Sanofi SA (ADR) (SNY), Novo Nordisk A/S (ADR) (NVO), Johnson & Johnson (JNJ): Can Investors Bet on These 3 Pharma Companies?

Page 1 of 2

According to the World Health Organization, there are 347 million people around the world who suffer from diabetes.

It is expected that the death rate from diabetes will top 50% in the next ten years, which will make it a leading cause of death worldwide. As such, the overall market for diabetes therapies and diagnostics is estimated to increase from $38 billion in 2010 to $53 billion in 2015. Because of the increasing global trend of more and more people developing diabetes, companies which provide products and services in this domain will benefit.

Here are three companies with big plans to tap the global market with their presence and new product pipeline.

Global leader in diabetes drug

Sanofi SA (ADR) (NYSE:SNY)

Sanofi SA (ADR) (NYSE:SNY) has had nine consecutive quarters of growth in its diabetes drug segment. In the first quarter of 2013, this segment’s sales surged to around $2.41 billion, a growth of 19.6%, year-over-year. Moreover, sale of its diabetes drug, Lantus, increased to around $1.77 billion, growing at around 21.3%, quarter-over-quarter.

Novo Nordisk A/S (ADR) (NYSE:NVO)’s diabetes drug Tresiba was disapproved by the FDA, and will not come to market before 2017 or 2018. As a result of this, Sanofi SA (ADR) (NYSE:SNY)’s Lantus will gain a direct advantage, as it fills the gap in the diabetes segment that Tresiba was expected to compete in.

Moreover, Sanofi SA (ADR) (NYSE:SNY) announced an investment of about $58 million in Waterford, Ireland, to increase Lantus’ production capacity. As a result, the company is expecting higher profits in the third and final quarter of 2013, as well as next year.

Sanofi SA (ADR) (NYSE:SNY) is expecting the European drug authorities to approve its new drug, Lemtrada. This drug is used in the treatment of neurological disorders, and it was obtained through the acquisition of Genzyme in 2011 for around $20.1 billion. The FDA has approved this drug in the U.S, and it has patents until 2017. Approval for Lemtrada in European countries is likely to come in the current fiscal year. It is expected that this drug will boost the revenue of the company. Here’s the drug’s estimated revenue:

Year Estimated revenue from Lemtrada
2014 $243 million
2015 $395 million
2016 $554 million
2017 $657 million
2020 $837 million

Banking on a new drug

Johnson & Johnson (NYSE:JNJ) has a new product pipeline that will strengthen its pharmaceuticals portfolio. The company is expecting to file approvals for 10 new products, and as a part of a multi-branding strategy, will market 25 new products in the next four years.

Recently, J&J’s drug “Invokana” received FDA approval. Invokana is used to treat type 2 diabetes. This drug will have a wholesale price of around $8.77 per tablet and expected dosage is one tablet per day. Invokana was tested on 10,000 patients before getting FDA approval, and the tests showed positive results. There are 26 million people in the U.S. currently suffering from Type 2 diabetes;it’s estimated that Invokana will earn around $111 million in revenue by the end of the current fiscal year, and will rise significantly $667 million by the end of 2016.

The company is focusing on research and development of its immunology and oncology segments. Both these segments account for around 25% of Johnson and Johnson (NYSE:JNJ)’s (J&J) total pharmaceutical sales. The company’s immunology segment showed a 16% increase in revenue, while global sales of oncology drugs grew by 32% in the first quarter of 2013, year-over-year. With this growth, J&J has almost doubled its footprint in the world’s emerging markets. It is further planning to strengthen its product pipeline in countries like China. Due to its expansion in emerging markets, its total global sales from immunology and oncology segment will rise from $7.87 billion in the previous year to $8.82 billion in the current fiscal year.

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 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

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!