Johnson & Johnson (JNJ) picked up some rare regulatory recognition this week when the FDA handed out a national priority voucher for Tecvayli (teclistamab) combined with daratumumab, used to treat relapsed or refractory multiple myeloma. That brings the total count of products awarded under the Commissioner's National Priority Voucher pilot program to 16.
The combination therapy, which pairs Tecvayli with Johnson & Johnson's daratumumab (sold as Darzalex and Darzalex Faspro), posted impressive Phase 3 results back in November. The Tec-Dara combo showed significant improvements over standard treatment in both progression-free survival and overall survival for patients who had already been through one to three prior treatment regimens. At the three-year mark, more than 80% of patients receiving Tec-Dara remained free of disease progression. Those results also landed in the New England Journal of Medicine in December.
Bank of America Securities took the opportunity to bump up its price forecast from $204 to $220, maintaining a Buy rating. The firm believes Johnson & Johnson's valuation multiple is reasonable given its mix of growth assets and long runway ahead.
But here's where things get interesting. Despite the target increase, BofA analyst Jason Gerberry wrote on Monday, "While these features make JNJ a relatively safer holding, we think opportunities for further re-rate are constrained by limited pipeline catalysts and lack of conviction on upward estimate revisions."
In other words, it's a solid investment, but don't expect fireworks.
Looking ahead to fiscal 2026, BofA expects contributions from two key launches: Caplyta for major depressive disorder and icotrokinra for psoriasis. The Caplyta expansion into unipolar depression opens up the drug's largest potential market, but Gerberry doesn't see room for beating consensus peak projections hovering around $4.5 billion.
As for icotrokinra, the analyst thinks the 2026 launch contribution will likely be modest considering a mid-year approval timeline and the time needed to build payer access. BofA views the icotrokinra launch, which management estimates could reach over $5 billion at peak, as more of a 2027 story.
Johnson & Johnson will release important pipeline data throughout 2026, but BofA doesn't see any major, high-impact readouts on the calendar. Investors might pay attention to the Milvexian Phase 3 data readout in multiple stroke prevention settings expected in the fourth quarter of 2026, though even that appears to be more of a watching brief than a blockbuster catalyst.
