Why J&J thinks its new psoriasis pill could be one of its biggest drugs ever

Johnson & Johnson is counting on its newly launched psoriasis pill to become its next cash cow. Investors want to know if it can live up to the hype. Icotyde went to market after the Food and Drug Administration approved it in mid-March for moderate to severe plaque psoriasis. The once-a-day drug is the first and only oral treatment targeting the same IL-23 receptor as popular injectables, including J & J's Tremfya, which is also indicated for psoriatic arthritis, ulcerative colitis, and Crohn's Disease. IL-23 inhibitors, which include AbbVie's Skyrizi, are biologic medications used to treat chronic inflammatory diseases. "Icotyde has the potential to be one of our largest products ever," Johnson & Johnson CEO Joaquin Duato said on the April earnings call. Together, J & J is aiming for Tremfya and now Icotyde to shore up its immunology portfolio and to replace and exceed the waning sales of Stelara, which topped out in 2023 at nearly $11 billion in annual revenue. Stelara lost exclusivity last year, paving the way for biosimilars to enter the market. It is estimated to pull in just $2.36 billion this year, and less and less in the years to come. Tremfya sales have steadily climbed since peak-Stelara — from $3.15 billion in 2023 to an estimated $7.13 billion for 2026. It's too early to tell how much Icotyde will add to the mix, but J & J said last month when it reported first-quarter earnings that roughly 1,500 prescriptions have been written in less than 30 days. …