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J&J Tuesday

Coverage

Johnson & Johnson to Cut 6% of Medical Device Jobs
Jan 19, 2016 | Wall Street Journal
By Jonathan D. Rockoff and Chelsey Dulaney
Stocks to Watch: Bank of America, Morgan Stanley, Shake Shack, J&J
Jan 19, 2016 | The Wall Street Journal
By Chris Wack
Johnson & Johnson to Cut 3,000 Jobs in Medical Devices Division
Jan 19, 2016 | Reuters
Johnson & Johnson to Cut About 3,000 Jobs in Medical Devices
Jan 19, 2016 | Associated Press
By Matthew Perrone
Johnson & Johnson to Cut 3,000 Jobs
Jan 19, 2016 | USA Today
By Nathan Borney
Johnson & Johnson to Cut 3,000 Jobs in Medical Devices Unit
Jan 19, 2016 | Financial Times
By David Crow
J&J To Cut Jobs in Reorganization of Medical Devices Business
Jan 19, 2016 | Bloomberg Business
By Zachary Tracer
J&J To Cut 5% of Medical Device Staff
Jan 19, 2016 | Philly.com
By Joseph DiStefano
J&J to cut about 3,000 jobs in its medical device business
Jan 19, 2016 | Philadelphia Business Journal
By George John
Johnson & Johnson Says It Will Cut Thousands of Jobs
Jan 19, 2016 | NJ.com
By Craig McCarthy
J&J Cutting Jobs in Medical Devices
Jan 19, 2016 | Asbury Park Press
By Michael L. Diamond
J&J cutting about 3,000 jobs in shakeup of medical devices businesses
Jan 19, 2016 | NJ Biz
By Eric Strauss
Johnson and Johnson Announces Major Layoffs
Jan 19, 2016 | New Brunswick Patch
By Jason Koestenblatt
Pharmalot, Pharmalittle: J&J layoffs, Brazil to help fund Zika Vaccine Development
Jan 19, 2016 | STAT
By Ed Silverman
Johnson & Johnson (JNJ) Stock Up, to Cut Medical Device Jobs
Jan 19, 2016 | The Street
By Kaya Yurieff
Johnson & Johnson Announces Medical Devices Businesses Rightsizing; Will Cut Jobs
Jan 19, 2016 | Street Insider
Stocks Poised for Early Rebound-U.S. Commentary
Jan 19, 2016 | RTT News
Stocks Up, Opening Surge Eases; NetEase, Tal Education Top IBD 50
Jan 19, 2016 | Investors Business Daily
By Alan Elliott
Five Things for Pharma Marketers to Know: Tuesday, January 19, 2016
Jan 19, 2016 | Medical Marketing & Media
Johnson & Johnson Plans to Cut Roughly 3,000 Jobs in Medical Devices
Jan 19, 2016 | 24/7 Wall Street
By Chris Lange
J&J Axes 3,000 Jobs in Bid to Save $1B and Revive Lagging Medical Devices Business
| Fierce Medical Devices
By Emily Wasserman
J&J to cut 3,000 jobs in major shakeup—is it a prelude to an acquisition?
Jan 19, 2016 | Healthcare Drive
By Sy Mukherjee
J&J to Cut up to 3,000 Jobs from Medical Device Biz
Jan 19, 2016 | Mass Device
By Brad Perriello
Morning Read: Johnson & Johnson to Cut Medical Devices Workforce, Saving Up To $1 Billion
Jan 19, 2016 | MedCity News
By Chris Seper
J&J to lay off 3,000 as it restructures medical-device businesses
Jan 19, 2016 | ModernHealthcare.com
By Adam Rubenfire
Leerink Partners Raises Price Target on Johnson & Johnson (JNJ) Following 4Q Earnings
Jan 27, 2016 | Street Insider
CC – J&J 4Q15
Jan 27, 2016 | Close Concerns
By Kelly L. Close
Johnson & Johnson: Like Clockwork
| Seeking Alpha
J&J CEO: Patients have higher expectations
Jan 27, 2016 | Medical Marketing & Media
Johnson & Johnson (JNJ) Stock Pops Upon Strong Profits
Jan 27, 2016 | Bidness Etc

Television Coverage

Varney & Company Clip
| Fox Business News

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Mornings With Maria Bartiromo Clip
| Fox Business News

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Squawk Box Clip
| CNBC

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Bloomberg GO clip
| Bloomberg TV

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Mad Money Clip
| CNBC
By Jim Cramer

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Nightly Business Report Clip
Jan 27, 2016 | PBS

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Time Warner Cable News All Night Clip
| Time Warner Cable

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Coverage

Johnson & Johnson to Cut 6% of Medical Device Jobs

Jan 19, 2016 | Wall Street Journal

By Jonathan D. Rockoff and Chelsey Dulaney

Johnson & Johnson said Tuesday it would cut about 3,000 jobs in its medical-devices division, the company’s latest step to revive the struggling business.

The eliminated positions represent 2.5% of the health-care company’s 127,000 employees world-wide and as much as 6% of its medical-device segment. J&J expects the cuts will save between $800 million and $1 billion a year before taxes, some of which will be invested in new-product development.

J&J’s medical-device business had been the company’s largest, and its relatively fast-growing sales of artery-opening stents, knee-replacement parts and other surgical tools once fueled the company’s sales growth while its prescription-drugs and consumer-health businesses flagged.

But the overall market has slowed because surgeons have lost much of their buying power as they became salaried employees of health-care systems and the consolidating hospital systems began exerting stronger pressure on prices.

The $320 billion market for medical devices world-wide is growing 4% a year now, down from a double-digit rate in the early 2000s, according to Venkat Rajan, a medical-device industry analyst at research and consulting firm Frost & Sullivan.

J&J’s medical-device sales have slowed even more than the overall market’s the past few years, growing just 1% operationally in the third quarter, according to Wells Fargo Securities.

In response, J&J has exited from the stents business it had pioneered and has been selling small, slower-growing units. In addition, it has been rejiggering how it sells devices and focusing on high-growth categories like surgical robotics and staplers as well as key markets such as the U.S., Japan and China.

The company has also struck new partnerships, such as a collaboration with International Business Machines Corp. to create virtual coaching services for patients, and another with Google Inc. to develop surgical tools that take advantage of imaging technology advances.

In October, J&J said it planned more than 14 product launches over the next 18 to 24 months. J&J will use some of the savings from the restructuring to accelerate new-product development, Gary Pruden, the J&J executive in charge of medical devices, said in an interview.

The layoffs are “an opportunity to reshape our business to accelerate growth through meaningful innovation,” Mr. Pruden said.

As part of the restructuring, J&J said it would book $2 billion to $2.4 billion in charges, starting with a restructuring charge of $600 million in the fourth quarter of 2015.

Excluding those charges and other special items, J&J backed its 2015 forecasts. The company said it also doesn’t expect the restructuring to affect its plans to buy back $10 billion in stock or any future acquisitions.

“Be they large or small, we are open to those kinds of opportunities,” Mr. Pruden said.

In addition to its medical device business, J&J also has been a stronger dollar, patent expirations and increased competition for many of its prescription drugs, especially its hepatitis C treatment Olysio.

At midday, shares of J&J had gained 0.6% to $97.55 in trading on the New York Stock Exchange.

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Stocks to Watch: Bank of America, Morgan Stanley, Shake Shack, J&J

Jan 19, 2016 | The Wall Street Journal

By Chris Wack

Among the companies with shares expected to trade actively in Tuesday’s session are Bank of America Corp., Morgan Stanley and Shake Shack Inc.SHAK -0.53%

Morgan Stanley said it swung to a profit in the fourth quarter, though the Wall Street firm weathered a slump in debt-market trading.

Bank of America Corp. said its fourth-quarter profit rose 9% due in part to growth in its consumer bank and trading revenue holding up despite tough market conditions.

Burger chain Shake Shack was upgraded to “outperform” from “market perform” at William Blair Tuesday. “We believe the potential exists for significant revenue and earnings upside to 2016 estimates, given impressive sales momentum as well as the potential positive wildcard associated with last week’s national introduction of the Chick’n Shack sandwich,” wrote analyst Sharon Zackfia in a note to clients.

Johnson & Johnson said it would cut up to 6% of its workforce in its medical-devices division as part of an effort to cut $1 billion in annual costs in the business that makes sterilization equipment and blood glucose monitoring systems.

UnitedHealth Group Inc. said profit declined in its latest quarter as the biggest U.S. health insurer struggles with its healthcare exchange segment.

Delta Air Lines Inc. said it swung to a profit in its final quarter of the year, again helped by drastically lower fuel costs.

Tyco International PLC disclosed that it has reached a potential settlement in a long-running tax dispute with the Internal Revenue Service that would result in payments of up to $525 million.

Tiffany & Co. said sales during the holiday period softened, prompting the luxury jeweler to reduce staff and cut its outlook for the year.

M&T Bank Corp. said operating profit increased in the fourth quarter, buoyed by the lender’s acquisition of fellow regional bank Hudson City Bancorp Inc.

Texas-based Waste Connections Inc.WCN -2.51% and Toronto-based Progressive Waste Solutions Ltd. said they have agreed to merge in an all-stock deal that will place the combined companies’ corporate address in Canada.

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Johnson & Johnson to Cut 3,000 Jobs in Medical Devices Division

Jan 19, 2016 | Reuters

n">Johnson & Johnson (JNJ.N) said on Tuesday it would cut about 3,000 jobs within its medical devices unit over the next two years, or about 4 to 6 percent of the struggling division's global workforce, to generate annual cost savings of up to $1 billion and focus on more innovative products.
The job cuts relate to J&J's orthopedics, surgery and cardiovascular operations, although there are no immediate plans to eliminate specific products, said company spokesman Ernie Knewitz.
He did not provide specific regions for the cuts.
"The savings will help us grow our (device) business," Knewitz said. "That could involve acquisitions, but it will also involve investing in our own internal programs."
The company's consumer medical devices, vision care and diabetes care will not be affected, J&J said. (www.investor.jnj.com/MDFAQ)
J&J's medical device sales approached $19 billion in the first nine months of 2015, but fell 10.4 percent, making the wide array of products its poorest-performing segment.
The company expects pretax restructuring charges of $2.0 billion to $2.4 billion in connection with these plans, of which about $600 million will be recorded in the fourth quarter of 2015.
"It's about realigning resources around priority platforms," Gary Pruden, head of J&J's medical device unit, said in an interview.
Pruden said J&J is not satisfied with demand for its artificial knees, devices for trauma and some surgical products and wants to improve them with greater attention and resources. He said the company will "de-emphasize" other device areas, but declined to identify them.
Leerink analysts said the announcement meant that an acquisition was still in the cards for J&J, given that it had about $37 billion in cash as of the end of the third quarter.
"We continue to believe JNJ is an active acquirer with a focus likely heavily weighted toward its lagging medical devices business," they wrote in a note.
J&J also reiterated its full-year 2015 forecast, and said the restructuring in the devices business would not affect the $10 billion share repurchase program.
The restructuring is expected to produce annualized pretax cost savings of $800 million to $1 billion, J&J said. Most savings are expected by the end of 2018, including about $200 million in 2016.
J&J employs about 60,000 within its devices unit, representing almost half its global workforce of about 127,000. The company plans to report fourth-quarter results on Jan. 26.
J&J shares were up 0.8 percent at $97.75.

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Johnson & Johnson to Cut About 3,000 Jobs in Medical Devices

Jan 19, 2016 | Associated Press

By Matthew Perrone

Johnson & Johnson said Tuesday that it plans to cut about 3,000 jobs over the next two years as the health care conglomerate works to restructure its medical devices business.

The New Brunswick, New Jersey, company said that amounts to more than 2 percent of its global workforce of around 127,000 people and 4 percent to 6 percent of its employee total in medical devices.

The cuts come after a tough year for the healthcare bellwether, which has seen sales of its prescription drugs, devices and consumer medicines squeezed by a weakening global economy and unfavorable currency exchange rates.

"These actions recognize the changing needs of the global medical device market," said Gary Pruden, chairman of Johnson & Johnson's medical device unit, in a statement.

The restructuring focuses on the company's orthopedics, surgery and cardiovascular businesses. It won't affect consumer medical devices, pharmaceuticals or consumer businesses.

J&J has struggled to revive sales of medical devices, particularly brands like DePuy artificial hips and joints and Ethicon surgical equipment. In October the company said device sales dropped 7.3 percent to $6.1 billion in the previous fiscal quarter. In the same month, J&J sold its Cordis heart devices unit, which previously accounted for about one-quarter of device sales.

Wells Fargo analyst Lawrence Biegelsen noted that medical devices have been "one of the weaker performing businesses in recent years."

"As such, we believe that the restructuring should be a positive step towards driving longer term growth of the business and enhance profitability over time," Biegelsen said in a note to investors.

The company's actions will lead to annual pre-tax savings of $800 million to $1 billion, much of which will be realized by the end of 2018. J&J said it will consider "strategic options" for underperforming business units.

J&J will book a fourth-quarter charge of about $600 million in connection with the restructuring.

Like many multinational corporations, the J&J is being pinched by the strong dollar, which reduces the value of products sold in local currencies around the world.

J&J shares rose 40 cents to $97.40 in morning trading Tuesday. Its shares have fallen more than 6 percent over the past year.

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Johnson & Johnson to Cut 3,000 Jobs

Jan 19, 2016 | USA Today

By Nathan Borney

Global health giant Johnson & Johnson plans to shed about 3,000 jobs as the strong U.S. dollar takes a toll on the company's medical devices division.

J&J said Tuesday that it would record pre-tax charges of $2 billion to $2.4 billion in connection with the cuts. But in the long run, the moves are expected to save the company $800 million to $1 billion per year by 2019.

The job cuts affect 4% to 6% of the company's global head count in medical devices.

"The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation," said Gary Pruden, worldwide chairman of J&J's medical devices unit, in a statement. "These actions recognize the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability for our business."

In the third quarter, J&J's medical devices revenue fell 7.3% to $6.1 billion, compared to a year earlier. From an operational perspective, sales rose 0.9% — but the negative effect of currency rates dragged down revenue by 8.2%.
The company on Tuesday confirmed that it expects to meet its full-year 2015 revenue target of $70 billion to $71 billion and its adjusted earnings goal of $6.15 per share to $6.20 per share, excluding one-time items and restructuring costs.

Despite the slumping revenue in medical devices, J&J said it would not make any changes to its $10 billion share buyback program.

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Johnson & Johnson to Cut 3,000 Jobs in Medical Devices Unit

Jan 19, 2016 | Financial Times

By David Crow

Johnson & Johnson, the world’s largest healthcare company, said it would cut 3,000 jobs at its medical devices unit as part of a restructuring effort designed to save up to $1bn a year in costs.

The cuts equate to roughly 6 per cent of the company’s medical devices workforce, and will be heaviest in the orthopaedics division, which makes hip replacements, as well as its surgical and cardiovascular segments. J&J’s contact lens unit and diabetes segment, which makes insulin pumps, will be unaffected.
J&J said the move would result in annual savings of between $800m and $1bn, most of which will be achieved by the end of 2018. It said the moves would result in it booking a restructuring charge of between $2bn and $2.4bn, with roughly $600m falling in the fourth quarter of 2015.

The company’s sales and profit targets are unaffected, it said in a statement, adding that the cuts would allow it to prioritise high growth products and to gradually shrink its medical devices unit while “maintaining high quality standards”.

“The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation,” said Gary Pruden, chairman of J&J’s medical devices unit, adding that the cuts would boost its competitiveness and profitability.

Shares in J&J, which has a market value of roughly $270bn, were up 1.3 per cent in early trading in New York. The company is scheduled to release fourth-quarter earnings next Tuesday.
The medical devices business, one of three J&J business units alongside pharmaceuticals and consumer products, has become a drag on the company’s growth in recent years. In the first three quarters of last year, it posted sales of $18.7bn, a 10 per cent decline compared with the same period in 2014.

J&J has faced fierce competition from Medtronic, the world’s largest standalone medical device maker, as well as Abbott Laboratories and a large number of smaller operators.

The $375bn medical device market is highly fragmented, with no single player having more than 30 per cent market share. Healthcare systems around the world have also tried to push down the cost of medical devices to better cope with an ageing population.

J&J has dismissed suggestions it should split up the business as Abbott did when it hived off its pharmaceuticals company as AbbVie in 2014. Pfizer, the world’s second-largest healthcare company, has also said it will consider splitting itself up after it has completed the $160bn acquisition of Allergan.

J&J has instead focused on “pruning” its medical devices unit, and earlier this year completed the $2bn sale of Cordis, which makes cardiovascular catheters and stents, to Cardinal Health.

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J&J To Cut Jobs in Reorganization of Medical Devices Business

Jan 19, 2016 | Bloomberg Business

By Zachary Tracer

Johnson & Johnson plans to cut about 3,000 jobs, or 2.5 percent of its workforce, in an effort to improve results at its medical-devices unit.

The company will reduce 4 percent to 6 percent of positions at the medical-device business over the next two years, leading to pretax restructuring costs of $2 billion to $2.4 billion. The cuts will eventually help save about $800 million to $1 billion a year, including about $200 million in 2016, New Brunswick, New Jersey-based J&J said in a statement Tuesday.

J&J is reorganizing the business after sales of medical devices fell 2.9 percent in the first nine months of 2015, excluding currency fluctuations. The company also makes pharmaceuticals and consumer-health products, and sales in both of those units increased in that period, when foreign-exchange swings are excluded.

The company disclosed the number of job cuts in a document posted to its website, saying it is targeting orthopaedics, surgical and cardiovascular devices and not the consumer medical device business. J&J said it won’t provide any specific information on potential business exits, adding any such possible sales would have a minimal impact.

J&J also said it still expects 2015 operating profit of $6.15 to $6.20 a share, excluding the restructuring costs. The company will provide more information on the restructuring when it holds its fourth-quarter earnings call on Jan. 26.

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J&J To Cut 5% of Medical Device Staff

Jan 19, 2016 | Philly.com

By Joseph DiStefano

Johnson & Johnson said this morning it plans to cut at least $800 million a year from spending on its Medical Devices division. J&J plans to shave at least $200 million in yearly spending from the group this year, with bigger cuts through 2019. The company said this works out to around 5% of its global medical-device workforce. J&J says this would free cash so it could invest more in "new growth opportunities."

The division includes West Chester-based Synthes, the bone-replacement company J&J bought for nearly $20 billion in 2012, installing that company's CEO, Alex Gorsky, a Bucks County resident, as chief of the larger device unit, according to my colleague David Sell, who until recently covered pharma companies.
In a statement to employees, J&J said the cuts would "accelerate its pace of innovation" and "strengthen its go-to-market model." The company expects a pre-tax restructuring charge of $600 million in late 2015, and more later. J&J still expects to record sales of at least $70 billion this year.
The cuts won't expect the company's Consumer Medical Devices, Vision Care or Diabetes Care businesses.

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J&J to cut about 3,000 jobs in its medical device business

Jan 19, 2016 | Philadelphia Business Journal

By George John

Johnson & Johnson said Tuesday its plans to eliminate between 4 percent and 6 percent of its medical device workforce over the next two years as part of an effort to generate $800 million to $1 billion in savings.

The jobs cuts work out to about 3,000 jobs at the New Brunswick, N.J., health care giant, which said it is undertaking the restructuring plan to “accelerate innovation” and “better serve the needs of customers and patients in today’s evolving health care marketplace.”

Johnson & Johnson (NYSE: JNJ), which has operations worldwide, did not specify from which regions the job cuts will come.

Included in Johnson & Johnson’s medical device segment is its DePuy Synthes subsidiary which has offices in West Chester, Pa. Johnson & Johnson bought Synthes, a maker of orthopedic and neurological devices, for $19.7 billion in 2012 and merged it with its existing DePuy International business.

Johnson & Johnson’s consumer medical devices, vision care and diabetes care businesses will not be impacted by the restructuring plan, the company said.

“The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation,” said Gary Pruden, worldwide chairman of Johnson & Johnson Medical Devices, in a statement. “These actions recognize the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability for our business.”

Johnson & Johnson said it would record pre-tax charges of $2 billion to $2.4 billion in connection with the restructuring plan and job cuts.

In the Philadelphia region, Johnson & Johnson is also the parent company for McNeil Consumer Healthcare in Fort Washington, Pa.; Animas Corp. in West Chester; and Janssen Biotech in Horsham, Pa.

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Johnson & Johnson Says It Will Cut Thousands of Jobs

Jan 19, 2016 | NJ.com

By Craig McCarthy

Johnson & Johnson announced Tuesday it would cut more than more than 3,000 jobs over the next two years as it restructures its medical-devices division.

The eliminated positions represent up to 6 percent of jobs in its medical-devices businesses, according to the New Jersey-based healthcare conglomerate.

Johnson & Johnson said in a statement that the restructuring reflects the "changing needs of the global medical device market."

The reduction of more than 2 percent of its global workforce is expected to reduce costs by $800 million to $1 billion by the end of 2018. It will focus on its orthopedics, surgery and cardiovascular businesses.

Johnson & Johnson said its consumer medical devices businesses, vision care and diabetes care will not be affected by the cuts.

Sales in the company's medical devices have been down almost 3 percent worldwide over the last nine months, according to the Wall Street Journal. J&J expects a fourth-quarter change of roughly $600 million due to the restructuring.

The company's stocks were up in early Tuesday trading on Wall Street.

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J&J Cutting Jobs in Medical Devices

Jan 19, 2016 | Asbury Park Press

By Michael L. Diamond

Johnson & Johnson plans to cut its work force in its medical device division by up to 6 percent, or 3,600 employees, over the next two years as part of a strategy to become more efficient, the company said Tuesday.

The world's biggest health care company said it wants to pick up the pace of innovation, streamline its operations and better prioritize its products.

"These actions recognize the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability of our business," Gary Pruden, worldwide chairman of Johnson & Johnson Medical Devices, said in a statement.

New Brunswick-based J&J is one of New Jersey's biggest employers with more than 12,000 workers. It develops medical devices through subsidiaries such as Ethicon Inc., which has headquarters in Somerville and Cincinnati, Ohio.

The company said it would take pre-tax restructuring charge of $2 billion to $2.4 billion. But the move would help it save as much as $1 billion by the end of 2018, executives said.

J&J's stock was at $97.60 at 10 a.m.. up .56 percent. It has fallen about 5 percent since the beginning of the year.

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J&J cutting about 3,000 jobs in shakeup of medical devices businesses

Jan 19, 2016 | NJ Biz

By Eric Strauss

New Brunswick-based Johnson & Johnson is restructuring its medical devices businesses, it announced Tuesday, which could lead to the loss of 3,000 or more jobs globally.
The consumer products giant said it hopes to save $800 million to $1 billion before taxes by the end of 2018 through a streamlining of operations and reprioritization in its orthopedics, surgery and cardiovascular device businesses.
“As a market leader, we are committed to leveraging our breadth and scale to shape the future of the medical device industry, for the benefit of those we serve,” Gary Pruden, worldwide chairman of Johnson & Johnson Medical Devices, said in a prepared statement. “The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation.
“These actions recognize the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability for our business.”
The jobs lost represent 4 to 6 percent of the 60,000-strong global workforce in the medical devices unit. The cuts will take place over two years and eliminate about 2.5 percent of the company’s total headcount of 127,000.
J&J said it expects restructuring charges of $2 billion to $2.4 billion.
The company added that its pharmaceutical, consumer health care and consumer medical devices businesses are not affected by the changes.
A J&J spokesman was not immediately available to comment on potential job losses in New Jersey.

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Johnson and Johnson Announces Major Layoffs

Jan 19, 2016 | New Brunswick Patch

By Jason Koestenblatt

One of the state’s largest employers announced Tuesday it will be reducing its workforce by some 3,000 people over the next two fiscal years.

Johnson & Johnson, with headquarters in New Brunswick and major facilities in Somerset County, said it would be restructuring its Medical Devices businesses to “better served the needs of customers and patients in today’s evolving healthcare marketplace,” according to a statement.

The changes would result in a savings of $800 million to $1 billion annually, which will be realized by the end of 2018, the company said.

“The company estimates that the actions announced today will result in position eliminations of approximately 4 to 6 percent of the Medical Devices segment’s global workforce over the next two years, subject to any consultation procedures in countries where required,” the statement said.

That figure turns into about 2.5-percent of the entire global workforce, or approximately 3,000 employees, the healthcare giant said.

See more details about the layoffs here.

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Pharmalot, Pharmalittle: J&J layoffs, Brazil to help fund Zika Vaccine Development

Jan 19, 2016 | STAT

By Ed Silverman

Good morning, everyone, and welcome to another working week. However, this is already an abbreviated session on this side of the pond, thanks to a federal holiday. We hope the respite was rewarding, because this means there is twice as much to do today, thanks to an accelerated schedule of meetings, phone calls, and the like. So the time has come to get cracking. As always, here are some tidbits to get you started. Have a smashing day and do stay in touch …
Johnson & Johnson plans to cut about 3,000 jobs, or 4 percent to 6 percent of the positions in its medical devices unit, over the next two years. The move, which is designed to save between $800 million and $1 billion, would affect the orthopedics, surgery, and cardiovascular businesses, according to a statement. The health care giant employs about 127,000 people, including roughly 60,000 in the devices unit, which generated $27.5 billion in sales last year.
Wockhardt says that problems at a plant that were noted in an FDA report are not “critical” and should be resolved over the next two months, The Economic Times reports. The generic drug maker says none of the issues at the Shendra facility, which produces various capsules and tablets for the United Kingdom and Ireland, were related to data integrity. Two other plants are banned from shipping products to the US market.
The Brazilian government plans to provide funding to a research center that will work on developing a vaccine against the Zika virus,the Associated Press reports. Brazil is currently experiencing the largest known outbreak of the virus, which has been linked to a recent surge in birth defects, including microcephaly.
In an unusual move, Sarepta Therapeutics filed yet another briefing document in advance of an FDA advisory panel meeting to be held on Friday to review its drug for Duchenne muscular dystrophy. Although the drug maker already submitted its briefing documents, the new nine-page filing was made after the FDA posted a negative review of the drug on the agency web site late last week.
The Indian government is considering a proposal to limit drug price margins to 35 percent, according to The Economic Times. The move is in response to claims that some wholesalers and retail pharmacies are charging excessive prices of as much as 3,000 percent, in some cases. India already caps the price of 680 drugs on its National List of Essential Medicines.
Acorda Therapeutics agreed to pay $363 million to buy Biotie Therapies and gain access to a Parkinson’s drug, The Street reports.
The Harvoni hepatitis C drug made by Gilead Sciences is about to become available in Egypt at a discounted rate, according to The Egypt Independent.
New research from Johns Hopkins University found a compound that could treat symptoms of depression within hours, part of a wave of research into fast-acting antidepressants, STAT writes.
Biogen and Samsung Group won European Commission approval for their biosimilar version of the Enbrel rheumatoid arthritis treatment sold by Amgen, The Boston Globe reports.
The number of prescriptions dispensed in England for medications that are used to treat Alzheimer’s disease has jumped sixfold from a decade ago,Pharma Times writes.
A Philadelphia judge added nearly $800,000 to a $12.5 million verdict that was awarded in a case last month in which Johnson & Johnson failed to properly warn about the risks of its pelvic mesh, The Legal Intelligencer says.

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Johnson & Johnson (JNJ) Stock Up, to Cut Medical Device Jobs

Jan 19, 2016 | The Street

By Kaya Yurieff

NEW YORK (TheStreet) -- Shares of Johnson & Johnson (JNJ - Get Report) are advancing by 1.01% to $97 in pre-market trading on Tuesday, as the company will cut about 3,000 jobs in its medical device unit.
The jobs cuts are part of an effort to eliminate $1 billion in yearly costs in the division that makes sterilization equipment and blood glucose monitoring systems, the Wall Street Journal reports.
The company's medical device sales have dropped by 2.9% in the first nine months of the year and 3.4% in the U.S.
The restructuring shows "the changing needs of the global medical device market," Johnson & Johnson said, the Journal added.
The job cuts represent 2.5% of Johnson & Johnson's workforce around the world and up to 6% of its medical device unit, the Journal noted.
The New Brunswick, NJ-based holding company is engaged in the research and development, manufacture and sale of a range of products in the healthcare field.
Separately, TheStreet Ratings Team has a buy rating with a score of A- on Johnson & Johnson. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that it rates.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. The team believes its strengths outweigh the fact that the company has had sub par growth in net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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Johnson & Johnson Announces Medical Devices Businesses Rightsizing; Will Cut Jobs

Jan 19, 2016 | Street Insider

Johnson & Johnson (NYSE: JNJ) announced restructuring actions in its Medical Devices businesses to better serve the needs of customers and patients in today's evolving healthcare marketplace. The company is undertaking actions to strengthen its go-to-market model, accelerate the pace of innovation, further prioritize key platforms and geographies, and streamline operations while maintaining high quality standards.

The company's Consumer Medical Devices businesses, Vision Care and Diabetes Care, are not impacted by these actions.

"As a market leader, we are committed to leveraging our breadth and scale to shape the future of the medical device industry, for the benefit of those we serve," said Gary Pruden, Worldwide Chairman, Johnson & Johnson Medical Devices. "The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation. These actions recognize the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability for our business."

The actions are expected to result in annualized pre-tax cost savings of $800 million to $1.0 billion, the majority of which is expected to be realized by the end of 2018, including approximately $200 million in 2016. The savings will provide the company with added flexibility and resources to fund investment in new growth opportunities and innovative solutions for customers and patients. In connection with its plans, the company expects to record pre-tax restructuring charges of approximately $2.0 billion to $2.4 billion, which will be treated as special items, of which approximately $600 million will be recorded in the fourth quarter of 2015. The company confirmed the full-year 2015 guidance it provided on October 13, 2015 for sales of $70.0 billion to $71.0 billion and adjusted earnings for the full-year 2015 of $6.15 to $6.20 per share, which excludes special items such as restructuring charges.*

The company estimates that the actions announced today will result in position eliminations of approximately 4 to 6 percent of the Medical Devices segment's global workforce over the next two years, subject to any consultation procedures in countries where required. Additional information regarding today's announcement can be found in the FAQ posted on www.investor.jnj.com/MDFAQ. Further commentary will be provided during the company's fourth quarter earnings conference call scheduled for January 26, 2016.

In conjunction with this announcement, the company will use a new format for the reporting of sales in the Medical Devices segment.

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Stocks Poised for Early Rebound-U.S. Commentary

Jan 19, 2016 | RTT News

With traders getting back to work after the long holiday weekend, Wall Street looks poised for a rebound at the start of Tuesday's session. The futures are pointing to a higher open following the selling spree that closed out last week.

Bargain hunting and strong signs from overseasmarkets are likely to give U.S. shares a boost at the open.
China remains a key focus on Wall Street. New data showed that the country'seconomy expanded at the slowest pace in 25 years, posting growth of to 6.9 percent in 2015. This was the weakest pace since 1990.
With China showing relatively sluggish expansion lately, it is no surprise that the global economy is showing signs of more modest growth as well. The International Monetary Fund slashed the growth forecast for this year and next, as the pickup in global activity is expected to be more gradual than expected earlier.

In corporate news, Bank of America (BAC) reported fourth-quarter net income that rose from last year and topped the amount analysts were predicting. Revenue rose 4 percent.

Morgan Stanley (MS) also reported quarterly results. The Wall Street bank revealed a profit for the fourth-quarter, compared to a loss in the prior year. Last year's results included several significant charges.
Tiffany & Co. (TIF) reported that its worldwide net sales for the two-month holiday period dropped 6 percent compared to last year, dragged down by the strong U.S. dollar and weak tourist spending in a number of markets. The jewelry retailer also cut its fiscal year 2015 net earnings outlook.

Healthcare and consumer products giant Johnson & Johnson (JNJ) said it is restructuring its Medical Devices businesses. The company estimates that the actions to result in position eliminations of about 4 percent to 6 percent of the Medical Devices segment's global workforce over the next two years.
European markets are showing gains in mid-day trading, rebounding from 13-month lows. Germany, France and the U.K. are all up more than 2 percent.

Asian stocks rose across the board on Tuesday. Investors bet that China's GDP figures will put pressure on policymakers to unveil more fiscal and monetary measures.

China's Shanghai Composite index rallied 93.90 points or 3.22 percent to close at 3,007.74 on hopes for new economic stimulus.

Japanese shares swung between gains and losses before finishing higher for the first time in four days. The Nikkei average rose 92.80 points or 0.55 percent to 17,048.37.

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Stocks Up, Opening Surge Eases; NetEase, Tal Education Top IBD 50

Jan 19, 2016 | Investors Business Daily

By Alan Elliott

Stocks Up, Opening Surge Eases; NetEase, Tal Education Top IBD 50
Investors Business Daily
Alan Elliott
1/19/16
http://news.investors.com/investing-stock-market-today/011916-790351-stocks-open-higher-tuesday.htm

Stock futures punched higher, then began trimming gains early Tuesday as overseas markets and oil prices each had a say in early action. The Dow Jones industrial average kept a 0.8% gain, down from its opening 1.1% advance.

The Nasdaq and S&P 500 each showed a 0.7% gain, also off opening highs.
Trade was weak, down 25% on the Nasdaq and 39% lower on the NYSE compared with trade at the same time Friday. Options expirations boosted Friday's volume.

The Q4 GDP report out of China on Monday wasn't as bad as expected, tripping a global market rally and helping lift early trade in the stock market today. Oil prices placed some drag on early action, with West Texas Intermediate reversing an earlier 1% gain to a fractional loss and trading near $29 per barrel. Brent crude traded up more than 2%, but remained a nickel below the WTI price.

In economic news, the National Association of Homebuilders' January Housing Market Index slipped to 60, down from 61 in December and below consensus expectations for an increase to 62. The gauge of builder confidence had averaged 56 in the first half of 2015, hitting a high of 65 in October.

Oil-related stocks crowded the low end of the S&P 500. Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and DuPont (NYSE:DD) were the only three decliners on the Dow.

UnitedHealth (NYSE:UNH) topped the blue chip index, up more than 3% after its fourth-quarter sales and earnings cleared analysts consensus. Full-year 2016 earnings guidance was in line with views, while revenue guidance came in a bit short of estimates. UnitedHealth is below its 10- and 40-week lines of support and 11% below its October high.

Chipmaker Nvidia (NASDAQ:NVDA) led the S&P 500 with a 4% gain.

Johnson & Johnson (NYSE:JNJ) rose more than 1% after announcing it would lay off 4% to 6% of the workforce in its medical product division, part of an effort to trim $800 million to $1 billion in annual costs from the unit by 2018. Management said it would take a $600 million restructuring charge in Q4 and eventually book $2 billion to $2.4 billion in charges. Johnson & Johnson shares are below key levels of support, 7% below a Dec. 16 high.

China-based stocks topped the IBD 50 list.

TAL Education (NYSE:XRS) spiked 5% at the open. The chain of student tutoring centers has pulled back for four straight weeks, ending Friday below its 10-week moving average, but within acceptable range for a possible flat base.

NetEase (NASDAQ:NTES) swept up 4%, clawing its way back toward its 10-week moving average. Shares had corrected 18% in a three-week pullback.

At the bottom of the list, Equity Midstream Partners (NYSE:EQM) slipped more than 2%. The oil pipeline operator has pulled back 19% since failing to retake its 10-week moving average in late December.

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Five Things for Pharma Marketers to Know: Tuesday, January 19, 2016

Jan 19, 2016 | Medical Marketing & Media

1. The threat of the government putting into place controls on drug prices has in the past led drugmakers to moderate those prices. A study found that this occurred in the 1990s when the Clinton administration attempted to reform healthcare. (NYT)

2. Samsung Group said it won approval to market a biosimilar version of rheumatoid arthritis-drug Enbrel in Europe. The company's drug-development arm is also currently preparing for a public listing on the Nasdaq Stock Market. (WSJ)

3. Johnson & Johnson said it will cut 3,000 jobs in its medical-device division over the two next years. The company said the restructuring would affect orthopedics, surgery and cardiovascular businesses, and would not impact consumer medical devices, vision care and the diabetes businesses. (Reuters)

4. A House committee plans to hold a hearing Jan. 26 about Turing Pharmaceuticals' decision to increase the price of its antiparasitic drug, Daraprim, by 5,000%. (Reuters)

5. Five men who participated in a clinical trial for an experimental drug have been hospitalized. A sixth man died. The drug is being tested as a treatment for pain and anxiety, as well as other conditions. Bial, a Portuguese drugmaker, is developing the drug. (AP)

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Johnson & Johnson Plans to Cut Roughly 3,000 Jobs in Medical Devices

Jan 19, 2016 | 24/7 Wall Street

By Chris Lange

Johnson & Johnson (NYSE: JNJ) is looking to save some money over the next few years and as a result it is taking action by restructuring its Medical Devices businesses. Ultimately Johnson & Johnson is undertaking actions to strengthen its go-to-market model, accelerate the pace of innovation, further prioritize key platforms and geographies and streamline operations while maintaining high-quality standards.

The actions are expected to result in annualized pretax cost savings of $800 million to $1 billion, the majority of which is expected to be realized by the end of 2018, including approximately $200 million in 2016.

The company expects to record pretax restructuring charges of approximately $2.0 billion to $2.4 billion, which will be treated as special items, of which approximately $600 million will be recorded in the fourth quarter of 2015.

Johnson & Johnson confirmed the full-year 2015 guidance it provided on October 13, 2015, for sales of $70.0 billion to $71.0 billion and $6.15 to $6.20 in earnings per share (EPS) for the full year, which excludes special items such as restructuring charges. Consensus estimates for the full year call for $6.18 in EPS on $70.13 billion in revenue.

However, in order to realize these cost synergies, the company will have to cut roughly 4% to 6% of the Medical Devices segment’s global workforce over the course of the next two years. This totals roughly 3,000 jobs.

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J&J Axes 3,000 Jobs in Bid to Save $1B and Revive Lagging Medical Devices Business

| Fierce Medical Devices

By Emily Wasserman

Johnson & Johnson's ($JNJ) medical device segment has become something of a red-headed stepchild for the company, with sales for the unit lagging behind its fast-growing pharma business. But the company is rolling out a game plan to get things back on track, with job cuts featuring at the top of its to-do list.

The New Brunswick, NJ-based company is axing approximately 3,000 jobs in its medical devices division in an effort to save up to $1 billion in costs by 2018, J&J said in a statement. The cuts comprise about 2.5% of the company's global workforce and up to 6% of its medical device segment, and will apply to J&J's orthopedics, surgery and cardiovascular businesses. Other medical device units and vision care and diabetes care businesses will not be affected by the move.

J&J's decision responds to the "changing needs of the global medical device market and are designed to deliver more value to customers, increasing out competitive advantage and driving growth and profitability for our business," company spokesman Ernie Knewitz told FierceMedicalDevices in an email. If all goes to plan, the restructuring will save J&J about $200 million in 2016, giving the company "added flexibility and resources to fund investment in new growth opportunities and innovative solutions for customers and patients," J&J said.

J&J has big plans for the year ahead after stumbling a bit with its devices business last year. Sales for medical devices dropped 2.9% during the first 9 months of 2015 and 3.4% in the U.S.

But J&J is working hard to turn those numbers around, rolling out new offerings to jumpstart its diabetes device businesses and concentrating on recent launches for its spine and trauma businesses. As of July, the company had already submitted more than half of the 30 major device regulatory filings that it promised to accomplish by the end of 2016.

J&J is also relying on recent collaborations to give its medical device business a much-needed boost. In March, the company said it would team up with Verily, née Google ($GOOG), to develop new robotic-assisted surgical platforms. In November, the company unveiled the first major blood glucose monitor to support the Apple HealthKit, which could potentially give it a boost in diabetes.

The company is staying more reserved on the M&A front, with CEO Alex Gorsky at the recent J.P. Morgan Healthcare Conference emphasizing innovation over dealmaking. But with $37.3 billion in cash in tow and cost-cutting measures underway, the company could be poised for its next big deal, some analysts say.

J&J is "an active acquirer with a focus likely heavily weighted toward its lagging medical devices business" and "It's clear to us that it's a matter of when, not if" the company embarks on a deal, Leerink analysts Danielle Antalffy and Puneet Souda said in a note to clients. If/when J&J does decide to strike a deal, cardiovascular devicemakers including those with transcatheter aortic valves or mitral valve offerings could be a target, the analysts said.

J&J was up 1.1% to $98.11 in premarket trading before the cuts were announced.

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J&J to cut 3,000 jobs in major shakeup—is it a prelude to an acquisition?

Jan 19, 2016 | Healthcare Drive

By Sy Mukherjee

Dive Brief:
·        Johnson & Johnson announced on Monday that it would be culling 3,000 jobs, or between 4% and 6% of the global workforce in its medical devices division, over the next two years in a major restructuring effort, according to an SEC filing.
·        The company believes that it will achieve somewhere between $800 million and $1 billion in pre-tax cost savings as a result of the restructuring, about $200 million of which is expected to be realized this year and the majority of which should register by the end of 2018.
·        J&J will also also expects to add between $2 billion and $2.4 billion in pre-tax restructuring charges to its books within the next two years, according to the filing. The layoffs will stem from the company's cardiovascular, orthopedics, and surgery device units (leaving the diabetes, diagnostics, and vision care units intact).

Dive Insight:
Medical devices make up a huge share of Johnson & Johnson's global business, so these job cuts are a big deal for the firm. A little less than half of the company's total worldwide workforce is in its medical devices unit, meaning the layoffs will amount to a 2-3% overall reduction in global jobs.

As Reuters notes, J&J is already sitting on quite a bit of cash, and these cuts will (over the long term) add to that haul. That has some analysts speculating that the U.S. pharma giant is still in the hunt for an acquisition, potentially to beef up the very medical devices division that it will be trimming over the next several years.

Johnson & Johnson has had to face a prominent controversy involving its now-defunct Prosima pelvic mesh product. At the end of 2015, a Philadelphia jury awarded a woman a $12.5 million judgment in her suit against the company and its device, which faces many other ongoing suits. J&J won its first trial centering on the product last fall.

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J&J to Cut up to 3,000 Jobs from Medical Device Biz

Jan 19, 2016 | Mass Device

By Brad Perriello

Johnson & Johnson (NYSE:JNJ) said today that it plans to cut as many as 3,000 jobs from its medical device business, the world’s largest medtech operation.

New Brunswick, N.J.-based J&J said the restructuring of its medical device segment means layoffs for about 2.5% of its 270,000 workforce, or 4% to 6% of its 60,000-worker medtech headcount. The company said its consumer medical device, vision care and diabetes businesses are not affected.

“As a market leader, we are committed to leveraging our breadth and scale to shape the future of the medical device industry, for the benefit of those we serve,” medical devices chairman Gary Pruden said in prepared remarks. “The bold steps we are taking today are to evolve our offerings, structure and footprint and increase our investment in innovation. These actions recognize the changing needs of the global medical device market and will deliver more value to customers, increasing our competitive advantage and driving growth and profitability for our business.”

The moves include changes to the way Johnson & Johnson reports sales for the medical device business. Starting with the company’s 4th-quarter earnings release scheduled for Jan. 26, the cardiovascular care business will be listed as cardiovascular. J&J’s orthopedics arm will report sales for hips, knees, trauma and spine & other, while the erstwhile surgical care & specialty surgery/other segment will become surgery. Within the surgery segment, the reporting units will be endocutter & adhesion prevention, energy & biosurgery, general and specialty, the company said.

Johnson & Johnson said the moves are expected to deliver annual pre-tax savings of $800 million to $1 billion, largely by the end of 2018, with $200 million saved this year. The move is slated to put a $2 billion to $2.4 billion pre-tax hit on the balance sheet, the company said, including $600 million during the 4th quarter of 2015.

J&J re-affirmed its full-year 2015 guidance for adjusted earnings per share of $6.15 to $6.20, on sales of $70 billion to $71 billion, in line with expectations on Wall Street.

Leerink Partners analysts wrote this morning that the move means merger & acquisitions are more likely than ever for J&J, with an emphasis on the hot transcatheter valve replacement space.

“With ~$37B in cash and ~$17.5B in net cash on the books as of the end of 3Q15, we continue to believe JNJ is an active acquirer with a focus likely heavily weighted toward it’s lagging Medical Devices business. Following our meetings with management in mid-2015, it’s clear to us that it’s a matter of when, not if, JNJ does a deal,” Danielle Antallfy and Puneet Souda wrote in a note to investors. “From a size perspective, management noted that historically only 10 deals in the last 10 years have exceeded $1B. However, management also noted that credit rating is not a limiting factor, and JNJ does have the ability to borrow with management noting they would if the opportunity was ripe. Within [medical devices & diagnostics], management noted that structural heart is of particular interest within cardiovascular, while management is also looking to augment areas within biosurgical, energy, and endomechanical. If JNJ were to play in cardiology in a bigger way going forward, management noted the focus would be on the innovation segment and not the value segment, highlighting structural heart – and valves in particular – as well as vision surgery as areas of great interest, while stents and CRM (cardiac rhythm management) are not attractive markets to JNJ. Within our coverage universe, any transcatheter aortic valve and/or mitral valve company strikes us as a potentially reasonable candidate.”

JNJ shares rose about 1% to $98.25 apiece in premarket trading.

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Morning Read: Johnson & Johnson to Cut Medical Devices Workforce, Saving Up To $1 Billion

Jan 19, 2016 | MedCity News

By Chris Seper

TOP STORIES

Johnson & Johnson announced this morning it will cut up to 6 percent of its global medical devices workforce over the next two years (about 3,000 workers), saving up to $1 billion by 2018. The job cuts are focused exclusives on JNJ’s orthopedics, cardiovascular and surgery segments. Pharmaceutical and consumer medical devices will be untouched. There is not much on this – yet – but Johnson & Johnson also promised more in-depth details during its earnings conference in a week. – MarketWatch, PRNewswire, JNJ FAQ, Reuters

LIFE SCIENCES

Here’s a nice summary of all the moves cancer biotech Ariad Pharmaceuticals is making to get ready to sell. –Boston Business Journal

Ireland’s HiberGene Diagnostics, which focuses on infectious disease testing through molecular technology, has raised $1.6 million toward a nearly $4 million Series B. – Business Wire

The University College of London has rolled out a more than $70 million fund to support commercialization in the life sciences and other sectors. – PharmaTimes

DRP Biomedical is now HemaFlo Therapeutics to correspond with its focus on ischemia treatments. – PR Newswire

PAYERS-PROVIDERS

Here’s a deeper look at Medscape’s latest lifestyle report, which found 40 percent of doctors have biases toward certain groups of patients (in particular obese, mentally unstable or poor English-speakers). As it says lower in the article, this is probably low. – CNN

Direct-to-consumer laboratory testing was up to $33.1 million in 2015 – four times more than it was in 2010 (I thought it would have been more). – PR Newswrire

TECHNOLOGY

Bingo! “The problem with virtual reality in healthcare is that none of the virtual reality companies are going to focus any of their effort on healthcare.” – EMR & HIPAA

HealthGrid will deploy its patient engagement platform on to Microsoft Azure. – PR Newswire

British remote care company Babylon raised $25 million to an artificial intelligence system that helps users navigate their symptoms and monitor medication adherence. – MobiHealthNews

Will the CHILLED method provide a simple path for health system Internet security? – Physicians Practice

POLITICS

Prediction: This will be copied in the United States very quickly: there is now a 20 percent tax in all National Health Service cafes on sugary drinks. – BBC

This is not a surprise, really. When politicians talks of regulating industries, like pharma, the companies themselves move first hoping to avoid the government from stepping in. If Hillary Clinton wins and gets that Congress she wants, I don’t think that will work. – The New York Times

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J&J to lay off 3,000 as it restructures medical-device businesses

Jan 19, 2016 | ModernHealthcare.com

By Adam Rubenfire

Medical manufacturing giant Johnson & Johnson has announced plans to restructure its medical-device businesses after several quarters of declining sales.

Over the next two years, the New Brunswick, N.J.-based company will lay off about 4% to 6% of workers worldwide in its medical-device segment, or about 3,000 people. Restructuring is expected to save the company between $800 million and $1 billion before taxes, the majority of which is expected to be realized by the end of 2018.

The total cost of restructuring is estimated between $2 billion and $2.4 billion before taxes. Johnson & Johnson says it will use the money to fund investments in “new growth opportunities” and new products in the businesses, which include orthopedics, surgery and cardiovascular.

Johnson & Johnson faces ongoing pressure in the three device specialties. Dublin-based Medtronic acquired a heart-valve startup in August to expand its cardiovascular offerings and hospitals are increasingly pushing orthopedic-device makers to cut their prices, especially costs relating to sales technicians.

Like many other companies, unfavorable exchange rates have cut into Johnson and Johnson's sales figures in the past fiscal year. Currency has battered the company's international medical-device sales, which otherwise are just slightly positive on an operational basis.

Global medical-device sales were down 7.3% at $6.1 billion in the third quarter ended Sept. 27, while nine-month sales were down 10.4% at $18.7 billion. International sales during the quarter were down 14.8%, offset by a 2% gain in U.S. quarterly sales, while year-to-date sales declined in both segments. International numbers took the biggest hit.

The company's other two segments, pharmaceuticals and consumer products, have also seen declines, mostly due to currency. Third-quarter sales were $17.1 billion, down 7.4%, while quarterly earnings were down 29.3% at $3.4 billion. Nine-month sales were down 6.8% at $52.3 billion, while earnings were down 11.7% at $12.2 billion.

Johnson & Johnson said the moves will help “strengthen its go-to-market model, accelerate the pace of innovation, further prioritize key platforms and geographies and streamline operations while maintaining high quality standards." The changes do not affect the company's consumer medical-device businesses, which include vision care and diabetes care.

The manufacturer reaffirmed its previous full-year 2015 guidance that it provided in the third quarter of $70 billion to $71 billion in sales and adjusted full-year earnings of $6.15 to $6.20 per share, excluding special items like the restructuring charges. Johnson & Johnson is scheduled to report its fourth-quarter and full-year earnings on Jan. 26.

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Leerink Partners Raises Price Target on Johnson & Johnson (JNJ) Following 4Q Earnings

Jan 27, 2016 | Street Insider

Leerink Partners reiterated an Outperform rating on Johnson & Johnson (NYSE: JNJ), and raised the price target to $120.00 (from $115.00), following the company's 4Q earnings report. JNJ's 2015 EPS benefitted meaningfully from higher other income tied to divestitures. 2016 EPS estimate moves to $6.50 (+5%) from $6.40 previously, with better operating leverage and lower share count through buybacks offsetting ramping FX headwinds.
Analyst Danielle Antalffy commented, "For JNJ, 2015 EPS benefitted meaningfully from higher other income tied to divestitures, including the October sale of Cordis. But this incremental income was largely reinvested in the business, driving negative operating leverage as JNJ discretionarily ramped investment in both internal and externally partnered R&D programs which should set the stage for the company to drive steady sales growth acceleration back toward the mid-single-digit range and more in line with the company’s goal to grow at or above the broader healthcare markets. Now in 2016, with incremental investments in future growth drivers already made in 2015, JNJ is well-positioned to drive more meaningful positive operating leverage – the company is currently guiding to 200+ bps y/y. In Medical Devices specifically, 4Q15 saw positive sales growth trends that are likely to continue to improve in 2016 and beyond as that business returns to atmarket growth in the mid-single-digit range on the back of new product launches and the anniversary of recent divestitures that should help offset well-vetted headwinds across other businesses longer term."
For an analyst ratings summary and ratings history on Johnson & Johnson click here. For more ratings news on Johnson & Johnson click here.
Shares of Johnson & Johnson closed at $101.18 yesterday.

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CC – J&J 4Q15

Jan 27, 2016 | Close Concerns

By Kelly L. Close

Greetings from San Francisco, where 4Q15 earnings season is officially underway! Our missive is headlined by our coverage of J&J financial update (Invokana sales $372 million, up 85% YOY; LifeScan/Animas down 2% operationally) - BTW, we were thrilled to see that some of you that have our new Closer Look app opened this report at 2 PM PST : > – and news that Novo Nordisk has launched Tresiba (insulin degludec) in the US and has secured Lowest Brand Co-pay status on the CVS national formulary.
...
1. J&J 4Q15 - SGLT-2 Invokana sales of $372 million in 4Q15, $1.3 billion in 2015; Slight TRx gains despite EMPA-REG results; LifeScan/Animas sales down 2% operationally; No commentary on Vibe/Calibra/AP - We’re back with our full coverage of J&J’s 4Q15 update from this morning. Invokana (canagliflozin) and Invokamet (canagliflozin/metformin) posted sales of $372 million in 4Q15 and $1.3 billion in 2015. Quarterly sales were up 85% year over year (YOY) as reported (87% in constant currencies) and 9% sequentially; full-year sales more than doubled from approximately $500-$600 million in 2014. TRx for Invokana in the US type 2 diabetes market (excluding insulin and metformin) was 6.5%, up slightly from 6.3% in 3Q15. TRx among US endocrinologists fell to 12.8% from 13.1% in 3Q15, while TRx among primary care physicians rose from 5.6% to 5.8%. The positive EMPA-REG OUTCOME results for Lilly/BI’s Jardiance (empagliflozin) do not appear to have had a major impact on Invokana’s prescription share thus far, and management expressed confidence during Q&A that the results will be viewed primarily as an SGLT-2 inhibitor class effect. Other highlights on the drug side included a brief mention of Janssen’s early-stage diabetes and obesity efforts during prepared remarks and more big-picture discussion of drug pricing during Q&A. There were some platitudes: “All of us know that the healthcare system, not only here in the United States but around the world, is complex … we want to be part of the solution.” On the medical device side, we continue to find global LifeScan/Animas results disappointing – sales for the quarter totaled $480 million, declining 7% as reported and 2% operationally YOY while sales for the full year ($1.9 billion) marked the lowest total since 2004 ($1.8 billion). The international business was particularly hard hit (down 10% in 4Q and 14% in FY15) though the segment did see 5% (4Q) and 1% (FY) operational growth that reflects major negative currency headwinds. Management did not share any updates on the pipeline front whatsoever – quite disappointing! As a reminder, guidance in 2Q15 called for a launch of J&J’s Calibra Finesse bolus-only insulin delivery patch device in 2016 and we hope to here an update on the team’s artificial pancreas project next week at ATTD 2016. For more on J&J’s 4Q15, see our full report.

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Johnson & Johnson: Like Clockwork

| Seeking Alpha

Summary
I have covered the power of the dividend from JNJ long term and feel it is one of the most reliable stocks you can own.
Q4 earnings are out and I discuss the key metrics and what they mean.
Currency is an issue but the company is pumping money into R&D and making moves allowing it to grow earnings at a strong clip.
The bottom line is this is a dividend growth machine and you can bet the dividend is going up in 2016 taking into account guidance.
Johnson & Johnson (NYSE:JNJ) is one of the best-known companies on Earth and one that I have been bullish on long term as a dividend growth name. This is because the chances are you have at least one of its products in your home, and the company continues to grow earnings. As a stock, I feel I can never go wrong recommending it. It just continues to chug along, paying its sizable and consistently growing dividend. It is one of the most reliable companies I have ever come across. Look the name is not a get rich quick biotech, or a super growth name. It is a slow growing, dividend growth play. There are many names you could argue offer 'better' growth, but may trade with more beta. But this company has infiltrated our lives in many ways. Simply put, its products are everywhere.
Back in 2015, I penned a piece describing why I loved this stock as a dividend growth company. I invite you to review the power of the company's dividend. It is the reason to own this name. If you have reviewed the above link, you have an understanding of the company structure and why it is a long-term powerhouse. This is the reality and that is why I got behind it. It is a stable, slow growing, reliable play. For those on the sidelines, you have to pick your spots. I actually think with the stock back under $100, we may have a potential level to add to holdings here. To ensure this is correct, we look for two things. First, general market weakness, and second, we take into account the company's recent performance highlights. I want to address the latter in this article.
Johnson & Johnson just reported Q4 results. The company's most recent quarter saw sales of $17.81 billion. While this sounds like a lot, I was surprised to see that these sales are down 2.4% year over year. It also missed estimates slightly by $70 million. This is the reality, so bottom line is that sales are declining, aren't they? When we break this out, we start to see clarity on this issue. Like many other domestic US companies, the changes in currency year over year are wreaking havoc on the absolute numbers. That fact is that businesses with a lot of international business are hurting from the stronger dollar. Operational sales results increased 4.4% and the negative impact of currency was 6.8%.
On an absolute basis, domestic sales increased 8.0%, while international sales decreased 11.7%. What the heck is going on here? Well, this drop in international sales reflects actual operational growth of 1.2% but a negative currency impact of 12.9%. Johnson & Johnson is perhaps one of the hardest hit companies by negative currency impacts I have seen thus far early in this earnings season. But the company itself continues to chug along. On an operational basis, worldwide sales decreased 5.7%, domestic sales increased 2.6% and international sales decreased 13.1%. This excludes the impacts of acquisitions and sales over the last year.
Taking into account the company's operational expenses and sales data, the company saw net earnings come in at $3.2 billion. Taking into account shares outstanding, this translates to net earnings per share of $1.15. After taking into account special items, adjusted net earnings were $4.0 billion and adjusted earnings per share were $1.44. The adjusted earnings per share actually declined year over year 7.5%. On an operational basis, adjusted diluted earnings per share increased 5.1%. The $1.44 in adjusted earnings represented a year-over-year increase and this beat analyst estimates by $0.02. The company continues to deliver. It is easily covering its dividend. It also is focused on its long-term growth. Alex Gorsky, chairman and CEO, said:
"Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our Pharmaceutical business and iconic Consumer brands. As we enter 2016, our core business is very healthy, and the recent decisive actions we've taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in. I want to thank all of our colleagues for contributing to these results through their commitment and dedication to the people around the world who rely on our products."
I am pleased with these results, but it doesn't matter where the company has been, it matters where it is going. The company announced its 2016 full-year guidance for sales of $70.8 billion to $71.5 billion. This, of course, reflects expected operational growth in the range of 2.5% to 3.5% and operational sales growth is expected to be in the range of 4.5% to 6.0%. Factoring in expected expenditures, adjusted earnings guidance for full-year 2016 is $6.43 to $6.58 per share reflecting expected operational growth in the range of 5.3% to 7.7%. That is strong.
What we need to be most concerned with is the company's pipeline. I've heard in numerous comments on my work that this is one of the key issues. There is some truth to that, but the company continues to push forward with ongoing trials and products in all phases of development. While core products account for a large portion of revenue, future revenues will come from innovation. The company is continuing to invest heavily in R&D. Couple this with a dividend yield that is still high at 3.1%, and this is a stock I feel very comfortable recommending here at $97 per share based on the valuation, the pipeline work and of course its yield. The dividend goes up like clockwork, most recently being raised to $0.75 quarterly, or $3.00 a year. It's a stock that everyone should consider because it is just that reliable.

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J&J CEO: Patients have higher expectations

Jan 27, 2016 | Medical Marketing & Media

Johnson and Johnson CEO Alex Gorsky told investors that the healthcare industry's investment in value-added services, like patient support programs, remains in “early innings.”
His remarks, made during the company's year-end earnings call on Tuesday, signal an increased willingness from the drug and device giant to supplement its product portfolio with more services and partnerships.
Gorsky affirmed J&J's role in implementing value-added services in response to a question from an analyst.
“Overall, we feel that we're still in the very early innings of what I'd call is the market evolution,” Gorsky said. “The patient is weighing in much heavier in these decisions, as they take on higher co-pays, as they can get more information that's available online.
“Frankly, they have just higher expectations about their ability to participate in the healthcare decision-making process,” he added.
The pharma industry has increasingly looked toward “beyond the pill” services as a way to satiate demand for outcomes-oriented care, spurred by the Affordable Care Act, the empowerment of consumers through online resources, newly cost-conscious patients who are concerned about the higher rates of cost-sharing they face and pressure on drug pricing from pharmacy benefit managers.
DePuy Synthes, J&J's orthopaedic and neurosurgery devices arm, in November launched a comprehensive outpatient solutions program with the goal of improving patient outcomes in joint replacement.
The support program—dubbed Depuy Synthes Advantage—includes a suite of educational services to impart best practices for providers on how to facilitate faster recovery times and better outcomes.
It also includes a subscription-based software service known as CareSense, which is aimed at allowing providers to more easily collect data on patient outcomes, patient satisfaction and the costs of care in outpatient services.
Hospital systems want to know how they can create better outcome-oriented partnerships with pharma companies, Gorsky said.
“What we see is an evolution more towards a business-to-business relationship, where customers want to see innovation,” he said. “[Those businesses want to know:] how can we work together as part of a broader partnership that ultimately is focusing not just on a product sell, but actually on an outcome, on an episode of care for the patient. We are seeing those organizations becoming more and more interested. And that's why we're adapting to make sure that we're part of that.”
Johnson & Johnson's medical device business reported sales of $25.1 billion for 2015—a decrease of 8.7% from 2014. J&J announced last week that it will cut 3,000 jobs in the same business unit over the next two years.

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Johnson & Johnson (JNJ) Stock Pops Upon Strong Profits

Jan 27, 2016 | Bidness Etc

Johnson & Johnson (NYSE:JNJ) stocks surged around 4.5% during midday trade yesterday, as the company announced a significant 28% increase in profits for the fourth quarter of 2015, beating analysts’ consensus. The company managed to report higher fourth-quarter profit despite sales being affected by strong dollar during the quarter.
"We're pleased with the results," the Chairman and CEO Alex Gorsky told analysts during the earnings conference call. "We're optimistic about the opportunities in health care and the strength of our business."
Johnson & Johnson’s net earnings increased to $3.2 billion, which translates to earnings of $1.15 per share for the fourth quarter — a major jump from the earnings of $2.52 billion or 89 cents per share reported in the same quarter last year. Earnings after adjustments stood at $1.44 per share, which beat analysts’ estimates of $1.42 per share, as reported by the company.
Although J&J reported impressive profits, its sales figures turned out to be disappointing. Sales dropped 2.4% to $17.81 billion from $18.25 billion. According to analysts’ consensus compiled by Thomson Reuters, the company was expected to report revenue of $17.88.
“Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our pharmaceutical business and iconic brands,” Mr. Gorsky, said in a statement. “As we enter 2016, our core business is very healthy, and the recent decisive actions we’ve taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in.”
The negative impact of strong dollar was partly set off by the sale of Cordis heart devices unit in October. The company reported a $1.21 billion gain due to the divesture, which was part of its restructuring plan. Cordis unit accounted for approximately 25% of device sales. The sales of medical devices and diagnostic equipment fell 3.3% to $6.43 billion in the quarter.
The consumer products unit, which faced a severe blow in 2009 due to a dozen recalls, finally seems to be on the path to recovery, according to a company statement. Sales of consumer health products fell to $3.32 billion in the fourth quarter — an almost 8% decline compared to same period last year.
The prescription drugs unit recorded its best performance in the quarter, being the only segment which reported higher sales. Sales from the unit saw a minute 0.8% increase to $8.06 billion. The increase was mainly driven by impressive sales of Remicade, Stelara ad Xarelto.
"It was a decent quarter, with the bad news in devices offset by good news in drug sales and the announced cuts in the devices businesses," noted Erik Gordon, a professor and pharmaceuticals analyst at University of Michigan's Ross School of Business. "All eyes will be on the pharma business and whether the big sellers can show consistent sales increases."
For full year 2015, the company reported a 5.6% drop in net income to $15.41 billion, or $5.48 per share. Revenue for 2015 fell 5.7% to $20.07 billion.

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Television Coverage

Varney & Company Clip

| Fox Business News

View clip here: http://app.criticalmention.com/app/#clip/view/19584967?token=6a2ea5e7-3e1b-49ed-9f5d-5a6700445449

Rough transcript: let's look at shares of johnson & johnson cutting thousands of jo jobs. >> they're off loading their medical device building. the question for them is the obamacare tax on that, the 9:36 AMcompany said this good morning, it will have 2 billion to 2.4 billion in connection with the plans and 3000 jobs eliminated. ashley: that's a lot. what does is -- it say about the economy? we keep hearing the recession world and i even heard the deflationary word the other day. what's your take on the economy right now? >> i don't think the middle class ever came out of recession. i think you're seeing a lot of struggling and i think the bragging of the big job growth that we continue to hear, but here we are, allow 3000 workers at johnson & johnson and i guarantee they make more than minimum wage. you've got oil services laying off jobs and i see middle class never left recession. the rich got richer and entitled stayed entitled. without the middle class, we'll never get it going forward until we can get them going forward. the middle class, without them it's the same struggle, the same house of cards that we're building right now, it's a challenging time right now. >> quickly, mike, i want your thoughts on that. the disappearing middle class, what does it say about our economy overall. >> i think the economy is better than what todd or other people are giving it credit for, but i think you can look at the current administration. when you tax companies, ashley, you put on extra tax. people running johnson & johnson, they know how to make profits. they've been doing it a long time and they have to cut cost because the administration raises taxes on them. ashley: the regulations on-- >> i think that the regulations-- >> that doesn't help the economy. ashley: go ahead, sir? >> that doesn't help the economy, that's the point. with all the garbage that's going on, we can't keep people working at reasonably well-paying jobs. that's why we don't have the spending going on. that's the problem. ashley: they are linked together. >> for sure and we have an election coming up

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Mornings With Maria Bartiromo Clip

| Fox Business News

View clip here: http://app.criticalmention.com/app/#clip/view/19590159?token=6a2ea5e7-3e1b-49ed-9f5d-5a6700445449
Rough Transcript:
Johnson & Johnson out moments ago announcing a cut of up to 6% of its work force in its medical devices division.

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Squawk Box Clip

| CNBC

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Rough Transcript:
Welcome back to "squawk box on cnbc, first in business worldwide. among the stories front and center this morning, johnson and johnson restructuring medical device division, cutting the work force by 4-6% in two years.

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Bloomberg GO clip

| Bloomberg TV

View clip here: http://app.criticalmention.com/app/#clip/view/19590218?token=6a2ea5e7-3e1b-49ed-9f5d-5a6700445449

Rough transcript:
Johnson and johnson came out with a chop cut announcements. 4%-6% job cuts. it will cost $2.4 billion in pretax charges. so they are coming out with interesting news.

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Mad Money Clip

| CNBC

By Jim Cramer

View clip here: http://app.criticalmention.com/app/#clip/view/19931602?token=cbd68d43-9da2-43d1-b10e-6d10ad939262

Rough Transcript: it. today the market rethinks. gained back half its losses. two more surprises, they were beauties, 3m and j & j, growth criticized of late, last quarter brought out sellers in both. one quarter does not a stock make, but you have to be impressed with how much better they are doing than we thought. that's the operation, than we thought. given how beaten both stocks were, no wonder they zoomed ahead $7.21

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Nightly Business Report Clip

Jan 27, 2016 | PBS

View clip here: http://app.criticalmention.com/app/#clip/view/19935961?token=ec73fed9-bdef-4ade-a4b7-ff2116edb453

Rough Transcript: attractive. it's a market we're very focused continuing the grow and profit in. >> higher sales helped p and g offset the effects of the stronger u.s. dollar which lowers profit margins on sales outside the united states. johnson and johnson was not as fortunate blaming currency issues for a drop in sales though it expects the issues to abate later this year. >> currency impacts. the sales were roughly about 7, 7.5%. for next year we're modelling that to be about 1.5%. we'll have to see where currency land, but that's our expectation for 2017. >> last week j and j announced 3,000 job cuts this medical devices, which was its biggest business. But now pharmaceutical sales are its biggest, and sales in that division were strong.

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Time Warner Cable News All Night Clip

| Time Warner Cable

View clip here: http://app.criticalmention.com/app/#report/view?1193136/token/ec73fed9-bdef-4ade-a4b7-ff2116edb453

Rough Transcript: points. nasdaq rose 49. s&p 500 gained 26. in the earnings line up, johnson and johnson isout with its quarterly report card. j&j sayprofit surged 28 percent to $3-point-2 billion dollars. that was better than expected. revenue declined, but that reflected theimpact of a stronger dollar.the company finally has nearly all of its products back on store shelves after being bruised by a troubling string of recalls dating back to 2009.

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