J&J Consumer Health Has Digital And Natural Drivers For ‘Above Market’ Growth
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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While J&J benefits from “underlying strength” of its large skin care brands, it targets “regular additions of local, smaller brands,’ says global consumer business head Thibaut Mongon. Portfolio balance of international and localized brands helps it weather economic uncertainty during the COVID-19 pandemic.
J&J plans to cut 10% of its consumer health portfolio, with most divestitures in the baby and beauty care segments outside the US. It plans to focus on growing “stronghold” categories of skin health and self care, including Aveeno and Tylenol.
CEO Alex Gorsky highlighted growing public concern over US drug costs during J&J's Q4 earnings call, pressing for more transparency and value-based health care. The company's net drug prices declined more than 6% in 2018, he added.