1) J&J has no access to anti-inflammatory indications - from PCYC PR - "Pharmacyclics and Janssen will collaborate on the development of PCI-32765 for oncology and other indications, excluding inflammation and immune mediated conditions." (aka IMID)
2) From Wikipedia Immune mediated inflammatory disease (not the best source but informative)
Inflammation is an important and growing area of biomedical research and health care because inflammation mediates and is the primary driver of many medical disorders and autoimmune diseases, including ankylosing spondylitis, psoriasis, psoriatic arthritis, Behcet's disease, arthritis, inflammatory bowel disease (IBD), autistic enterocolitis, and allergy, as well as many cardiovascular, neuromuscular, and infectious diseases. Some current research even suggests that aging is a consequence, in part, of inflammatory processes.
3) Market for just arthritis drugs - "The global market for arthritis drugs was worth $35 billion in 2008 out of which TNFα Inhibitors accounted for sale of $18 billion. NSAIDs branded, OTC and generics generated sales of $10 billion, COXIBs at $3.7 billion and DMARDs $3 billion in 2008. Enbrel with sales of $7.4 billion was the market leader followed by Remicade with sales of $6.5 billion and Humira at $4.5 billion. Enbrel, Remicade and Humira all showed annual gains of over $1 billion."
4) - Wikipedia TNF inhibitors (largest drug segment) side effects -The important side effects that have been most extensively related to TNFalpha blockers include: lymphoma, infections, congestive heart failure, demyelinating disease, a lupus-like syndrome, induction of auto-antibodies, injection site reactions, and systemic side effects.
Are you seeing the bigger picture yet? IMHO, the deal with J&J is not giving away the farm. It is merely a short term fix for cash and initial approvals. The number and caliber of the employees hired with Genentech credentials should tell you that they did not come on board for a J&J deal.
Genentech was bought by Roche for $45 bil when Genetech sales were $9 bil. Will PCI-32765 be bigger than Avastin?
It will make you money, but it will not really make you rich. The nature of biotech and the FDA do not make it prudent for most investors to really load up on biotech shares . nothing is more risky then investing in biotech. Biotech is a big part of the economy and I think people should invest in this area but the track record of approval is so poor one has to be very careful with the size of the investment.