Medical Design Briefs - January 2023 - 18

Inside the OEM
ment in our performance. We
went from growing 1.5 percent
in 2017 to growing 6 percent
in the first half of 2022. " With
results from the second half of
2022, Duato says the medtech
group was able to surpass its
competitors.
The medical devices business
plans to accelerate its momentum
across orthopedics,
interventional solutions, surgery,
and vision, with an increased
cadence of meaningful
innovation, enabled by a
strong digital surgery pipeline
and focus on execution across
all geographies.
The company's third priority
going into 2023 is to continue
to fuel its success in pharmaceuticals.
" With a trajectory of
more than 10 years of our market
growth, " Duato says. J&J has
an ambitious goal of getting to
$60 billion by 2025, growing every
single year even with the patent expiration
in 2023 of Stelara, its top-selling
drug for severe psoriasis, Crohn's, and
ulcerative colitis.
Strategic Financial Outlook and
Direction
J&J also recently announced a $5 billion
share repurchase program. Duato
says that the move " underscores the
strength of Johnson & Johnson's financial
performance, but probably more
importantly the board and management's
conviction about our internal
estimates going forward. " Because of
the cash flow that J&J generates on an
annual basis along with the strength of
the business currently and going forward,
the company is in a position to
continue to grow its dividend, invest in
R&D on an increasing basis, and make
some " impactful " acquisitions.
Because its business is broadly diversified,
J&J is seeing a recovery to prepandemic
levels everywhere geographically
- but with some exceptions like
China, said Duato.
" As a business we're going to be able
to do better. We are also seeing our level
of competitiveness increased in every
single sector - medtech, consumer, and
pharma. We're seeing that we are maintaining
or gaining share. So that's helping
us. We are delivering in our pipeline,
18
Johnson & Johnson's Ethicon is a leading provider in the development of
advanced tissue management, including surgical stapling and endocutter
technologies. (Credit: Johnson & Johnson)
both in medtech and pharmaceuticals.
We are increasing the value of our pipeline
and getting approvals of new products
like cell therapy with CARVYKTI
very recently. "
He also addressed the supply- chain issues
that plagued the first half of the
year. " While [supply-chain issues] are
not disappearing, they are getting better, "
he said. " So overall I want
to be positive about the fact
that despite all of the challenges
and volatility that we're
seeing - and we're going to
see different pressures by sector
or by geography - the total
picture is that things are
getting gradually better in the
second half of the year. "
The Future Role of China.
" So if I take a step back, we
think that China is an important
growth driver for Johnson
& Johnson, and it's an important
piece of our future. We
look for the long term. We
don't think in intervals of a
year when we think about capital
allocation. " Rather, he said,
J&J acts in intervals that are
long term, and China remains
a very important component of
its growth moving forward, and
remains a very important geographical
area for Johnson &
Johnson. That growth, he said, will be
seen in every sector - consumer, pharmaceutical,
and medtech. He said J&J's
participation in China is about 5 percent,
making it a relatively important geographical
region for the company's businesses.
" When
I look at the situation in China,
there is a general recovery in our
Joaquin Duato practicing the setup and connections for a Biosense Webster CARTO® system in a virtual reality
simulation at the J&J Institute Hamburg in Germany, under the guidance of a member of the clinical simulation
team. (Credit: Johnson & Johnson)
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Medical Design Briefs, January 2023

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Medical Design Briefs - January 2023

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