Can Johnson & Johnson (JNJ)’s Zytiga Build on a Historic 2012?

There’s always competition
The expanded approval gives a broader range of patients access to the drug, which could mean another stellar year of growth in 2013. Success is great, but you should still watch the competition.

As the first once-daily oral medication for prostate cancer, Zytiga had an immediate advantage over the field of injectable therapies. That is, until Medivation, Inc. (NASDAQ:MDVN) crashed onto the scene — three months early — with its oral medication Xtandi for post-chemotherapy use. Medivation’s drug improved survival by five months, compared with Zytiga’s 4.6 months, but it will also cost much more at $7,450 per month, compared with $5,495 per month for Zytiga. Both drugs are offered at a lower price point than injectables such as Sanofi SA (ADR) (NYSE:SNY)‘s Jevtana, which costs $8,242 for three weeks of therapy.

Foolish bottom line
Johnson & Johnson estimates that the overall U.S. prostate cancer market will grow to $3.6 billion in 2016 from just $1.8 billion in 2011. Zytiga’s expanded approval opens up a larger slice of the market, while its price advantage over Xtandi should allow it to continue its dominance. The current article series on Johnson & Johnson’s pharmaceutical segment has offered investors a glimpse into the company’s future, but it’s only one part of the health care giant’s diverse business model. You may be wondering …

Zytiga and Jevtana pricing:

See the footnote for the graph in the attached image.

The article Can Zytiga Build on a Historic 2012? originally appeared on Fool.com and is written by Maxx Chatsko.

Fool contributor Maxx Chatsko has no position in any stocks mentioned. Check out his personal portfolio, his CAPS page, or follow him on Twitter, @BlacknGoldFool, to keep up with his writing on energy, bioprocessing, and emerging technologies.The Motley Fool recommends and owns shares of Johnson & Johnson.

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