On May 20, about 100 stock analysts
gathered in the ballroom of the Hyatt Regency Hotel in New Brunswick,
New Jersey, to hear good news from top executives at Johnson &
Johnson: The company had 10 new drugs in the pipeline that might achieve
more than a billion dollars in annual sales.
For
129 years, New Brunswick has served as the headquarters of J&J,
America’s seventh most valuable public company. With consumer products
from Band-Aids to baby powder, Neutrogena to Rogaine, Listerine to
Visine, Aveeno to Tylenol and Sudafed to Splenda, Johnson & Johnson
is the biggest and, according to multiple surveys, most admired corporation in the world’s most prosperous industry—healthcare.
But
the real money—about 80 percent of its revenue and 91 percent of its
profit—comes not from those consumer favorites, but from Johnson &
Johnson’s high-margin medical devices: artificial hips and knees, heart
stents, surgical tools and monitoring devices; and from still
higher-margin prescription drugs targeting Crohn’s disease (Remicade),
cancer (Zytiga, Velcade), schizophrenia (Risperdal), diabetes
(Invokana), psoriasis (Stelara), migraines (Topamax), heart disease
(Xarelto) and attention deficit disorder (Concerta).
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