JNJ Reports – A Tough Year
Looking over the results released this morning by Johnson and Johnson (NYSE:JNJ) Diabetic Investor can’t help but think that the company is delighted that 2009 is behind them. While results for their diabetes care unit showed some solid fourth quarter growth, full year results reflect the continued dismal state of the blood glucose monitoring market. The fourth quarter results looked at in perspective really aren’t that surprising as this quarter is traditionally the strongest quarter.
The bright spot in the diabetes care unit continues to be Animas. According to the company Animas continues to gain market share both domestically and overseas. Results which are in line with reports Diabetic Investor is receiving from the field.
For the past few years Diabetic Investor has been impressed with JNJ as they appear to be one of the few companies in BGM that actually sees the market they way it really is. Additionally they continue to execute on their strategy of focusing on insulin using patients and controlling costs. Unlike others in this category the company knows that the days of double digit growth are over and that controlling cost has become a critical component for remaining a player.
Looking ahead the only real question is how the company will deal with the coming consolidation in BGM. Over the next few days we’ll begin to get a glimpse of where the market is headed as all the major players will be reporting. Given their strong market position Diabetic Investor doesn’t see the company worrying too much about what anyone else is doing and will likely concentrate on simple blocking and tackling while everyone else figures out what to do.
The reality here is that BGM market is getting pretty damn dull. While the upcoming panel meetings on insulin pumps and glucose monitor accuracy will provide some good copy, Diabetic Investor doesn’t expect any earth shacking events. The fact is for BGM in particular future events we’re determined long ago when this market transformed from a medical device to a commodity style market. Thankfully for JNJ, back in the day they realized where the market was headed and took the proper steps to insure they would be a player under these new market dynamics.