Largest OTC healthcare drug manufacturer in United States
Largest OTC healthcare distributor and manufacturer in United States, with market share of 18.1% in 2010. The company offers consumers pharmaceuticals and medical diagnostic devices across 60 countries worldwide. Medical devices & diagnostic equipment (orthopedics, implants, joint replacements, sports medicine and trauma, coronary artery disease etc) is the core segment for J&J accounting for 40% of group revenues. Johnson & Johnson is publicly traded on New York Stock Exchange, with market capitalization of US $179 billion (September 2011). United States is the flagship marketspace contributing 47.8% (2007: 55.8%) of total revenue mix (2011).
United States OTC healthcare segment to witness annual growth of 3% in next 4-5 years
United States OTC healthcare value sales stood at US$28.5 billion, with year-on-year growth of 3.5% in 2009-2010. The segment is stipulated to reach US$32 billion in 2014. Pharmacy is the core distribution network in United States OTC healthcare marketspace accounting for 59% of total regional value sales (2010). Globally, Europe is the leading OTC healthcare landscape contributing 38% of total. Cough and cold remedies is the biggest segment followed by Analgesics and vitamin & mineral supplements (2009-2010). Wyeth is the second biggest OTC healthcare provider in United States with market share of 6%.
Strategic partnership centric new product development in US
In July 2011, divested stake in animal healthcare centric pharmaceutical and drug manufacturing business segment "Janssen Animal Health" to Eli Lily. In September 2011, the company secured approval for manufacturing of flagship stroke management drug brand "Oral Anticoagulant Rivaroxaban" in United States. Further, it is enhancing usage of Remicade brand for pediatric patient via collaborative approach with national and local governments in United States. The company is horizontally and vertically diversifying product portfolio to improve competitive advantage in core US marketspace. In 2011, research & development expenditure stood at US$6.8 billion (2010: US$6.9 billion).
Can J&J maintain market leadership on long-term basis across US pharmaceutical segment?
In 2011, J&J witnessed slight decline in annual net revenues to US$61.5 (-0.6%). United States was the worst hit segment for Johns& Johnson with year-on-year decline of 4.6% slightly offset by improved business environment across Asia (+12%). Further, the company lost lawsuit worth U$85 million related to false claim based marketing of its brand "Natrecor" in United States (September 2011). Johnson & Johnson is aggressively focusing on expanding its pharmaceutical portfolio via launch of 15 brands in next 3-4 years (2011-2015).
Thus it is vital to understand whether R&D focused expansion strategy will improve long-term competitive advantage in core marketspace i.e. U.S?\"
[...] Indirect global population impact stood at 120 million. ➢ Environment: Further, increase in global warming and carbon footprint initiated importance of environment and reduction of energy consumption on corporate level (Votaw, 1972). The company has drastically reduced water usage to 11.3 million cubic meters i.e annually for past 4-5 years (2006-2011). On the other hand, the carbon footprint for J&J operations has been reduced to on annual basis (2000-2011). Finally, it has sharply reduced hazardous chemical waste disposal for its core and non-core manufacturing facilities by 10% in past 5 years (2005-2011). [...]
[...] Sept 2011 McNEIL-PPC purchased 50% stake in Johnson & Johnson-Merck Consumer Pharmaceuticals Co in United States. Sept 2011 Ulcerative colitis disorder remedy brand “Remicade” to be marketed and distributed in United States. Sept 2011 Metastatic castration-resistant cancer remedy drug brand “Zytiga” approved to be marketed in European Union. Source: Corporate Press Releases In past six months, the company has aggressively focused on expanding its pharmaceutical brand portfolio in United States and Europe (two core markets for J&J). The improved research & development spending has paved way for J&J to horizontally integrate pharmaceutical brand portfolio via strategic partnership and alliances on compound creation and marketing. [...]
[...] Johnson & Johnson: U.S. vital for long term sustainability Table of Contents ➢ Company Snapshot & Product Portfolio ➢ Historical and Strategic Developments ➢ Industry Outlook ➢ Marketing & Promotional Strategies ➢ SWOT Analysis ➢ Peer Benchmarking & Future Outlook ➢ Risks, Challenges and Limitations ➢ Corporate Social Responsibility and other initiatives ➢ Recommendations & Future Research Scope ➢ References Company Overview Snapshot & product offerings The second largest personal care manufacturer and distributor in United States, with market share of in 2010-2011 (Datamonitor, 2012), Johnson &Johnson offers medical devices, OTC healthcare, skin care, baby care, oral care, wound management along with pharmaceutical product portfolio in United States and sixty countries worldwide. [...]
[...] Majority marketing and promotional initiatives of Johnson & Johnson in domestic and international markets has been balanced to improve distribution and brand equity on long-term basis. On the other hand, marketing and brand positioning is vital for critical pharmaceutical and personal care manufacturer such as ➢ Product: Johnson & Johnson has vertically and horizontally integrated product and business segment portfolio in United States and worldwide basis. In personal care segment, OTC healthcare business activity accounted for (2009: 35.4 of segmental mix (2011). On the other hand, Remicade is the biggest brand across J&J's pharmaceutical segment constituting (2009: 19.1 of segmental revenues in 2011. [...]
[...] In 2011, the company has strong diversified production catalogue with total portfolio of 139 facilities. United States hosts 52 facilities (2010- 2011). In 2011, pharmaceutical segment research & development expenditure stood at US$ 5.13 billion, with year-on-year growth of 15%. The company has signed research & development partnership with niche pharmaceutical enterprises in US and Europe to improve competitive advantage. On the other hand, it has secured strong approval for its new product developments into pharmaceutical segment related to marketing and distribution enhancing long-term sustainability (Datamonitor, 2012). [...]
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