Johnson & Johnson’s (JNJ) cardiology business is struggling. Despite that, the company indicated that it’s unlikely to be involved in any M&A (merger and acquisition) deals to bolster the business, a Leerink Partners analyst said. In fact, J&J’s another medtech business also disappointed investors after showing significant promise, which is its diabetes care business. Driven by a project for developing a complete artificial pancreas system (APS) led by its diabetes division Animas, the diabetes care business should have posted high growth. However, the project didn’t quite see the light of success.
Both the cardiology market and the blood glucose controlling market are poised for high growth. However, J&J’s initiative to capitalize on the opportunities by the current management remained disappointing. Meanwhile, competitor Medtronic (MDT) is progressing well in both the areas. This article will analyze J&J’s long-term prospects in the stock market.
