J&J’s Device Unit Fails to Meet Sales Expectations

The New Brunswick, NJ-based company beat Wall Street Expectations in nearly every unit – except for medical devices in 3Q18.

Omar Ford

October 16, 2018

2 Min Read
J&J’s Device Unit Fails to Meet Sales Expectations
Pixabay

Johnson & Johnson beat Wall Street expectations in 3Q18, fueled mostly by its pharmaceutical unit, but that doesn’t mean every business from the New Brunswick, NJ-based company is firing on all cylinders. J&J noted its medical device unit was a bit behind and actually missed expectations.

Total medical device sales came in at about $6.59 billion missing expectations of $6.64 billion. 

Overall, J&J reported third-quarter net income of $3.93 billion, or $1.44 per share, up from $3.76 billion, or $1.37 per share a year earlier. The performance pushed the company to adjust its overall outlook to an earnings per share of $8.13 to $8.18. This was up from prior guidance of $8.07 to $8.17. Johnson & Johnson said it expected sales of $81 billion to $81.4 billion which differs from earlier guidance of $80.5 billion to $81.3 billion.

"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," Alex Gorsky, Chairman and CEO for J&J, said in a release. "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."

Although pharmaceutical sales were solid, devices were a different story.  For the past few years, the company has struggled with the medical devices unit. In January of 2016 J&J cut up to 6% of its workforce in the medical device field.

J&J also began the divestiture of its diabetes unit LifeScan,  the company's blood glucose monitoring unit known for its OneTouch brand of glucose meters and insulin pumps. In June, the firm said that Platinum Equity was acquiring LifeScan for $21.1 billion.

In addition, the company has been divesting several of its device product lines. 

About the Author

Omar Ford

Omar Ford is a veteran reporter in the field of medical technology and healthcare journalism. As Editor-in-Chief of MD+DI (Medical Device and Diagnostics Industry), a leading publication in the industry, Ford has established himself as an authoritative voice and a trusted source of information.

Ford, who has a bachelor's degree in print journalism from the University of South Carolina, has dedicated his career to reporting on the latest advancements and trends in the medical device and diagnostic sector.

During his tenure at MD+DI, Ford has covered a wide range of topics, including emerging medical technologies, regulatory developments, market trends, and the rise of artificial intelligence. He has interviewed influential leaders and key opinion leaders in the field, providing readers with valuable perspectives and expert analysis.

 

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