Titan Medical Inc (TMDIF)

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Don't count on J&J as a buyout candidate for Titan

J&J Buoyed by Tylenol, Branded Drugs While Devices Struggle
Bloomberg
Riley Griffin
April 14, 2020

(Bloomberg) -- Johnson & Johnson reined in its outlook for the year ahead after the coronavirus pandemic caused a surge in demand for its consumer brands like Tylenol but eroded sales of medical devices.

The world’s largest health-care conglomerate posted stronger revenue and earnings for the first quarter compared with a year earlier, and boosted its quarterly dividend. The upswing was partially driven by a jump in sales of pain relievers, shampoo and other household products as people around the world stocked up in order to shelter in place.

“There’s a strategic advantage of being the most broadly based health-care company in the industry,” Chief Executive Officer Alex Gorsky said on a conference call with investors on Tuesday.

J&J, which makes everything from innovative cancer therapies to medical devices to over-the-counter staples like Tylenol pain reliever and Listerine mouthwash, offers a revealing snapshot of a broad cross-section of the U.S. economy at a time when the pandemic is turning any previous assumptions investors might have had about this year inside-out.

Sales of medical devices dropped as health-care providers canceled and delayed elective surgeries to clear space in hospitals to care for coronavirus patients. J&J’s drug unit, the company’s largest and most consistent growth driver, saw steady demand for its medicines as patients shifted from 30-day to 90-day supplies.