Mike Benson

Johnson & Johnson (JNJ) reported a rise of ~2.3% in its revenue on a constant currency basis in 4Q16 compared to 4Q15.

Analysts expect an ~1.1% decline in Novartis’s (NVS) 4Q16 revenues to ~$12.4 billion following the effects of the acquisition and divestiture of several products.

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.

On January 13, 2017, Novartis was trading at a forward PE multiple of ~15.1x.

GlaxoSmithKline’s (GSK) Pharmaceuticals segment fell substantially in 2015 due to its divestment of its oncology business to Novartis (NVS) in March 2015.

GlaxoSmithKline’s (GSK) business is divided into three business segments: Pharmaceuticals, Vaccines, and Consumer Health.

GlaxoSmithKline reported a rise of 23% in its 3Q16 revenue. The company met Wall Street analysts’ consensus 3Q16 estimates for revenue and earnings per share.

Johnson & Johnson’s (JNJ) Consumer segment completed the acquisition of Vogue International LLC on July 18, 2016, to strengthen its Hair Care and Other Personal Care product portfolio.

In 3Q16, Johnson & Johnson’s (JNJ) top line rose 4.2% to ~$17.8 billion, driven by 4.3% operational growth in revenues.

Bristol-Myers Squibb’s (BMY) cardiovascular segment consists of key drug Eliquis. This segment contributed nearly 18% of total revenues for 3Q16.

Sandoz, the generics arm of Novartis (NVS), is the number-two generic medicines provider worldwide. It’s number one in differentiated generics.

Alcon, Novartis’s (NVS) eye care segment, researches, develops, manufactures, and markets eye care products in over 180 countries worldwide.

With improvements in the supply chain and successful launch of new products, GlaxoSmithKline (GSK) is optimistic about its consumer healthcare segment performance.

GlaxoSmithKline (GSK) is focused on strengthening its vaccines business, so it acquired Novartis’s (NVS) meningitis and other vaccines business.

The global pharmaceuticals franchise is GlaxoSmithKline’s (GSK) largest revenue contributor.

GlaxoSmithKline’s (GSK) HIV medicines business is managed by ViiV Healthcare, a global specialist company in HIV medicines.

Eli Lilly launched various products under different franchises. A few of the new products include Portrazza, Cyramza, Basaglar, Jardiance, and Taltz.

Eli Lilly and Co.’s (LLY) overall business is classified into two business segments—Human Pharmaceuticals and Animal Health.

Sanofi’s Consumer Healthcare segment includes Allegra, Doliprane, Nasacort, and other products. It reported a 4.3% decline in revenues to 800 million euros.

Sanofi’s Diabetes and Cardiovascular revenues declined by ~2% at constant exchange rates to 1.96 billion euros (about $2.21 billion) in 2Q16.

After Sanofi’s reorganization, Genzyme now includes products for multiple sclerosis, rare diseases, and oncology. Genzyme’s sales increased ~19.5% in 2Q16.

With rising sales of in its Genzyme, Animal Health, and Vaccines segments, Sanofi has reported a growing top line over the past few quarters.

Januvia and Janumet are two blockbuster drugs in Merck’s (MRK) diabetes franchise.

GlaxoSmithKline’s (GSK) Pharmaceuticals segment declined substantially in 2015 due to the divestment of its oncology business to Novartis (NVS) in March 2015.

Actavis acquired Allergan in March 2015, and the company changed its name from Actavis to Allergan (AGN).

As we’ve discussed, Novartis (NVS) is one of the largest pharmaceutical companies by revenue.

The XmAb antibody engineering platform is Xencor’s proprietary technology.

Novartis (NVS) has restructured its entire business into two parts: continuing operations and discontinuing operations.

Novartis is exposed to legal risks, including patent litigations, other product-related litigation, commercial litigation, government investigations, and prohibition rules.

Novartis (NVS) has recorded direct product sales of over $1 billion for each of its ten pharmaceutical products in the last year.

Novartis’s new structure includes only three business segments: pharmaceuticals, Alcon, and Sandoz.

Incyte’s (INCY) product portfolio includes drugs for oncology as well as non-oncology. For oncology, its product portfolio includes targeted therapies as well as immunotherapies.

Allergan’s new industry model, “growth pharma,” is based on identifying five characteristics that boost company growth and differentiate it from its peers.

Januvia and Janumet are Merck & Co.’s (MRK) blockbuster diabetes drugs. They’re are used to lower blood sugar levels in patients with Type 2 diabetes.

Based on the last five-year multiple range of ~9x to ~20x, Novartis’s current valuation is neither high nor low.

The FDA has now approved Opdivo for the treatment of BRAF WT (wild-type) melanoma, based on the results of a phase 3 study called CheckMate -066.

On November 23, two of the big pharmaceutical companies—Pfizer and Allergan—announced the biggest merger transaction ever in pharmaceuticals.

The JAVELIN series is a clinical trial program for the use of Avelumab for treatment of multiple types of cancer, including Merkel cell carcinoma.

The FDA has accepted Bristol-Myers Squibb’s (BMY) supplemental biologics license application, or sBLA, for Opdivo for the treatment of patients with advanced renal cell carcinoma.

Bristol-Myers Squibb (BMY) has classified its business into virology, oncology, immunoscience, cardiovascular, and neuroscience segments.

Abbott deals with innovative devices and established pharmaceutical products. Any infringement of intellectual property rights may lead to huge losses.

Abbott is organized around a broad portfolio—established pharmaceutical products, diagnostic products, nutritional products, and vascular products.

The forward PE ratio for Sanofi is ~15.1x for 2015, and ~18.1x for the industry.

Sanofi (SNY) products are sold in over 120 countries. The company’s markets are classified into four geographical regions for reporting purposes.

GSK operates in over 170 countries and is subject to political, socioeconomic, and financial factors and risks across the globe.

Pharmaceutical companies like GlaxoSmithKline are capital-intensive, with high debt on their balance sheets due to heavy setup costs and huge research and development expenses.

The risk of losing market share due to losing patents is the highest risk that Eli Lilly and other pharmaceutical companies face.

Bristol-Myers Squibb deals with innovative products, and any failure to secure or protect intellectual property rights is a huge risk and may lead to huge losses.

GlaxoSmithKline is a British multinational pharmaceutical company with a significant presence in the US. GSK has over 100,000 employees in operations around the world.