6. Johnson & Johnson (NYSE:JNJ)
Number of Mutual Funds: 23
Number of Hedge Fund Investors in Q2 2024: 80
Johnson & Johnson (NYSE:JNJ) is a well known healthcare and pharmaceutical company. A global brand name, the firm has considerable financial resources which enable it to target a variety of markets such as general well being, vaccines, and medical devices. Johnson & Johnson (NYSE:JNJ)’s cash and equivalents of $21.8 billion and trailing twelve month revenue of $86.5 billion also provide it with the benefit of high margins and a global market presence. However, as they say, the bigger you are, the harder you fall, and Johnson & Johnson (NYSE:JNJ) has experienced this first hand in 2024. The firm faced off with $6.4 billion in lawsuits in 2024 due to its talcum power and agreed to pay a whopping $700 million in settlements. These have impacted the share price, with Johnson & Johnson (NYSE:JNJ)’s shares down by 0.28% year to date. This is unsurprising since the pharma company continues to deal with its legal headaches as a subsidiary filed for bankruptcy for the third time in September to deal with liabilities and a media report claimed that Johnson & Johnson (NYSE:JNJ) had agreed to add $1.1 billion to its settlement. The liabilities are believed to be paid over more than two decades, but the firm is also developing new treatments simultaneously to grow revenue. These include a prostrate cancer drug and add to Johnson & Johnson (NYSE:JNJ)’s efforts to expand biologic production for cancer medicines by investing $2 billion in a new facility.
Another area Johnson & Johnson (NYSE:JNJ) is focused on is medical devices. Here’s what management shared during the Q2 2024 earnings call:
“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.”
