Guggenheim Reiterates Neutral Rating on Johnson & Johnson (JNJ)

Guggenheim analyst Vamil Divan reiterated a Neutral rating and $167.00 price target on Johnson & Johnson (NYSE: JNJ).

The analyst commented: "Johnson & Johnson announced today that the FDA has approved Inlexzo (previously TAR-200), the first and only intravesical drug-releasing system for extended local delivery into the bladder, for adult patients with BCG-unresponsive non-muscle invasive bladder cancer with carcinoma in situ. While we expected this approval based on our longstanding bullish views on TAR-200's profile, we are pleased to see this milestone achieved as it validates our conviction in this asset. As we have highlighted in our prior research, we believe Inlexzo represents a unique bladder-sparing treatment that addresses a significant unmet need for patients who have limited options after unsuccessful BCG therapy. Multiple urologists that we have spoken to have consistently viewed TAR-200 as an attractive product that is likely to gain significant market share based on its strong efficacy profile, reasonable tolerability, and practical fit into urology practices. The approval also validates our view that Inlexzo and TAR-210 (erdafitinib intravesical delivery system) has the potential to expand beyond this initial BCG unresponsive indication and move into additional populations, which could significantly broaden the addressable market opportunity for the platform. We currently estimate POS adjusted 2040 revenues of ~$5Bn for the TARIS platform (Inlexzo $3.4Bn, TAR-210 $1.6Bn), which is consistent with management's guidance of the broader TARIS platform having $5Bn peak sales potential."

For an analyst ratings summary and ratings history on Johnson & Johnson click here. For more ratings news on Johnson & Johnson click here.

Shares of Johnson & Johnson closed at $176.96 yesterday.

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