J&J unveils new ‘comprehensive care’ strategy
pharmafile | November 16, 2007 | News story | Sales and Marketing |
Johnson & Johnson is to re-model its business operations into more customer-focused units, including a 'comprehensive care' arm that will bring together drug treatment, medical devices and diagnostics.
Unlike many of its pharma rivals, Johnson & Johnson has remained a large conglomerate, made up of 200 operating companies worldwide with a full healthcare range, from over-the-counter products to medical devices and prescription drugs.
But J&J, whose European prescription drugs business is known as Janssen-Cilag, is now looking to integrate its offerings around specialist areas.
J&J says its new Comprehensive Care Group will create portfolios to treat some of the world's most chronic and pervasive conditions, such as metabolic disorders, through the convergence of technologies, products and services.
An Office of Strategy and Growth will also be created to spot opportunities for growth outside the company's existing businesses – a remit which seems certain to include acquisitions.
Meanwhile, a Surgical Care Group will focus on advancing technologies, solutions and services to enhance patient care in the surgical setting.
The company's new Comprehensive Care Group will bring together five existing units Diabetes, Cordis, Johnson & Johnson Vision Care and Ortho-Clinical Diagnostics.
Exactly how this business unit will work is as yet unclear, but J&J is likely to seek a headstart over competitors by offering a seamless package of care.
William Weldon, chairman and chief executive of Johnson & Johnson, announced the changes, which will come into effect at the start of 2008.
"Much of the change in health care reflects the coming together of parts of the system that were at one time separate," he said. "The very solutions that the health care system most needs – those coming from the convergence of science, technology and services – are the ones we [Johnson & Johnson] are most capable of providing.
"We have the know-how across our pharmaceutical, biologics, devices, diagnostics and consumer businesses to bring completely new solutions to market. And we believe we can accelerate growth through a dedicated focus on the intersection of our existing capabilities, customer needs and emerging trends."
Despite this move to greater integration, the company's existing pharmaceuticals division will remain in place and the changes will have no direct impact on its consumer businesses.
The company has, however, announced a change in leadership of its drugs business. Current head Joseph Scodari will retire in January and will be replaced by vice chairman of the Board of Directors Christine Poon.
Ms Poon will shed some of her existing responsibilities but remain vice chairman of the board while overseeing the company's pharmaceutical and biological businesses.
