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JNJ’s Orthopedics Segment: Knees, Trauma, and Spine

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Knees revenue trends

Johnson & Johnson’s (JNJ) Knees business generated revenues of $341.0 million in the third quarter, including revenues of $215.0 million and $126.0 million from the sales in the US and international markets.

In the third quarter, JNJ’s Knees segment reported an ~0.6% decline. In the US and international markets, the Knees segment reported an ~2.3% YoY (year-over-year) decline and 2.4% YoY growth. In the third quarter, the Knees segment reported ~6.8% YoY operational growth in the international markets.

Johnson & Johnson’s Knees segment’s net revenues totaled $1.1 billion during the first nine months of this year, reflecting an ~1.4% decline. In the Knees segment, the Attune knee system was a primary contributor to the segment’s growth.

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Trauma segment’s revenue trends

Johnson & Johnson’s (JNJ) Trauma segment generated third-quarter revenues of $654.0 million compared to $662.0 million in the third quarter of 2017, reflecting an ~1.2% YoY decline. In the US and international markets, the Trauma segment generated third-quarter revenues of $395.0 million and $259.0 million, respectively, reflecting ~0.8% and ~1.9% YoY decline.

Johnson & Johnson’s Trauma segment revenues remained nearly flat in the third quarter compared to the third quarter of 2017. The increasing pricing pressure in the US market led to lower market growth. In the third quarter, the Trauma segment reported ~1.0% YoY operational growth.

Johnson & Johnson’s Trauma segment’s net revenues totaled $2.0 billion over the first nine months of this year, which reflected ~4.0% YoY growth. In the international market, the Trauma segment generated revenues of $829.0 million in the first nine months of 2018, reflecting ~7.9% YoY growth.

Spine segment’s revenue trends

Johnson & Johnson’s (JNJ) Spine segment reported net revenues of $786.0 million in the third quarter compared to $871.0 million in the third quarter of 2017, reflecting an ~9.8% YoY decline. In the US and international markets, the Spine segment reported third-quarter net revenues of $473.0 million and $313.0 million, respectively, reflecting YoY declines of ~4.4% and ~16.8%. In the international market, the Spine segment reported an ~13.9% YoY operational decline.

As Johnson & Johnson’s competitor in the orthopedics medical devices market, Medtronic (MDT) reported revenues of $7.4 billion in the first quarter of fiscal 2019, which ended on July 27. Medtronic presented its earnings for the first quarter of fiscal 2019 on August 21. Medtronic’s revenues remained flat in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018.

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