Is Johnson & Johnson (JNL) a Future Blockbuster?

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 (NYSE: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 sirukumab, a promising biologic gearing up to leave the pipeline.

Optimism abound
Sirukumab, or CNTO 136, showed promising results in a proof-of-concept and dose-finding phase 2 study that wrapped up in late 2011. The drug is being developed with GlaxoSmithKline plc (ADR) (NYSE:GSK) for patients with rheumatoid arthritis who have failed to respond to TNF-alpha inhibiting treatments. Two phase 3 trials were initiated for the monoclonal antibody last August.

By now, it should be widely obvious that treating rheumatoid arthritis and other autoimmune disease by targeting TNF-alpha is the industry standard. Johnson & Johnson’s basket of immunology biologics – Remicade, Stelara, and Simponi — generated sales of $7.7 billion in 2012. AbbVie Inc (NYSE:ABBV)‘s Humira and Amgen, Inc. (NASDAQ:AMGN)‘s Enbrel brought in more than $13.5 billion last year. The three megablockbusters (including Remicade) will continue to dominate even after losing exclusivity in the next several years, but are facing increasing competition from next generation immunology drugs.

That opens up a huge market for drug-hopefuls such as sirukumab, albeit a (currently) smaller chunk of the market consisting of patients that failed other therapies. Remicade and Simponi target TNF-alpha directly, whereas Stelara stops the cytokine’s inflammation-inducing ability by targeting interleukin 12 and interleukin 23. Stelara crushed Enbrel in a head-to-head study for psoriasis in 2010 and is currently being evaluated for other indications.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!