Johnson & Johnson : A Valuable Company

The veterinary market is valued at $638,550,000. Since the expected market share for Biopure is 100% and assuming that the total U.S. veterinary practices (15,000) remains the same, we can state that the potential market size for Oxyglobin is $638.550.000.

Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its

In 2008, Johnson & Johnson was named the 3rd best performing stock on the Dow Jones Industrial Average. It has uniquely positioned itself to remain a leader in a competitive industry against the rapidly changing backdrop of healthcare. The company’s main competitors are Eli Lilly, Novartis and

Johnson and Johnson, commonly called J&J for short, is one of the world's well known, largest, most decentralized and most diversified health care companies. Since 1887, Johnson and Johnson has been producing, manufacturing and selling products related to human health and well-being. Today J&J has over 200 autonomous operating companies and do business globally specializing in consumer products, medical devices and diagnostics, and pharmaceuticals. Consumer products are the company's most recognizable segment, including popular brands like Tylenol, Johnson and Johnson Baby Shampoo and Band-Aid. The medical devices and diagnostics segment manufactures products including surgical equipment

The company is so large that no one drug can lift it from its current sales doldrums. In addition, the company was once highly attractive to investors, but its recent stock price fell to 1997 lows. This may put pressure on the company to attempt acquisitions at a time when the company is ill-equipped to integrate a new company into its organization, and it is engaged in a cost-cutting program at a time when it may need to invest even more in research and development (McTigue Pierce, 2005).

The purpose of this report is to provide analysis of SEC 10K for Johnson & Johnson (JNJ). JNJ was incorporated in the State of New Jersey in 1887. JNJ and its subsidiaries have approximately 117,900 employees worldwide engaged in the research and development, manufacture and sale of a broad range of 250 operating companies conduction business in all countries of the world. JNJ’s primary focus has been on products related to human health and well-being.

The operation manager for JBI suggested considering that Saver Superstore is an easy to deal with partner unlike some other customers that make the business spent a lot of time on their rush orders .This comment brought Johnson to wonder about the customer service costs structure and allocation system. The current system allocates these costs based the revenue generated by each customer which assign a large share to Saver Superstore the biggest one.

The beta has a number of 0.54749, since its less than 1 it means that its sensitivity to the market is below average and it’s not a cyclical stock. for the dividend discount model the number that was computed is $237.07 the current stock value is 116.18 meaning that this stock is undervalued according to my calculations. According to morningstart analysis rating the industry average of price/sales is 3.9, this shows that by looking just at the price/sales this company would be overvalued. The ROE of JNJ is higher than the industry average meaning that it has created moderately higher profits with the used of stockholders investment. According to Morningstar key stats the Rev Growth is 1.4 which is higher that the industry average which is -3.3. This means that the company is succeeding compared to its competitors, and it could also show why according to most ratios JNJ is overvalued, but by using my analysis skills I found JNJ to be in fact

Successful IPO offerings by Quintiles and PPD and their subsequent growth to top 5 CROs in the industry (refer appendix 1), Kendle can follow the same strategy and obtain required capital through IPO. Threats: Kendle is losing contracts to larger CRO’s with international presence, industry consolidation, presence of numerous fragmented CRO’s worldwide, growth of many start-ups through financial roll-up strategy, many CRO’s are on an acquisition spree and Kendle is losing bids to companies such as Collaborative due to shortage of capital, ClinTrials negative performance is affecting other CRO stocks. Competitors: The fragmented CRO industry has hundreds of players ranging from small, limited-service providers to full-service CRO’s, and global drug development corporations which possess significantly greater capital, and other resources than Kendle. CROs compete on the basis of experience, medical and scientific expertise in particular therapeutic areas, quality of work, the capability to handle extensive trials worldwide, medical database management capabilities, and relevant technology to advance research. International presence with strategically located facilities, proximity to clients, and financial capability and cost efficiency are also necessary. In order to build these capabilities for competing effectively, the CRO industry is consolidating as

In the last several years, Merck’s individual R &D department has not been able to keep pace with declining revenues from existing products. It is only through Mergers and Acquisitions that Merck has supplemented this income.

Today one of the largest health care companies in the world is Johnson & Johnson. They now have over 128,000 employees and more than 250 operational subsidiaries located in 60 countries around the world. Johnson & Johnson has more than $132.6 billion in total assets. Johnson & Johnson’s headquarters, however, is still located in New Brunswick, New Jersey. Johnson & Johnson research, develop, manufacture, as well as sell health care products all over the world. (Johnson & Johnson)

Drug portfolio management is one of the most important determinants of long-term prosperity of research-oriented pharmaceutical companies.

GSK is the 2nd largest pharmaceutical firm in the world, and the largest in the UK by sales and profits, it is responsible for 7% of the worlds pharmaceutical market, and has its stocks listed both in UK and US (O 'Rourke, 2002). The origin of the so called blockbuster model, is partly linked with Glaxo (as it was previously known). In the early 80’s, then Glaxo brought to light their first blockbuster drug, Zantac, which was an anti-ulcer drug, which was very similar to the a pre existing drug Tagamet (first ever blockbuster) sold by Smith Kline & French, their completion at the time (MONTALBAN and SAKINÇ, 2011). The introduction of this drug, brought about an increasing sales force in the US, the company soon became dependent on the drug, because it represented a large part of their profit. In 2002, 8 blockbusters of GSK contributed to $14.240 million sales revenue, taking up 53% of its total ethical sales (Froud et al 2006). However, due to the nature of the pharmaceutical industry, the patent began to expire, in other to avoid the patent cliff, Glaxo merged with Wellcome in 1995, which ensured a growing number of sales force, and with Beecham in 2000 (Froud et al., 2006) this merger, boosted the confidence of investors, by growing the business inorganically. For Big Pharma, this block buster model is very profitable, because with the high cost of R&D, the drugs are able to generate ample profit, to cover the sunk costs

In the late 1970s, Merck was falling off a 10-year dry season as far as new items. For about 10 years, the organization had depended on two physician endorsed drugs for a critical rate of its around $2 billion in yearly deals: Indocin, a treatment for rheumatoid joint inflammation, and Aldomet, a treatment for hypertension. Henry W. Gadsden, Merck's CEO from 1965 to 1976, alongside his successor, John J. Horan, were worried that the 17-year patent security on Merck's two major moneymakers would soon terminate, and started putting a tremendous sum in research.

In 2005, Phillip (Phil) Landgraf faced several glaring problems in the financial performance of his company, BioPharma, Inc. The firm had experienced a steep decline in profits and very high costs at its plants in Germany and Japan. Landgraf, the company 's president for worldwide operations, knew that demand for the company 's products was stable across the globe. As a result, the surplus capacity in his global production network looked like a luxury he could no longer afford.