About Johnson & Johnson Consumer Inc.

It's difficult to get well without Johnson & Johnson (J&J). The diversified health care giant operates in three segments through more than 250 operating companies located in some 60 countries. Its Medical Devices division offers surgical equipment, monitoring devices, orthopedic products, and contact lenses, among other things. J&J's Pharmaceuticals division makes drugs for an array of ailments, such as neurological conditions, blood disorders, autoimmune diseases, and pain. Top sellers are psoriasis drug Remicade and cancer medication Velcade. Finally, J&J's Consumer business makes over-the-counter (OTC) drugs and products for baby, skin, and oral care, as well as first-aid and nutritional uses.


J&J prides itself on its decentralized operating structure, with the management teams of its myriad and far-flung operating units having wide latitude to make decisions. Each company belongs to one of J&J's three broad divisions: The Pharmaceuticals and Medical Devices segments account for 45% and 35% of sales, respectively, while the Consumer division contributes about 20% of annual revenues. J&J's diversified business model also allows for some insulation against troubles in any one market.

In its Medical Devices division, many operating companies -- including surgical supplies companies Ethicon and Ethicon Endo-Surgery, orthopedics device maker DePuy Synthes, and vision care subsidiary Vistakon-- have experienced strong sales growth. The division also includes the LifeScan diabetes care unit.

Operating companies in the Pharmaceuticals division include Janssen Biotech, Janssen Pharmaceuticals, and Noramco. Remicade is the company's top earner, bringing in more than $6 billion in annual sales or 9% of total revenue; in addition to psoriasis, the drug treats Crohn's disease, rheumatoid arthritis, and ulcerative colitis. In addition, key drugs earning over $1 billion annually are Procrit (sold internationally as Eprex), schizophrenia medication Invega Sustenna/Xeplion/Invega Trinza, cancer treatment Velcade, AIDS therapy Prezista, and plaque psoriasis drug Stelara.

The Consumer segment sells products including J&J's baby products, the Listerine brand of oral care products, and skin care brands including Aveeno, Clean & Clear, Lubriderm, and Neutrogena.

Geographic Reach

The company has more than 250 operating companies in 60 countries selling products around the world.

While the US and Europe represent the company's largest markets (accounting for more than 50% and about 25% of sales, respectively), the firm has been working to expand its presence in markets in Asia (especially China) and other regions that are emerging as high-growth opportunities. In fiscal 2016 (ended January), the Asia/Pacific region and Africa together accounted for 17% of revenue, while the non-US Western Hemisphere accounted for 9%. J&J has research facilities in more than a dozen countries in North America, Asia, Europe, and the Middle East.

Sales and Marketing

J&J distributes its products to retailers, wholesalers, and health care providers including hospitals.

The company spent $2.5 billion on advertising campaigns (including television, radio, print, and online ads) in fiscal 2016; this was down from $2.6 billion spent in 2014.

Financial Performance

J&J had seen steady revenue growth over the past five years, but in fiscal 2016 (ended January) revenue dropped 6% to $70.1 billion. This was due to a decline in all segments, largely as a result of currency exchange impact. The Medical Devices segment declined 9%, both due to the negative currency impact and to the divestitures of Ortho-Clinical Diagnostics and the Cordis operations. The Pharmaceutical segment saw declines due to the introduction of competitors for Olysio/Sovriad and Incivo.

Net income has followed revenue's suit, rising until 2016 when it fell 6% to $15.4 billion. Higher R&D expenses contributed to that decline.

However, cash flow from operations has increased over the past few years and, in fiscal 2016, it rose 4% to $19.3 billion. This was largely due to a decline in cash used in inventories.


The units of the Medical Devices division have been vigilantly working to sustain growth by developing and launching new product offerings in recent years. In 2014 Depuy Synthes Products, J&J's orthopedics device maker, combined forces with Tissue Regeneration Systems to use 3-D printing in the development of patient-specific large bone implants that can be absorbed by the body once the bone has healed. Also that year, J&J's life sciences team began a collaboration with Google to advance surgical robotics.

However, in early 2016 J&J announced plans to restructure the Medical Devices segment over the next two years, as the company deals with changes in the global medical device market's landscape. The changes will affect the unit's orthopedics, surgery, and cardiovascular operations, but not its consumer medical devices, vision care, or diabetes care operations. The company expects the restructuring to bring in some $800 million to $1 billion in annual savings.

In other operations, J&J spends some $5.4 billion on its Pharmaceuticals segment's R&D pipeline in an effort to fight off the drug industry's biggest challenge: patent expiration. The company aims to launch a number of new drugs to replace former bestsellers in areas including immunology, pain, cardiology, infectious disease, and neurology. J&J also works to add new indications for existing drugs. For instance, in 2014 the Janssen Pharmaceuticals unit was granted approval for Invokamet to treat type 2 diabetes. It combines J&J's existing Invokana diabetes treatment, which promotes the loss of glucose in urine, with a drug that decreases production of glucose in the liver and improves the body's insulin response. Also that year, Janssen entered into an exclusive licensing agreement with Vertex Pharmaceuticals to develop, manufacture, and commercialize influenza A treatment VX-787 (currently in phase II development).

In 2015, J&J invested in 10 new product candidates, for which it hopes to gain regulatory approval by 2019. In 2016 it received European approval for Trevicta to treat schizophrenia in adults, and it received FDA approval of Imbruvica for the treatment of chronic lymphocytic leukemia.

In the Consumer segment, J&J's top sellers include Tylenol and Motrin. The company is also counting on its Neutrogena, Listerine, and Johnson's Baby brands to deliver growth for the segment going forward. In fiscal 2016, the segment saw growth in oral care and US OTC products, as well as higher sales in Brazil, India, and Russia.

To narrow its focus on core businesses in high-demand product areas, in 2014 J&J sold its Ortho-Clinical Diagnostics business to The Carlyle Group for about $4 billion. In 2015 it sold cardiovascular products maker Cordis to Cardinal Health in a $1.94 billion transaction. The company also sold the US license rights to Nucynta to Depomed for $1.1 billion.

Also in 2015, J&J established surgical solutions firm Verb Surgical in collaboration with Verily Life Sciences (formerly Google Life Sciences).

In 2014 J&J opened the Asia/Pacific Innovation Center in Shanghai (with satellites in Singapore, Australia, and Japan); the facilities extend its network of Innovation Centers around the world.

Mergers and Acquisitions

While it continues to streamline its businesses for optimal performance, J&J is also keeping pace with its acquisition strategy by pursuing company purchases both large and small.

In late 2015, J&J acquired Novira Therapeutics, a clinical-stage company working on treatments for chronic Hepatitis B infections. That firm, which is testing small molecule NVR 3-778, is now part of Janssen Pharmaceuticals' infectious diseases and vaccines segment.

Other 2015 deals include the purchases of medical device firms NeuWave Medical and Coherex Medical and hepatitis B specialist Novira Therapeutics,

Johnson & Johnson Consumer bought Vogue International for $3.3 billion in mid-2016. Vogue develops, markets, and distributes personal care lines such as the OGX brand of hair care and other products. The segment also acquired NeoStrata, which makes dermocosmetics.

In 2017 the company acquired Abbott Medical Optics from Abbott Laboratories for $4.3 billion. That purchase, which included operations in cataract surgery, laser vision surgery, and consumer products such as eye drops, underscored J&J's growing focus on vision. Furthering that mission, the company acquired medical device maker TearScience in 2017. TearScience manufactures devices designed to treat Meibomian Gland Disfunction, the leading cause of dry eye disease. J&J also acquired Sightbox, an online subscription service for contact lens wearers.

Also in 2017, J&J bought Swiss biotech Actelion, which focuses on rare diseases, for $30 billion. That deal added Actelion's treatments for pulmonary arterial hypertension to its portfolio. As part of the transaction, J&J spun off Actelion's drug discovery and early-stage R&D operations into a new public Swiss company.

Also that year, the company secured the rights to Protagonist Therapeutics' PTG-200, a pre-clinical oral therapy for Crohn's disease, for up to $990 million.

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Johnson & Johnson Consumer Inc.

199 Grandview Rd
Skillman, NJ 08558-1303
Phone: 1 (908) 874-1000
Fax: 1 (908) 874-1191


  • Employer Type: Public
  • Principal Engineer: Rob Fusi
  • V Pres Oprs: Mike Gowen
  • Pres: William McComb
  • Employees: 1,019

Major Office Locations

  • Skillman, NJ

Other Locations

  • Fontana, CA
  • Los Angeles, CA
  • Buffalo Grove, IL
  • Morris Plains, NJ
  • Cincinnati, OH
  • Fort Washington, PA
  • Lancaster, PA
  • Lititz, PA
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