CONNECT WITH US
HealthTech

HealthTech

J&J’s medtech business slows again in Q3

MedTech Dive logo

Published on

Add as a preferred source on Google
J&J’s medtech business slows again in Q3

For the second straight quarter, the cardiovascular unit experienced slower sales growth due to ongoing struggles in the Abiomed business.

Johnson & Johnson’s medtech segment missed internal expectations in the third quarter after the healthcare giant’s cardiovascular unit stumbled for the second quarter in a row.

Tim Schmid, J&J’s worldwide chairman of medtech, said on a Tuesday earnings call that the underlying procedure environment for medtech remains stable. Schmid said that pressure was concentrated in two main areas: sales outside the U.S. and its Abiomed business.

“To be clear, our performance is below the standard we have set internally and below the expectations we previously communicated to investors,” Schmid said. “Simply put, we can do better, and we absolutely will. And right now, we are focused solely on the actions needed to deliver stronger results in the fourth quarter and beyond.”

J&J’s medtech segment brought in $8.64 billion in sales over the third quarter, representing year-over-year growth of 2.5%. It’s the second quarter in a row where sales growth has stepped down — the company grew medtech sales by more than 7% in the first quarter and last year’s fourth quarter.

The softer growth is primarily due to a slowdown in the cardiovascular unit, where the company's Abiomed business has declined the past two quarters. Cardiovascular sales totaled $2.31 billion in the third quarter, representing growth of 4.3%. The lower growth is in contrast to recent double-digit growth for the unit.


Source link
Related Topics:HealthTech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.