3 Drugs Johnson & Johnson's Investors Better Know About


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Johnson and Johnson's (JNJ) sales grew 3.5% in the past year, but only because of big growth from recently launched drugs. 3 of these drugs face competition from AstraZeneca (AZN), Pfizer (PFE), and Medivation (MDVN) that could threaten their market share.

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3 Drugs Johnson & Johnson's Investors Better Know About

  1. 1. 3 Drugs Johnson & Johnson’s Investors Better Know About
  2. 2. 3 Drugs Johnson & Johnson’s investors better know about 1. Invokana: a SGLT2 diabetes drug that is off to a fast start, but faces competition in 2014. 2. Xarelto: one of 3 next generation anticoagulants displacing decades old warfarin in cardiac patients. 3. Zytiga: the best selling of the current generation of prostate cancer drugs may face a new challenger. Johnson’s investors will need to keep close tabs on these 3 drugs this year.
  3. 3. Invokana: Diabetes • Invokana – The first SGLT2 inhibitor to win FDA approval, Invokana helps lower blood glucose by improving how glucose is eliminated from the body. – Johnson's "other" drug sales, within which Invokana's sales are recognized, grew 15% to nearly $300 million in Q1. – AstraZeneca won approval for Farxiga, its own SGLT2 drug, in January. – Merck, Pfizer, and Eli Lilly are also conducting phase 3 trials of their own SGLT2 inhibitors that could challenge Invokana soon. Globally, more than 365 million people suffer from diabetes , and more than a third of the approximately 70 million diabetics living in developed countries fail to take their medication properly, suggesting a significant unmet need for new therapies.
  4. 4. Xarelto: Orthopedic surgery & cardiovascular disease • Xarelto – Xarelto is the best selling next generation anticoagulant. It targets Factor Xa to interrupt thrombin production. – Sales of Xarelto eclipsed $270 million in the fourth quarter and doubled year-over-year to $319 million in the first quarter. – Pfizer and Bristol’s Eliquis had just $72 million in Q4 sales, but is growing quickly. Eliquis is the only Factor Xa drug proven to improve mortality. – Daichi Sankyo expects an FDA decision on its Factor Xa drug soon. – Portola Pharmaceuticals is working on a Factor Xa antidote, as well as its own Factor Xa drug. Anticoagulants are used in post op orthopedic surgery and to prevent clots in cardiovascular disease patients. As many as 40% to 60% of all orthopedic surgery patients develop blood clots, and atrial fibrillation is the most common heart related reason for hospital admissions in the United States.
  5. 5. Zytiga: Prostate cancer • Zytiga – Zytiga is approved to treat both pre-chemotherapy and post- chemotherapy metastatic castration resistant prostate cancer, or mCRPC. – Sales totaled $1.7 billion in 2013, up 77% from 2012. Sales grew 49% year-over-year to $512 million in the first quarter. – Medivation and Astellas market Xtandi in the post-chemotherapy indication and expect an FDA decision in the pre-chemotherapy indication later this year. There are 192,00 new cases of prostate cancer diagnosed annually in the United States and the cost to treat prostate cancer patients is expected to climb from $12 billion a year in 2010 to as much as $19 billion by 2020.
  6. 6. 7 things to watch for this year • Invokana: 1. Will Farxiga cut into Invokana’s sales this year? 2. Will Merck and its partner Pfizer, and Lilly, win approval for their SGLT2 drugs? • Xarelto 3. Will Eliquis momentum grow and cut into Xarelto’s sales? 4. Will Daichi win FDA approval and battle for share? 5. Will Portola succeed in developing an antidote to Factor Xa inhibitors? 6. How about Portola’s own Factor Xa drug, will it make it to market and cut into Xarelto’s market share too? • Zytiga 7. Will the FDA expand Xtandi’s label to include pre- chemotherapy, threatening Zytiga’s leadership?
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