Johnson & Johnson (NYSE:JNJ) Faces Huge Competition

Johnson & Johnson (NYSE:JNJ) Faces Huge Competition

Johnson & Johnson (NYSE:JNJ) Faces Huge Competition

  • U.S. pharma giant Merck  and partner Samsung Bioepis are trying to take a big cut of Johnson & Johnson’s drug revenues.
  • The companies have begun to market their “biosimilar” (a generic version of expensive biologic drugs) of Remicade—a copycat of J&J’s best-selling rheumatoid arthritis and immunology treatment (which garnered more than $5 billion in U.S. sales last year) and was approved by the Food and Drug Administration (FDA) in April—at a striking 35% discount to its list price.
  • The treatment, Renflexis, will be available at about $750 per 100 mg dose, which is significantly cheaper than Remicade’s list price. It’s also much cheaper than a previous Remicade biosimilar from Pfizer  that’s available at a 15% discount to Remicade.

Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. It operates through three segments: Consumer, Pharmaceutical and Medical Devices. Its primary focus is products related to human health and well-being. The Consumer segment includes a range of products used in the baby care, oral care, skin care, over-the-counter pharmaceutical, women’s health and wound care markets. The Pharmaceutical segment is focused on five therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, and cardiovascular and metabolic diseases. The Medical Devices segment includes a range of products used in the orthopedic, surgery, cardiovascular, diabetes care and vision care fields. Its research facilities are located in the United States, Belgium, Brazil, Canada, China, France, Germany, India, Israel, Japan, the Netherlands, Singapore, Switzerland and the United Kingdom.

Overall, the bias in prices is: Sideways.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

The projected upper bound is: 134.96.

The projected lower bound is: 129.13.

The projected closing price is: 132.04.

JOHNSON JOHNSON closed down -1.130 at 131.880. Volume was 7% above average (neutral) and Bollinger Bands were 17% narrower than normal.

Open          High             Low            Close         Volume
133.740      133.850      131.450      131.880      6,262,907

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period        50-period      200-period
Close:                       133.53             131.60             121.87
Volatility:                19                     14                     15
Volume:                   6,199,118       6,069,782       6,610,865

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

JOHNSON JOHNSON is currently 8.2% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of JNJ at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on JNJ and have had this outlook for the last 1 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 37.3788. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 45.86. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 18 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -40. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

 

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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