Johnson & Johnson outlines plans for increased market leadership

Senior leaders from the Medical Devices and Diagnostics (MD&D) segment of Johnson & Johnson have outlined plans to improve patient outcomes and expand market leadership through innovative products, new business models and a significant focus on fast-growing emerging markets.

According to Johnson & Johnson, its MD&D segment is the world’s largest medical devices and diagnostics business, with $28.5 billion in total sales for 2013, driven by ten $1 billion-plus platforms that hold the number one or number two positions in their respective categories. The company’s MD&D businesses compete in approximately 30% of the estimated $370 billion global market, and many of the key markets in which these businesses compete are projected to grow faster than the overall market over the next five years.

To expand its global leadership position, the MD&D segment invested nearly $1.8 billion in research and development in 2013. The company’s MD&D businesses are positioned for continued growth with many recently launched products and a pipeline of more than 30 major product filings planned by the end of 2016. This is intended to help health care systems, governments and providers improve clinical outcomes, increase patient satisfaction and contain costs; three tenets shared by most global health care reform acts, known widely as the Triple Aim.

“Our businesses are uniquely positioned to continue helping patients while also leading the industry by capitalising on our breadth, depth and scale,” said Dominic J Caruso, vice president, finance and chief financial officer for Johnson & Johnson. “We are developing innovative products and working with health care systems on customer-focused solutions to ultimately improve outcomes for patients.”

The medical device segment of emerging markets is growing three-to-four times faster than the developed markets, and with almost $6 billion in sales in the MD&D segment coming from these markets – more than 20% of its worldwide 2013 sales. Through innovative partnerships and dedicated strategies to meet the significant unmet needs of patients in emerging markets, Johnson & Johnson says it is well positioned to lead through the current evolution health care is experiencing worldwide.

In Russia, the company’s Vision Care business is piloting new business models to engage both eye care professionals and consumers. The acquisition of Spectrum Vision, which is to be fully integrated this year, aims to dramatically increases its market penetration and customer service quality. The company’s MD&D segment grew at 18% operationally in China in 2013 with sales of approximately $1.4 billion, making it the largest of Johnson & Johnson’s three business segments in the country. In 2013, the orthopaedic business received approval to manufacture and distribute trauma products from its plant in Suzhou. As the products launch this year, this local-supplier model will give the company access to a new market segment and new reimbursement opportunities.

In China, the company says its Diabetes Solutions business has a number one market position in a country that is home to a quarter of all of the world’s diabetics. The business has signed an exclusive original equipment manufacturer (OEM) agreement with Nova Biomedical Corporation to market StatStrip point-of-care blood glucose testing systems to hospital customers in China.

“We have a strong business in both developed and emerging markets,” said  Caruso. “Building on our 28 year history in China, we are capitalizing on our established footprint to grow and expand our overall business.”

The orthopaedics business of the MD&D segment, continues to lead in an attractive and evolving worldwide market. DePuy Synthes is realizing revenue and cost synergies from its integration and has established a strong foundation for capturing the full growth potential of the combined businesses. The business is also today announcing the launch of three new products:

The Global Unite Anatomic Shoulder System - part of a larger platform enabling surgeons to repair or replace shoulders in a simpler and more efficient manner while optimising the patient’s range of motion;

The Corail Revision Hip System  -  the first tapered wedge revision system in the US which is engineered to reduce the operating room footprint while delivering patient benefits through its bone-preserving design.

The Trumatch Resection Guide for the recently launched Attune Rotating Platform Knee. Trumatch Personalized Solutions provides patient-specific instruments developed from a CT scan to reduce surgical steps and customize the procedure to each patient.

The Global Surgery business of Johnson & Johnson is focusing on leveraging its scale to deliver a pipeline of innovative products that serve large, unmet health care needs, providing both clinical and economic benefits. The Global Surgery business has several key products whose innovation is expected to significantly drive growth for the company, including Harmonic Ace, Evarrest, Thermocool and Smarttouch and Incraft.