Johnson & Johnson’s Imbruvica Sees Increased Sales in 4Q15
Johnson & Johnson’s Top Line Falls 2.4% to $17.8 Billion in 4Q15
Other pharmaceutical
Let’s take a look at Johnson & Johnson’s (JNJ) oncology, cardiovascular and metabolic, and other businesses.
Oncology
JNJ’s oncology business rose 14.8% at constant exchange rates to $1.3 billion during 4Q15, due to increased sales of Zytiga and Imbruvica and the successful launch of Darzalex. For 2015, the business’s revenues rose by 17.7% to $4.7 billion at constant exchange rates.
Zytiga, a drug used to treat prostate cancer in males, reported improved sales in the United States, Asia, and Latin America. This was offset by lower sales in Europe. Zytiga revenues fell ~2.3% to $581 million in 4Q15. Zytiga competes with Dendreon’s (DNDN) Provenge.
Imbruvica, a drug used to treat chronic lymphocytic leukemia, reported increased sales at $235 million due to the approval of new indications in US and European markets. Imbruvica blocks the growth and spread of cancer cells in the body. Imbruvica competes with Gilead Sciences’ (GILD) Zydelig.
Cardiovascular and metabolics
JNJ’s cardiovascular and metabolics business reported a rise in revenues of 13.0% to $1.6 billion at constant exchange rates in 4Q15. This rise was due to the strong sales of Xarelto and Invokana.
Xarelto sales grew by over 15.4% to $494 million in 4Q15 compared to 4Q14. Xarelto is a leader in the US oral anticoagulant market, with a ~15.8% share in the broader oral anticoagulant market. Invokana and Invokamet reported $372 million in sales during 4Q15 following increased demand.
Xarelto, a blood thinner, competes with Boehringer Ingelheim’s Pradaxa, Bristol-Myers Squibb’s (BMY) and Pfizer’s (PFE) Eliquis. Invokana, a diabetes drug, competes with AstraZeneca’s (AZN) Farxiga.
Investors can consider ETFs such as the iShares US Pharmaceuticals ETF (IHE), which holds 10.8% of its portfolio in JNJ, or the Fidelity MSCI Healthcare Index ETF (FHLC), which holds 8.8% of its portfolio in JNJ, in order to divest their risk.
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