Johnson & Johnson Medical Device Business Underperforms in Q3
Earlier today, Johnson & Johnson ($JNJ) announced sales of $20.3 billion for the third quarter of 2018, an increase of 3.6% as compared to the third quarter of 2017.
The medical device business accounted for $6.6 billion, or ~30% of overall sales for the quarter, which is a decrease of 0.2% versus the prior year. Domestic sales increased 0.3%, while international sales decreased 0.6%, which reflected an operational increase of 3.0% and a negative currency impact of 3.6%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 2.9%, domestic sales increased 1.2% and international sales increased 4.4%.
J&J Q3 Medical Device Sales Breakdown
Overall, the bright spots in J&J's device portfolio were in Interventional Solution with growth of electrophysiology products; ACUVUE contact lenses in the Vision business; endocutters and biosurgicals in the Advanced Surgery business; and wound closure products in the General Surgery business, partially offset by declines in the Diabetes Care business.
Vision grew 3.8% and Surgery grew 1.3% with Advanced Surgery fueling the division by growing 5.7%. J&J's Orthopaedic business continues to underperform with negative 4.2% growth in the quarter. Spine was the big drag on the business, with negative 9.8% growth.
“We are pleased with our strong third-quarter performance, which reflects continued above-market growth in our Pharmaceutical business, accelerating sales momentum in our Consumer business and consistent progress in our Medical Devices business,” said Alex Gorsky, Chairman and Chief Executive Officer. “I’m confident that with our collaborative and inspired J&J colleagues around the world, unique broad-based business model and strategic investments in innovation, we are well positioned for success today and into the future.”
Other Q3 Highlights:
- J&J received European CE mark approval for its BRAVO Flow Diverter for use in the treatment of patients suffering from intracranial aneurysms.
- The acquisition of Emerging Implant Technologies GmbH, a privately held manufacturer of 3D-printed titanium interbody implants for spinal fusion surgery, was completed.
- J&J accepted the binding offer from Fortive Corporation to acquire its Advanced Sterilization Products business for an aggregate value of approximately $2.8 billion, subject to customary adjustments.
- J&J announced the completion of the divestiture of its LifeScan business to Platinum Equity for approximately $2.1 billion, subject to customary adjustments.