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Behind Johnson & Johnson’s Recent Medical Device Launches

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Overview

For 1Q17, Johnson & Johnson (JNJ) reported ~$17.8 billion in revenues, with its highest YoY (year-over-year) growth coming from the Medical Devices segment. Still, the Pharmaceuticals segment remains the company’s largest business segment, contributing ~46% of the company’s total sales.

New product launches, acquisitions, and collaborations contributed significantly to the Medical Devices segment’s sales. We’ll discuss recent product launches below.

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Diabetes segment product launches

In June 2017, JNJ’s subsidiary Lifescan introduced the new version of its One Touch Reveal mobile app. Lifescan’s OneTouch glucose monitoring system is an established brand, and further innovation with respect to usability, connectivity, and accessibility should help strengthen its offerings to customers as well as its market position.

According to LifeScan Chief Medical Officer Dr. Brian Levy, “OneTouch Reveal mobile app and digital platform…can use enhanced connectivity and the new user experience to help patients use that information to make meaningful decisions and take an active role in their diabetes management.”

Notably, Medtronic (MDT), Dexcom (DXCM), and Abbott Laboratories (ABT) are JNJ’s major players in the diabetes care market. Investors can invest in the Vanguard Total Stock Market ETF (VTI) for diversified exposure to JNJ, which accounts for ~1.5% of VTI’s total holdings.

Vision Care product launches

In May 2017, JNJ’s vision care business launched the Acuvue Oasys Brand Contact Lenses 1-Day for Astigmatism in Canada. The product was launched in the United States in March 2017.

An astigmatism is a form of visual impairment in which a part of an image looks blurred. It is caused due to the irregular curvature of the cornea. JNJ’s Acuvue Oasys brand is an established brand worldwide.

JNJ’s vision care business serves more than 60 million patients per day across 103 countries. The company expanded the business through the acquisition of Abbott Medical Optics from Abbott Laboratories in February 2017. To know more about the acquisition, read Market Realist’s series The Rationale behind Johnson & Johnson’s Acquisition of Abbott Medical Optics.

In the next and final part of this series, we’ll take a closer look at JNJ’s recent acquisitions.

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