New Brunswick, N.J.
2016 RANK: 2
Fiscal year ending: Jan. 1, 2017
Alex Gorsky, chairman & CEO; Dominic Caruso, EVP & CFO; Joaquin Duato, EVP & chairman, pharmaceuticals; Peter Fasolo, EVP & chief HR officer; Ashley McEvoy, chairwoman, consumer medical devices; Jorge Mesquita, EVP, chairman, consumer; Sandra Peterson, worldwide chairwoman; Michael Sneed, worldwide VP, corporate Affairs & chief communication officer; Dr. Paul Stoffels, EVP & chief scientific officer; Jennifer Taubert, chairwoman, Americas pharmaceuticals; Michael Ullmann, EVP & general counsel; Kathryn Wengel, worldwide VP, supply chain
Medical devices are the fastest-growing business for Johnson & Johnson. The company’s medtech segment enjoyed 4% year-over-year sales growth, to $13.0 billion, during the first six months of 2017, versus 1.8% growth for the entire company.
The situation is a change from 2016, when the year’s medtech sales were slightly down even as the company’s revenue overall grew 2.6%.
“We are continuing to actively manage our portfolio, focusing on transitioning our business in higher growth areas with large unmet needs,” CEO Alex Gorsky said during a July earnings calls with analysts.
J&J has been actively acquiring and forging partnerships to further the growth. Company officials, for example, have said they are on track with their Verb Surgical robotic surgery partnership with Google’s Alphabet parent, which Gorsky has described as “computerized surgery.”
Verb Surgical is more than a robotics company; it’s a platform company, Verb Surgical CEO Scott Huennekens said during DeviceTalks West in December 2016. “There will be robotics – which are a key element – but also advanced instrumentation, advanced visualization, data analytics and machine learning,” Huennekens said.
Important acquisitions include:
• J&J made a major surgical vision care play with its $4.33 billion buyout of Abbott Medical Optics, which closed in February 2017.
• The company in July 2017 said it was taking its Pulsar Vascular and Neuravi acquisitions and combining them with its existing Codman Neuro neurological portfolio to create a new neurovascular business called Cerenovus.
• Johnson & Johnson subsidiary DePuy Synthes said in January 2017 that it had agreed to buy Interventional Spine’s expandable cages for minimally invasive spinal fusion surgeries.
• J&J subsidiary Ethicon Endo-Surgery announced in January 2017 that it had bought electrosurgical tools maker Megadyne Medical Products.
• J&J’s Ethicon in March 2017 closed on its purchase of Torax Medical and its Linx acid reflux treatment portfolio. The Linx system is made of interlinked titanium beads with magnetic cores that augment the esophageal sphincter’s barrier function, preventing reflux in patients with gastro-esophageal reflux disease. Torax has a similar device called Fenix that is designed to treat fecal incontinence.