UBS Maintains a 'Buy' on Johnson & Johnson (JNJ); Zytiga (abiraterone) Approved

UBS maintains a 'Buy' on Johnson & Johnson (NYSE: JNJ), PT increased from $67 to $72.

UBS analyst says, "Zytiga [Z] receives FDA nod in chemo-experienced ~2 months ahead of schedule: [Z] is an oral 1x daily small molecule drug for castrate resistant prostate cancer (CRPC). As evidenced by the early approval, [Z] fills an unmet medical need in chemo-exp’d (later stage pts) & potentially also in chemo-naïve (earlier-stage pts; larger mkt opportunity; ‘12 filing). We expect a quick ramp in chemo-exp’d. Broader CRPC opportunity is attractive given its sizable pt pool, limited tx options, relatively long duration of therapy, premium pricing & spec mgns. DNDN est’s 100k prevalent US metastatic CRPC pts & >30k incident pts/yr."

"Competitive landscape is key longer-term consideration: Among other newer agents, Medivation's (Nasdaq: MDVN) MDV3100 (Ph3) appears promising. ‘3100 does not require steroid & may have a mechanistic advantage (both [.Z] & ‘3100 work along testosterone-androgen pathway)."

For more ratings news on Johnson & Johnson click here and for the rating history of Johnson & Johnson click here.

Shares of Johnson & Johnson closed at $65.38 yesterday.

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