|Johnson & Johnson CEO Alex Gorsky|
Second quarter sales for Johnson & Johnson's ($JNJ) medical devices and diagnostics division mirrored those reported in the first quarter, coming in relatively flat at $7.2 billion as sales in its vision and diabetes lines continued to decline due to price competition.
Overall sales in the division rose 0.7% for the quarter compared to year ago results. In the first quarter of 2014, the company reported sales of devices and diagnostics of $7.1 billion. Its diabetes unit saw a 5.7% decline in the second quarter. Sales in the vision unit slipped lower by 3.7%.
Still, the device and diagnostics unit was busy for the quarter. It closed its $4 billion sale of Ortho-Clinical Diagnostics to the Carlyle Group in June. Additionally, J&J's Saber PTA Dilatation Catheter used for the the treatment of patients with Peripheral Arterial Disease received regulatory approval both in the U.S. and Europe during the period.
Cardiovascular continues to be the leader in the group, reporting a 7.2% gain in the quarter on global sales of $567 million based on the strength of its Biosense Webster's electrophysiology division and its new catheter devices, including its Thermocool Smarttouch catheter.
Orthopedics also remains a strong line for the division, seeing an overall 3.5% increase for the quarter. The leaders in orthopedics were hips with a 5% gain in sales, and trauma, which saw a 7% increase for the period. CEO Alex Gorsky said during the conference call the company is seeing a "more cyclical trend toward particular knee procedures" favoring the latter half of the year likely due to upfront copay costs expected by insurers before surgery.
Gorsky also said he expects consolidation in the medical device arena to continue and J&J will remain active though strategic in that regard.
Overall, J&J reported earnings of $4.8 billion on sales of $19.5 billion.
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