Tag archive for ‘Johnson & Johnson’
Johnson & Johnson: A Core Holding for the Long Haul
I have just written a report on JNJ in which I reiterated my Buy recommendation. I don’t see a vibrant world economy in the next few years that will reduce pressure on healthcare spending and I think that JNJ will probably show growth in operational sales and earnings for in-line businesses in the 3% […]
Johnson & Johnson: A Buy and Core Holding for the Long Haul (JNJ, $68.35)
Investment Overview Johnson & Johnson (JNJ) is a colossus among health care companies with an estimated $68 billion of revenues in 2012 and a current market capitalization of $188 billion. Its sales are divided into three major business categories: Pharmaceuticals (38%), Medical Devices and Diagnostics or MD&D (41%) and Consumer (21%). It is the largest […]
Quarterly Sales Show That Both Provenge and Zytiga Are Doing Very Well (DNDN, $13.58)
Investment Conclusion Both Zytiga and Provenge have had very successful launches in the US. Fears that Zytiga would negatively impact sales of Provenge are not borne out by the quarterly sales trends reported so far for the products. Provenge in 4Q, 2011 reported an upside sales surprise at the same time that Zytiga reported very […]
Johnson & Johnson’s Turnaround Led by New Drug Products is Underway (JNJ, $65.15)
Investment Conclusion JNJ has gone through three very difficult years as EPS increased only slightly from $4.63 in 2009 to $5.00 in 2011. The most important challenge faced was the loss of patents on the major drugs, Risperdal, Topamax, Levaquin, Duragesic and Concerta which saw aggregate sales drop from $5.8 billion in 2009 to an […]
FDA Cardiovascular and Renal Advisory Committee Goes Against FDA View and Recommends Approval of Xarelto
The FDA had apparently slammed the door shut on approval of Johnson & Johnson’s Xarelto (rivaroxaban) for stroke prevention in patients with non-valvular atrial fibrillation (SPAF). The FDA reviewer in his briefing papers to the committee had recommended that the product be given a Complete Response Letter (not approvable at this time). The reviewer did […]
FDA Advisory Committee Goes Against FDA and Recommends Approval of Xarelto
The FDA had apparently slammed the door shut on approval of Johnson & Johnson’s Xarelto (rivaroxaban) for stroke prevention in patients with non-valvular atrial fibrillation (SPAF). The FDA reviewer in his briefing papers to the committee had recommended that the product be given a Complete Response Letter (not approvable at this time). The reviewer did […]
Hopes for Rivaroxaban Are Dashed (JNJ, $65.00)
Investment Opinion The FDA problems encountered with rivaroxaban are a significant, but not crushing negative for the investment thesis of Johnson & Johnson (JNJ). I would still be buyer of the stock. This is a very large company not overly dependent on any one current or future product and still has an excellent new […]
Xarelto Could Be Another Blockbuster (JNJ, $66.64)
Introduction and Purpose of this Report I believe that the anti-coagulant drug market is poised to become the next blockbuster category in cardiovascular disease following the path of the hypertension and cholesterol drugs. This could mean that sales would reach several billions of dollars arising from several individual blockbuster products. If I am correct, there […]
Second Quarter Report Was Modestly Disappointing But New Pharmaceutical Products are the Key to the Investment Outlook (JNJ, $66.26)
Investment Thesis There was modest investor disappointment with Johnson & Johnson’s second quarter results reported on July 19, 2011. The stock closed down $0.37 to $66.72 while the market increased sharply. This was due to disenchantment of some investors with the modest operational sales and earnings growth. With foreign currency effects and a lower tax […]
Initial Buy Recommendation (JNJ, $62.69)
I believe that Johnson & Johnson will experience an acceleration in earnings based on an outstanding pipeline of new drugs. I am recommending purchase. Perspective on Stock Performance Johnson & Johnson (JNJ) is coming off three poor years in which its unit volume and sales have been flat. It has suffered from a host […]