Johnson & Johnson Finds Growth in Pharmaceuticals

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July 15 (Bloomberg) -- Bloomberg’s Carol Massar recaps her visits to Johnson and Johnson facilities across the United States, the company’s push for research and development and reviews their second-quarter results. She speaks on “Bloomberg Surveillance.”

I was going to say, tom ask for it, and that is what we go do.

We have been visiting various j&j facilities.

I've been listening to you breakdown the earnings.

What caught my attention in the pharmaceutical sales at johnson & johnson came in at the quarter at 8.5 billion dollars.

That is up $1 billion from the quarter before, and pharmaceuticals has been a real bright spot along the company making up for slower growth against their two other major business, medical devices and the consumer business.

Pharmaceuticals have been the bright spot.

I spent some time -- as tom ask, i have been traveling romney country.

I was up at la jolla, california, visiting johnson and johnson's innovation laboratory.

All of the companies are competing for the next big thing.

They are being very aggressive in terms of going after early stage of a new stage, late stage product relevant.

At this incubator, entrepreneurs can come into the facility, the rent space at the market rate, they could do their research, they get access to millions of dollars worth of equipment, also to j&j expertise and scientists.

They can do their research.

If they do not want to work with j&j alternately, they can take their research elsewhere.

It is pretty interesting.

Carol, as they go through the press release of the earnings, it looks like johnson & johnson guides up ever so slightly a few pennies.

Where is the growth coming from?

Well, it is largely from the pharmaceuticals.

They have got three dynamic businesses.

Pharmaceuticals, everybody, as i talk to analysts or investors, they really city bright spot right now is the pharmaceuticals business and the growth that we are seeing.

That is why i mentioned, you know, they are being very aggressive in going after different products.

The other thing is i heard you talk about all the cash they have on hand.

They have a very healthy balance sheet, and they also sell ortho, they completed that sale in june.

I give this another 4 billion dollars in cash.

We will hear more about what they might do with that later.

They have done some acquisitions.

We will see if any of that -- or whether boosting the dividend could come into play at this point.

All right, carol massar, thank you so much.

Joining us from j&j's headquarters in new brunswick, new jersey.

We will by the way be inside johnson & johnson all day today.

Carol massar will be bringing you inside from johnson & johnson on this earnings days.

Chris grisanti with us.

On this dog of dogs, you and i know a decade of meteor rock mediocrity at j&j.

This text has been automatically generated. It may not be 100% accurate.

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