JNJ vs. ABBV: Which Pharma Powerhouse Has Better Growth Prospects?

Kinjel Shah

Tue, May 6, 2025, 8:26 AM 7 min read

Johnson & Johnson JNJ and AbbVie ABBV are two major U.S. pharmaceutical companies with robust pipelines and global operations. Both companies have a strong presence in immunology, oncology and neuroscience areas. Other than that, J&J also has drugs for cardiovascular and metabolic diseases, pulmonary hypertension and infectious diseases, along with a strong presence in the medical devices segment.

On the other hand, AbbVie entered the aesthetics market by acquiring Botox maker Allergan in 2020.

It seems that 2025 will be a “catalyst year” for JNJ and ABBV, with both expecting their revenues and profits to improve. But which one is a better investment option today? Let’s take a closer look at their fundamentals, growth prospects and challenges to make an informed choice.

The Case for J&J

J&J’s biggest strength is its diversified business model, which helps it to withstand economic cycles more effectively. It operates through more than 275 subsidiaries.

Its Innovative Medicine unit is showing a growth trend. The segment’s sales rose 4.4% in the first quarter of 2025 on an organic basis despite the loss of exclusivity (LOE) for its multi-billion-dollar product, Stelara, and the negative impact of the Part D redesign. In 2025, J&J expects growth in the Innovative Medicine segment in the face of Stelara biosimilar entrants to be driven by its key products such as Darzalex, Tremfya, Spravato and Erleada, as well as new drugs like Carvykti, Tecvayli and Talvey, and new indications for Tremfya and Rybrevant.

J&J is also making rapid progress with its pipeline and has been on an acquisition spree lately, which has strengthened its pipeline.

Sales in J&J’s MedTech business are facing continued headwinds in the Asia Pacific, specifically in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program and the anticorruption campaign. J&J does not expect any improvement in its business in the Asia Pacific region, specifically in China, in 2025. Competitive pressure is also hurting sales growth in some MedTech businesses.

The company lost U.S. patent exclusivity of its blockbuster drug, Stelara, in 2025. Stelara sales declined 33.7% in the first quarter of 2025. The launch of generics is expected to significantly erode the drug’s sales, hurting J&J’s sales and profits in 2025.

J&J faces more than 62,000 lawsuits for its talc-based products, primarily baby powders. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian cancer. J&J insists that its talc-based products are safe and do not cause cancer. The company permanently discontinued the sales of its talc-based Johnson’s Baby Powder.

Last month, a bankruptcy court in Texas rejected J&J’s proposed bankruptcy plan to settle its talc lawsuits after a two-week trial in Houston. J&J will go back to the traditional tort system to fight the lawsuits individually with its bankruptcy strategy to settle the lawsuits failing for the third time.

The Case for AbbVie

AbbVie has successfully navigated the LOE of its blockbuster drug, Humira, which once generated more than 50% of its total revenues. It has accomplished this by launching two other successful new immunology medicines, Skyrizi and Rinvoq, which are performing extremely well, bolstered by approvals in new indications and should support top-line growth in the next few years. On the first-quarter conference call in April, AbbVie also raised its EPS guidance for 2025, driven by stronger-than-expected sales of Rinvoq and Skyrizi. AbbVie expects to record combined Skyrizi and Rinvoq sales of more than $31 billion in 2027.

The company’s oncology strategy is also gaining traction, supported by increasing contributions from newer products, Elahere and Epkinly.

AbbVie has several early/mid-stage pipeline candidates with blockbuster potential. The company expects several regulatory submissions, approvals and key data readouts in the next 12 months. AbbVie has also been on an acquisition spree in the past couple of years, which is strengthening its pipeline. It has signed several M&A deals in the immunology space, its core area, while also signing some early-stage deals in oncology and neuroscience areas. It recently forayed into the lucrative obesity space through a licensing deal with Denmark-based Gubra for the latter’s experimental obesity drug.

However, the company faces some near-term headwinds like Humira’s biosimilar erosion, increasing competitive pressure on cancer drug Imbruvica and a slow market growth trend for Juvederm fillers in the United States and China due to challenging market conditions.

How Do Estimates Compare for JNJ & ABBV?

The Zacks Consensus Estimate for J&J’s 2025 sales and EPS implies a year-over-year increase of 2.7% and 6.2%, respectively. The EPS estimate for 2025 has risen from $10.58 per share to $10.60 per share over the past 30 days, while that for 2026 has declined from $11.07 per share to $10.98 per share over the same timeframe.