Johnson & Johnson downgraded to Market Perform from Outperform at Leerink

Leerink downgraded Johnson & Johnson to Market Perform from Outperform with a price target of $153, down from $169, after CMS issued draft guidance for 2028 IRA drug price controls that creates risk that hyaluronidase combination products may not be protected from IRA price negotiations for 13 years after combo approval. The “surprise” is that CMS draft guidance language suggests that combination products that do not enhance efficacy may be negotiated 13 years after the original active ingredient was approved, rather than 13 years after combination approval, the analyst tells investors.