Alex Gorsky, chairman and chief executive officer; Jorge Mesquita, executive vice president, worldwide chairman, consumer; Paul Stoffels, MD, executive vice president, chief scientific officer.
Johnson’s, Listerine, Aveeno, Clean & Clear, Dabao, Johnson’s Adult, Le Petite Marseillais, Neutrogena, Exuviance, Roc, OGX, FX, PROGANIX.
Neostrata ProSystem Retinol Peel, Exuviance Body Tone Firming Concentrate, Exuviance Retexturing Treatment, Neutrogena HydroBoost line expansion.
Anchored by its primary medical devices and pharmaceutical businesses, which make up about two-thirds of the company’s annual sales, Johnson & Johnson has continued to invest in consumer brands, most notably Vogue International (purchased for $3.3 billion) and Neostrata (the terms of this deal were not disclosed).
The company’s beauty franchise sales increased 7.3% compared to the prior year to $3.9 billion. This figure included a 9.4% operational growth and a negative currency impact of 2.1%. The operational growth was primarily due to sales from the recent acquisitions of Vogue International LLC, which contributed approximately 4.6%, and NeoStrata Company, Inc., as well as sales growth of Neutrogena, Aveeno adult products and Dabao products.
Citing competitive pressure, J&J’s baby care franchise sales fell 7.2% compared to the prior year, to $2 billion in 2016. The company also said the dip was partially offset by sales growth of Aveeno baby products.
2017 News of Note
In February, J&J Innovation LLC (JJIL) announced its investment in S-Biomedic, which developed a method to modulate the skin microbiome that is attractive for applications in the dermatological and skincare for conditions including acne, eczema, rosacea and aging.
The company is also dealing with the lingering effect of ongoing litigation pertaining to its Johnson’s brand baby powder. In March, a jury rejected a lawsuit in which the plaintiff claimed Johnson & Johnson baby power contributed to her ovarian cancer. This victory for J&J followed three similar lawsuits in St. Louis in which juries awarded a total of $197 million to plaintiffs who had made similar claims. At the time of the annual report’s printing, there were 3,100 plaintiffs with pending product liability claims and lawsuits.
According to CEO Alex Gorsky, the company’s short-term priority in its consumer stable of brands is to jump start the growth from recent acquisitions in its Beauty franchise, including Vogue International with OGX and PROGANIX hair care brands.