Where Will Johnson & Johnson Be in 1 Year?
Last year, shares of the big pharma company Johnson & Johnson (NYSE: JNJ) rose by 13%, a performance that trailed that of the pharmaceuticals industry, which was up by 24.7% as measured by the SPDR S&P Pharmaceuticals Index. The S&P 500 -- which was up by about 29% in 2019 -- also outpaced Johnson & Johnson last year.
There are several reasons why Johnson & Johnson did not perform as well as the broader market in 2019. First, some of its key products within its pharmaceuticals segment -- by far its largest segment by revenue -- have been recording declining sales. For instance, the company's rheumatoid arthritis drug Remicade reported $4.4 billion in sales for the full fiscal year 2019, down 17.8% year over year. Second, Johnson & Johnson is currently drowning in a sea of lawsuits. A California court recently ordered Johnson & Johnson to pay $344 million for "deceptively marketing" its pelvic mesh products, which are surgical implants aimed at treating pelvic organ prolapse. Johnson & Jonhson plans to appeal this decision, but there are more lawsuits the company has to worry about.
Amid all these troubles, investors might be inclined to avoid shares of the pharma giant altogether. However, a lot can happen in just one year, and despite its issues, Johnson & Johnson's trajectory within the next 12 months may not be that catastrophic. Here's why.
Source Fool.com
