Johnson & Johnson Presents Growth Strategies for Medical Devices & Diagnostics Segment

Tue Jan 22, 2013 9:25am EST

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- Building Market Leadership
NEW YORK,  Jan. 22, 2013  /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) will
present its Medical Devices & Diagnostics (MD&D) business strategy for
accelerating growth during its annual Business Review today. The presentations
will focus on its market leading products, plans for global expansion and
meaningful innovations in MD&D that position the company well for long-term
growth in a dynamic market. Johnson & Johnson last highlighted its MD&D business
in 2010.

"Our MD&D business is the largest medical technology business in the world with
sales of  $27.4 billion, which grew 8.7% operationally with the inclusion of
Synthes,"  Alex Gorsky, Chairman and Chief Executive Officer, said. "We're
building on our market leadership positions, having sustained or grown share in
the majority of our key platforms, and hold number one or number two positions
in over 80% of them today. We're also expanding our MD&D business in emerging
markets, and with Synthes, generated strong double-digit growth there last

MD&D accounted for about 41% of Johnson & Johnson's total sales in 2012. Its
businesses are global leaders with strong market positions across a broad range
of areas, including orthopaedics, neurosurgery, general surgery, vision care,
diabetes care, infection prevention, cardiovascular and aesthetics.

In the last two years, the company has invested approximately  $3.5 billion  in
research and development for its MD&D segment, advancing its pipelines and
developing new technologies and solutions across its businesses. It has also
made decisions to shape its portfolio, including completing the approximately 
$20 billion  acquisition of Synthes, Inc.--the largest acquisition in Johnson &
Johnson history, while also continuing to take a disciplined approach to
adapting its businesses to reflect the evolving needs of the marketplace."

The company announced today that it is initiating an exploratory process to
evaluate strategic options for its Ortho Clinical Diagnostics (OCD) business.
All options will be evaluated to determine the best opportunity to drive future
growth and maximize shareholder value. Options include a possible divestiture if
it is determined that OCD could have greater potential as part of another
organization whose focus is more closely aligned with its core strengths, or by
operating as a stand-alone company. At this time it is not certain that any
transaction will be consummated.

"As we look to the future we're advancing innovative new products in our
pipeline, continuing to take a disciplined approach to managing our portfolio
and adapting our business to the changing marketplace," Gorsky added.  

Creating Value Through Innovation
The Company's presentations today will highlight how it is creating value
through innovation with products that address significant unmet medical needs,
and by evolving its business models to deliver both the clinical and economic
value required by a cross-section of stakeholders.

"The Global Medical Solutions (GMS) portfolio plays in separate and distinct
markets but what we have in common is the opportunity to bring more value to the
healthcare system by leveraging our leading product positions and connecting
them inside and outside of Johnson & Johnson to offer solutions that focus on
the most critical clinical and economic needs of our customers," said  Karen
Licitra, Worldwide Chairman, Global Medical Solutions Group.

To address some of these needs, the  OneTouchVerio  Glucose testing platform was
recently introduced and is the first diabetes care device to alert and display
high/low patterns to deliver meaningful and actionable insights to help patients
better understand and manage diabetes. Also, recently acquired Calibra Medical
expanded the GMS portfolio of insulin delivery innovations with a unique
"wearable" insulin patch, which when it is introduced, will make it easier for
patients who need an easy-to-administer, meal-time dosing solution.  

The Global Surgery Group is focused on bringing innovation to the fast-growing
Energy market. The recently approved  HARMONIC ACE+ Shears, for example,
responds to varying tissue conditions and regulates energy delivery, benefiting
both surgeons and their patients. In 2013, the DePuy Synthes Companies are
planning to introduce the  ATTUNE Knee System,  which is designed to help
patients who are not completely satisfied with current knee replacement systems
achieve their optimum performance. More than 2,500 patients have been
successfully treated to date.    

Global Reach with Local Focus  
Johnson & Johnson also continues to explore ways to expand its global footprint
and its MD&D business continues to focus on local market needs. Today, 56
percent of the Johnson & Johnson's revenues come from outside the U.S., compared
to about 40 percent a decade ago. Moreover, in the past two years, sales growth
in emerging markets grew significantly for Johnson & Johnson. Including Synthes,
emerging markets now make up 23 percent of Johnson & Johnson sales.

"One million surgical procedures are performed every day around the world, many
of them utilizing the technologies created by Johnson & Johnson's Global Surgery
Group," said  Gary Pruden, Worldwide Chairman, Global Surgery Group. "We are a
highly global business, with about 60 percent of Global Surgery sales currently
generated outside the U.S. and a strong and growing presence in emerging

The 2012 acquisition of Guangzhou Bioseal Biotech, a company specializing in
porcine plasma-based fibrin sealants used to control bleeding during surgical
procedures, gives MD&D access to the fast growing Chinese biosurgery market with
an advanced biological solution.   

In terms of developing and introducing market-appropriate products, GMS has
invested in the  OneTouchSelectSimple  blood glucose monitoring system, with a
simple operating system designed specifically for emerging markets and creating
affordable access for patients. Meanwhile, the  ENDOCLENS-NSX  is designed for
the infection prevention category in emerging markets. It is currently available
in  Russia,  India,  Chile,  Columbia  and  Malaysia, and launches are planned
for  China  and  Brazil  in early 2013.

For the DePuy Synthes companies, accelerating growth in  Asia-Pacific  and
emerging markets will be fueled by customizing its product portfolio, developing
simpler and affordable systems, sourcing manufacturing and R&D locally and
enhanced training and professional education for practitioners.

Excellence in Execution
The DePuy Synthes merger created the world's largest and most comprehensive
orthopedics and neurologics organization. The combined businesses offer
expertise in joint reconstruction, trauma, spine, sports medicine, neuro,
craniomaxillofacial, power tools and biomaterials. The DePuy Synthes Companies
have a presence in more than 60 countries with almost 90 percent of revenue
generated in markets where they hold the number one or number two positions.   

"By combining the highly complementary product portfolio, geographic presence,
capabilities and talent of DePuy and Synthes, we are well-positioned to lead and
shape the orthopaedics and neurologics industry. The integration is progressing
well, and we are driving innovation, cross-selling and emerging market
initiatives to accelerate growth," said  Michel Orsinger, Worldwide Chairman,
DePuy Synthes Companies.

In Global Surgery, Biosense Webster is the world's leading provider of
catheter-based technology to diagnose and treat cardiac arrhythmias through a
procedure known as ablation. A steady stream of innovations - like the  CARTO3
System, which provides physicians a real-time, three-dimensional view of where
they are working within a patient's beating heart to within one millimeter of
accuracy - has enabled Biosense Webster to expand its market leadership
position, as well as to grow the ablation market overall.

About Today's Meeting
Brief summaries of the MD&D businesses and new products discussed in today's
presentations are available on-line.   

Johnson & Johnson presented 2012 fourth quarter performance and full-year
results earlier today. Presentation materials and recorded webcast is available
through This webcast is optimized for mobile streaming on
iOS devices such as iPhones, iPods and iPads.  A replay and podcast will be
available approximately two hours after the meeting concludes.   

About Johnson & Johnson

Caring for the world, one person at a time…inspires and unites the people of
Johnson & Johnson. We embrace research and science - bringing innovative ideas,
products and services to advance the health and well-being of people. Our
approximately 128,000 employees at more than 250 Johnson & Johnson operating
companies work with partners in health care to touch the lives of over a billion
people every day, throughout the world.

(This press release contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995.  The reader is cautioned not
to rely on these forward-looking statements. These statements are based on
current expectations of future events.  If underlying assumptions prove
inaccurate or unknown risks or uncertainties materialize, actual results could
vary materially from the expectations and projections of Johnson & Johnson.
Risks and uncertainties include, but are not limited to, general industry
conditions and competition; economic factors, such as interest rate and currency
exchange rate fluctuations; technological advances, new products and patents
attained by competitors; challenges inherent in new product development,
including obtaining regulatory approvals; challenges to patents; significant
adverse litigation or government action; impact of business combinations;
financial distress and bankruptcies experienced by significant customers and
suppliers; changes to governmental laws and regulations and domestic and foreign
health care reforms; trends toward health care cost containment; increased
scrutiny of the health care industry by government agencies; changes in behavior
and spending patterns of purchasers of health care products and services;
financial instability of international economies and sovereign risk; disruptions
due to natural disasters; manufacturing difficulties or delays; and product
efficacy or safety concerns resulting in product recalls or regulatory action. A
further list and description of these risks, uncertainties and other factors can
be found in Exhibit 99 of Johnson & Johnson's Annual Report on Form 10-K for the
fiscal year ended  January 1, 2012. Copies of this Form 10-K, as well as
subsequent filings, are available online at, 
or on request from Johnson & Johnson.  Johnson & Johnson does not undertake to
update any forward-looking statements as a result of new information or future
events or developments.)

SOURCE  Johnson & Johnson

Press: Al Wasilewski, +1-732-524-1130, +1-732-447-5918 (M); Carol Goodrich,
+1-732-524-6678, +1-973-615-4057 (M); Investor: Louise Mehrotra,
+1-732-524-6491; Ellen Sipos, +1-732-524-3709; Lesley Fishman, +1-732-524-3922

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