What’s New with Johnson & Johnson?
Johnson & Johnson’s (JNJ) 4Q16 segment-wise performance is expected to be positive across all segments including pharmaceuticals, consumer, and medical devices segments.
JNJ stock has returned nearly 18.1% in the last 12 months, and analysts estimate the stock might rise 9% over the next 12 months.
Johnson & Johnson (JNJ) has restructured its business over the last few years and divested some low profitability products.
Johnson & Johnson’s (JNJ) consumer healthcare segment includes baby care, oral care, skin care, over-the-counter products, women’s health, and wound care franchises.
Johnson & Johnson’s (JNJ) medical devices segment deals with vision care, cardiovascular care, specialty surgery, orthopedics, surgical care, and diabetes care.
Johnson & Johnson’s (JNJ) pharmaceuticals segment consists of its immunology, infectious disease, neuroscience, oncology, and cardiovascular and metabolics franchises.
Analysts expect a growth of 2.5% in Johnson & Johnson’s (JNJ) 4Q16 revenues to ~$18.3 billion, following an increase in sales of its blockbuster drugs including Remicade, Stelara, Olysio, and Zytiga.
Johnson & Johnson is set to release its 4Q16 earnings on January 24, 2017.
Alcon, the eye care segment of Novartis AG (NVS), is divided into two subsegments: surgical and vision care.
Sandoz reported a decline of 1% in 3Q16 revenues at constant exchange rates.
The overall contribution of the innovative medicines segment was ~67% at $8,173 million for 3Q16.
Novartis (NVS) reported a flat top line at a constant exchange rate for 3Q16 as compared to 3Q15 revenues.
Novartis’s (NVS) revenues fell 1% on a constant currency basis for 3Q16 as compared to 3Q15.
On January 13, 2017, Novartis was trading at a forward PE multiple of ~15.1x.
Mylan’s gross profits fell to $1.28 billion in 3Q16 compared to $1.32 billion in 3Q15. Its gross margin fell to 42.0% in 3Q16 compared to 49.0% in 3Q15.
Mylan’s recent commercial developments include the acquisition of the Cold-EEZE brand from ProPhase Labs and the acquisition of Meda AB.
Mylan’s fall in revenues was driven by lower sales and lower wholesale purchases of the EpiPen Auto-Injector in anticipation of the generic version.
Mylan’s (MYL) 3Q16 revenues were mainly driven by a 17.0% rise in sales for its Generics segment. The segment reported $2.6 billion in sales in 3Q16.
Mylan (MYL) achieved a 13.0% growth in revenues in 3Q16 compared to 3Q15. It reported revenues of ~$3.1 billion, a rise of 13.0% compared to 3Q15.
Mylan has been embroiled in a controversy over whether its EpiPen is classified as a generic or a branded product and whether its 500.0% price hike is justified.