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JNJ’s OTC, Oral Care, and Wound Care Businesses: Key Trends in Q1

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OTC business

In the first quarter, Johnson & Johnson’s (JNJ) OTC (over-the-counter) business reported revenue of $1.09 billion, reflecting YoY (year-over-year) rises of 1.3% on a reported basis and 5.5% on an operational basis. According to the company’s first-quarter earnings conference call, excluding the impact of its acquisition of Zarbee’s, a leading player in natural healthcare products, its OTC business reported YoY revenue growth of 3%.

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According to the company’s first-quarter earnings conference call, its OTC business growth has continued to surpass that of the overall OTC market, mainly driven by the 15% YoY growth of the Tylenol franchise. The company reported 10% YoY growth in demand for Tylenol products, mainly due to the increased uptake of Tylenol Arthritis products and Tylenol Rapid Release Gels. The increase in inventory buildup in the aftermath of Hurricane Maria also helped boost the company’s OTC revenue in the first quarter.

Oral care and wound care businesses

In the first quarter, Johnson & Johnson’s oral care portfolio, a part of its Consumer segment, reported worldwide sales of $367 million, a YoY rise of 1.2% on an operational basis but a fall of 3.1% on a reported basis. According to the company’s first-quarter earnings investor presentation, its oral care products reported strong uptake in the Asia-Pacific and Latin American markets but faced competitive pressures in the US market.

In the first quarter, Johnson & Johnson’s wound care and other business, a part of its Consumer segment, reported worldwide sales of $155 million, reflecting YoY falls of 2.7% on an operational basis and 4.8% on a reported basis. According to the company’s first-quarter earnings investor presentation, this performance was attributable to its divestiture of Compeed, which affected its revenue performance in ex-US markets.

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