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Johnson & Johnson Surging Ahead of Pfizer in Pharma Stock Analysis

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An in-depth analysis has been conducted to compare the performance of two pharmaceutical giants, Johnson & Johnson (NYSE:JNJ) and Pfizer Inc. (NYSE:PFE). This analysis takes into account various aspects including product development, R&D efficiency, M&A activity, and market positioning to determine which company offers a better investment opportunity.

Product Development Comparison ($ mln)

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Total/ Average

JNJ R&D

8,183

8,494

9,046

9,143

10,594

10,775

11,355

12,159

14,714

14,603

JNJ Revenue

71,312

74,331

70,074

71,890

76,450

81,581

82,059

82,584

93,775

94,943

JNJ Revenue Growth %

4.2%

-5.7%

2.6%

6.3%

6.7%

0.6%

0.6%

13.6%

1.2%

3.4%

JNJ R&D % of Revenue

11.5%

11.4%

12.9%

12.7%

13.9%

13.2%

13.8%

14.7%

15.7%

15.4%

13.5%

Pfizer R&D

6,551

7,150

7,646

7,858

7,645

7,713

7,721

8,709

10,360

11,428

Pfizer Revenue

51,584

49,605

48,851

52,824

52,546

40,825

40,905

41,651

81,288

100,330

Pfizer Revenue Growth %

-3.8%

-1.5%

8.1%

-0.5%

-22.3%

0.2%

1.8%

95.2%

23.4%

11.2%

Pfizer R&D % of Revenue

12.7%

14.4%

15.7%

14.9%

14.5%

18.9%

18.9%

20.9%

12.7%

11.4%

15.5%

JNJ Total Patents

7,950

8,718

8,968

8,579

9,864

10,701

11,936

12,048

11,550

10,724

JNJ Patents Growth %

9.7%

2.9%

-4.3%

15.0%

8.5%

11.5%

0.9%

-4.1%

-7.2%

3.6%

Pfizer Total Patents

1,919

1,849

2,167

1,995

2,136

1,883

2,010

1,852

2,019

1,425

Pfizer Patents Growth %

-3.6%

17.2%

-7.9%

7.1%

-11.8%

6.7%

-7.9%

9.0%

-29.4%

-2.3%

JNJ Grants

2,879

3,176

3,377

3,327

3,920

4,214

4,012

4,068

4,616

4,102

JNJ Grants Growth %

10.3%

6.3%

-1.5%

17.8%

7.5%

-4.8%

1.4%

13.5%

-11.1%

4.4%

JNJ Grants % of Total

36.2%

36.4%

37.7%

38.8%

39.7%

39.4%

33.6%

33.8%

40.0%

38.3%

37.4%

Pfizer Grants

699

716

847

707

810

698

755

718

757

504

Pfizer Grants Growth %

2.4%

18.3%

-16.5%

14.6%

-13.8%

8.2%

-4.9%

5.4%

-33.4%

-2.2%

Pfizer Grants % of Total

36.4%

38.7%

39.1%

35.4%

37.9%

37.1%

37.6%

38.8%

37.5%

35.4%

37.4%

Pfizer vs JNJ: Tale of The Tapes

Patent Punch

Grants Galore

Pipeline Standoff

Pharmaceutical Giants Growing at Different Speeds

The pharmaceutical industry is escalating – it’s like a rocket speeding up into the stratosphere. According to data released by industry analysts, the $1,397 billion pharmaceutical industry is estimated to grow substantially by 2027.

The two heavyweights of the pharmaceutical industry – Johnson & Johnson and Pfizer – have been in this tumultuous ring with their R&D spending and product pipeline. Johnson & Johnson seems to have taken the lead in this race with its superior product development.

##The Better Performer

As per the analysts’ comprehensive review, Johnson & Johnson, with larger total R&D spending, has proven to have a lower R&D as a percentage of revenue compared to Pfizer. Additionally, despite Pfizer’s higher R&D spending as a percentage of revenue, its revenue growth has been lagging behind. It has underperformed with negative average revenue growth. On the other hand, Johnson & Johnson has had positive average revenue growth, indicating its better R&D efficiency compared to Pfizer.

Moreover, Johnson & Johnson boasts a larger patent portfolio with a higher number of total patent filings compared to Pfizer. This can be attributed to its large patent portfolio related to healthcare equipment. Although, with the recent spinoff of its Consumer Health business in 2023, its total patent filings are expected to decline.

##Pipeline Dominance

When it comes to the pipeline, Johnson & Johnson evidently emerges as the front-runner. Our analysis revealed that Johnson & Johnson’s product pipeline is stronger, particularly in the late-stage product developments in Phase 3 and Registration phases. This could be a potential support to its growth outlook. On the other hand, Pfizer, with a larger number of developments in the early stages of Phase 1 and 2, faces high uncertainty of success.

Noteworthy is the fact that both Pfizer and Johnson & Johnson are eyeing the Oncology market, aiming to enhance their market opportunity by reaching the widest market and making their product development more efficient. Johnson & Johnson, with its top two target markets (Oncology and Immunology) larger than Pfizer’s (Oncology and Infectious Diseases and Vaccines), seems to have an upper hand in this pursuit.

##M&A Comparison

Taking a stroll down the memory lane of M&A activities of both companies over the past decade, it becomes quite evident that both companies are well-positioned to pursue future acquisitions. Johnson & Johnson has been particularly active in acquiring companies related to Healthcare Equipment (MedTech), Personal Care (Consumer Health), and Pharmaceutical domains. This strengthens its position in the market and hints at its aggressive growth strategy.

In essence, Johnson & Johnson seems to have gained a significant edge in the ongoing battle of pharmaceutical giants. With a stronger product pipeline and a more efficient R&D approach, Johnson & Johnson appears to be gliding ahead, while Pfizer is left grappling to catch up.

The Battle of Big Pharma: JNJ vs Pfizer


Cardiovascular and Metabolism

0

Pharma Showdown: Pfizer Dominates Market Leadership Over JNJ

**Pharmaceutical Duel: Johnson & Johnson vs Pfizer**

Johnson & Johnson (JNJ) and Pfizer are two pharmaceutical giants that have been at each other’s throats, vying for the top spot in the industry. With both companies wielding their financial muscles as they battle it out, investors have been keenly observing their performances. The US market growth projections are indicative of a brighter growth outlook for both companies, slightly edging out their past performances.

**Pharmaceutical Segments: A Tale of Revenue**

Delving into their respective revenue breakdown by therapeutic segments, it is evident that JNJ boasts a more diverse portfolio with 7 key therapeutic areas. Immunology represents the largest segment, accounting for a whopping 32.2% of its revenue. In contrast, Pfizer’s revenue breakdown charts depict a different story. Immunology, being its second-largest segment at 12% of total revenues, marks a stark contrast. Notably, the Infectious Diseases and Vaccines segment is significantly more substantial for Pfizer, constituting a staggering 68% of its revenue, while only accounting for 10% of JNJ’s revenue in 2022.

**Championing their Strongholds**

In Oncology, JNJ’s pharmaceutical revenue growth might have been modest at 1.7%, but the segment displayed the strongest growth at a formidable 9.9%. The company’s strong growth in Oncology is attributed to its key drug, DARZALEX, which represents 50% of its Oncology revenue and grew by an impressive 39.5% in 2022. Not to be outdone, Pfizer’s strength lies in the Infectious Diseases and Vaccines segment, with the majority of its revenues stemming from its Covid products, accounting for 95% of the segment’s revenue.

**Outlook: A Mixed Bag for Both Giants**

Analyst consensus estimates reveal a decline of 10% in JNJ’s total revenue, attributed to the spinoff of Kenvue, which accounted for 15.7% of its total revenue in 2023. On the flip side, Pfizer’s revenue is expected to experience a significant decrease of 41% in 2023, primarily due to the decline in Covid revenue.

**The Battle Continues**

Despite the challenges, both companies are forging ahead, each banking on its stronghold segment to navigate the turbulent waters. JNJ continues to drive strong sales growth in its Oncology and Immunology segments, with promising market projections. Meanwhile, Pfizer remains cautiously optimistic about the long-term outlook for its non-Covid revenues, amidst uncertainties in the Infectious Diseases market.

As the curtains draw on this financial slugfest, it’s clear that the ongoing battle between Johnson & Johnson and Pfizer is far from over. With both behemoths leveraging their areas of strength, the pharmaceutical battleground remains one to watch, showcasing the relentless pursuit of dominance in the industry.

Pharmaceutical Showdown: JNJ vs Pfizer

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