Johnson & Johnson's medical device segment plans to launch more than 20 new products in both the clinical and consumer product segments by 2018, according to a Med Device Online report.
Here are seven key notes:
1. Over the last several months, the company has been restructuring its medical device business. In January, Johnson & Johnson announced plans to cut about 3,000 jobs in its medical-devices division, as part of an effort to remove $1 billion in annual costs in the sterilization equipment and surgical tools business.
2. According to a recent earnings call, the strategy is working and the medical device business is gaining momentum. J&J saw sales of $17.5 billion for the first quarter of 2016, an increase of 0.6 percent from the first quarter of 2015. U.S. medical devices sales for the company totaled $3.02 billion, an increase of 2.2 percent from the same period last year.
3. The proposed product launches are estimated to have a total sales potential of $8 billion. This is predicted to drive overall growth between 4 percent and 6 percent per year by 2020.
4. Gary Pruden, J&J Worldwide chairman of medical devices, plans to prioritize and accelerate innovation in areas such as robotics, Endocutters and businesses that address "priority disease states," including structural cardiovascular disease and obesity.
5. Additionally, J&J will also be investing resources in digital technology and the development of connected health products.
6. Just last week, J&J announced a collaboration with HP on three-dimensional printing technologies for healthcare.
7. The J&J-HP collaboration will initially focus on personalization of instrumentation and software for patient-specific healthcare devices.