Recently, Johnson & Johnson’s (JNJ) Ethicon Endo-Surgery division enhanced its surgical portfolio by introducing Harmonic Ace 45cm Curved Shears. The product, launched at the annual meeting of the American Society for Metabolic and Bariatric Surgery (ASMBS), scores over the standard Harmonic Ace device because its over 25% longer than its previous model. The device is intended to help surgeons in carrying out minimally-invasive procedures in bariatric, general, colorectal and gynecologic laparoscopic surgeries involving obese patients.
J&J is one of the leading players in the $350 billion global Medical Devices & Diagnostics (MD&D) market. With $23.6 billion of sales in 2009, the MD&D has become the largest segment of J&J.
The MD&D segment consists of many global franchisees targeting different areas. Divisions of the MD&D segment include Cordis, DePuy, Diabetes Care, Ethicon, Ethicon Endo-Surgery, Ortho Clinical Diagnostics and Vision Care.
In 2009, barring Cordis and Diabetes Care, the other divisions of the MD&D segment recorded robust growth. DePuy, Ethicon and Ethicon Endo-Surgery posted 2009 sales of $5.4 billion (7% growth), $4.1 billion (7.3% growth) and $4.5 billion (4.8% growth), respectively.
J&J believes that advanced product launches in the areas of joint replacement, contact lenses and sutures, as well as geographical expansion, should enable it to grow further. The company is also targeting expansion into high-growth areas like biosurgicals, energy, electrophysiology and other surgical specialties. In addition to depending on its pipeline, J&J will be looking at suitable acquisitions and licensing arrangements.
J&J has been in an acquisitive mode recently. Ethicon acquired Acclarent in December 2009 for approximately $785 million. Acclarent develops devices to treat abnormalities associated with ear, nose and throat (ENT) with specialization in products used for sinus surgery. We believe there is huge potential for Acclarent’s business, as its balloon sinuplasty technology and other related products offer ENT patients with a better alternative compared to the currently available conventional surgical option.
Additional acquisitions include Finsbury Orthopedics in the area of hip implants and Gloster Europe in the area of decontamination technologies that help prevent hospital acquired infections, a significant and growing global concern.
2010 has, to date, been significant for J&J’s MD&D segment as it received more than a dozen regulatory approvals. Moreover, the company is expecting to make about 80 significant submissions in the next two years.
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