Fidelity MSCI Health Care Index ETF

On an annual basis, Johnson & Johnson’s revenues have increased over the past few years following the restructuring of its business segments and strong performance of some of its key products.

Immunoscience portfolio Orencia, Bristol-Myers Squibb’s (BMY) only immunoscience product, is a fusion protein approved for the treatment of moderate-to-severe rheumatoid arthritis and related issues. The drug prevents further damage to bones and joints. Orencia revenue The above chart compares Orencia sales over the last few quarters. Orencia recorded revenue of $632 million in 3Q17, a growth […]

Johnson & Johnson (JNJ) reported 10.3% growth in its revenues to $19.7 billion during 3Q17, as compared to revenues of $17.8 billion in 3Q16.

Pfizer’s Innovative Health segment reported 11% growth in revenues at constant exchange rates for 3Q17, offset by an 11% decline.

Baraclude’s sales fell ~14% to $264.0 million during 3Q17 compared to $306.0 million during 3Q16.

Analysts estimate Merck’s gross profit margin to come in at 75.8% for 3Q17, a 0.5% increase as compared to its gross profit margin in 3Q16.

On August 28, 2017, Gilead Sciences entered a definitive agreement to acquire Kite Pharma (KITE) for $180 per share in cash.

Merck’s Pharmaceuticals segment contributed ~88.2% of total revenues in 2Q17, reporting $8.76 billion.

Eli Lilly & Co. (LLY) reported revenues of ~$5.8 billion during 2Q17, reflecting 8.0% growth compared to its revenues in 2Q16.

Bristol-Myers Squibb (BMY) reported a rise in sales for oncology drugs Opdivo, Empliciti, Sprycel, and Yervoy in 2Q17.

The consumer segment Johnson & Johnson’s (JNJ) consumer segment reported revenue of $3.5 billion in 2Q17, a growth of 1.7% from the revenue of $3.4 billion reported in 2Q16. This figure includes 2.3% growth in operating revenue, and was partially offset by a 0.6% foreign exchange impact. Baby care franchise The baby care franchise reported revenue […]

Allergan’s (AGN) international business includes total revenues from the sales of branded products as well as aesthetics products outside the US markets.

We discussed the products that contribute to the growth of Pfizer’s (PFE) revenues in 2Q17. Let’s now take a look at the products that have impacted revenue growth in 2Q17.

Eli Lilly repurchased shares worth $200.0 million and distributed dividends of more than $500.0 million to its shareholders in 2Q17.

As of July 31, 2017, of the 22 analysts tracking Pfizer, ten recommend a “buy” for the stock, while 11 recommend a “hold,” and one recommends a “sell.”

Analysts expect Bristol-Myers Squibb’s (BMY) top line to rise 4.4% to ~$5.1 billion in 2Q17. They expect its earnings per share to be $0.74 in the quarter.

Medical devices segment Johnson & Johnson’s (JNJ) medical devices segment grew ~4.9% to ~$6.7 billion for 2Q17, compared with $6.4 billion in 2Q16. This rise included an operational increase of 5.9%, and was offset by a 1% impact of foreign exchange. Cardiovascular care franchise Cardiovascular care franchise sales rose 11.3% to $523 million for 2Q17. This […]

Johnson & Johnson’s (JNJ) Medical Devices segment deals with the vision care, cardiovascular care, specialty surgery, orthopedics, surgical care, and diabetes care franchises.

A look at Pfizer Pfizer (PFE) is one of the largest pharmaceutical companies by revenue. Pfizer’s portfolio, which comprises the Innovative Health and Essential Health segments, includes various medicines, vaccines, and consumer healthcare products. Stock price performance Pfizer’s stock price has fallen ~2.6% in 2Q17. However, the stock price had risen ~2.3% year-to-date as of July […]

Merck & Co. (MRK) reported 1% growth to ~$9.4 billion in its 1Q17 revenues, compared to ~$9.3 billion in 1Q16.

Tanezumab is an investigational drug co-developed by Pfizer (PFE) and Eli Lilly (LLY) for pain management in chronic pain related to cancer, lower back pain, and osteoarthritis.

Bristol-Myers Squibb and Seattle Genetics are evaluating a combination of Opdivo with Adcetris to treat refractory or relapsed classical Hodgkin Lymphoma.

On June 15, 2017, Eli Lilly announced data from a study that evaluated the safety and efficacy of Taltz in patients with active psoriatic arthritis.

Volanesorsen Ionis Pharmaceuticals’s (IONS) volanesorsen is a drug designed to reduce apolipoprotein C-III production and triglycerides in patients with dyslipidemia. Akcea Therapeutics, a wholly owned subsidiary of Ionis, is engaged in pre-commercialization activities for volanesorsen, and will take care of the drug’s commercialization once it is approved by the FDA and the European Commission. The […]

Eli Lilly & Co. (LLY) reported 7% growth in its 1Q17 revenues to ~$5.2 billion, compared to ~$4.9 billion in 1Q16.

Johnson & Johnson’s (JNJ) consumer segment includes the baby care, beauty products, oral care, over-the-counter, women’s health, and wound care franchises.

Merck stock has risen nearly 16.0% over the last 12 months. Analysts estimate that the stock has a potential to return 10.0% over the next 12 months.

Pfizer’s (PFE) revenues have been driven by growth in the sales of key products including Lyrica, Ibrance, Xalkori, and Xeljanz.

Over the last year, Eli Lilly’s (LLY) forward PE has traded in the range of 18.9x–25.5x.

Merck and Co. (MRK) will release its 1Q17 earnings on May 2, 2017. Analysts’ estimates show EPS of $0.83 on revenues of $9.25 billion for 1Q17.

As of April 19, 2017, there are 22 analysts tracking Eli Lilly. Sixteen of them have recommended a “buy” for the stock.

Foreign exchange rates have had a constant negative impact on JNJ’s growth rate in each quarter, mainly because nearly 48% of its total revenue is reported from sales outside the United States.

Eli Lilly and Company (LLY) is a US pharmaceutical company dealing with both human pharmaceuticals and animal health.

The Virology segment was Bristol-Myers Squibb’s (BMY) second-largest revenue contributor in 2016. The segment contributed ~24.4% of BMY’s total revenue in the year.

Johnson & Johnson’s (JNJ) top line increased 1.7% to ~$18.1 billion for 4Q16.

In January 2017, ICU Medical modified its merger agreement with Pfizer to acquire Hospira’s global infusion systems business.

On a capital structure–neutral basis, Merck & Co. (MRK) currently trades at ~10.2x. This is much lower than the industry’s average of ~11.6x.

Merck & Co. expects revenues between $38.6 billion–$40.1 billion and EPS between $3.72–$3.87 for fiscal 2017.

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

Eli Lilly stock has fallen 7.5% in the last 12 months. Wall Street analysts estimate that the stock has the potential to return ~12% over the next 12 months.

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.

The major blockbuster drugs under Johnson & Johnson’s Immunology franchise are Remicade, Stelara, and Simponi/Simponi Aria.

Januvia and Janumet are two blockbuster drugs in Merck’s diabetes franchise. These drugs help lower blood sugar level in patients with type-2 diabetes.

Pfizer saw a 2% rise in Lyrica revenues at $1.24 billion in 3Q16, as compared to $1.22 billion in 3Q15, primarily due to a 12% rise in sales in US markets.

During 3Q16, the revenues for the US Specialized Therapeutics segment rose 12.1% to $1.45 billion—compared to $1.30 billion during 3Q15.

Pfizer reported an ~8% rise in its top line in its 3Q16 earnings on November 1,surpassing analysts’ estimates for revenues but missing estimates for EPS.

Analysts estimate that Allergan’s (AGN) revenues will be ~$3.7 billion for 3Q16, a 9.7% decline in revenues compared to 3Q15.

PE multiples are widely available and represent what one share can buy for an equity investor. On October 26, 2016, Merck (MRK) was trading at a forward PE multiple of ~16.0x.

Merck & Co. (MRK) has seen the negative revenue impact of lower sales levels for a few of its blockbuster drugs, including Remicade, Cubicin, Zetia, and Vytorin.

The Consumer segment Johnson & Johnson’s (JNJ) Consumer segment’s revenue fell 1.6% to $3.3 billion between 3Q15 and 3Q16. This fall is due to an operational growth of 0.1%, which was more than offset by a negative currency impact of 1.7%. The currency devaluation in Venezuela impacted worldwide growth by ~1.1% during 3Q16. Baby care […]

Johnson & Johnson’s growth rate As discussed in the previous part of this series, on a constant-currency basis, Johnson & Johnson (JNJ) reported a ~4.3% revenue rise between 3Q15 and 3Q16. The company’s 3Q16 revenue was $17.8 billion, surpassing analysts’ estimate of $17.7 billion. The above graph shows that foreign exchange rates have had a […]

Johnson & Johnson’s (JNJ) Consumer Healthcare segment includes baby care, oral care, skin care, over-the-counter products, women’s health, and wound care.

Merck is now focused on developing new products as well as expanding the labels of its existing products. Let’s look at its recent corporate and R&D progress.

Revenue growth drivers Previously we discussed Pfizer’s (PFE) revenues and growth trends. To better understand the factors affecting growth, let’s now explore Pfizer’s product portfolio and pipeline. The key performers in the product portfolio include Lyrica, Ibrance, Xeljanz, and Eliquis from the Innovative Health business. Products with positive growth There were several products that contributed […]

Johnson & Johnson’s (JNJ) top line increased by 3.9% to ~$18.5 billion for 2Q16. It was driven by an operational growth of 5.3% in revenues.

During 2Q16, the revenues for US specialized therapeutics rose by 11% to $1.5 billion as compared to $1.4 billion during 2Q15.

Allergan (AGN) reported revenues of $3.7 billion in 2Q16. This converts to over 1.5% revenue growth in 2Q16 as compared to $3.6 billion in 2Q15.

Merck (MRK) reported 0.6% revenue growth to $9.8 billion during 2Q16.

Analysts expect Pfizer’s (PFE) 2Q16 revenue to grow ~9.8% to ~$13.0 billion following an increase in the sales of the Prevnar family and the company’s new drugs Xalkori and Xeljanz, among others.

Analysts expect Merck’s (MRK) revenues for 2Q16 to be around $9,791 million, which is nearly the same as revenues of $9,785 million reported for 2Q15.

Johnson & Johnson’s operating profit margin is expected to improve by ~3.5% to 31.2% in 2Q16 as compared to 27.6% in 2Q15.

Johnson & Johnson 1Q16 revenue was $17.48 billion, at par with analysts’ consensus estimate of $17.49 billion.

Observing the changes in Pfizer’s stock price after Xalkori’s label update by the European Commission shows that the stock price rose by ~2.8%.

Pfizer’s oncology drug Xalkori, also termed Crizotinib, was approved for label expansion and label update by the European Commission on November 25.

Profile 1014 is the Phase III study for Xalkori, an ALK inhibitor. As per Pfizer’s press release, study was a randomized, and involved 343 patients.