’s disease, and in mid-stage studies for idiopathic inflammatory myopathy and systemic. J&J believes that nipocalimab has a pipeline-in-a-product potential.
J&J believes that Icotyde/icotrokinra has the potential to revolutionize the treatment of plaque psoriasis, as it is a once-a-day pill, whereas most currently available effective options for treating plaque psoriasis are injectables, like AbbVie’s ABBV popular injection, Skyrizi, and J&J’s own injection, Tremfya.
Icotyde offers a compelling advantage over existing plaque psoriasis treatments by combining biologic-level precision with the convenience of an oral pill. Unlike injectable IL-23 biologics, such as AbbVie’s Skyrizi and Tremfya, it eliminates the need for injections, improving patient comfort and adherence. Icotrokinra is also being evaluated in phase III studies for ulcerative colitis and psoriatic arthritis and in phase II for Crohn’s Disease.
Three of J&J’s new cancer drugs are Carvykti, a BCMA CAR-T therapy for relapsed or refractory multiple myeloma; Tecvayli, for relapsed or refractory multiple myeloma; and Talvey, a novel bispecific therapy for heavily pretreated multiple myeloma. These drugs have also begun to contribute to top-line growth. Combined, they generated $3.0 billion in sales in 2025.
In 2025, J&J invested more than $32 billion in R&D and M&A, including the acquisitions of Intra-Cellular Therapies and Halda Therapeutics.
J&J believes 10 of its new products/pipeline candidates in the Innovative Medicine segment have the potential to deliver peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, Caplyta (added from the Intra-Cellular Therapies acquisition), Inlexzo, Rybrevant plus Lazcluze and Icotyde.
Backed by regular pipeline success, J&J expects a more pronounced impact from new products in 2026 than in 2025.
Overall, J&J has started 2026 with strong momentum, supported by steady pipeline progress, recent approvals, and growing contributions from newly launched therapies. With continued investment in R&D and strategic acquisitions, the company is well-positioned to drive sustained growth as its next wave of innovative treatments gains traction.
JNJ’s Price Performance, Valuation and Estimates
J&J’s shares have outperformed the industry over the past year. The stock has risen 47.1% in the past year compared with 9.5% appreciation of the industry.
From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 20.42 forward earnings, higher than 16.75 for the industry. The stock is also trading above its five-year mean of 15.65.
The Zacks Consensus Estimate for 2026 earnings has been stable at $11.54 per share over the past 60 days, while that for 2027 earnings has gone up from $12.33 per share to $12.44 over the same time frame.
J&J has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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