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How Johnson & Johnson’s Remicade and Simponi Performed in 3Q17

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Remicade revenue trends

In 3Q17, Johnson & Johnson’s (JNJ) Remicade generated revenues of $1.6 billion, which reflected a ~8% decline on a year-over-year (or YoY) basis and 8% growth on a quarter-over-quarter basis. In 3Q17, in the US market and outside the US markets (international markets), Remicade generated revenues of $1.2 billion and $285 million, respectively, which reflected a ~1.3% and ~6.9% decline on a YoY basis.

Remicade reported YTD September 2017 revenues of $4.8 billion compared to $5.3 billion in YTD September 2016. Remicade is used for the treatment of moderate to severe Crohn’s disease, pediatric Crohn’s disease, ulcerative colitis, and rheumatoid arthritis. Remicade is also used for the treatment of active psoriatic arthritis, ankylosing spondylitis, and plaque psoriasis.

The introduction of biosimilar versions of Remicade (infliximab) was primarily responsible for the drug’s declining revenues in 3Q17. In April 2017, the U.S. FDA (Food and Drug Administration) approved Merck’s biosimilar of Remicade, which was launched in the US in July 2017.

Simponi revenue trends

In 3Q17, Simponi generated revenues of $476 million, which reflected a ~1% decline on a YoY basis and 8% growth quarter-over-quarter. In 3Q17, in the US market and international markets, Simponi generated revenues of $242 million and $234 million, respectively, compared to $256 million and $225 million in 3Q16.

Simponi saw YTD (year-to-date) September 2017 revenues of $1.3 billion, which is ~1.8% YoY growth.

Simponi (golimumab) is used for the treatment of adults with moderate to severe rheumatoid arthritis, active psoriatic arthritis, active ankylosing spondylitis, and moderate-to-severe active ulcerative colitis.

Remicade and Simponi compete with Amgen’s (AMGN) and Pfizer’s Enbrel, AbbVie’s (ABBV) Humira, and Novartis’s (NVS) Cosentyx. In 3Q17, Amgen and Pfizer reported revenues of $1.4 billion and $613 million, respectively, from the sales of Enbrel, while AbbVie’s Humira and Novartis’ Cosentyx reported revenues of $7.0 billion and $556 million, respectively.

Notably, the Vanguard S&P 500 ETF (VOO) invests ~1.7% of its total portfolio holdings in Johnson & Johnson.

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