Johnson & Johnson (JNJ) is probably the most diversified of the large healthcare companies. In addition to a global consumer products business, Johnson & Johnson manufacturers and sells pharmaceutical and medical devices. Foreign sales accounted for about 56% of total revenue in 2011. Consumer products comprised 23% of 2011 revenue. Pharmaceuticals encompassed 37%. Medical devices and diagnostic equipment generated 40%.

Johnson & Johnson has over 250 worldwide operating subsidiaries. Despite this entrenched global reach, the company is committed to maintaining its leadership position with development of new products. Research and development spending in 2011 totaled $7.5 billion, which was an aggressive 11.6% of revenue. The company has also expanded with acquisitions.

Several product setbacks in recent years have disappointed Johnson & Johnson shareholders. However, the company has persevered with a steady stock price and healthy dividend payment. The company’s future depends on successful introduction of new products and continued global expansion via acquisitions. Consequently, this article examines the product pipeline and acquisitions at Johnson & Johnson, along with the existing impact of current products on revenue and profit margin.

Product Pipeline

Johnson & Johnson announced several developments regarding new products in the fourth quarter of 2011.

The U.S. Food and Drug Administration (FDA) approved use of Xarelto (rivaroxaban) for treatment of a new indication in reducing risk of stroke and systemic embolism in patients with nonvalvular atrial fibrillation. Also in the quarter, the European Commission granted marketing authorization for Edurant (rilpivirine), in combination with other antiretroviral agents, for treatment of HIV-1 infection in certain patients.To continue reading, click here.