Johnson & Johnson vs Abbott Laboratories in Emerging Markets (TheStreet)
TheStreet recently outlined the activities of pharmaceutical stocks Abbott Laboratories (NYSE: ABT) and Johnson & Johnson (NYSE: JNJ) in emerging markets, noting how the former generates the bulk of its pharmaceutical revenue in the US and developed markets while the latter generates more pharmaceutical revenue from emerging markets than from anywhere else.
Specifically, Abbott Laboratories generates about 60% of its pharmaceutical revenue in emerging markets and is expected to generate more than $2.8 billion in pharmaceutical sales in emerging markets this year. By 2016, the company expects to generate 75% of pharmaceutical revenue from emerging markets. The company is also the most successful in India where it has the most sales of any pharmaceutical company.
Meanwhile, Johnson & Johnson generates about 20% ($1.7 billion) of its $8.5 billion in pharmaceutical sales in emerging markets and it should be noted that its overall pharmaceutical operation is larger than that of Abbott Laboratories.
Why are emerging market pharmaceutical sales an important consideration for investors? TheStreet pointed out that in 2010, emerging markets spent more than Germany, France, Italy, Spain and the UK combined on pharmaceuticals. In fact, emerging markets are expected to represent 30% of total pharmaceutical spending by 2016 for expected growth rate of 11% to 14% per year.
To read the whole article, Johnson & Johnson vs. Abbott Laboratories in the Battle for Emerging Market Turf, go to the website of TheStreet.
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