Johnson & Johnson’s (J&J) MedTech arm displayed resilience in its second quarter, navigating inflationary headwinds while prioritizing innovation. The unit, a key driver for J&J, remains committed to full-year growth targets despite temporary setbacks in its vision care business.
Challenges arose from distributor adjustments in the contact lens market, leading to destocking. J&J officials expressed confidence in a swift recovery fueled by its innovation pipeline. This focus on innovative solutions propelled a resurgence in the orthopedics business.
While acknowledging inflation’s impact, the company remains committed to achieving solid growth for the full year. A strategic move further bolstered MedTech’s position: The acquisition of Shockwave Medical. This deal strengthens J&J’s presence in the high-growth cardiovascular intervention market. Shockwave’s minimally invasive IVL technology broadens J&J’s cardiovascular treatment portfolio, offering patients additional options.
During a Wednesday (July 17) call with analysts to discuss its second-quarter financial results, Joaquin Duato, chairman and CEO of J&J, said he believes MedTech growth will be more in the 5%-6% range during the second half of the year. “I’m energized as we look to the rest of 2024. We’re entering the second half of the year from a position of strength and we’re continuing to bring innovation to the patients we serve.”
Looking ahead, Duato exuded optimism due to a robust pipeline, upcoming regulatory approvals for key products, and continued rollout of recently launched offerings that provide a solid foundation for growth. Further solidifying its commitment to robotics, J&J plans to submit its Ottava surgical robot for FDA approval later this year, with future expansion into spine surgery on the horizon.
“With a robust pipeline, upcoming regulatory milestones for Rybrevant and Tremfya, the integration of Shockwave, and continued expansion of newly launched products, including Acuvue Oasys Max 1-Day contact lenses and our Varipulse platform, we have a strong foundation for near and long-term growth,” he said.
J&J’s Velys robotic system is gaining traction, with a recent FDA clearance for unicompartmental knee replacements and a strong overall procedure environment, suggesting a surge in the global orthopedic market. “We’re bringing robotics to other parts of orthopedics,” Duato said. “It’s all innovation-driven and we expect it to continue.”
MedTech sales grew 2.2% in the second quarter, reaching $8 billion, and overall revenue rose 4.3%, to $22.4 billion. MedTech sales were driven primarily by electrophysiology products and Abiomed in Cardiovascular, previously referred to as Interventional Solutions, and wound closure products in General Surgery.
Innovative Medicine sales increased to $14.49 billion, up 5.5%. Growth was driven by Darzalex (daratumumab), Erleada (apalutamide), Tremfya (guselkumab), Stelara (ustekinumab), and Spravato (esketamine).
Stelara sales rose 3.1%, to $2.89 billion while Darzalex sales rose 18.4%. to $2.88 billion. The company’s cancer cell therapy, Carvykti, generated sales of $186 million, up a whopping 60% year over year.
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