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Zacks Industry Outlook Highlights: Johnson & Johnson, Forest Labs, Biogen, Amgen and Medivation

JNJ BIIB AMGN MDVN

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For Immediate Release

Chicago, IL – July 31, 2013 – Today, Zacks Equity Research discusses the U.S. Pharma & Biotech, including Johnson & Johnson ((JNJ - Analyst Report)-Free Report), Forest Labs -Free Report), Biogen (BIIB - Analyst Report)-Free Report), Amgen (AMGN - Analyst Report)-Free Report) and Medivation ((MDVN - Analyst Report)-Free Report).

Industry: Pharma & Biotech

Link: http://www.zacks.com/commentary/28350/Pharma-&-Biotech-Stock-Outlook---JulyAug-2013

While several companies will continue to face challenges like EU austerity measures and genericization, the pharma industry should be out of the worst of the genericization phase from 2013. Many companies which had faced generic headwinds in the last couple of years should see their results improve from 2013. Cost-cutting, downsizing, streamlining of the pipeline, growth in emerging markets and product approvals should support growth.

Among large-cap pharma stocks, Johnson & Johnson ((JNJ - Analyst Report)-Free Report) currently holds a Zacks Rank #2 (Buy). The company has performed well in the first half of 2013 and the momentum should continue through the remainder of the year. The company has been trying to offset the declining sales of some of its important products by bringing in new products through in-licensing deals and acquisitions. We believe the diversity and strength of the company’s underlying businesses will continue to provide strong growth in future. The Synthes deal should continue driving results.

Forest Labs -Free Report), another Zacks Rank #2 stock, is doing well with first quarter fiscal 2014 results beating expectations. The company has launched several new products over the past few quarters and continues to make impressive progress with its pipeline.

In the biotech space, we are positive on Biogen (BIIB - Analyst Report)-Free Report). Tecfidera, the company’s recently launched oral multiple sclerosis drug, is off to a strong start with launch quarter sales coming in at $192 million (including inventory stocking of $82 million). While Tecfidera has the potential to gain the top spot in the oral multiple sclerosis market, Avonex and Tysabri should continue contributing significantly to sales. Biogen is also progressing with its hemophilia pipeline.

We are also positive on Amgen (AMGN - Analyst Report)-Free Report). Amgen should be able to deliver on its long-term strategy based on expansion in key markets, launch of new manufacturing technologies, and pipeline development. Enbrel should continue performing well. Amgen’s late-stage pipeline is also moving along. While Amgen is a Zacks Rank #2 stock, Biogen is a Zacks Rank #3 (Hold) stock. Gilead, another Zacks Rank #2 stock, continues to do well in the HIV segment and is also progressing with its HCV pipeline.

Medivation ((MDVN - Analyst Report)-Free Report), a Zacks Rank #1 (Strong Buy) company, should continue delivering with its prostate cancer therapy, Xtandi, performing well. Based on the data we have seen so far, we believe Xtandi has blockbuster potential. It is currently in several studies including for the pre-chemo setting. Expansion into the pre-chemo setting would be a major positive for Medivation.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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