23 January 2013 | News | By BioSpectrum Bureau
Johnson & Johnson leverages medical diagnostics segment
Medical devices and diagnostics accounted for about 41 percent of Johnson & Johnson's total sales in 2012
Singapore: Johnson & Johnson is leveraging its medical devices and diagnostics (MD&D) business strategy for accelerating growth. "Our MD&D business is the largest medical technology business in the world with sales of $27.4 billion, which grew 8.7 percent operationally with the inclusion of Synthes," said Mr Alex Gorsky, chairman and chief executive officer. "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 percent of them today. We're also expanding our MD&D business in emerging markets, and with Synthes, generated strong double-digit growth there last year."
MD&D accounted for about 41 percent 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, 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."
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% of the Johnson & Johnson's revenues come from outside the US, 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 Mr 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 markets."