From the WSJ.... JNJ hedging its bets ?.... and "planning aquisitions of Medical device companies" ... Possibly concerned about the possible erosion it's Tylenol niche?
<<J&J CFO: US Health Reform Could Spur Medical-Device M&A NOVEMBER 12, 2009, 12:46 P.M. ET By Peter Loftus Of DOW JONES NEWSWIRES Johnson & Johnson's (JNJ) financial chief said Thursday U.S. health-care reform has the potential to spur consolidation in the medical-device industry, and J&J intends to pursue deals in this and other areas of health-care.
Proposed health-care legislation would tax medical devices, an area of concern for the industry. J&J, New Brunswick, N.J., is a medical-device industry leader.
"If a device tax puts more pressure on smaller med-tech companies, I think that may be an opportunity to see more consolidation in the med-tech space in particular," J&J Chief Financial Officer Dominic Caruso told a Credit Suisse health-care conference Thursday.
Caruso said J&J plans to continue making acquisitions in the device arena, as well as collaborations and purchases in the pharmaceutical and consumer-health products categories.
He signaled that J&J was unlikely to pursue large-scale combinations in the pharmaceutical sector, as Pfizer Inc. (PFE) and Merck & Co. (MRK) have done this year.
"I would say the track record so far has not been good in terms of bringing together large pharma companies and either getting much more productive [drug research] or being able to withstand pricing pressure," Caruso said.
J&J shares rose 43 cents to $61.30 in recent trading Thursday.
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