Johnson & Johnson (NYSE:JNJ) recently reported its Q4 and full year results. In 2018, it increased sales by 6.7% to $81.6 billion. Excluding divestitures/acquisitions, sales would have increased by 5.5%
A Business Overview
J&J is a globally diversified healthcare company that operates in three segments:
- Consumer, which includes popular brands such as Tylenol, Motrin, Neutrogena, and Aveeno;
- Pharmaceutical with Zitiga, Stelara, Tremfya, etc. that were key contributors to growth; and
- Medical Devices
The Pharmaceutical segment is the largest and experienced the highest sales growth of 12.4% (compared to 1.8% for Consumer and 1.5% for Medical Devices). The segment experienced market outperformance driven by double-digit growth in 10 key products.
In 2018, about 51% of its sales were in the U.S. and 49% were international (23% in Europe, 18% in Asia-Pacific and Africa, and 7% in the western hemisphere excluding the U.S.).
J&J’s blockbuster portfolio contributed nearly 47% of sales in 2018.
The company doesn’t stop there, though. It continues to grow its portfolio via research and development (“R&D”), acquisitions and licensing, deals and partnerships, etc. In 2018, it spent about $11 billion in R&D, which was about 13% of sales and aligned with the percentage spent in 2017.Read More