|2013 med tech R&D budget:||$1.78 billion|
|Change from 2012 budget ($1.68 billion):||6.1%|
|Percent of segment sales ($28.5 billion):||6.3%|
The 800-lb. gorilla of med tech, Johnson & Johnson ($JNJ), expects more than 30 major product filings before the end of 2016 to result from its internal medical device and diagnostics R&D. It projects that new products will account for one-third of the overall sales growth by 2018. Johnson & Johnson believes that these innovations will help healthcare payers and providers improve clinical outcomes, increase patient satisfaction and contain costs.
But at a recent medical device and diagnostics business review, the company also conceded that small acquisitions figure heavily into its strategy for innovation in medical devices. "In medical devices, I think it is going to have to be a combination of our own organic development and selected acquisitions of new products and new technologies which are, quite frankly, smaller in scale. So that actually contributes to our R&D investment going forward," said Johnson & Johnson CFO and VP Dominic Caruso.
The med tech R&D budget accounted for slighly more than a fifth of total R&D spending of nearly $8.2 billion.
Johnson and Johnson said in May that it would file this year in orthopedics for shoulder, joint reconstruction, neurology and spine products; in diabetes for a self-monitored blood glucose test and an insulin pump; in specialty surgery for ear, nose and throat as well as energy-based products; and in cardiovascular care for electrophysiology, abdominal aortic aneurysm and endovascular products. In 2015 and 2016, it expects to file for orthopedics joint reconstruction and power tools products; in surgical care for wound care and endocutter products; in diabetes for another self-monitored blood glucose test; in vision care for contact lenses; and in specialty surgery products in biosurgery, sedation and ear, nose and throat indications. -- Stacy Lawrence (email | Twitter)
Special Report: Med Tech's 2012 R&D big spenders - Johnson & Johnson
A pair of med tech startups snag J&J deals
Johnson & Johnson medical device presence growing in China
J&J: Expect more consolidation in orthopedics industry
J&J's new incubator opens its arms to med tech startups