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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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.
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.