J&J Wants Us To Ignore Falling Hep C Sales – Is That Cheating?

TL;DR

Johnson & Johnson's hepatitis C drug OLYSIO saw a massive drop in sales due to a better competitor.

Transcript

Kristine Harjes: I don't know if you've ever seen this before, I've never seen something like this before. Essentially, what happens is, Johnson & Johnson's hepatitis C drug OLYSIO just gets absolutely crushed. And they knew what was going to happen, they'd been sign-posting it. But they essentially tuck in hepatitis C revenue right in there with y... Read More

Key Insights

• 😀 OLYSIO, a hepatitis C drug by Johnson & Johnson, faced a significant decline in sales due to competition from HARVONI.
• 🎅 Johnson & Johnson tried to attribute the revenue loss to hepatitis C as a one-time event to mitigate the impact on overall performance.
• 😷 The company has diversified business segments, including pharmaceuticals, medical devices, and consumer goods.
• ❓ OLYSIO's initial success in 2014 was unexpected, but its decline in sales in 2015 was significant.
• 👨‍⚕️ Doctors found that combining OLYSIO with SOVALDI was effective for tough-to-treat hepatitis C patients.
• 😚 HARVONI's approval in genotype 1 led to OLYSIO losing market share and becoming a niche drug.
• 🤨 Johnson & Johnson's attempt to separate hepatitis C revenue from overall performance raises questions about transparency.

Questions & Answers

Q: What led to the decline in sales of Johnson & Johnson's OLYSIO drug?

The decline in OLYSIO sales was primarily due to the approval and success of the competitor drug HARVONI, which offered a better and more cost-effective treatment option for hepatitis C patients.

Q: How did Johnson & Johnson attempt to mitigate the impact of the sales drop in OLYSIO?

Johnson & Johnson tried to downplay the impact by excluding hepatitis C revenue from 'net of' items, essentially distancing the drug's performance from overall company performance.

Q: What are the key business segments of Johnson & Johnson?

Johnson & Johnson operates in pharmaceuticals, medical devices, and consumer goods, with brands like Band-Aid and Listerine falling under its consumer goods segment.

Q: How did OLYSIO's performance compare to Gilead Sciences' SOVALDI in the hepatitis C drug market?

While OLYSIO initially showed promise, Gilead Sciences' SOVALDI emerged as the dominant drug due to its better overall performance, leading to OLYSIO being relegated to a niche-status drug.

Summary & Key Takeaways

• Johnson & Johnson's OLYSIO drug, initially successful, suffered a decline in sales due to competition from a better option, HARVONI.

• The company tried to downplay the impact of this revenue loss by excluding hepatitis C from 'net of' items.

• Johnson & Johnson has significant business segments in pharmaceuticals, medical devices, and consumer goods.