7. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders In Q2 2024: 80
Johnson & Johnson (NYSE:JNJ) has been in the business of healthcare and personal well being for more than a century now. This has enabled it to establish global dominance by being the biggest pharma company in the world by revenue. Johnson & Johnson (NYSE:JNJ)’s trailing twelve month revenue as of Q2 2024 is $86.5 billion, and its heft is also evident through cash and equivalents of $21.8 billion. However, the pharmaceutical industry is one of the riskiest in the world because of health risks, and in the case of Johnson & Johnson (NYSE:JNJ), this fact has meant that the shares are up by a modest 2.76% year to date. The share price has been depressed because of the firm’s cancerous talcum powder which has seen it agree to pay $700 million in settlements. The stock has seen some headwinds clear up since August after Johnson & Johnson (NYSE:JNJ) made progress in making a subsidiary declare bankruptcy to deal with a stunning $6.4 billion in lawsuits. In September, the stock dropped by 1.78% after a media report claimed that Johnson & Johnson (NYSE:JNJ) had added $1.1 billion to its settlement which should led to payouts exceeding $9 billion paid over 25 years.
However, as it fights legal battles, Johnson & Johnson (NYSE:JNJ) is also focusing on its medical devices segment where it benefits from its considerable financial resources to fund development. During the Q2 2024 earnings call, management shared:
“Turning to MedTech, we continue to advance our pipeline, launch new commercial products and integrate strategic acquisitions that broaden and further differentiate our portfolio. In cardiovascular, we are enhancing our portfolio and shifting into higher growth markets through strategic acquisitions such as Shockwave Medical. In May, we announced the launch of our CARTO 3 Version 8 electroanatomical mapping system. This is the latest version of our 3D heart mapping system, which has machine learning capabilities that increase efficiency, reproducibility, and accuracy in maps electrophysiologists use to treat atrial fibrillation and other arrhythmias. In pulsed field ablation, we initiated the commercial launch of the VARIPULSE platform in the EU and Japan receiving early positive physician feedback in the external evaluation period.
We also delivered results from the pivotal phase of the admIRE trial, where the VARIPULSE platform demonstrated 85% peak primary effectiveness with minimal adverse events, short PFA application times and low fluoroscopy exposure. In orthopedics, we received 510(k) FDA clearance for the clinical application of the VELYS Robotic-Assisted Solution in unicompartmental knee arthroplasty. This is designed for both medial and lateral procedures enabling surgeons to guide precise implant placement without a CT scan. In surgery, we launched the ECHELON 3000 in the U.S., which combines 3D stapling and gripping surface technology to enable greater staple line security. This has been shown to deliver 47% fewer leaks, reduce surgical risks and improve surgical outcomes.”
