Pharmaceuticals segment

Johnson & Johnson’s (JNJ) pharmaceutical segment comprises the cardiovascular, metabolics, immunology, infectious disease, neuroscience, oncology, and pulmonary hypertension franchises.

Johnson & Johnson’s Pharmaceuticals Segment in 2Q17

Cardiovascular and metabolics franchise

The cardiovascular and metabolics franchise reported revenue of $1.6 billion in 2Q17, a decrease of ~6.5% from 2Q16. The decline was driven by lower sales of Invokana due to discounts and higher Medicaid utilization, and partially offset by increased sales of Xarelto.

Immunology franchise

The immunology franchise reported revenue of $3.0 billion in 2Q17, a 2.6% decrease from 2Q16. This figure includes a 1.9% fall in operating revenue, and a 0.7% foreign exchange impact. The decline includes ~$170 million in rebate adjustments in US markets in the prior period and lower sales of Remicade due to competition from biosimilars, and was partially offset by strong sales of Stelara.

Infectious disease franchise

The infectious disease franchise, which includes HIV products and hepatitis C products, reported revenue of $792 million in 2Q17, a 4.5% decline from 2Q16. The fall includes a 3.4% decrease in operating revenue, mainly driven by lower sales of hepatitis C products. The decline was partially offset by strong sales of Prezcobix and Odefsey.

Neuroscience franchise

The neuroscience franchise, which includes drugs Concerta, Invega Sustenna, and Xeplion, reported revenue of $1.5 billion during 2Q17, an 8.4% decline from 2Q16. The decline was driven by lower sales of Concerta and the divestiture of Noramco, and partially offset by strong sales of Invega Trinza and Xeplion.

Oncology franchise

The oncology franchise reported revenue of $1.73 billion in 2Q17, 17.2% growth from 2Q16. The growth was driven by strong performance by Darzalex and Imbruvica, and partially offset by lower Zytiga sales.

Pulmonary hypertension

The pulmonary hypertension franchise was included in Johnson & Johnson’s portfolio as a result of the Actelion acquisition, which was completed in June 2017. To divest company-specific risks, investors could consider the Vanguard Health Care ETF (VHT). which has a 10.3% exposure to Johnson & Johnson (JNJ). VHT also holds 3.6% of its total assets in Amgen (AMGN), 3.3% in Abbvie (ABBV), and 2.4% in Abbott Laboratories (ABT).

Latest articles

Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.

The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.

Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.

Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.

14 Jun

IEA Again Slashes Its Oil Demand Growth Estimate

WRITTEN BY Rabindra Samanta

As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.

Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.