Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Can Johnson & Johnson (JNJ) Hold Its Ground in the Multiple Myeloma Market?

Page 1 of 2

Johnson & Johnson (NYSE:JNJ) may offer well-known personal care products such as Listerine and Neutrogena, but it also boasts an impressive portfolio of market leading therapeutic compounds. The health care leader was one of the few to show growth in both worldwide pharmaceutical sales and earnings last year, which grew to $25 billion and $3.86 per share respectively. It finds itself in an enviable position heading into 2013 as one of the best-positioned companies to tackle the patent cliff head on.

Johnson & Johnson (JNJ)Even with the recent success there is no time to rest on laurels in the highly competitive landscape of pharma and biotech. The industry’s most successful drugs are under constant pressure from generics, which are either already on the market or timing their entrance for the moment exclusivity is lost. Luckily, 2012 showed that several new drugs are already shaping up to be critical driving forces in the company’s future. Today we will look at Velcade, the shining star in the company’s oncology segment.

The bigger, the better
Velcade, which is approved for multiple myeloma, was the fastest growing blockbuster for Johnson & Johnson in 2012. It also made up 57% of total oncology sales.


Source: Johnson & Johnson 2012 earnings.

While sales growth may slow in coming years the drug is still expected to be a driving force in company’s pharmaceutical business. It can certainly pay to be a leader. Decision Resources, a leading pharmaceutical and health care advisory firm, estimates that the multiple myeloma market will grow from just $4.4 billion in 2011 to $7.2 billion in 2021.

Non-obvious competition
Velcade’s only major competition is Celgene Corporation (NASDAQ:CELG)‘s Revlimid. However, once a drug is recognized as a leading therapy there is more to look forward to than simple stand-alone sales. If one drug can enhance a patient’s chances of survival, then what can combining it with another promising drug do?

That’s the question being asked by companies such as Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), Bristol Myers Squibb Co. (NYSE:BMY), and AbbVie Inc (NYSE:ABBV) — all of which are developing combinational multiple myeloma therapies. Unfortunately for Velcade, all of the above companies are being tested with Revlimid. Johnson & Johnson’s drug is only being combined with Aeterna Zentaris’ perifosine — which failed in recent cancer trials — and Novartis’ panobinostat.

Decision Resources estimates that Revlimid could experience sales growth of $1.6 billion from combinational therapies by 2021, while Velcade could only generate an additional $70 million. The figures are just one firm’s estimates, but they suggest Velcade’s combinational therapy potential is not very high at the moment.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!