Johnson & Johnson (NYSE:JNJ) was a notable outperformer during Monday’s trading session rallying by 0.37% on above average volumes, which were 1.05 times the average turnover. The formation of higher tops and higher bottoms on the charts is indicative that bulls are using dips in the stock as a buying opportunity. Johnson & Johnson currently trades above all important moving averages. The index measuring relative strength continues to surge higher and shows no signs of a reversal. Momentum indicators clearly suggest that bulls have the upper hand at the moment. The stock trades near its 52-week high which is a huge positive.
- The market share of Xtandi and Zytiga in prostate cancer drug segment is higher than any other drug.
- Strong pharmaceutical business to help it register a solid growth in the coming months.
- ARN-509, currently in Phase 3 development, is expected to enjoy long-term growth in the market.
Johnson & Johnson (NYSE:JNJ) is all set to end the FY15 on a high note, thanks to the excellent performance shown by its flagship drugs Xtandi and Zytiga. With patients of prostate cancer increasing at a fast pace, the reliable performance of both the drugs is a relief for the company.
Johnson & Johnson group runs its operations through more than 250 companies around the world and considered as the most comprehensive player in the market for producing health-care products. It also offers varied services in the pharmaceutical, consumer, medical device fields. Based on the excellent performance shown by two of its best cancer drugs: Xtandi and Zytiga, it looks all set to achieve long-term growth.
Market Share of Xtandi and Zytiga Continues To Rise
If taken into consideration the market of drugs used for prostate cancer patients, one can easily notice that both Xtandi and Zytiga ended the October month with 30% share, higher than any other drug.
Xtandi didn’t do well in the post-chemo segment in September month and maintained market share of 18%; however, the improved market conditions helped it regained its lost market share. Its market share in the month of October was recorded as 23 percent, better than other drugs. At the same time, the market share of Zytiga dipped down from 22% in September to 18% in October.
When it comes to pre-chemo segment, the market share of Zytiga increased from 36% in September to 38% in October, whereas Xtandi went down from 40% in September to 35% in October.
The CRPC market-share of Zytiga among sample oncologists reduced by 100 bps to 30% in the month of October as compared to JNJ’s forecast of 27% in 3Q2015. The overall market-share of the Xtandi came down by 200 bps to 30 percent.
JNJ reported Zytiga net sales of $276 million in 3Q2015, which represented ex-FX growth of 10% on YOY basis. It was well in line with the company’s growth in the first half of the year. If the sales of $272 million in other countries except U.S. are taken into consideration, one can notice that the company grew 3% on YOY basis, down from 26% growth in 1Q2015 and 9% growth in 2Q2015. Based on these results, the annual sale of Zytiga is expected to be around $1 billion in U.S. and $2.2 billion in the international market.
Future of ARN-509
ARN- 509, still in Phase 3 development, has the potential to contribute to the combination therapy and monotherapy along with Zytiga. Most of the analysts forecast long-term growth for the drug candidate, which is likely to be launched in 2018 for commercial usage. It’s a 2nd G androgen receptor signaling inhibitor equipped with a sound mechanism of action, and can prove to be a great add-on to the therapies like Xtandi and Zytiga.
JNJ is known for evolving its fleet of solutions on a continuous basis, and ARN is the best among what the company has come up with in the recent past.
There’s a huge market available for both Zytiga and Xtandi. The market opportunities will continue to increase with the passage of time. As of now, both of them share a leading market position; however, Johnson & Johnson (NYSE:JNJ) should focus on developing more such solutions in the coming months to curb the market competition.