Biotech Values

[DewDiligence]

JNJ’s PurTox Dilemma: Where to Put It?

To a greater extent than any other Big Pharma, JNJ operates as a holding company for operating subsidiaries that are scattered far and wide. Consequent to the $1.1B buyout of Mentor, JNJ has a potential blockbuster neurotoxin called PurTox to compete head-to-head against Botox in both cosmetic and medical applications. But where in JNJ’s array of operating companies should PurTox be positioned?

The initial decision, as reported in JNJ’s PR (#msg-33880205), is to move the entire Mentor operation into Ethicon, JNJ’s subsidiary that specializes in medical devices for wound care and gynecological conditions. But is this really the right place for detailing a potential blockbuster drug to derms and plastic surgeons?

I doubt it. In due course, I expect PurTox to be moved someplace else within the JNJ umbrella, but I’m not sure where.