Johnson & Johnson (NYSE:JNJ) revealed on Wednesday its plan to restructure its medical device business, aiming to yield an annual growth of up to 6% by 2020. The company has disclosed specific details that will ensure the actualization of the initiative.
According to Gary Pruden, Johnson & Johnson Worldwide Chairman of Medical Devices, the fastest growing markets in terms of medical devices include electrophysiology (EP), neurovascular, Endocutters, robotics, and structural heart. These segments grow at a rate of at least 10%, which is why Johnson & Johnson is tapping each one of them.
Furthermore, Johnson & Johnson has also acquired NeuWave Medical, a microwave ablation start-up, and Coherex Medical, a company focused on stroke prevention. These recent acquisitions are believed to be perfectly in line with the company’s growth prospects.
Robotic Surgery
The Ethicon Surgical unit of Johnson & Johnson has teamed up with Alphabet, Inc. (NASDAQ:GOOGL) Verb Surgical, which hopes to develop surgical robots. Earlier this year, Scott Huennekens, Verb Surgical CEO, has redefined the technical meaning of robotic surgery. The partnership seeks to provide a cost-efficient and scalable robotics platform that will transform operating rooms; hence shaping the future of surgical procedures. However, the companies have not yet confirmed the official launch date of the medical device.
3-D Printing
The company has also teamed up with over 50 academic groups, external technology, and government entities to develop 3-D printing solutions. This week, Johnson & Johnson also unveiled that it has collaborated with HP, Inc. (NYSE:HPQ) to advance its 3-D printing venture. For Johnson & Johnson, 3-D printing is the next big thing as the industry strives to make healthcare more personal and accessible.
Next-Gen Wearables
Sandra Peterson, Johnson & Johnson Worldwide Group Chairman, also reiterated that the company is committed to developing next-gen wearables. One Touch Via, for example, is a mealtime-insulin-delivery device. Johnson & Johnson will soon file for its approval with the Food and Drug Administration (FDA). According to the company, this alone can bring the company a global opportunity worth $1 billion.
