Johnson & Johnson
Revenues 2012: $67.2 billion
Revenues 2011: $65.0 billion
Johnson & Johnson ($JNJ) was one of only four of the top 10 drugmakers to see revenues move up. Still, things have been hit and miss at J&J with progress being made in its pharma division, while it continues to live with the pain of its beleaguered consumer health group.
IDEA Pharma set Johnson & Johnson at the top of the heap in its 2013 list of companies commercializing drugs, primarily because of its success with Zytiga. The prostate cancer drug turned in 2012 sales just short of the $1 billion blockbuster mark, so Zytiga certainly played its part in J&J's revenue. The drug will play an expanded role this year. In late 2012, Zytiga snagged both EU and U.S. approval for treatment in men with late-stage prostate cancer even before they receive chemotherapy. Analysts say that should double its sales.
J&J has other key drugs to carry it through this year, like its psoriasis drug Stelara and the blood thinner Xarelto, which it shares with Bayer. But hopes that it would snag an expanded use for the drug were dashed recently in the U.S. when the FDA for a second time denied its use in patients with acute coronary syndrome (ACS).
J&J does have some promising drugs in the pipeline, like its experimental diabetes drug canagliflozin, which an FDA panel of experts has backed for approval. On the other hand, the company's collaboration with Pfizer ($PFE) for an Alzheimer's treatment was among those that faltered and died last year. Its Crucell unit moved three promising vaccines off the tarmac for submission in 2015. Still CEO Alex Gorsky is pleased. "By any measure, we have transformed our pharmaceuticals business," he has told analysts.
Prescription drugs, perhaps, but consumer drugs, no. While its consumer product sales of $14.4 billion add significantly to its top ranking--along with sales of medical products--the consumer health unit posted a 2% drop in U.S. revenues last year. That was on top of a drop three times that large the year before. Those sales have been dragged down by the McNeil Consumer Healthcare unit's ongoing struggle to meet the provisions of a consent decree with the FDA, particularly at its Fort Washington, PA, plant, which it closed, gutted and is spending $100 million to retool.
Bayer, J&J test Xarelto uses, even as ACS indication eludes
J&J's Zytiga gets expanded approval that could double sales
J&J's Zytiga may be useful in early prostate cancer, too