Kalorama: J&J Divestitures Helping to Transform the Medical Device Market Landscape

NEW YORK, June 8, 2015 /PRNewswire/ -- Johnson & Johnson's (J&J) May 28th acceptance of Cardinal Health's offer to acquire J&J's Cordis business for an approximate value of $2 billion fits J&J's recent pattern of divestitures, according to Kalorama Information, and contributes to the ongoing changes in the medical device market landscape. For decades J&J has dominated the medical device industry, but this recent divestiture and the earlier sale of the Ortho-Clinical Diagnostics business to The Carlyle Group in June 2014, coupled with Medtronic's acquisition of Covidien, have changed market share, with Medtronic taking over leadership of the medical device market. The sixth edition of Kalorama's The Global Market for Medical Devices covers the broad range of the medical device market coinciding with these changes, including bellwether companies such as J&J and Medtronic. J&J's divestitures and the major merger between Medtronic and Covidien are not unique in the current marketplace, according to Kalorama. Companies in the device market are merging to build revenue growth and present combined offerings to hospital and physician customers.

The healthcare market researcher's report can be found at Kalorama Information: http://www.kaloramainformation.com/redirect.asp?progid=87533&productid=8983360.

"J&J continues to be one of the largest and most diverse medical device companies," said Bruce Carlson, Publisher of Kalorama Information. "In the areas of the company that were not divested they are strong competitors."

The report makes other findings.  Although the largest component of the medical device market is in the United States, the majority of sales are non-US, and growth is occurring in other markets. In Europe as well as the United States, there are reimbursement challenges and the threat of new legislation looms. The emerging markets of countries such as Brazil, Turkey, South Africa, Chile and Mexico have helped to boost sagging revenues. Companies in the market remain optimistic and seek innovation.

In addition to discussion of J&J and Medtronic, Kalorama's report isolates 13 other bellwether companies in the medical device market, including Siemens, GE Healthcare and Philips. Kalorama has identified these 15 companies based on revenues and also on the diversity of medical devices produced, which help to provide insight into the industry as a whole.

The Global Market for Medical Devices examines specific device markets, describing trends and major companies in many fields.  The report addresses device category segment markets, analyzing these to help render the total market for medical devices visible. As part of its market analysis, the report includes discussion of:

• Total Market, 2014-2019
• Market by Region 2014
• Health Expenditure as Share of GDP, Select Countries
• US Market Forecast, 2014-2019
• Significant Country Device Markets (United States, Japan, Germany, China, France, United Kingdom, Italy, Spain, Chile, Canada, Australia, Mexico, South Korea, Turkey, Brazil)
• Estimated Revenues of Medical Device Market by Competitor
• Corporate Profiles

There are many estimates of the medical device market as a whole that have been published using various methodologies – export and import sales, unit estimates and price averaging – but Kalorama Information considers estimates of manufacturer revenues the most important and valid methodology for business planning.  In many of the largest device markets, Kalorama Information has already conducted studies and has examined manufacturer revenue estimates, rendering the total market visible.  This report was assembled using data from Kalorama Information's previous medical device reports.  Primary and secondary research was used. Research into company annual reports, trade publications, government and medical literature was used as a foundation.  Interviews with executives at medical device companies were conducted and are a key source of estimates.

The report can be found at Kalorama Information:
http://www.kaloramainformation.com/redirect.asp?progid=87533&productid=8983360.

About Kalorama Information
Kalorama Information, a division of MarketResearch.com, supplies the latest in independent medical market research in diagnostics, biotech, pharmaceuticals, medical devices and healthcare; as well as a full range of custom research services. Reports can be purchased through Kalorama's website and are also available on www.marketresearch.com and www.profound.com.

We routinely assist the media with healthcare topics. Follow us on Twitter, LinkedIn and our blog at www.kaloramainformation.com.  

Contact:
Bruce Carlson
(212) 807-2622
[email protected]
www.KaloramaInformation.com

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SOURCE Kalorama Information