Drug maker Johnson & Johnson (NYSE: JNJ) is all set to embark on an extensive program to strengthen the product portfolio and drive long-term growth, with focus on the pharmaceutical segment. The initiative comes at a time when the company is facing lawsuits related to alleged lapses in ensuring product safety.
Under the five-year plan, the consumer products giant intends to give a boost to the Janssen Pharmaceutica division, the company’s main growth driver, by seeking regulatory approval of 40 line-extensions for formulations currently under development. It is expected to help the company achieve growth that exceeds the industry.
Currently, several new therapies and treatments, having the potential for launch in the next four years, are in different stages of development. Marketing applications for about ten new medicines are expected to be filed during the period. The company said it intends to continue investing in innovation as part of its strategy to allocate capital in a disciplined manner.
The company intends to boost Janssen by seeking approval of 40 line-extensions for drugs under development
CEO Alex Gorsky in an official statement said, “Our pharmaceutical organization has created breakthrough medicines to address some of society’s greatest unmet medical needs, resulting in meaningful outcomes and benefits to patients. Our broad base is well-positioned to continue delivering value creating innovations that will improve outcomes.”
The six key focus areas being discussed with the stakeholders – for formulating the five-year plan – are immunology, infectious diseases and vaccines, neuroscience, cardiovascular and metabolism, oncology and pulmonary hypertension.
Earlier, Johnson & Johnson had said its full-year 2019 revenue will come in below last year’s levels. The guidance was issued while reporting muted sales and earnings growth for the first quarter, mainly due to lower consumer and medical devices sales.
JNJ had a short-lived recovery mid-2018 after suffering losses in the early months of last year. After the retreat, the stock gained about 7% since the beginning of 2019. It traded slightly higher during Wednesday’s trading session.