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A Performance Overview of JNJ’s Beauty and OTC Businesses

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Beauty business’s revenue trends

Johnson & Johnson’s (JNJ) beauty business generated revenue of $1.1 billion in the third quarter compared to $1.0 billion in the third quarter of 2017, reflecting a ~4.4% YoY rise.

In the third quarter, in the US and international markets, Johnson & Johnson’s beauty business generated revenues of $543.0 million and $535.0 million, respectively, reflecting ~3.8% and ~4.9% YoY rises.

In the US and international markets, Johnson & Johnson’s beauty business witnessed ~3.8% and 9.2% YoY operational growth, respectively.

The company’s market expansion in the Asia-Pacific region primarily contributed to the revenue growth of its beauty business in the third quarter. The sales growth of Neutrogena Hydroboost and Neostrata products significantly contributed to this revenue growth.

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OTC business revenue trends

Johnson & Johnson’s OTC (over-the-counter) business generated revenue of $1.05 billion in the third quarter compared to $1.00 billion in the third quarter of 2017, reflecting a ~4.6% YoY rise. In the third quarter, in the US and international markets, the OTC business generated revenues of $440.0 million and $608.0 million, respectively, compared to $401.0 million and $601.0 million, respectively, in the third quarter of 2017, reflecting ~9.7% and ~1.2% YoY rises.

Johnson & Johnson’s OTC business witnessed ~9.7% and ~1.2% YoY operational growth in the US and international markets, respectively, in the third quarter.

The consumption growth of Zyrtec, Tylenol, and Imodium significantly contributed to the revenue growth of Johnson & Johnson’s OTC business. Johnson & Johnson’s Children’s Motrin and Nicorette Quickmist also pushed its OTC business’s growth.

Johnson & Johnson’s OTC peers GlaxoSmithKline (GSK) and Teva Pharmaceutical (TEVA) generated revenues of $9.9 billion and $4.7 billion, respectively, in the second quarter, reflecting a ~6.07% YoY rise and a ~17.32% YoY fall, respectively.

The revenue growth of Johnson & Johnson and GlaxoSmithKline (GSK) could boost the share price of the VanEck Vectors Pharmaceutical ETF (PPH). Johnson & Johnson and GlaxoSmithKline make up ~4.96% and ~5.08% of PPH’s total portfolio holdings, respectively.

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