Bristol-Myers Squibb Co (BMY), Johnson & Johnson (JNJ): Buy These Leading Pharma Companies

The company has been marketing this drug in the U.S., Japan, Taiwan, Indonesia, and China, but due to a new contract with Merck, it will increase the marketing of this product to the Middle East, Africa, and Asia-Pacific region. With the expanding footprint of Remicade, the company expects to generate revenue around $9 billion this year in the immunology segment, up from $7.8 billion last year.

Johnson & Johnson (NYSE:JNJ)’s revenue in the consumer healthcare segment grew by 1.1%, year-over-year and generated $3.6 billion in the second quarter of 2013. The company is the global market leader in this segment. Under the umbrella of consumer healthcare, it sells OTC drugs like Tylenol, Zyrtec, and Benadryl. These drugs treat patients suffering from the common cold, allergies, and coughs and are readily available without prescription. The global market of OTC drugs is expected to reach to $34.5 billion by 2015, which will lead to an increase in revenue for Johnson & Johnson (NYSE:JNJ). With the increase in market size and the company’s flagship products, analysts expect its revenue to rise from $4.34 billion last year to $4.54 billion this year.

Conclusion

Bristol-Myers Squibb Co (NYSE:BMY)’ revenue from Yervoy and Eliquis will offset the patent expiration of Plavix. Pfizer Inc. (NYSE:PFE) will also gain from Eliquis, due to better market positioning and the efficiency of this drug. Meanwhile, Johnson & Johnson (NYSE:JNJ)’s will capitalize on its drug Remicade and the surging market of OTC drugs.

I recommend a buy on these stocks.

The article Buy These Leading Pharma Companies originally appeared on Fool.com and is written by Shweta Dubey.

Shweta Dubey has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson. Shweta is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.