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J&J's Supplement Step With Zarbees Helps Drive A Leap For Consumer Health Growth

This article was originally published in The Rose Sheet

Executive Summary

Supplement brand being marketed to compete with OTC drugs, including J&J's own brands, in cough and cold and other categories helped J&J overall consumer health sales grow 9.7% to $440m in Q3. Oral care brands showed 3.2% worldwide growth to $384m, benefiting from recent launch of chewable Listerine Ready! Tabs.

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OTC drug sales grew worldwide 4.4% on an operational basis to $4.34bn, with US segment driving increase. US OTC sales jumped 7.8% to reach $1.85bn and international sales grew 2.1% to $2.48bn. J&J consumer segment got a lift from mid-year addition of Zarbees.

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JP Morgan analysts had questions and J&J CEO Alex Gorsky and CFO Joseph Wolk had answers about liability suits alleging that use of the Johnson's brand talcum powder has caused mesothelioma or ovarian cancer. On the Johnson's brand outlook following its relaunch as a natural product line, Gorsky says sales were a key driver in the firm's consumer health sales in the 2018 third quarter. China, meanwhile, is a model for growing sales online, he says.

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