Johnson & Johnson Named “Manufacturer of the Year” by Medical Device + Diagnostic Industry Magazine

A leading industry trade publication has named Johnson & Johnson (J&J) its “Manufacturer of the Year,” saying that “J&J changed the game in 2011 in ways that no other firms were able to do.”

Medical Device + Diagnostic Industry magazine (MD+DI) cites our agreement to acquire Synthes and our decision to exit the drug-eluting stent business as two “bold moves” this year that “have proven that J&J is a poster child for portfolio management and accelerating the pace of innovation.”

Regarding Synthes, the publication writes, “The merger helps fill a significant gap in J&J’s portfolio; it provides breadth and scale in the trauma market, particularly in emerging countries.” Exiting the drug-eluting stent business “signifies that J&J is willing to make tough decisions in a struggling market.”

According to Richard Lincoff, one of MD+DI’s editorial advisory board members, “You expect big companies to think big, and that’s what J&J is doing. While other companies are becoming more conservative with resources, J&J is willing to step out.”

In an interview, Alex Gorsky told MD+DI, “We’ve made some significant decisions to shape our portfolio. The breadth of our businesses gives us a view of the entire healthcare landscape and enables us to make better choices than if we were in just a handful of market segments. We see the whole field, and we make our choices accordingly.”

Picking up on this theme, MD+DI adds, “The real luxury is that J&J is able to invest, grow, and shed skin because of its size and financial strength. The company can simultaneously leverage slow-growth businesses and geographies to fund high-growth opportunities.”

Summing up its selection of Johnson & Johnson as its manufacturer of the year, MD+DI says, “As with any large company, J&J has seen its share of scrapes and successes. Luckily, the successes have clearly outweighed the missteps, or we wouldn’t be having this conversation.”

To read the full MD+DI article, please visit: http://www.mddionline.com/article/mddis-manufacturer-year-johnson-johnson