08.04.23
Rank: #2 (Last year: #2)
$8.587 Billion
Prior Fiscal: $8.588 Billion
Percentage Change: 0%
R&D Expenditure: $14.6B (total)
Best FY22 Quarter: Q1 $7.0B
Latest Quarter: Q1 $7.5B
No. of Employees: 152,700 (total)
Global Headquarters: New Brunswick, N.J.
KEY EXECUTIVES:
Joaquin Duato, Chairman of the Board and CEO, Johnson & Johnson
Ashley McEvoy, Exec. VP and Worldwide Chairman Johnson & Johnson, MedTech
Joseph J. Wolk, Exec. VP and CFO, Johnson & Johnson
Aldo Denti, Company Group Chairman, DePuy Synthes
The orthopedics franchise of Johnson & Johnson MedTech began its 2022 fiscal year by welcoming two newly acquired companies into its family. The first, a hip-spine analysis firm. The second, a Tennessee-based foot and ankle company.
CUPTIMIZE was purchased last February. CUPTIMIZE hip-spine analysis is a tool to understand and address the impact of abnormal motion between the spine and pelvis in select patients needing total hip replacement. It doesn’t need advanced imaging or an engineering staff to operate—a simple, digital screening tool analyzes patient x-rays when they stand or sit to identify abnormal motion as a result of pelvic tilt.
Abnormal pelvic tilt, according to the company, affects about 20% of patients who require total hip arthroplasty, and 485 of hip revisions are due to suboptimal cup positioning because of pelvic tilt.
CUPTIMIZE enhances DePuy Synthes VELYS hip navigation’s intra-operative capabilities to allow more personalized care.
“The CUPTIMIZE Analysis is easy to use and allows me to make pre-operative decisions regarding a patient’s unique spinopelvic characteristics in a simple way before surgery,” Dr. Jonathan Vigdorchik, an orthopedic surgeon, New York, NY said in a press release. “It is an efficient tool to execute my plan during the operation.”
CrossRoad Extremity Systems entered DePuy Synthes’ fold a month later. The foot and ankle company added miniBunion 3D, dynaBunion 4D, and DynaForce staple compression plates to DePuy Synthes’ portfolio.
ANALYST INSIGHTS: With two major portfolio moves under its belt in the past 12 months (spin-off of Kenvue and the acquisition of AbioMed), J&J is a work in process in its main Ethicon and DePuy Synthes business units. While each major group is behind in robotics (Ethicon to Intuitive and MDT; DPS to Stryker), they should see an upswing in procedures due to a post-pandemic rebound of so-called “elective procedures.” For the future, the question is, “Can they catch-up with the market leaders with their Velys digital platforms across all market segments?”
The miniBunion system allows minimally invasive metatarsal bone osteotomy, which is performed to manage mild to moderate hallux valgus, and reduces incision size compared to traditional techniques, according to the company. The dynaBunion lapidus system is an option for lapidus bunionectomy, a procedure to manage moderate to severe hallux valgus, and features instrumentation and implants to correct bunions in four dimensions through smaller incisions. DynaForce staple compression plates combine stability with dynamic continuous compression at the fusion site.
CrossRoad also brought the EcoSMART instrument service with it, providing sterilized, reusable instruments for surgical cases, along with post-surgery instrument recovery and processing to minimize operating room waste and inefficiencies.
“Healthy feet are a foundational element of overall good health, and we are thrilled about the acquisition of CrossRoads and the opportunity to accelerate meaningful innovation by strengthening our offering for elective foot and ankle procedures, enabling us to provide more comprehensive and leading-edge options to surgeons and patients,” Oray Boston, Worldwide President, DePuy Synthes Trauma, Extremities, Craniomaxillofacial and Animal Health, told the press.
DePuy Synthes posted flat revenue of $8.587 billion—with a very small decline from the previous year—in 2022. J&J’s annual report attributed operational growth in hips—which grew sales 2.3% to $1.51 billion—to continued portfolio strength, including the Actis stem and enabling tech Kincise and VELYS hip navigation. Impacts of volume-based procurement in China and timing of tenders outside the U.S. tempered this growth.
Knees proceeds grew 2.6% to $1.36 billion due to procedure recovery, Attune portfolio strength, and pull-through related to VELYS. Trauma product sales fell 0.5% to $2.87 billion, and Spine, Sports & Other sales fell further, dropping 1.9% to $2.84 billion. J&J cited that operational growth in the business was driven by procedure recovery and new product introductions, tempered by competitive pressures in Spine and impacts of volume-based procurement in China.
DePuy Synthes announced the Attune cementless, fixed-bearing knee with Affixium 3D printing tech and the Attune medial stabilized knee last March. The first in the Attune portfolio to use Affixium 3D printing, the cementless knee was engineered to meet the demands of an active lifestyle and features a 3D-lattice structure to create a porosity similar to natural bone. The Attune medial knee touts asymmetric anatomic inserts with a raised medial lip and TruARC lateral path for natural knee function. It addresses a range of posterior cruciate ligament (PCL) management and surgical philosophies. The knee is compatible with the VELYS robotic-assisted solution.
The company achieved FDA clearance for its Inhance shoulder system to be used in reverse total shoulder arthroplasty in May, adding to the system’s cleared use in anatomic shoulder replacement. The reverse system features a 135° neck shaft angle with lateralized options and sizing options to address a full range of patients. Its 3D-printed R/SPEED baseplates and modular baseplates have central screw and central post options. Reverse Inhance also touts a cross-linked, vitamin E polyethylene liner and One Step Prep glenoid reamers.
October saw FDA 510(k) clearance for the Teligen platform to enable minimally invasive surgical transforaminal lumbar interbody fusion (MS-TLIF) using digital visualization and access tools. The system is comprised of a camera control system, VueLIF-T procedure with disposable HD camera, Teligen clear discectomy device, and patient-based disposable ports. The Teligen Vue camera is at the distal end of the patient-specific port to remove the need for a microscope for unobstructed surgical site view, and Teligen’s heads-up display lets surgeons keep ergonomic posture during the surgery. It integrates with DePuy spine’s Unleash bundle of implant solutions.
October also saw FDA clearance for its AltaLyne ultra alignment system for adolescent spinal deformities like scoliosis. It touts a 5.5 mm profile with 36% greater resistance to rod flattening (thanks to a greater bend yielding strength in a lower profile) than a standard, 6-mm cobalt chromium rod, according to the company. A specific cobalt chromium alloy was engineered for the product, and DePuy Synthes said it was the first application of this metal in spinal rods.
$8.587 Billion
Prior Fiscal: $8.588 Billion
Percentage Change: 0%
R&D Expenditure: $14.6B (total)
Best FY22 Quarter: Q1 $7.0B
Latest Quarter: Q1 $7.5B
No. of Employees: 152,700 (total)
Global Headquarters: New Brunswick, N.J.
KEY EXECUTIVES:
Joaquin Duato, Chairman of the Board and CEO, Johnson & Johnson
Ashley McEvoy, Exec. VP and Worldwide Chairman Johnson & Johnson, MedTech
Joseph J. Wolk, Exec. VP and CFO, Johnson & Johnson
Aldo Denti, Company Group Chairman, DePuy Synthes
The orthopedics franchise of Johnson & Johnson MedTech began its 2022 fiscal year by welcoming two newly acquired companies into its family. The first, a hip-spine analysis firm. The second, a Tennessee-based foot and ankle company.
CUPTIMIZE was purchased last February. CUPTIMIZE hip-spine analysis is a tool to understand and address the impact of abnormal motion between the spine and pelvis in select patients needing total hip replacement. It doesn’t need advanced imaging or an engineering staff to operate—a simple, digital screening tool analyzes patient x-rays when they stand or sit to identify abnormal motion as a result of pelvic tilt.
Abnormal pelvic tilt, according to the company, affects about 20% of patients who require total hip arthroplasty, and 485 of hip revisions are due to suboptimal cup positioning because of pelvic tilt.
CUPTIMIZE enhances DePuy Synthes VELYS hip navigation’s intra-operative capabilities to allow more personalized care.
“The CUPTIMIZE Analysis is easy to use and allows me to make pre-operative decisions regarding a patient’s unique spinopelvic characteristics in a simple way before surgery,” Dr. Jonathan Vigdorchik, an orthopedic surgeon, New York, NY said in a press release. “It is an efficient tool to execute my plan during the operation.”
CrossRoad Extremity Systems entered DePuy Synthes’ fold a month later. The foot and ankle company added miniBunion 3D, dynaBunion 4D, and DynaForce staple compression plates to DePuy Synthes’ portfolio.
ANALYST INSIGHTS: With two major portfolio moves under its belt in the past 12 months (spin-off of Kenvue and the acquisition of AbioMed), J&J is a work in process in its main Ethicon and DePuy Synthes business units. While each major group is behind in robotics (Ethicon to Intuitive and MDT; DPS to Stryker), they should see an upswing in procedures due to a post-pandemic rebound of so-called “elective procedures.” For the future, the question is, “Can they catch-up with the market leaders with their Velys digital platforms across all market segments?”
—Dave Sheppard, Co-Founder and Managing Director, MedWorld Advisors
The miniBunion system allows minimally invasive metatarsal bone osteotomy, which is performed to manage mild to moderate hallux valgus, and reduces incision size compared to traditional techniques, according to the company. The dynaBunion lapidus system is an option for lapidus bunionectomy, a procedure to manage moderate to severe hallux valgus, and features instrumentation and implants to correct bunions in four dimensions through smaller incisions. DynaForce staple compression plates combine stability with dynamic continuous compression at the fusion site.
CrossRoad also brought the EcoSMART instrument service with it, providing sterilized, reusable instruments for surgical cases, along with post-surgery instrument recovery and processing to minimize operating room waste and inefficiencies.
“Healthy feet are a foundational element of overall good health, and we are thrilled about the acquisition of CrossRoads and the opportunity to accelerate meaningful innovation by strengthening our offering for elective foot and ankle procedures, enabling us to provide more comprehensive and leading-edge options to surgeons and patients,” Oray Boston, Worldwide President, DePuy Synthes Trauma, Extremities, Craniomaxillofacial and Animal Health, told the press.
DePuy Synthes posted flat revenue of $8.587 billion—with a very small decline from the previous year—in 2022. J&J’s annual report attributed operational growth in hips—which grew sales 2.3% to $1.51 billion—to continued portfolio strength, including the Actis stem and enabling tech Kincise and VELYS hip navigation. Impacts of volume-based procurement in China and timing of tenders outside the U.S. tempered this growth.
Knees proceeds grew 2.6% to $1.36 billion due to procedure recovery, Attune portfolio strength, and pull-through related to VELYS. Trauma product sales fell 0.5% to $2.87 billion, and Spine, Sports & Other sales fell further, dropping 1.9% to $2.84 billion. J&J cited that operational growth in the business was driven by procedure recovery and new product introductions, tempered by competitive pressures in Spine and impacts of volume-based procurement in China.
DePuy Synthes announced the Attune cementless, fixed-bearing knee with Affixium 3D printing tech and the Attune medial stabilized knee last March. The first in the Attune portfolio to use Affixium 3D printing, the cementless knee was engineered to meet the demands of an active lifestyle and features a 3D-lattice structure to create a porosity similar to natural bone. The Attune medial knee touts asymmetric anatomic inserts with a raised medial lip and TruARC lateral path for natural knee function. It addresses a range of posterior cruciate ligament (PCL) management and surgical philosophies. The knee is compatible with the VELYS robotic-assisted solution.
The company achieved FDA clearance for its Inhance shoulder system to be used in reverse total shoulder arthroplasty in May, adding to the system’s cleared use in anatomic shoulder replacement. The reverse system features a 135° neck shaft angle with lateralized options and sizing options to address a full range of patients. Its 3D-printed R/SPEED baseplates and modular baseplates have central screw and central post options. Reverse Inhance also touts a cross-linked, vitamin E polyethylene liner and One Step Prep glenoid reamers.
October saw FDA 510(k) clearance for the Teligen platform to enable minimally invasive surgical transforaminal lumbar interbody fusion (MS-TLIF) using digital visualization and access tools. The system is comprised of a camera control system, VueLIF-T procedure with disposable HD camera, Teligen clear discectomy device, and patient-based disposable ports. The Teligen Vue camera is at the distal end of the patient-specific port to remove the need for a microscope for unobstructed surgical site view, and Teligen’s heads-up display lets surgeons keep ergonomic posture during the surgery. It integrates with DePuy spine’s Unleash bundle of implant solutions.
October also saw FDA clearance for its AltaLyne ultra alignment system for adolescent spinal deformities like scoliosis. It touts a 5.5 mm profile with 36% greater resistance to rod flattening (thanks to a greater bend yielding strength in a lower profile) than a standard, 6-mm cobalt chromium rod, according to the company. A specific cobalt chromium alloy was engineered for the product, and DePuy Synthes said it was the first application of this metal in spinal rods.