Morgan Stanley says ruling on J&J’s Zytiga patent not a surprise

Morgan Stanley analyst David Lewis said it was not a surprise that Johnson & Johnson lost a ruling over the patent of its prostate cancer drug Zytiga and he has already been expecting generics to enter the U.S. market after a 30-month stay expires this month. He forecasts a 50% decline in Zytiga in Q4 and while J&J did not specifically model a generic entry, Lewis believes its guidance range imbedded pressure from potential generic Zytiga competition. The analyst, who said trends and commentary last quarter made him more comfortable with his above-market forecast for 5%-6% Pharma growth in 2019 for Johnson & Johnson, keeps an Equal Weight rating on J&J shares.
https://thefly.com/landingPageNews.php?id=2812487