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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 Manufacturers
Johnson & 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.
The table below displays competitive operating metrics for competitors within the pharmaceutical industry. Note that the total revenue for Merck and Pfizer was influenced by revenue inherited from their acquisitions of Schering-Plough and Wyeth, respectively. In addition, net income for Merck was bolstered by $3.2 billion from the sale of its animal division [1], while Bristol-Meyers Squibb's net income saw a one-time $7.2 billion increase from the sale of its nutrition division.[2]
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Revenue (in billions of USD) |
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Total Revenue |
$61.9 |
$50.0 |
$44.3 |
$30.8 |
$27.4 |
$18.8 |
$21.8 |
$14.6 |
$7.0 |
$32.8 |
$49.1 |
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Gross Profit |
$43.5 |
$41.1 |
$32.1 |
$17.6 |
$18.4 |
$13.7 |
$17.6 |
$12.6 |
$5.4 |
$27.2 |
$34.4 |
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Revenue Growth from 2008 |
-2.9% |
3.5% |
4.0% |
4.2% |
15.0% |
6.2% |
7.2% |
-2.4% |
31.4% |
3.8% |
7.5% |
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Income |
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Net Income |
$12.3 |
$8.6 |
$8.4 |
$5.8 |
$12.9 |
$10.6 |
$4.3 |
$4.6 |
$2.6 |
$7.5 |
$7.8 |
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Net Profit Margin |
19.8% |
17.3% |
19.0% |
18.7% |
47.0% |
56.4% |
19.8 |
31.5% |
37.6% |
22.9% |
15.9% |
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Operating Income |
$15.8 |
$10.8 |
$10.0 |
$6.2 |
$15.3 |
$5.6 |
$5.4 |
$5.5 |
$3.5 |
-$11.5 |
$11.9 |
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Diluted EPS Growth from 2008 |
-3.7% |
2.5% |
3.7% |
21.8% |
55.6% |
20.7% |
NA |
19.6% |
36.9% |
23.6% |
-11.8% |
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Other |
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R&D Spending |
$7.0 |
$7.8 |
$7.5 |
$2.7 |
$5.9 |
$5.1 |
$4.3 |
$2.9 |
$0.9 |
$4.4 |
$9.9 |
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References
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