JNJ CEO Signals No Rush Into Weight-Loss Drug Realm, Emphasizes Different Priorities

Johnson & Johnson JNJ has no immediate plans to venture into weight-loss drugs due to the existing competition saturation, as Chief Executive Officer Joaquin Duato highlighted. 

During the firm's investor day on Tuesday, Duato emphasized that the company's priorities lie in extensive expansion, particularly within neurology and oncology.

Also Read: Johnson & Johnson's Strategic Forecast: Targets 5%-6% Operational Sales Growth For FY24.

Although dismissing the notion of entering this specific drug category for now, Duato did leave a slight window open for reconsideration, Bloomberg reported. 

He mentioned that if J&J identifies an opportunity to distinguish itself within the market through a supplementary asset aligned with the company's focus, it might contemplate a shift in strategy.

The burgeoning market for obesity treatment has already witnessed substantial penetration by Eli Lilly & Co LLY and Novo Nordisk A/S NVO.

Most recently, Roche Holdings AG RHHBY agreed to acquire obesity-focused Carmot Therapeutics for $2.7 billion in cash. Additionally, Carmot's equity holders are entitled to receive payments of up to $400 million depending on achieving certain milestones. 

Last week, Altimmune Inc ALT shares gained after the company released topline results from its 48-week MOMENTUM Phase 2 obesity trial of pemvidutide with 391 subjects. 

Meanwhile, Pfizer Inc PFE stock fell on topline data from the Phase 2b trial of danuglipron. Shares fell as the patients in the study discontinued at rates greater than 50% across all doses compared to 40% of patients on placebo.

Price Action: JNJ shares are down 1.11% at $156.79 on the last check Wednesday.