UBS Reiterates Buy on Johnson & Johnson (JNJ) as FDA Approves Darzalex
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UBS reiterated a Buy rating and $144.00 price target on Johnson & Johnson (NYSE: JNJ) following the FDA's approval of Darzalex for combination therapies.
Analyst Matt Miksic commented, "We expect JNJ to commercialize Darzalex for the new indication shortly, representing potential upside of $50-100 mil to our 2016 and 2017 Darzalex estimates of ~$500 mil and $1.3 bil, respectively. We estimate the relapsed / refractory multiple myeloma indication will generate revenues of $1.4 bil in 2021, and that revenues for the entire Darzalex franchise will reach ~$3.7 bil in 2021. In terms of background, multiple myeloma (MM) is a large therapeutic market of over $10 bil, and major drugs used for MM include Revlimid, Velcade, Thalomide, Pomalidomide, and Carfilzomid. Darzalex has performed favorably in this indication relative to other molecules, and is one of the key elements of JNJ's pipeline differentiating our estimates and investment thesis from the Street. We reiterate our Buy rating and $144 target on JNJ, and we are Buyers with greater conviction given today's early approval."
Shares of Johnson & Johnson closed at $115.00 yesterday.
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