One Blood Cancer, Four MedicinesWide moat

Johnson & Johnson (JNJ) — moat facet

Johnson & Johnson sells four medicines for multiple myeloma, and together they are about a fifth of the company.

J&J has built something unusual in oncology: a stack of medicines for a single disease, sold to the same specialists, each meant to be used alongside or after the others. Darzalex is a treatment for multiple myeloma; Carvykti is a CAR-T cell therapy for relapsed or refractory myeloma1; Tecvayli and Talvey are bispecific antibodies used in the same disease, and the company presented Talvey plus Darzalex Faspro data in earlier-line relapsed or refractory multiple myeloma in the second quarter2.

Myeloma medicines, Q2 2026 sales ($M)Darzalex 4,207 — 79%Carvykti 657 — 12%Tecvayli 260 — 5%Talvey 174 — 3%J&J Q2 2026 financial schedules
Four products, one disease, $5.3 billion a quarter.

Together the four sold $5,298 million in the second quarter of 2026: Darzalex $4,207 million, Carvykti $657 million, Tecvayli $260 million and Talvey $174 million3. That is about 21% of J&J's total sales of $25,310 million in the quarter4.

The strategy makes sense of the moat. A physician treating myeloma meets J&J at diagnosis, at first relapse and in late-line disease, and the clinical trials combine J&J products with each other. The Phase 3 MajesTEC-3 study supported Tecvayli plus Darzalex Faspro as a potential standard of care as early as second line5. Every combination that becomes standard gives the next product a head start.

The growth rates are the evidence. In the second quarter Carvykti grew 49.4%, Tecvayli 56.5% and Talvey 63.3%6. Carvykti's growth in 2025 was attributed to share gains and capacity expansion7, a reminder that a cell therapy is limited by how many patients the factories can serve.

The stack also creates a defensive benefit that single products lack. When one myeloma medicine faces a new competitor, J&J can respond with a combination that includes the competitor's target patients: Talvey plus Darzalex Faspro in earlier-line relapsed or refractory disease was one of the quarter's data releases8. Rybrevant, J&J's lung cancer medicine, grew 60.8% to $289 million in the second quarter9, a sign that the same approach, building a franchise rather than a product, is being attempted in a second cancer.

International growth is the next leg. Carvykti's international sales were $349 million in the first half of 2026 against $132 million a year earlier10, and Talvey's $113 million against $42 million11. The stack is only beginning to reach markets outside the United States.

My reading is that the myeloma stack is the most defensible thing in J&J's medicines business, because it makes the company the default across the whole course of a disease. What would say otherwise is the combined share of these four products in total sales falling in a period when Darzalex is still protected.

Moat trajectory: Widening

Carvykti, Tecvayli and Talvey all grew by roughly half or more in the latest quarter.

The number that tests this moat
Reported
Myeloma four-product sales, latest quarter
$5,298M, about 21% of total sales (Q2 2026)

Darzalex, Carvykti, Tecvayli and Talvey together; the share falling while Darzalex is protected would say the stack is losing ground.

Source: Johnson & Johnson Q2 2026 financial schedules ↗
⚠ Threats to the moat
⚠ THREAT 01
Imbruvica Shows the Other Ending
Imbruvica lost more than a third of its United States sales in a year to competitors, without any patent expiring.
References
  1. ReportedDarzalex is a treatment for multiple myeloma; Carvykti is a CAR-T cell therapy for relapsed or refractory myeloma; Tecvayli and Talvey are bispecific antibodies used in the same disease, and the company presented Talvey plus Darzalex Faspro data in earlier-line relapsed or refractory multiple myeloma in the second quarter.
    Johnson & Johnson Form 10-K for fiscal 2025 (year ended 28 December 2025) - Item 1 business: segments, competition, patents, the three largest products, royalties, collaboration partners and the regulatory table. — FY2025 · publ. 11 February 2026 · source ↗
  2. ReportedDarzalex is a treatment for multiple myeloma; Carvykti is a CAR-T cell therapy for relapsed or refractory myeloma; Tecvayli and Talvey are bispecific antibodies used in the same disease, and the company presented Talvey plus Darzalex Faspro data in earlier-line relapsed or refractory multiple myeloma in the second quarter.
    Johnson & Johnson second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 15 July 2026 · source ↗
  3. ReportedTogether the four sold $5,298 million in the second quarter of 2026: Darzalex $4,207 million, Carvykti $657 million, Tecvayli $260 million and Talvey $174 million.
    Johnson & Johnson second-quarter 2026 supplementary sales data, statement of earnings and non-GAAP reconciliation, Form 8-K exhibit 99.2 - Innovative Medicine and total sales by product, segment and region. — Q2 2026 · publ. 15 July 2026 · source ↗
  4. Moat Explorer calcThat is about 21% of J&J's total sales of $25,310 million in the quarter.
    Moat Explorer calculation from Johnson & Johnson's reported figures ($ millions unless stated). Darzalex royalty: 2,400 / 14,351 = 16.7%. Stelara 2023-2025: 10,858 - 6,078 = 4,780 lost; Tremfya 5,155 - 3,147 = 2,008 gained, 2,008 / 4,780 = 42%. Growth 2023-2025: Darzalex 14,351 - 9,744 = 4,607; Carvykti 1,887 - 500 = 1,387; Erleada 3,574 - 2,387 = 1,187; Spravato 1,696 - 689 = 1,007; five products 4,607 + 2,008 + 1,387 + 1,187 + 1,007 = 10,196. Myeloma medicines Q2 2026: 4,207 + 657 + 260 + 174 = 5,298; 5,298 / 25,310 = 20.9%. Simponi and Opsumit 2025: 2,668 + 2,325 = 4,993. Abiomed: 3,700 / 1,751 = 2.1 times; 1,751 x 1.171^5 = 3,850 by 2030. Shockwave: 12,600 / 1,146 = 11.0 times. Caplyta: 361 x 4 = 1,444 a year; 14,500 / 1,444 = 10.0 times. Acquisitions: 15,146 + 17,541 = 32,687. Goodwill and intangibles: 48,772 + 50,403 = 99,175; 99,175 / 199,210 = 49.8%. Free cash flow 2025: 24,530 - 4,832 = 19,698. Cash uses 2025: 12,381 + 5,953 + 17,541 = 35,875. Capex 4,832 / 94,193 = 5.1%. Surgery: 10,137 / 10,037 - 1 = 1.0%. Electrophysiology: 5,634 / 33,792 = 16.7%. MedTech share of sales: 33,792 / 94,193 = 35.9%; Innovative Medicine 60,401 / 94,193 = 64.1%. Segment income 2025: 22,266 + 4,113 = 26,379; Innovative Medicine 22,266 / 26,379 = 84.4%; MedTech 4,113 / 26,379 = 15.6%. Gross margin 63,937 / 94,193 = 67.9%. MedTech rebates: 6,446 / 33,792 = 19.1%; 5,955 / 31,857 = 18.7%. Return on identifiable assets: Innovative Medicine 22,266 / 78,057 = 28.5%; MedTech 4,113 / 86,482 = 4.8%. Cost of products sold / segment sales 2025: Innovative Medicine 15,646 / 60,401 = 25.9%; MedTech 14,549 / 33,792 = 43.1%. Q2 2026 segment margins: Innovative Medicine 6,249 / 16,384 = 38.1%; MedTech 1,177 / 8,926 = 13.2%. Growth 2023-2025: sales 94,193 / 85,159 - 1 = 10.6%; operating cash flow 24,530 / 22,791 - 1 = 7.6%; dividends 12,381 / 11,770 - 1 = 5.2%. Dividends per share 5.14 / 2.95 - 1 = 74%. Payout 2025: 12,381 / 26,804 = 46%; 12,381 / 26,215 = 47%; 12,381 / 19,698 = 63%. Diluted shares 2,429.4 / 2,812.9 - 1 = -13.6%; Kenvue exchange 190.96 / 2,674.0 = 7.1%. Firefly and Sail initial payments: 1,000 + 785 = 1,785. Consumer sales 2015-2022: (14,953 / 13,507)^(1/7) - 1 = 1.5% a year. Wholesalers: 21.8 + 15.5 + 11.1 = 48.4 (2025); 20.5 + 15.6 + 12.3 = 48.4 (2024); 18.2 + 15.1 + 14.2 = 47.5 (2023); largest 21.8 - 18.2 = 3.6 points. Innovative Medicine rebates: 56,819 / 60,401 = 94.1% (2025); 47,523 / 54,759 = 86.8% (2023); 56,819 / 47,523 - 1 = 19.6%; net sales 60,401 / 54,759 - 1 = 10.3%. Top three products: 15.0 + 6.5 + 5.5 = 27.0% of revenue. United States share: 53,752 / 94,193 = 57.1% (2025); 14,533 / 25,310 = 57.4% (Q2 2026). MedTech excluding orthopaedics: (33,792 - 9,258) / (31,857 - 9,158) - 1 = 8.1%. Talc: 5,500 / 76,000 claims = about $72,000 per claim; 5.5 - 3.7 = 1.8 billion. Valuation: 348.19 / 24.242 = 14.4 times (end-2024 market value over 2024 adjusted net earnings); 652.05 / 348.19 - 1 = 87%; 270.57 / 11.04 = 24.5 times; 11.04 / 10.79 - 1 = 2.3%; 277.91 / 270.57 - 1 = 2.7%. Innovative Medicine history: (60,401 / 31,430)^(1/10) - 1 = 6.8% a year; Pharmaceutical pre-tax margins 11,734 / 31,430 = 37.3% (2015), 12,827 / 33,464 = 38.3% (2016), 8,816 / 42,198 = 20.9% (2019); restated growth 52,563 / 51,680 - 1 = 1.7% (2022), 54,759 / 52,563 - 1 = 4.2% (2023), 56,964 / 54,759 - 1 = 4.0% (2024). Additional: 2015 mix 31,430 / 70,074 = 45%; dividend 5.36 / 11.04 = 49%; buybacks 4,253 / 5,953 = 71%; vision 5,468 / 33,792 = 16%; Innovative Medicine international 60,401 - 36,344 = 24,057 against 54,759 - 31,169 = 23,590 (2.0%); United States 36,344 / 31,169 - 1 = 16.6%; myeloma four-product growth 2023-2025 4,607 + 1,387 + (670 - 395) + (463 - 63) = 6,669 of oncology growth 25,380 - 17,661 = 7,719, 86%; Darzalex international 1,772 / 4,207 = 42%; equity gap 99,175 - 81,544 = 17,631; Abiomed 440 x 4 = 1,760; amortisation MedTech 0.5 / 1.3 = 38%; MedTech H1 2026 segment income 2,416 / 2,625 - 1 = -8.0%, SM&A 5,975 / 5,518 - 1 = 8.3%, R&D 1,492 / 1,324 - 1 = 12.7%, cost of products sold 7,438 / 6,964 - 1 = 6.8%, margins 2,416 / 17,562 = 13.8% and 2,625 / 16,561 = 15.9%; Innovative Medicine H1 2026 11,566 / 10,762 - 1 = 7.5%, 11,566 / 31,810 = 36.4%; dividends / operating cash flow 12,381 / 24,530 = 50%; receivables 17,178 - 14,842 = 2,336, inventories 14,191 - 12,444 = 1,747; Q2 2026 dividend 3,227 x 4 = 12,908, one cent x 4 x 2,408M shares = $96M; diluted shares 2,663.9 / 2,812.9 - 1 = -5.3%; MedTech United States 17,408 / 33,792 = 52%; international sales 94,193 - 53,752 = 40,441; oncology share of Innovative Medicine 25,380 / 60,401 = 42.0%; Darzalex sales increase 14,351 - 11,670 = 2,681, royalty increase 2,400 - 2,000 = 400, 400 / 2,681 = 15%; newer myeloma medicines Q2 2026 657 + 260 + 174 = 1,091, 1,091 / 4,207 = 26%; Shockwave international 67 / 335 = 20%; amortisation 2,492 x 2 = 4,984 a year, 4,984 / 26,215 = 19%; US long-lived assets 89,392 - 70,670 = 18,722; surgery international Q2 2026 1,559 / 2,653 = 59%; net interest 1,056 - 971 = 85; dividends per share 5.14 / 4.70 - 1 = 9.4%; MedTech rebates 6,446 / 5,955 - 1 = 8.2%; trailing sales 94,193 - 45,636 + 49,372 = 97,929; net earnings 26,804 - 16,536 + 10,769 = 21,037. MedTech history: (33,792 / 25,137)^(1/10) - 1 = 3.0% a year; Medical Devices 6,826 / 25,137 = 27.2% (2015), 5,392 / 26,592 = 20.3% (2017); restated 4,208 / 27,060 = 15.6% (2021), 4,447 / 27,427 = 16.2% (2022); growth 27,427 / 27,060 - 1 = 1.4% (2022), 30,400 / 27,427 - 1 = 10.8% (2023), 31,857 / 30,400 - 1 = 4.8% (2024) - product and franchise growth. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in J&J's Forms 10-K, 10-Q, results releases and market data; operands shown in the source line.
  5. ReportedThe Phase 3 MajesTEC-3 study supported Tecvayli plus Darzalex Faspro as a potential standard of care as early as second line.
    Johnson & Johnson fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99.1 - adjusted earnings, free cash flow and 2026 guidance. — FY2025 · publ. 21 January 2026 · source ↗
  6. ReportedIn the second quarter Carvykti grew 49.4%, Tecvayli 56.5% and Talvey 63.3%.
    Johnson & Johnson second-quarter 2026 supplementary sales data, statement of earnings and non-GAAP reconciliation, Form 8-K exhibit 99.2 - Innovative Medicine and total sales by product, segment and region. — Q2 2026 · publ. 15 July 2026 · source ↗
  7. ReportedCarvykti's growth in 2025 was attributed to share gains and capacity expansion, a reminder that a cell therapy is limited by how many patients the factories can serve.
    Johnson & Johnson Form 10-K for fiscal 2025 (year ended 28 December 2025) - Item 7 MD&A: Innovative Medicine segment, therapeutic-area and product sales analysis. — FY2025 · publ. 11 February 2026 · source ↗
  8. ReportedWhen one myeloma medicine faces a new competitor, J&J can respond with a combination that includes the competitor's target patients: Talvey plus Darzalex Faspro in earlier-line relapsed or refractory disease was one of the quarter's data releases.
    Johnson & Johnson second-quarter 2026 results release, Form 8-K exhibit 99.1. — Q2 2026 · publ. 15 July 2026 · source ↗
  9. ReportedRybrevant, J&J's lung cancer medicine, grew 60.8% to $289 million in the second quarter, a sign that the same approach, building a franchise rather than a product, is being attempted in a second cancer.
    Johnson & Johnson second-quarter 2026 supplementary sales data, statement of earnings and non-GAAP reconciliation, Form 8-K exhibit 99.2 - Innovative Medicine and total sales by product, segment and region. — Q2 2026 · publ. 15 July 2026 · source ↗
  10. ReportedCarvykti's international sales were $349 million in the first half of 2026 against $132 million a year earlier, and Talvey's $113 million against $42 million.
    Johnson & Johnson second-quarter 2026 supplementary sales data, statement of earnings and non-GAAP reconciliation, Form 8-K exhibit 99.2 - Innovative Medicine and total sales by product, segment and region. — Q2 2026 · publ. 15 July 2026 · source ↗
  11. ReportedCarvykti's international sales were $349 million in the first half of 2026 against $132 million a year earlier, and Talvey's $113 million against $42 million.
    Johnson & Johnson second-quarter 2026 supplementary sales data, statement of earnings and non-GAAP reconciliation, Form 8-K exhibit 99.2 - Innovative Medicine and total sales by product, segment and region. — Q2 2026 · publ. 15 July 2026 · source ↗
Sources
Generated September 24, 2026