Workforce cuts

[anonymous]

Ethicon is a cash cow for J&J but never say never on any divestitures other than Pharma. The Jabil deal was a complete surprise to most in Synthes. Ethicon is safe for at least 3 years. Many smart people leaving MedTech for Pharma, especially in PA, NJ as they know the eventual outcome. One factor is the 2026 pension change for older MedTech employees that are planning on retiring prior, no need to move to Pharma.

 

[anonymous]

thoughts on Auris/Monarch?

Intuitive Surgical already way ahead of Monarach with their competing product. Auris at this point is just a glorified high school robotics team. Sooner or later J&J will have to cancel the program.

 

[anonymous]

You are almost right. There is no way they dump Ethicon. That's the core that keeps the lights on and is much more profitiable than DePuy. Mentor and Acclarent are part of GPs legacy of exceptionally stupid acquisitions.

I’m interested in a role at DePuy. How is DePuy doing these days? What do you think of its future. Is it risky to join DPS

 

[anonymous]

Ethicon is a cash cow for J&J but never say never on any divestitures other than Pharma. The Jabil deal was a complete surprise to most in Synthes. Ethicon is safe for at least 3 years. Many smart people leaving MedTech for Pharma, especially in PA, NJ as they know the eventual outcome. One factor is the 2026 pension change for older MedTech employees that are planning on retiring prior, no need to move to Pharma.

Interesting. Do you think Ethicon will be spun off as well? Isn’t Ethicon very profitable.

Do you think Pharma is more stable than Medtech (Ethicon and DePuy)?

 

[anonymous]

Interesting. Do you think Ethicon will be spun off as well? Isn’t Ethicon very profitable.

Do you think Pharma is more stable than Medtech (Ethicon and DePuy)?

Pharma is a faster growing cash cow, and a far bigger cash cow with gigantic profit margins. Also patent protection & exclusivity protect drugs for 20 years or more. Devices have no such protections. Wall Street & investors like pharma companies' balance sheets and CAGR over device companies. The new JNJ will derive over 2/3 of its revenue from pharma & 1/3 from devices. The next logical step after the Kenvue/Consumer divestiture in 2023 is going to be the gradual divestiture of the big dogs like Ethicon, Biosense Webster, Mentor, DePuy, & Vision Care & shuttering of the minnows like Acclarent & Robotics.

 

[anonymous]

Pharma is a faster growing cash cow, and a far bigger cash cow with gigantic profit margins. Also patent protection & exclusivity protect drugs for 20 years or more. Devices have no such protections. Wall Street & investors like pharma companies' balance sheets and CAGR over device companies. The new JNJ will derive over 2/3 of its revenue from pharma & 1/3 from devices. The next logical step after the Kenvue/Consumer divestiture in 2023 is going to be the gradual divestiture of the big dogs like Ethicon, Biosense Webster, Mentor, DePuy, & Vision Care & shuttering of the minnows like Acclarent & Robotics.

this is correct

 

[anonymous]

The real problem is managements terrible track record at M&A across the company, from acquiring companies at exorbitant prices then ruining them within a few years and selling off or eliminating them. Yes pharma has been a cash cow, but med devices and consumer brought business continuity for profits. Take that away and the company won’t be able to mask the poor decisions , bad acquisitions and lack of leadership

 

[anonymous]

And this one