Several years ago, Johnson & Johnson (NYSE: JNJ )
realized it had a problem with its drug business. This wasn't a
particularly poignant revelation, as the struggles of the business from
around 2004 to 2010 were pretty easy to see, but the company went and
did something about it. Licensing agreements with Bayer and Mitsubishi Tanabe
brought in drugs like Xarelto and Invokana, while the billion-dollar
acquisition of Cougar Biotechnology ultimately turned into the
blockbuster prostate cancer drug Zytiga.
I mention this because other parts of J&J could use some TLC. Not
only is the consumer/over-the-counter business still on a slow path to
recovery from repeated product quality and recall issues, but the device
business has turned into a perpetual disappointment with low organic
sales growth. While the large acquisition of Synthes (announced in 2011,
completed in 2012) has spiffed up the orthopedics business, I think
it's worth asking whether Johnson & Johnson should think about going
Cougar-hunting in the device space.
Please read the full article at The Motley Fool:
http://www.fool.com/investing/general/2013/09/09/should-johnson-johnson-be-looking-for-a-cougar-in.aspx
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