Following a higher-then-expected quarterly profit, on Tuesday, Johnson & Johnson declared that the Pharma Future appears to be doing well. The company declared that despite the launch of a large competitor for their Remicade Arthritis drug, they anticipate Pharma Future will remain prosperous.
The Chief Financial Officer for J&J stated: “We are confident our pharmaceuticals business will go well with or without the biosimilar launch.”
The competitor that was threatening the well-being of J&J pharmaceuticals was rival Pfizer, who announced on late Monday that they would be beginning the shipments of Inflectra. This is the Biosimilar drug, which is being launched in direct competition with Remicade.
The reason why Pfizer was considered a threat to J&J
The Remicade Arthritis drug, is liable for a large portion of J&J revenue, with annual sales in the United States equaling to approximately $5 billion. However, Pfizer is releasing their Arthritis solution drug at a 15 percent discount to J&J.
J&J has risen up in court against Pfizer. Currently, the company is appealing to the Federal Court, which invalidated a U.S Remicade patient. This is all in the preparation for the upcoming February court battle between the two medical giants.
The current financial standings of J&J
The reason behind the confidence in the prosperity in J&J’s pharmaceuticals is due to the rise in third-quarter revenue, in comparison to that of the third-quarter results from last year. This year, the company closed the quarter on $17.82 billion.
It was also recorded that pharmaceutical sales for J&J incremented by 9.2 percent to $8.40 billion. It is believed that this growth is due to various drugs that the company released, including Imbruvica, and Dark Alex. These two drugs are responsible for the treatment of cancer. A further drug that seemed to play a large role in the increase in revenue is the blood thinner Xarelto.
Furthermore, J&J managed to increase the full-year profit forecast to $6.68 per share, from an original $6.63.
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