Research archive for JNJ

Product-liability lawsuits against pharmaceutical companies in the US are a terrible scourge. Fuelled by idiot juries awarding gargantuan punitive awards and contingency lawyers chasing big paydays, the number of plaintiffs keeps rising.

Last night a judge ruled against Johnson & Johnson versus the State in a case involving opioids. The state claimed that JNJ's false advertising helped fuel the country's opioid epidemic. The fine was for $572 million. This was far less than the market was expecting and the share price actually jumped 4% on the news.

Yesterday Paul wrote about JP Morgan, pointing out that it has been a bit of a boring investment lately. Today, I'm covering Johnson and Johnson (J&J), which is another slightly boring company. The reason that the organisation doesn't often produce fireworks is because it is very large, and effectively three companies in one. It is great for diversification but gains in one division can be offset by losses in another. J&J has a market value of $350 billion and generates revenues of $20.6 billion a quarter, and $5.6 billion in profits.

On Monday Johnson & Johnson reported earnings for their first quarter of the year. Sales were flat, sitting at around $20 billion whilst adjusted earnings advanced by 2% to $2.10 per share.

We often talk about Stryker as a consolidator in the Medical Devices arena. But let's not forget that Johnson & Johnson has a $27bn per annum medical devices behemoth that is, in fact, twice the size of Stryker. Stryker has annual sales of $13.6bn.

In the US, spending to treat all orthopaedic problems including pain in the muscles, bones and joints represents about 15 percent of overall healthcare outlay for those with medical insurance.

Johnson & Johnson is the eighth most widely held stock in Vestact New York portfolios. We like it for its broadly diversified portfolio of healthcare assets - pharmaceuticals, medical devices and consumer products.

Medical devices, pharmaceutical, and consumer goods giant Johnson & Johnson (J&J), reported expectation beating third-quarter numbers, thanks to good sales in the turnaround of the baby care business and cancer drugs. The company rebranded and relaunched its baby business after losing market share to the likes of Jessica Alba's The Honest Company.

Johnson & Johnson is a mega-cap ($354 billion) healthcare giant, owned by most Vestact clients in New York portfolios. It published quarterly results yesterday, before the opening bell. Earnings came in notably higher than expected, and the stock rose 3.5% over the course of the day, to $129.11.

Yesterday Johnson & Johnson released 1st quarter results. This is quite a difficult business to understand because of all the moving parts. I will try something different today and use mostly images to explain these numbers.

Last week, Johnson & Johnson released their 4Q and FY numbers, beating market expectations. One of the reasons why I love the company as an investment is because it is basically three companies in one. Investment bankers have been licking their lips at the prospect of breaking the company up, arguing it unlocks value for the shareholder. A breakup probably will add value in the short term, over time though I think having a strong brand and some diversification across sectors is more important. Here is a breakdown of the company:

- $30 Billion acquisition of Actelion was successful and benefits are flowing in already. - Completed the sale of Codman to Integre for over $1 Billion.

Johnson & Johnson or JNJ if you like, reported numbers for their 2nd quarter of their 2017 financial year earlier this week. The history of any business always fascinates me, in this case there were three brothers (obviously called Johnson), the eldest became a pharmacist and went to NYC to start a career as a drug salesman. He (Robert Johnson) went into business with a fellow called Seabury, back in 1873, selling medicated plasters. In other words, the precursor to the bandaid.

JNJ is made up of three sectors. Pharmaceutical, Consumer and Medical Devices. Pharmaceutical is the biggest sector, making up 46,41% of first quarter sales in 2017. Medical devices come in at second place with 35,42% of first quarter sales. Consumer goods make up the remaining 18,17% of sales. When comparing the first quarter of 2016 to 2017 all of these sectors have grown in sales. The most sizeable change being in the medical devices sector which grew sales by $184 000 000.

Johnson and Johnson needs no introduction. From commercialising first aid kits in 1888 to the $320bn market cap business it is today, the story is extraordinary. Now compromising three core divisions, consumer, medical devices and pharma, the business had annual sales of $72bn last year.