A Look into Johnson & Johnson’s Diabetes Care Business

Diabetes Care segment’s revenue trends

Johnson & Johnson’s (JNJ) Diabetes Care segment generated revenues of $319.0 million in the third quarter, reflecting an ~22.2% YoY (year-over-year) decline and an 11.0% decline sequentially. Johnson & Johnson’s Diabetes Care segment reported an ~20.0% YoY operational decline in the third quarter.

Johnson & Johnson’s Diabetes Care segment’s net revenues totaled $1.0 billion over the first nine months of 2018 compared to $1.2 billion during the first nine months of 2017, reflecting an ~17.6% YoY decline.

A Look into Johnson & Johnson’s Diabetes Care Business

Geographical revenue trends

In the US and international markets, Johnson & Johnson’s Diabetes Care segment generated third-quarter net revenues of $125.0 million and $190.0 million, respectively, compared to $168.0 million and $237.0 million in the third quarter of 2017.

In the US and international markets, Johnson & Johnson’s Diabetes Care segment’s revenues totaled $371.0 million and $638.0 million during the first three quarters of 2018. These revenues reflected YoY declines of ~23.0% and 14.1%, respectively.

The discontinuation of pumps and price decrease of BGM (blood glucose monitoring) in the US market led to the decline of revenues in JNJ’s Diabetes Care business.

Among Johnson & Johnson’s (JNJ) peers in the diabetes care market, Tandem Diabetes Care (TNDM), Insulet (PODD), and DexCom. (DXCM) generated revenues of $34.13 million, $124.26 million, and $242.50 million, respectively, in the third quarter. These revenues reflected ~60.01%, ~13.22%, and ~42.15% YoY growth, respectively.

Analysts expect Tandem Diabetes Care (TNDM), DexCom (DXCM), and Insulet (PODD) to generate third-quarter revenues of $41.83 million, $241.3 million, and $149.36 million, respectively. These revenues represent ~54.92%, ~30.72%, and ~22.66% YoY growth, respectively.