J&J to boost medtech in emerging markets

 21-Mar-16, Qmed 

Johnson & Johnson has seen the profitability of its consumer-product and medical device sectors flag in recent years, prompting activist investor Artisan Partners Limited Partnership to pressure the firm into spinning off those business units.

Image: Johnson & Johnson

The company’s executives recently shared their vision for growing its medical device business with a six-pronged plan that includes boosting its consumer medical devices business and expanding into emerging markets.

The company has traditionally been aggressive with medtech mergers and acquisitions without seeing significant movement in its profitability. Earlier this year, Artisan Partners noted that the company had spent more than $150 billion on mergers and acquisitions in the past decade, including $19 billion for Synthes in 2012, yet the profitability of J&J’s medical device segment has lagged at approximately the same level of profit it made in 2010.

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 Elsevier APAC Healthcare Update