In 4Q17, Johnson & Johnson (JNJ) reported 9.4% growth in operating revenues and a 2.1% positive impact of foreign exchange to ~$20.2 billion. In comparison, its 4Q16 revenues were ~$18.1 billion.
Johnson & Johnson reported growth across its three segments: Pharmaceuticals, Consumer, and Medical Devices. The chart below compares revenues for each business segment since 1Q16.
Pharmaceuticals segment’s revenues
Johnson & Johnson’s (JNJ) Pharmaceuticals segment reported 17.6% growth in revenues to ~$9.7 billion during 4Q17, compared to ~$8.2 billion during 4Q16. The segment’s revenues rose 15.5% at constant exchange rates, while its foreign exchange had a 2.1% positive impact on revenues during 4Q17.
The segment’s growth was driven by Stelara and Simponi/Simponi Aria from the immunology franchise and Edurant and Prezista/Prezcobix from the infectious diseases franchise.
The Pharmaceuticals segment’s growth was also driven by Concerta and Invega Sustenna/Xeplion from the neuroscience franchise; Darzalex, Imbruvica, and Zytiga from the oncology franchise; Xarelto from the cardiovascular franchise; and pulmonary hypertension products.
Consumer segment’s revenues
Johnson & Johnson’s Consumer segment reported 3.1% growth in revenues to ~$3.5 billion during 4Q17 compared to ~$3.4 billion during 4Q16. The segment’s revenues rose 0.4% at constant exchange rates, while its foreign exchange had a 2.7% positive impact on its revenues.
The Consumer segment’s revenue growth was driven by strong performance of over-the-counter products, beauty care products, and wound care products. Its performance was substantially offset by lower sales of baby care products, women’s health products, and oral care products.
Medical Devices segment’s revenues
Johnson & Johnson’s (JNJ) Medical Devices segment reported 8.3% growth in revenues to ~$7.0 billion during 4Q17 compared to ~$6.4 billion during 4Q16. The segment’s revenues increased 6.5% at constant exchange rates, while its foreign exchange had a 1.5% positive impact on revenues.
The growth for the Medical Devices segment was driven by strong performance of cardiovascular products; hips, knees, and trauma products from orthopedic products portfolio; general and advanced surgery products; and contact lenses from the vision care products.
In excluding the impact of acquisitions and divestitures, JNJ’s Pharmaceuticals segment reported growth of 7.6% in worldwide sales. Its Consumer segment reported growth of 0.2% in worldwide sales, and its Medical Devices segment reported growth of 2.0% in worldwide sales.
The Vanguard Value ETF (VTV) holds 12.6% of its total investments in healthcare companies. VTV holds 3.0% in Johnson & Johnson (JNJ), 1.7% in Pfizer (PFE), 1.2% in Merck & Co. (MRK), and 1.0% in Amgen (AMGN).