Johnson & Johnson

Major developments As discussed previously in this series, Johnson & Johnson’s (JNJ) 3Q16 performance was positive across all of its segments. However, the Consumer segment reported a decline in revenue, as the negative impact of foreign exchange more than offset operational growth. There were several major developments for JNJ during 3Q16. Pharmaceuticals segment In 3Q16, the […]

Johnson & Johnson’s (JNJ) Pharmaceuticals segment grew by 1.0% at constant exchange rates, reporting a revenue of $7,946 million for 2Q15 over 2Q14.

Of the 23 analysts covering Bristol-Myers Squibb (BMY) in August 2017, six analysts recommended a “strong buy,” and four analysts recommended a “buy.” Ten analysts recommended a “hold,” and three analysts recommended a “sell.”

In 4Q17, Novartis’s (NVS) Cosentyx generated revenues of $615 million compared to $391 million in 4Q16, which reflected ~57% growth on a year-over-year (or YoY) basis and ~11% growth quarter-over-quarter.

Of the 19 analysts tracking Merck (MRK) stock in September, four recommended a “strong buy” while ten analysts recommended a “buy.”

Pfizer (PFE) has been looking to sell its consumer health business since October 2017.

As discussed earlier, Novartis (NVS) reported EPS (earnings per share) of $1.21 on revenues of $12.9 billion during 4Q17.

Headquartered in New Jersey, Johnson & Johnson (JNJ) is one of the largest pharmaceutical companies, with its products sold in over 200 countries worldwide. This series will look at how it has performed since its 2Q17 earnings announcement.

The total return for Lilly’s share price on the NYSE from July 2010 to June 2015 has been around 17.9%. This is lower than a few of the pharmaceutical ETFs.

On January 26, 2017, the company was trading at a forward PE of ~15.8x. Based on the last five years’ multiple range, JNJ’s current valuation is neither high nor low.

Sanofi’s net revenues increased by ~2.5% to 33.8 billion euros in 2014, as compared to $23.2 billion in 2013.

According to unaudited financial results published by Celgene (CELG) on January 9, 2017, Revlimid sales for 2016 are about $7.0 billion, a YoY rise of about 20.0%.

Novartis (NVS) posted its 2Q15 earnings on July 21, 2015. The company achieved adjusted EPS of $1.27 for 2Q15, ~7% lower than in 2Q14.

Despite a year-over-year (or YoY) drop in revenues in 2Q16, Gilead Sciences (GILD) managed to earn gross margins of about 92%.

According to eMarketer, Facebook (FB) took 19.9% of total US digital advertising funds in 2017, and Google (GOOGL) took 38.6%.

Google, Facebook (FB), Twitter (TWTR), and Snap (SNAP) might be losing sleep because authorities are pointing fingers at them for allowing their platforms to breed extremist ideologies.

In 3Q17, Pfizer (PFE) generated revenues of $13.2 billion, an increase of ~1% on a year-over-year (or YoY) basis and a 1% increase on a quarter-over-quarter basis.

Merck & Co. (MRK) missed Wall Street analysts’ estimates for revenues but surpassed analysts’ estimates earnings per share.

In November, of the total 21 analysts covering Tesaro (TSRO) stock, 13 have given it “buy” or higher ratings, and eight have given it “hold” ratings.

Johnson & Johnson’s (JNJ) medical devices segment deals with vision care, cardiovascular care, specialty surgery, orthopedics, surgical care, and diabetes care.

Pfizer recently rose by 2.7% on revenues of $13 billion for 1Q16, as compared to $10.9 billion in 1Q15, which represents a growth of 20% YoY.

Merck & Co.’s (MRK) current valuation is neither high nor low. Its valuation multiple has followed the industry’s overall trend over the last five years.

In fiscal 1Q18, Wall Street analysts expect Medtronic’s (MDT) revenue to be ~$7.45 billion, which represents a rise of ~4% in comparison to its fiscal 1Q17 revenue of $7.17 billion.

Pfizer (PFE) released its third-quarter earnings on October 30.

Bristol-Myers Squibb estimates that its revenues will be between $15.5 billion and $15.9 billion, which is nearly flat as compared to 2014 revenues of $15.9 billion.

Wall Street analysts expect Medtronic’s (MDT) revenue to be ~$7.9 billion in fiscal 4Q17, a rise of ~4% compared to its fiscal 4Q16 revenue of $7.6 billion.

Apple (AAPL) and its partner AliveCor scored an important milestone in the final weeks of 2017 in their push into the multibillion-dollar digital health market.

AbbVie’s (ABBV) Venclexta was approved by the FDA on April 11, 2016. AbbVie has also successfully launched Venclexta in Germany and France.

Dermatology pricing trends Valeant Pharmaceuticals’ (VRX) dermatology business witnessed intense pricing pressure in 2016, due to a change in the company’s distribution model in 4Q15. While Valeant previously marketed its dermatology drugs through specialty pharmacies, the company now distributes its products through Walgreens. To learn about the company’s current distribution model, please refer to How Valeant Plans […]

Johnson & Johnson (JNJ) has been working on changing its business model.

Johnson & Johnson’s (JNJ) oral care business registered an operational sales decline of 3.2% in fiscal 2017.

ETNs are free of tracking errors, and investors can defer taxation until they mature or are sold.

Siliq growth trends On February 15, 2017, the FDA approved injectable biologic therapy Siliq (brodalumab) as a treatment option for moderate-to-severe plaque psoriasis patients. Siliq is for psoriasis patients eligible for systemic therapy or phototherapy, and are not responding sufficiently or have stopped responding to these treatment options. To learn more about Siliq, please refer to What Are […]

On November 22, 2016, Medtronic (MDT) will announce its fiscal 2Q17 earnings for the period that ended on October 31, 2016.

In the first nine months of 2016, the Bausch + Lomb/International segment reported revenues of ~$3.4 billion, which equals year-over-year (or YoY) growth of ~0.4%.

Tandem Diabetes Care (TNDM) is slated to begin its international expansion later this year to capture opportunities arising after Johnson & Johnson’s (JNJ) exit from the insulin pump market, which was announced in October 2017.

Foreign exchange rates seem to have had a negative impact on Johnson & Johnson’s growth rate since ~50% of total revenues are reported from sales outside the US.

In 1Q17, Abbott Laboratories’ (ABT) Nutritional segment reported revenue of nearly $1.6 billion, a year-over-year (or YoY) fall of ~1%.

In Pfizer’s 2Q16 results, analysts expect to see EPS (or earnings-per-share) of $0.62 and revenues of ~$13.0 billion for 2Q16. The company has surpassed Wall Street analysts’ estimates for EPS over the last few quarters.

Analysts projected a fall in the revenue for Amgen’s nephrology drugs, Aranesp and Epogen, in 4Q15. The drugs are expected to suffer in the coming quarters.

On June 7, 2017, Medtronic (MDT) announced the launch of MiniMed 670G—the world’s first HCL (hybrid closed loop) insulin delivery system.

Procter & Gamble (PG) has a market cap of $224.1 billion. PG rose by 0.35% to close at $82.84 per share on March 3, 2016.

As part of its significant product line extension, Gilead Sciences (GILD) is entering therapeutic areas such as oncology, pulmonology, and cardiology.

In 2016, HP stated that it aims to reinvent the printing experience and has now unveiled the world’s smallest all-in-one inkjet printer.

On March 5, 2018, Boston Scientific (BSX) announced the acquisition of EMcision, which will expand the company’s endoscopy business.

Johnson & Johnson (JNJ) reported sales of $3.4 billion in its consumer business in the first quarter, with 7% of it from its women’s health business.

Amid the increasing presence of digital technology, Johnson & Johnson (JNJ) has recognized the need to expand its channel presence.

In 2016, Merck’s (MRK) Emend reported revenues of around $549 million, which reflected 3% year-over-year growth.

On October 10, Abbott Laboratories (ABT) ended the trading day at $68.92, down ~3.3% from the previous day’s close.

Cooper Companies (COO) is a $7.33 billion global medical device company. The company has two business units, CooperVision and CooperSurgical.

Wall Street analysts estimate Bristol-Myers Squibb’s top line to rise 6.5% to ~$5.2 billion in 1Q18.

Two factors expected to impact Johnson & Johnson’s forward valuation are increasing competition for Olysio and further decline in international revenues.

GlaxoSmithKline stock has risen ~6.4% in 1Q18, while its stock has risen ~12.6% YTD (year-to-date) as of April 6, 2018.

On May 17, Eli Lilly was trading at a forward PE multiple of 15.2x, which compares to the industry average of 13.6x.

HP, a market leader in the traditional printing business for the past 30 years, is now eyeing the lucrative and high-growth 3D Printing market.

Johnson & Johnson (JNJ) reported Pharmaceuticals segment sales of $10.4 billion in Q2 2018 during its earnings release on July 17.

Johnson & Johnson (JNJ) reported revenues of $20.0 billion during 1Q18, 12.6% growth as compared to revenues of $17.8 billion during 1Q17.

Yesterday, Tesaro (TSRO) stock rose ~16.3%, triggered by rumours of an acquisition bid by Roche (RHHBY), which registered a stock price rise of ~2.1%.

On September 21, 2016, the FDA approved Jannsen Pharmaceuticals’ Invokamet XR for the treatment of adults suffering from Type 2 diabetes.

The Fed’s policy of keeping the nominal interest rates at a zero lower bound leads some investors to seek higher and stabler income elsewhere. The low-interest rate regime may force risk-taking investors towards the higher-cost debt of high yield bonds.

Bristol-Myers Squibb’s (BMY) neuroscience segment sales fell over 37% in 3Q16, while the immunoscience segment sales rose ~18% in 3Q16 as compared to 3Q15.

In 2016, Celgene’s (CELG) Revlimid generated revenues of around $6.9 billion, which reflected a ~20% year-over-year (or YOY) growth.

According to the CDC, about 400,000 people died from opioid overdoses from 1999 to 2017. The number includes deaths from prescription and illegal opioids.

In 2016, AbbVie’s (ABBV) drug Humira reported revenue of ~$16.0 billion, which reflected a ~15% year-over-year (or YoY) rise.

Due to the decelerating revenue growth over all segments, Johnson & Johnson (JNJ) reported a decrease in its top line by ~8.8% in its 2Q15 earnings release on July 14, 2015.

Bristol-Myers Squibb’s (BMY) other segments include the Neuroscience segment, the Cardiovascular segment, and the Immuno-Science segment.

Gilead Sciences’s (GILD) TAF-based (tenofovir alafenamide) regimen comprises three products: Genvoya, Descovy, and Odefsey.

Pfizer (PFE) reported an EPS of $0.74 on revenues of ~$13.5 billion during the second quarter, which beat analysts’ estimate of ~$13.3 billion.

In 2Q17, Merck’s (MRK) Januvia generated revenues of around $948 million, which reflected an ~11% decline on a year-over-year basis and 13% growth on a quarter-over-quarter basis.

On July 4, Johnson & Johnson’s (JNJ) pharmaceuticals division, Janssen, received Health Canada’s approval for its drug Erleada.

Although changing consumer market dynamics pose challenges for Johnson & Johnson (JNJ), it’s confident it will be able to adapt.

As of November 1, Pfizer had ~94 projects in various development stages. More than 40% of these projects are in phase three or the registration phase.

Commodities generally have a positive correlation with inflation. They are considered to be an attractive investment option from a diversification point of view.

In 2016, Celgene’s (CELG) Otezla attained blockbuster status by earning revenues in excess of $1 billion as a therapy for psoriasis and psoriatic arthritis.

Johnson & Johnson has returned nearly 1.2% year-to-date while Sanofi, Merck, and Novartis have returned ~0.5%, -4.4%, and -3.5%, respectively.

AstraZeneca’s oncology segment is another key focus area. The segment contributed 11.6% in 2014 and 12.1% in 2Q15. Key products for oncology are Zoladex and Faslodex.

Johnson & Johnson’s key innovation strategies include creating value through strategic customer partnerships and solutions.

Johnson & Johnson’s (JNJ) subsidiary Janssen Pharmaceuticals filed regulatory submissions for label expansion of its multiple myeloma drug Darzalex.

Johnson & Johnson reported growth across all three of its segments: the pharmaceutical segment, the consumer health segment, and the medical devices segment.

Johnson & Johnson is committed to driving its margins through optimization of costs and improving efficiency and productivity.

Johnson & Johnson (JNJ) reported its second-quarter earnings results before the market opened on July 17. The company reported sales of $20.8 billion.

On May 14, one of JNJ’s subsidiaries, DePuy Synthes, announced its acquisition of the assets of Medical Enterprises Distribution.

In its fiscal first quarter, Johnson & Johnson (JNJ) reported sales of $1.1 billion for its beauty franchise.

YTD, Amgen’s (AMGN) stock has already fallen 9%. Perhaps the pressure that Enbrel (etanercept) is seeing is to blame for the negative investor sentiment.

3M stock (MMM) jumped 5.2% after the company’s quarterly report beat analysts’ estimates.

Merck’s Relebactam is an investigational drug for the treatment of certain forms of imipenem-non-susceptible bacterial infections.

Bristol-Myers Squibb beat Wall Street analysts’ estimates for earnings per share and revenues in 1Q18.

Tremfya reported sales of $126 million in the second quarter, compared to $72 million in sales reported in the first quarter.

JNJ has been working on innovating its business model to be able to provide therapies and solutions to its customers according to their changing needs.

The iShares MSCI International Developed Quality Factor ETF (IQLT) is a similar fund to QUAL with respect its strategy for selecting stock.