Johnson & Johnson | 2017
U.S. Revenue: $23.3 billion (up 10.4%)
Global Revenue: $71.9 billion (up 2.6%)
Top Brands: Remicade ($7B), Stelara ($3.2B), Xarelto ($2.3B), Invega Sustenna ($2.2B), Zytiga ($2.3B)
R&D Spend: $9.1 billion (up 0.5%), 7% of revenue
Planned Launches: Guselkumab (psoriasis), Sirukumab (RA)
Upcoming Patent Expirations: Prezista, Concerta, Remicade
After mulling over M&A options, Johnson & Johnson sprang into action in pursuit of Swiss biotech Actelion and initially received muted applause from investors. In the $30 billion acquisition, J&J snagged Actelion's pulmonary arterial hypertension franchise, but only acquired a minority stake in an R&D spin-off company. Investors have warmed to the idea, realizing the timing is right: J&J's top-selling anti-inflammatory Remicade faces biosimilar competition, from Celltrion/Pfizer's Inflectra, and a looming patent expiration. Remicade's $7 billion in 2016 sales — representing 9.7% of the pharma powerhouse's total annual revenue — will be missed, but J&J has no shortage of blockbuster meds. This year, according to CEO Alex Gorsky, J&J expects to capitalize on the early launch success of Darzalex, Imbruvica, and Stelara. Anticoagulant Xarelto and Crohn's disease agent Stelara contributed $2.3 billion and $3.2 billion last year. Genmab/Janssen's multiple myeloma drug Darzalex could be waiting in the megablockbuster wings, though the forecasts vary widely between J&J's conservative estimates of a few billion to Genmab's optimistic prediction of $13 billion in potential peak sales. Late-stage IL-23 agent guselkumab aims to shake up the growing psoriasis market, currently led by Novartis' Cosentyx.