Johnson & Johnson (NYSE:JNJ) has started casting out its investment net over various potentially successful drug treatments for popular conditions such as Alzheimer’ sand Leukemia.
The company that is rated as the largest drug manufacturer in the known universe announced that it has plans to pursue the regulatory approval for over ten new treatments by 2019. The firm claims that the yearly potential sales for these drugs will average over $1 billion per drug.
J&J has high hopes that these drugs will allow the company to maintain its momentum in the drug development division. Over the last few years the company has been facing heavy competition especially from upcoming rival firms. Most of the company’s new drugs that have been approved in the recent past have been outperformed by these competitors.
A good example of the prevailing rivalry is the defeat or overshadowing of J&J’s Hepatitis C drug known as Olysio by a highly competitive alternative from Gilead Sciences, Inc. (NASDAQ:GILD). The company has been facing stiff competition from entry firms with cheaper but effective alternatives. Its best-selling drug, used to treat Arthritis is set to receive new and more afordable competition.
The company also said that copied drugs refered to as Biosimilars have been emerging but is not an immediate threat. That is because J&J has plans to implement its Remicade patents by the end of the summer season in 2018. The report came from the company’s CEO Dominic Caruso who claimed that despite the efforts, the aftermath will not be so profound especially in the U.S. He claimed that the effect of Biosimilars will be significantly slow according to the firm’s projection.
Remicade’s success has been largely hampered by as much as 69% in the European market where it is marketed by Merck & Co., Inc. (NYSE:MRK). The American market benefits from harsh regulations enforced by the Federal Drug Agency. The rules regulate the administration of biosimilars. The company hopes that the new introductions will bring it back to the forefront.