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An Overview of Johnson & Johnson’s Orthopedics Business

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Revenue trends

Johnson & Johnson’s (JNJ) Orthopedics business consists of Hips, Knees, Trauma, Spine, and Other segments. Johnson & Johnson’s Orthopedics business generated revenues of $2.1 billion in the third quarter compared to $2.2 billion in the third quarter of 2017, reflecting ~4.2% YoY growth. In the third quarter, Johnson & Johnson’s Orthopedics business reported an ~2.9% YoY operational decline.

In the US and international markets, JNJ’s Orthopedics business generated third-quarter revenues of $1.3 billion and $827.0 million, respectively, compared to $1.3 billion and $896.0 million in the third quarter of 2017, reflecting YoY declines of ~1.8% and ~7.7%.

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Hips revenue trends

Johnson & Johnson’s (JNJ) Hips business generated revenues of $330.0 million in the third quarter, including revenues of $201.0 million and $129.0 million from the sales in the US and international markets. In the third quarter, the Hips segment reported ~3.1% growth in the US market while it reported a 3.0% decline in the international markets. Johnson & Johnson’s Hips business reported ~1.0% YoY operational growth in the international markets in the third quarter.

Johnson & Johnson’s anterior approach hip surgery products hold a leadership position in the market, which contributed to the growth of the Hips segment. High demand for the ACTIS stem also pushed the revenue growth of JNJ’s Hips segment.

Among Johnson & Johnson’s peers in the orthopedics medical devices market, Zimmer Biomet Holdings (ZBH) and Stryker (SYK) reported revenues of $2.0 billion and $3.3 billion, respectively, in the second quarter, reflecting ~2.72% and ~10.29% YoY growth.

Wall Street analysts expect Zimmer Biomet Holdings (ZBH) and Stryker (SYK) to generate revenues of $1.8 billion and $3.2 billion, respectively, in the third quarter, which represents ~0.85% and ~8.5% YoY growth.

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