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.
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.
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.
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.