Medical Design Briefs - November 2024 - 10

Inside the OEM:
Johnson & Johnson MedTech
I
10
n 2024, Johnson & Johnson MedTech
faced a few challenges but the medtech
giant also saw some great successes.
Among its challenges were the
underperformance of its vision business
and headwinds in China due to volume-based
procurement and an ongoing
anticorruption campaign. During the
year, the company shifted to a decentralized
operating model, designed to enhance
accountability and responsiveness
to local markets, while still leveraging
scale in areas like procurement.
Throughout the year, Johnson & Johnson's M&A strategy
focused on cardiovascular growth through acquisitions, as well
as maintaining a balanced approach between small tuck-ins
and larger acquisitions. Cardiovascular, especially electrophysiology,
remains a key focus area and is expected to drive
growth. With the launch of the Varipulse catheter in the United
States, J&J will compete in the electrophysiology space, leveraging
the company's advanced CARTO mapping system.
In a recent earnings call, Tim Schmid, executive vice president
and worldwide chairman of medtech, noted that J&J
management has spent the last five years turning the business
around to much more positive growth. Schmid has
served in his current role for nearly a year, but spent most of
Tim Schmid, executive
vice president
and worldwide chairman
of medtech,
Johnson & Johnson
his career, almost 31 years, with Johnson & Johnson MedTech
across almost all of it regions and businesses.
" As we look at our performance in the first half, our vision
business hasn't performed - at least consistent with historical
norms. We're very confident that will rebound in the back
half, " he said. He also noted that the challenges all medtech
companies are facing in China " is likely to go on for a little
bit longer. "
Growth Strategies
Johnson & Johnson invested $3.1 billion in 2023, focusing
on areas such as surgery and orthopedics. " We have invested
significantly more than many of our competitors on really
increasing our competitiveness in our core business, investing
in differentiated innovation in surgery like our Ottava
robot and in orthopedics with our VELYS systems, which we
now have across multiple specialties, " he said.
Schmid noted that J&J has been very acquisitive, especially
in higher-growth spaces. " That's been through deliberate focus
on organic innovation, " he said, including " significant investments
we've made north of $30 billion over the last couple
of years in high-growth spaces. " In cardiovascular, J&J started
with the acquisition of Abiomed, which added to its leadership
position in electrophysiology, followed by Laminar late last
year and most recently Shockwave. He said J&J will continue
to focus on shifting that portfolio.
www.medicaldesignbriefs.com
Medical Design Briefs, November 2024
(Credit: Johnson & Johnson)
https://www.medicaldesignbriefs.com
Medical Design Briefs - November 2024

Table of Contents for the Digital Edition of Medical Design Briefs - November 2024
