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| Table of Contents |
| Intro and Overview |
| Introduction |
| Business Overview |
| Trends and Forces |
| Key Trends and Forces |
| Competition |
Competition Among Major Drug ManufacturersJohnson & Johnson's major competitors include Pfizer, Merck, and Novartis. In the medical devices space, its competitors include Medtronic (MDT) and Boston Scientific (BSX). In the orthapedic implants segment, it competes with Zimmer Holdings (ZMH) and Stryker (SYK).
Competition in the health care industry lies mostly in specific markets. For example, a new diabetes drug is not going to have any effect on an existing cholesterol drug, no matter how successful it is. This concept is especially true in the case of Johnson & Johnson, which due to its diverse product offerings in multiple segments of the industry, simultaneously competes in hundreds of distinct markets. With this in mind, success in this competitive environment requires substantial investments in research and sales.
Note that Eli Lilly's net income is negative largely due to its acquisition of ImClone for $6.5 billion in October of 2008.[1]
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Revenue (in billions of USD) |
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Total Revenue |
$63.75 |
$48.30 |
$42.58 |
$29.53 |
$23.85 |
$20.60 |
$20.38 |
$15.00 |
$4.40 |
$31.60 |
$45.62 |
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Gross Profit |
$45.24 |
$40.18 |
$30.02 |
$16.92 |
$18.27 |
$14.20 |
$16.00 |
$12.71 |
$3.58 |
$25.41 |
$31.96 |
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Revenue Growth from 2007 |
4.34% |
0.00% |
9.34% |
13.94% |
(-1.44%) |
13.21% |
9.41% |
1.55% |
11.81% |
6.90% |
(-0.01%) |
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Income |
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Net Income |
$12.95 |
$8.10 |
$8.20 |
$4.88 |
$7.81 |
$4.15 |
(-$2.07) |
$4.20 |
$0.58 |
$6.10 |
$8.97 |
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Net Profit Margin |
20.3% |
16.8% |
19.2% |
16.5% |
32.7% |
20.2% |
NA |
28.0% |
13.2% |
19.3% |
19.7% |
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Operating Income |
$16.93 |
$9.69 |
$8.80 |
$5.69 |
$9.81 |
$5.47 |
(-$1.31) |
$5.21 |
$0.80 |
-$9.14 |
$13.76 |
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Earnings Per Share (EPS) |
$4.63 |
$2.03 |
$3.58 |
$3.10 |
$4.02 |
$1.87 |
$3.70 |
$4.19 |
$2.06 |
$4.63 |
$10.23 |
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Other |
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R&D Spending |
7.58 |
7.95 |
7.22 |
2.69 |
4.81 |
3.59 |
3.84 |
3.03 |
0.80 |
5.01 |
8.85 |
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References
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