uploads/2018/10/Oncology.png

Johnson & Johnson’s Oncology Business Saw Solid Growth in Q3

By

Updated

Revenue trends

Johnson & Johnson’s (JNJ) oncology business generated revenue of $2.6 billion in the third quarter compared to $1.9 billion in the third quarter of 2017, reflecting ~36.4% YoY (year-over-year) growth.

In the third quarter, in the US and international markets, Johnson & Johnson’s oncology business generated revenues of $1.25 billion and $1.34 billion, respectively, reflecting rises of ~47.8% and ~27.2% YoY.

Article continues below advertisement

Johnson & Johnson’s oncology business’s net revenue totaled $7.4 billion in the first nine months of 2018 compared to $5.2 billion in the first nine months of 2017, reflecting ~40.9% YoY growth. The growth in Johnson & Johnson’s oncology business could significantly boost the company’s revenue growth, which in turn could boost the price of the iShares Edge MSCI USA Quality Factor ETF (QUAL). Johnson & Johnson makes up ~4.79% of QUAL’s total portfolio holdings.

Darzalex revenue trends

Johnson & Johnson’s (JNJ) Darzalex reported net revenue of $498.0 million in the third quarter compared to $317.0 million in the third quarter of 2017, reflecting ~57.1% YoY growth. In the third quarter, Darzalex witnessed ~60.0% YoY operational growth.

In the third quarter, in the US and international markets, Darzalex generated revenues of $318.0 million and $180.0 million, respectively, compared to $230.0 million and $87.0 million, respectively, in the third quarter of 2017.

Darzalex’s net revenue totaled $1.4 billion in the first nine months of this year compared to $871.0 million in the same period of the previous year, reflecting ~65.4% YoY growth.

Recent developments

In August 2018, Johnson & Johnson submitted an sNDA (supplemental New Drug Application) for the FDA’s approval of a Darzalex split-dosing regimen. Johnson & Johnson submitted the sNDA for the approval of an option for splitting the first Darzalex infusion into two consecutive days as an update to the drug’s prescription information along with a summary of the drug for the treatment of individuals with multiple myeloma. Johnson & Johnson’s sNDA has been supported by data from the Phase 1b MMY1001 trial.

Johnson & Johnson has also filed a type II variation to the European Medicines Agency for a label update for the same Darzalex split-dosing regimen. Darzalex is used to treat multiple myeloma.

Other drugs that treat multiple myeloma include Amgen’s (AMGN) Kyprolis, Bristol-Myers Squibb’s (BMY) Empliciti, and Celgene’s (CELG) Pomalyst. In the second quarter, Kyprolis, Empliciti, and Pomalyst reported revenues of $236.0 million, $64.0 million, and $507.0 million, respectively.

Advertisement

More From Market Realist