In Q1 of 2012 the percentages were 37%, 40%, and 23% (see here).
I am interested in this because of data regarding J&J's PROFITS that I came across in a article by journalist Steven Brill today in The Huffington Post Highline titled "America’s Most Admired Law Breaker."
That article is part of a 15-part "DocuSerial" detailing how Johnson & Johnson took an anti-psychotic drug, Risperdal, initially intended only for the treatment of psychotic disorders, and put it in the hands of children and the elderly in violation of FDA restrictions. Of course, I've written about J&J's illegal activities many time now here on Pharma Marketing Blog (read, for example, "How J&J's Alex Gorsky Tried to Negotiate a Smaller DOJ Fine").
But what about J&J's profits? Where do they come from? What's the impact on the company's reputation?
As the Huffington Post Highline article points out "With consumer products from Band-Aids to baby powder, Neutrogena to Rogaine, Listerine to Visine, Aveeno to Tylenol and Sudafed to Splenda, Johnson & Johnson is the biggest and, according to multiple surveys, most admired corporation in the world’s most prosperous industry—healthcare. But the real money—about 80 percent of its revenue and 91 percent of its profit—comes not from those consumer favorites, but from Johnson & Johnson’s high-margin medical devices."
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In all honesty, look a little closer. There's no need to lump devices and medicines together. A quick look at the books will show you where the margins are.
ReplyDeleteHopefully JNJ learnt a valuable lesson and can bring novel medicines to market in a more commercially ethical way. The pipeline today could save/improve a lot of lives.