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Johnson & Johnson Wins Street Upgrade on New Drug Portfolio Momentum

Leerink Partners elevated Johnson & Johnson to buy Wednesday on strong performance from newly launched pharmaceuticals. Icotyde and Inlexzo drove the upgrade amid a challenging sector environment for healthcare equities. Icotyde, an oral treatment for severe plaque psoriasis that debuted in March, is projected to generate $405 million in fiscal 2026 sales—nearly 50% above consensus estimates of $268 million. The drug is also in phase 3 trials for inflammatory bowel disease, with potential approval targeted for 2028. Inlexzo, a bladder cancer treatment launched in September, exceeded $30 million in quarterly sales during its initial release phase. Leerink raised its five-year annual sales growth targets by 24-34% and increased its price target to $265 per share from $252, implying over 15% upside potential.