Johnson & Johnson‘s (NYSE:JNJ) medical device business posted strong growth during the 4th quarter and 2012, but the healthcare giant isn’t planning to stand pat, revealing a new strategy for its medtech unit during 2013.
JNJ spent $20 billion acquiring Swiss orthopedics titan Synthes in 2012, which accounted for some 7.9% of the device group’s revenue growth last year, according to a press release.
“Our [medical device & diagnostics] business is the largest medical technology business in the world with sales of $27.4 billion, which grew 8.7% operationally with the inclusion of Synthes,” chairman & CEO Alex Gorsky said in prepared remarks. “We’re building on our market leadership positions, having sustained or grown share in the majority of our key platforms, and hold number 1 or number 2 positions in over 80% of them today. We’re also expanding our MD&D business in emerging markets, and with Synthes, generated strong double-digit growth there last year.”
Sign up to get our free newsletters delivered right to your inbox
The MD&D unit reported sales of $27.43 billion last year, up 8.7% over 2011. JNJ reported revenues of $7.38 billion for the 3months ended Dec. 31, up 14.9% over Q4 2011.
Overall, the New Brunswick, N.J.-based conglomerate posted 2012 profits of $10.51 billion, or $3.86 per share, on sales of $$67.22 billion, up 8.7% and 3.4%, respectively. Adjusted to exclude 1-time items, earnings per share reached $5.10, in line with analysts’ expectations on Wall Street.
“Johnson & Johnson delivered solid results in 2012 reflecting continued sales momentum in many parts of our business driven by our focus on delivering meaningful innovation in health care to patients and customers. Our results included strong growth of key products, successful new product launches, and the addition of Synthes to our family of companies,” Gorsky said in a statement. “In addition, we continued to make important investments building strategic partnerships and in advancing our pipeline, positioning us well for delivering sustainable growth as we enter 2013. I would also like to thank our talented colleagues at Johnson & Johnson for their extraordinary achievements in helping advance health and well-being for patients and customers around the world.”
Johnson & Johnson said it expects to post adjusted EPS of $5.35-$5.45 this year.
JNJ shares were down 1.0% to $72.51 apiece as of about 11:20 a.m. today.