Johnson & Johnson Medical Devices & Diagnostics Businesses Expanding Market
Leadership with Innovative Products and Customer-Focused Solutions
- More than 30 major product filings planned through 2016
- Leading the industry in emerging market sales
NEW BRUNSWICK, N.J., May 22, 2014
NEW BRUNSWICK, N.J., May 22, 2014 /PRNewswire/ -- At a meeting today with
members of the investment community, senior leaders from the Medical Devices
and Diagnostics (MD&D) segment of Johnson & Johnson (NYSE: JNJ) will outline
plans to improve patient outcomes and expand their market leadership through
innovative products, new business models and a significant focus on
fast-growing emerging markets.
Creating Value through Innovation
Johnson & Johnson's MD&D segment is the world's largest medical devices and
diagnostics business, with $28.5 billion in total sales for 2013, driven by
ten $1 billion-plus platforms that hold the number one or number two positions
in their respective categories. The company's MD&D businesses compete in
approximately 30 percent of the estimated $370 billion global market, and many
of the key markets in which these businesses compete are projected to grow
faster than the overall market over the next 5 years.
To expand its global leadership position, the MD&D segment invested nearly
$1.8 billion in research and development in 2013. The company's MD&D
businesses are positioned for continued growth with many recently launched
products and a pipeline of more than 30 major product filings planned by the
end of 2016. This meaningful innovation is intended to help health care
systems, governments and providers improve clinical outcomes, increase patient
satisfaction and contain costs; three tenets shared by most global health care
reform acts, known widely as the Triple Aim.
"Our businesses are uniquely positioned to continue helping patients while
also leading the industry by capitalizing on our breadth, depth and scale,"
said Dominic J. Caruso, Vice President, Finance and Chief Financial Officer
for Johnson & Johnson. "We are developing innovative products and working with
health care systems on customer-focused solutions to ultimately improve
outcomes for patients."
Global Reach, Local Focus
The medical device segment of emerging markets is growing three-to-four times
faster than the developed markets, and with almost $6 billion in sales in the
MD&D segment coming from these markets – more than 20 percent of its worldwide
2013 sales – Johnson & Johnson is leading the industry. Through innovative
partnerships and dedicated strategies to meet the significant unmet needs of
patients in emerging markets, Johnson & Johnson is well positioned to lead
through the current evolution health care is experiencing worldwide.
In Russia, the company's Vision Care business is piloting new business models
to engage both eye care professionals and consumers. The acquisition of
Spectrum Vision, which is to be fully integrated this year, dramatically
increases the company's market penetration and customer service quality.
Today, more than 85 percent of ACUVUE^® Brand Contact Lenses can be delivered
the same or the next day across all time zones in Russia -- addressing the
consumer's need for speed and convenience.
The company's MD&D segment grew at 18 percent* operationally in China in 2013
with sales of approximately $1.4 billion, making it the largest of Johnson &
Johnson's three business segments in the country. In 2013, the orthopaedic
business received approval to manufacture and distribute trauma products from
its plant in Suzhou. As the products launch this year, this local-supplier
model will give the company access to a new market segment and new
In China, the company's Diabetes Solutions business has a number one market
position in a country that is home to a quarter of all of the world's
diabetics. The business has signed an exclusive original equipment
manufacturer (OEM) agreement with Nova Biomedical Corporation to market
StatStrip^® point-of-care blood glucose testing systems to hospital customers
in China - demonstrating its commitment to serving the needs of emerging
"We have a strong business in both developed and emerging markets," said Mr.
Caruso. "Building on our 28 year history in China, we are capitalizing on our
established footprint to grow and expand our overall business."
Excellence in Execution
DePuy Synthes Companies, the orthopaedics business of the MD&D segment,
continues to lead in an attractive and evolving worldwide market. DePuy
Synthes is realizing revenue and cost synergies from its integration and has
established a strong foundation for capturing the full growth potential of the
combined businesses. The business is also today announcing the launch of three
oThe GLOBAL^® UNITE^® Anatomic Shoulder System is part of a larger platform
enabling surgeons to repair or replace shoulders in a simpler and more
efficient manner while optimizing the patient's range of motion.
oThe CORAIL^® Revision Hip System is the first tapered wedge revision
system in the U.S. and is engineered to reduce the operating room
footprint while delivering patient benefits through its bone-preserving
oThe TRUMATCH^® Resection Guide for the recently launched ATTUNE^® Rotating
Platform Knee. TRUMATCH^® Personalized Solutions provides patient-specific
instruments developed from a CT scan to reduce surgical steps and
customize the procedure to each patient.
The Global Surgery business of Johnson & Johnson is focusing on leveraging its
scale to deliver a pipeline of innovative products that serve large, unmet
health care needs, providing both clinical and economic benefits. The Global
Surgery business has several key products whose innovation is expected to
significantly drive growth for the company, including:
oHARMONIC ACE^®+ 7 Shears with Advanced Hemostasis – the first purely
ultrasonic device with a 7mm vessel sealing indication (Ethicon)
oEVARREST™ Fibrin Sealant Patch to stop bleeding (Ethicon)
oTHERMOCOOL^® SMARTTOUCH™ Contact Force Sensing Catheter for atrial
fibrillation (Biosense Webster)
oINCRAFT^® Stent Graft System for abdominal aortic aneurysms (AAA) (Cordis)
Leading with Purpose
The Johnson & Johnson mission is to care for the world one person at a time.
Last year, Johnson & Johnson donated more than $1 billion in products and
services around the world, making life-changing, long-term differences in
human health. The businesses in the MD&D segment are leading with purpose
through their support of organizations that educate and help patients return
to living healthy, active lives, and through global training centers and
institutes that are enhancing the standard of care in emerging markets.
About Today's Meeting
The meeting will be live-streamed via webcast starting at 9:30 a.m. today and
can be accessed along with the meeting agenda, list of speakers, speaker bios,
and full copies of the presentations via the Johnson & Johnson Investor
Relations websitewww.investor.jnj.com. A replay and podcast will be
available approximately two hours after the live webcast. A live Twitter feed
for today's meeting is accessible via #JNJMDD14.
Users of the Johnson & Johnson Investor Relations mobile app for the
iPad^®and iPhone^®can also access the event. This free app is available in
theiTunes^®store and includes stock information, news releases, company
information, webcasts, SEC filings and Annual Reports, among other
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 128,300 employees at more than 275 Johnson & Johnson
operating companies work with partners in health care to touch the lives of
over a billion people every day, throughout the world.
*Ex. net Synthes; reported growth of 25 percent less currency of 3.2 percent
and net Synthes impact of 3.8 percent.
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 known 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: economic
factors, such as interest rate and currency exchange rate fluctuations;
competition, including technological advances, new products and patents
attained by competitors; challenges inherent in new product development,
including obtaining regulatory approvals; challenges to patents; the impact of
patent expirations; significant adverse litigation or government action,
including related to product liability claims; the impact of business
combinations and divestitures; changes in behavior and spending patterns or
financial distress of purchasers of health care products and services; changes
to governmental laws and regulations and domestic and foreign health care
reforms; general industry conditions including trends toward health care cost
containment; increased scrutiny of the health care industry by government
agencies; financial instability of international economies and sovereign risk;
disruptions due to natural disasters; manufacturing difficulties or delays;
complex global supply chains with increasing regulatory requirements; 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 Johnson & Johnson's Annual Report on Form 10-K for the
fiscal year ended December 29, 2013, including in Exhibit 99 thereto, and our
subsequent filings with the Securities and Exchange Commission. Copies of
these filings are available online at www.sec.gov, www.investor.jnj.com, or on
request from Johnson & Johnson. Johnson & Johnson does not undertake to update
any forward-looking statement as a result of new information or future events
SOURCE Johnson & Johnson
Contact: Press Contacts: Ernie Knewitz, (732) 524-6623, (917) 697-2318 (M), or
Amy Jo Meyer, (732) 524-6678, (908) 616-6250 (M), or Investor Contacts: Louise
Mehrotra, (732) 524-6491, or Lesley Fishman, (732) 524-3922
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