Medical Devices business
Johnson & Johnson’s (JNJ) Medical Devices business includes cardiovascular care products, orthopedics products, surgery products, vision care products, and diabetes products.
JNJ’s Medical Devices business reported 8.3% growth in revenues to ~$7.0 billion in 4Q17 compared to revenues of ~$6.4 billion in 4Q16. This includes 6.5% growth in revenues at constant exchange rates and a 1.8% increase due to the positive impact of foreign exchange.
The chart above compares the revenues for various franchises for JNJ’s Medical Devices business since 1Q16.
Cardiovascular care franchise
JNJ’s cardiovascular care franchise reported 17.1% growth in revenues to $568.0 million during 4Q17 compared to $485.0 million during 4Q16. This increase in revenues was driven by ~20.0% growth in its electrophysiology business revenues.
This increase was mostly due to the ThermoCool SmartTouch contact force sensing catheter, and it was partially offset by the divestiture of the Cordis business.
Diabetes care franchise
Johnson & Johnson’s (JNJ) diabetes care franchise reported a 15.6% decline in revenues to $390.0 million during 4Q17 compared to $462.0 million during 4Q16.
This decline in revenues was driven by lower realized prices in its US markets, competition from new pumps in the EMEA market, and discontinuation of insulin pumps in the US and Canada.
Johnson & Johnson’s orthopedics franchise reported a 2.0% decline in revenues to ~$2.3 billion during 4Q17 compared to ~$2.4 billion during 4Q16. This decline was driven by an ~8.0% decrease in the sales of spine products and substantially offset by strong sales of hip and trauma products.
The franchise’s knee products reported a decrease in operating revenues. However, due to the favorable impact of foreign exchange, the revenues from its knee products had a positive impact on the orthopedics franchise’s revenues.
JNJ’s surgery franchise reported 7.2% growth in revenues to ~$2.6 billion during 4Q17, compared to ~$2.4 billion during 4Q16. The increase in revenues was driven by ~12.7% growth in sales of advanced surgery products and ~6.2% growth in sales of general surgery products. This revenue increase was partially offset by lower sales of specialty surgery products.
Vision care franchise
Johnson & Johnson’s (JNJ) vision care franchise reported 55.2% growth in revenues to ~$1.1 billion during 4Q17 compared to $721.0 million during 4Q16. The increase in revenues was driven by ~11.0% growth in sales of contact lenses and other products as well as $319.0 million from its sales of surgical vision care products.