Revenues: $81,581 (+7%)
Pharma Revenues: $40,734 (+12%)
Net Income: $15,297 (N/M)
R&D: $10,775 (+2%)
TOP SELLING DRUGS
|Xarelto||deep vein thrombosis, pulmonary embolism||$2,477||-1%|
Johnson & Johnson’s (J&J) pharmaceutical segment sales in 2018 were $40.7 billion, an increase of 12% from 2017. U.S. sales accounted for $23.3 billion while international sales were $17.4 billion, an increase of 8.4% and 18% respectively. The pharma segment is focused on six therapeutic areas: immunology, infectious diseases and vaccines, neuroscience, oncology, cardiovascular and metabolism and pulmonary hypertension, a new therapeutic area, which was established with the $30 billion acquisition of Actelion in June 2017.
During the year, FDA approved J&J’s cardiovascular drug Invokana (canagliflozin). The drug is meant to reduce the risk of major adverse cardiovascular events, including heart attack, stroke or death due to a cardiovascular cause in adults with type 2 diabetes who have established cardiovascular disease. It is the first and only oral diabetes treatment approved with this indication. FDA also signed off on a Janssen Phase 1b/2 trial to evaluate a chimeric antigen receptor T cell (CAR-T) therapy in patients with relapsed or refractory multiple myeloma.
In terms of acquisitions, while 2018 didn’t witness anything on the level of the Actelion deal a year earlier, J&J did buy BeneVir Biopharm for as much as $1 billion. BeneVir uses its T-Stealth Oncolytic Virus Platform to engineer oncolytic viruses tailored to infect and destroy cancer cells. Janssen intends to advance preclinical candidates as standalone therapies and in combination with other immunotherapies for the treatment of solid tumor cancers. BeneVir will maintain a research presence in Rockville, MD and become part of the Janssen Oncology Therapeutic Area.
Research and development partnerships
During the year J&J entered a number of partnerships to advance its research and development activities. Biopharma Ireland Limited joined a global co-development and commercialization agreement with Janssen Biotech, one of the Janssen Pharmaceutical Companies of J&J, for TD-1473 and related back-up compounds for inflammatory intestinal diseases, including ulcerative colitis and Crohn’s disease. The deal could be worth up to $1 billion and will see the two companies jointly develop and commercialize TD-1473 in inflammatory intestinal diseases, with the two companies sharing profits in the U.S. and expenses related to a potential Phase 3 program.
Arrowhead Pharmaceuticals entered into a license and collaboration agreement with Janssen to develop and commercialize ARO-HBV. In addition, Arrowhead entered into a research collaboration and option agreement with Janssen to potentially collaborate for up to three additional RNA interference (RNAi) therapeutics against new targets to be selected by Janssen. The transactions have a combined potential value of over $3.7 billion for Arrowhead.
argenx, a clinical stage biotech, entered a $1.6 billion global collaboration and license agreement for cusatuzumab (ARGX-110), an anti-CD70 SIMPLE AntibodyÔ, with Cilag GmbH, an affiliate of Janssen. Cusatuzumab is currently in development in a Phase 1/2 combination study with Vidaza for newly diagnosed, elderly patients with acute myeloid leukemia (AML) and high-risk myelodysplastic syndrome (MDS) who are unfit for chemotherapy.
MeiraGTx entered into a research collaboration and evaluation agreement with Janssen to use their proprietary riboswitch technology to engineer regulatable gene therapy constructs encoding proprietary gene sequences from Janssen. Evaluation of the performance of these constructs will determine the utility of this approach in future product development. MeiraGTx’s gene regulation platform is a potentially transformative technology that incorporates an on/off switch for gene expression into the gene therapy vector which can then be activated using a small molecule. In this way, gene therapies can be switched on and off according to the patients’ need and the dosing requirements of the therapy. Temporal control overlaying spatial regulation of gene expression has the potential to increase the utility and flexibility of gene therapy.
Together with Theravance Biopharma, J&J will develop TD-1473, a first-in-class oral, gastrointestinal (GI) restricted pan-Janus kinase (JAK) inhibitor for the treatment of inflammatory bowel disease (IBD), including Crohn’s disease and ulcerative colitis (UC).
New Asia Pacific HQ
Expanding its global footprint, and reflecting positive growth overseas, in May 2018 J&J opened its new Asia Pacific headquarters in Singapore. The new 15,800 square meter facility will bring together more than 1,000 employees from Johnson & Johnson’s pharmaceuticals, medical devices and consumer businesses in one single location to spearhead new ideas and frameworks for healthcare of the future. The headquarters will feature a Design Lab, Leadership Lab, and Human Performance Institute. Johnson & Johnson’s Asia Design Lab will be the first design lab outside of the U.S.
The new Singapore HQ has also been selected as the location for Johnson & Johnson’s first global development center known as the Leadership Lab. The Leadership Lab aims to conduct over 200 leadership development classes and train 4,000 Asian leaders annually. As a think-tank, the Leadership Lab will create links with universities, research groups, governments, healthcare organizations and other partners to co-create new healthcare models and solutions to prototype capabilities required to author the next chapter of healthcare innovation in Asia.
The regional headquarters will also include Asia Pacific’s first Human Performance Institute (HPI), offering proprietary leadership development initiatives to participants outside of Johnson & Johnson, with the goal to train 150,000 people in Singapore by 2020.