Johnson & Johnson (JNJ): Is Its Orthopedics Business on Safe Footing?

Johnson & Johnson could also use obesity as a way to tap into emerging markets. Obesity rates in areas such as India and the Middle East have exploded in recent years. J&J already has one foot in the door: The company produces the majority of its medical device revenue abroad; using that international experience to fuel sales of hip implants or other orthopedics devices in fast-growing economies would ensure serious future growth. How much is at stake? The Millennium Research Group projects the trauma and reconstructive joint implant markets in Brazil, India, and China to grow to $4.5 billion or more by 2017.

Johnson & Johnson’s best orthopedics move could be to acquire a local company in one of these nations to solidify its foothold and familiarize itself with the market. Stryker bought out Chinese spinal and trauma firm Trauson earlier this year as a route into the world’s second-largest economy; a similar move from J&J would ensure its competitiveness.

Orthopedics will continue to fuel J&J’s medical device sales in the future. Between aging, diabetes, and obesity, the need for reconstructive implants and other orthopedics products is growing at a rapid rate. Johnson & Johnson’s size and experience will pay off in the future despite its ongoing battle with recalls. Its acquisition of Synthes has already propelled it to the top of the field; now it’s time for Johnson & Johnson to solidify tomorrow’s dominance.

The article Is Johnson & Johnson’s Orthopedics Business on Safe Footing? originally appeared on Fool.com and is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.