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Johnson & Johnson’s Business Segments in 4Q17

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Business segments

As we’ve already seen, Johnson & Johnson (JNJ) has classified its product portfolio into three business segments: Consumer, Pharmaceutical, and Medical Devices. In 4Q17, it reported growth across all three segments with revenues of ~$20.2 billion, an ~11.5% growth compared to 4Q16.

The above chart compares revenues for each business segment since 1Q16.

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Segment-wise revenues

The revenues for each of Johnson & Johnson’s business segments in 4Q17 are as follows:

  • The Pharmaceutical segment reported revenues of ~$9.7 billion in 4Q17, a ~17.6% growth compared to ~$8.2 billion in 4Q16. That includes a ~15.5% growth in operating revenues and a ~2.1% growth due to the favorable impact of foreign exchange. Growth was driven by strong sales of Edurant, Stelara, Simponi/Simponi Aria, Concerta, Xarelto, Darzalex, Imbruvica, and Zytiga. It was also driven by pulmonary hypertension products and some other pharmaceutical products.
  • The Consumer segment reported revenues of ~$3.5 billion in 4Q17, a ~3.1% growth compared to ~$3.4 billion in 4Q16. That includes a ~0.4% growth in operating revenues and a ~2.7% growth due to the favorable impact of foreign exchange. Growth was driven by strong sales of beauty care products, wound care products, and over-the-counter products, partially offset by lower sales of baby care products, oral health products, and women’s health products.
  • The Medical Devices segment reported revenues of ~$7 billion in 4Q17, an ~8.3% growth compared to $6.4 billion in 4Q16. That includes a ~6.5% growth in operating revenues and a ~1.5% growth due to the favorable impact of foreign exchange. Growth was driven by strong sales of its cardiovascular products; hips, knees, and trauma products; general and advanced surgery products; and contact lenses.

Other medical device companies dealing with surgery products include Zimmer Biomet (ZBH), Medtronic (MDT), and Stryker (SYK).

After excluding the impact of acquisitions and divestitures, the Pharmaceutical segment reported growth of ~7.6% in worldwide sales. The Consumer segment reported growth of ~0.2%, and the Medical Devices segment reported growth of ~2%.

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