Johnson and Johnson 2015 Annual Report Download - page 28

Major Medical Devices Franchise Sales:*
% Change
(Dollars in Millions) 2015 2014 2013 ’15 vs. ’14 ’14 vs. ’13
Orthopaedics $9,262 9,675 9,509 (4.3)% 1.7
Hips 1,332 1,368 1,333 (2.6) 2.6
Knees 1,496 1,533 1,496 (2.4) 2.5
Trauma 2,528 2,640 2,555 (4.2) 3.3
Spine & Other 3,906 4,134 4,125 (5.5) 0.2
Surgery 9,217 9,717 9,773 (5.1) (0.6)
Advanced 3,275 3,237 3,088 1.2 4.8
General 4,482 4,970 5,136 (9.8) (3.2)
Specialty 1,460 1,510 1,549 (3.3) (2.5)
Vision Care 2,608 2,818 2,937 (7.5) (4.1)
Cardiovascular 2,036 2,208 2,077 (7.8) 6.3
Diabetes Care 1,928 2,142 2,309 (10.0) (7.2)
Diagnostics 86 962 1,885 (91.1) (49.0)
Total Medical Devices Sales $25,137 27,522 28,490 (8.7)% (3.4)
* Prior year amounts have been reclassified to conform to current year presentation.
The Orthopaedics franchise sales were $9.3 billion in 2015, a decrease of 4.3% from 2014, which included operational
growth of 1.7% and a negative currency impact of 6.0%. Operational growth in the U.S. and Europe regions was primarily
driven by sales of the hip primary stem platform, the ATTUNE®Knee System, trauma TFNA nailing system and sports
medicine ORTHOVISC®/MONOVISC®products. Growth was negatively impacted by softer demand and a reduction in
customer inventory levels primarily in China and continued pricing pressures.
The Surgery franchise sales were $9.2 billion in 2015, a decrease of 5.1% from 2014, which included operational growth
of 2.7% and a negative currency impact of 7.8%. Operational growth in Advanced Surgery was driven by endocutter,
biosurgical and energy products, primarily attributable to market growth, increased penetration in certain markets and new
product launches. Operational growth in Specialty Surgery was primarily driven by Mentor products. Growth was partially
offset by lower sales of women’s health and urology products in General Surgery.
The Vision Care franchise sales were $2.6 billion in 2015, a decrease of 7.5% from 2014, which included operational
growth of 1.7% and a negative currency impact of 9.2%. Operational growth in all the major regions was primarily driven
by new product launches partially offset by lower price.
The Cardiovascular franchise sales were $2.0 billion, a decrease of 7.8% from 2014, which represented an operational
decline of 0.1% and a negative currency impact of 7.7%. Strong operational growth in the electrophysiology business was
driven by market growth and the success of the THERMOCOOL®SMARTTOUCH®Catheter and was offset by the
impact of divesting the Cordis business. The Company completed the divestiture of the Cordis business to Cardinal
Health on October 4, 2015. The Cordis business generated annual net revenues of approximately $535 million and $780
million in 2015 and 2014, respectively. For additional details see Note 20 to the Consolidated Financial Statements.
The Diabetes Care franchise sales were $1.9 billion, a decrease of 10.0% from 2014, which represented an operational
decline of 0.7% and a negative currency impact of 9.3%. The operational decline was primarily due to lower price partially
offset by the success of the ANIMAS®VIBE®products.
On June 30, 2014, the Company divested the Ortho-Clinical Diagnostics business (the Diagnostics Franchise) to The
Carlyle Group. For additional details see Note 20 to the Consolidated Financial Statements.
The Medical Devices segment sales in 2014 were $27.5 billion, a decrease of 3.4% from 2013, which included an
operational decline of 1.6% and a negative currency impact of 1.8%. U.S. sales were $12.3 billion, a decrease of 4.3% as
compared to the prior year. International sales were $15.3 billion, a decline of 2.7% as compared to the prior year, with
operational growth of 0.5% offset by a negative currency impact of 3.2%. In 2014, the divestiture of the Ortho-Clinical
Diagnostics business had a negative impact of 3.2% on the operational growth of the Medical Devices segment.
16 •Johnson & Johnson 2015 Annual Report