Generics, generics
The FDA under Scott Gottlieb is pushing for increased generic competition in order to drive drug prices down. Major steps have been taken in pursuit of this goal. Johnson & Johnson (JNJ) is only beginning to see the damages related to this change. More on this.
Effects on J&J?
Remicade® is J&J’s leading product in terms of revenue, with just over $6 billion in revenues for 2017. Like many other branded therapies marketed by J&J, Remicade® is facing generic competition, in this case, via Pfizer’s (PFE) Inflectra. The company lost nearly 10% of Remicade sales (~$600 million) from 2016 to 2017.
Most recently, J&J lost in patent litigation for patents covering Zytiga®, an oncological drug comprising 7% of the company's 2017 revenues. Below is a graphic showing U.S. and European Union patents held on 10 of the company's previously most profitable drugs.
