The U.S. regulator, FDA (Food and Drug Administration), gave its nod to Johnson & Johnson’s (JNJ) nasal spray, SPRAVATO, as a standalone treatment for severe depression. This approval paves the way for the company to capitalize on the growing sales of this nasal drug. Notably, SPRAVATO recorded sales of $780 million in the first nine months of 2024 and is on track to become a blockbuster drug for the company. JNJ stock rose by 0.76% following the news.
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The company is set to release its Q4 2024 results later today.
SPRAVATO Becomes First Monotherapy for Depression
With the approval, SPRAVATO (esketamine) becomes the first monotherapy for people with major depressive disorder (MDD) that hasn’t improved after trying at least two other treatments. Initially, SPRAVATO was approved only when used with an oral antidepressant. However, the FDA has now approved it as a stand-alone treatment. This change follows a large study showing that the drug alone was more effective than a placebo.
The company highlighted that MDD is a prevalent psychiatric disorder, impacting approximately 21 million adults in the U.S. Moreover, it stated that one-third of adults do not respond to only oral antidepressants.
Dr. Gregory Mattingly, a doctor involved in the early clinical trials of SPRAVATO, explained that it’s a new option that gives patients more flexibility in how they can treat their depression. Meanwhile, the company believes this approval could potentially expand the number of patients who might benefit from the drug.
Is J&J a Good Stock to Buy?
As per the consensus rating on TipRanks, JNJ stock has received a Moderate Buy rating, based on four Buy and seven Hold recommendations. The Johnson & Johnson share price forecast is $169.0, which is 14.07% above the current trading level.
