Johnson & Johnson Appoints Tim Schmid as New EVP and Worldwide Chairman of MedTech Following Ashley McEvoy's Departure

On October 23, Johnson & Johnson announced that Ashley McEvoy, Global Head of Johnson & Johnson Medical Technologies, is set to step down to pursue external opportunities. To ensure a smooth transition, she will remain in her role until the first quarter of the 2024 fiscal year.

Tim Schmid, currently the head of Johnson & Johnson Medical Asia-Pacific, will succeed Ashley McEvoy as the new Executive Vice President and Worldwide Chairman of Medical Technology, and will join the company's Executive Committee.

Executive Changes, Veteran Turnover

According to the announcement by Johnson & Johnson, both leaders are "veterans" who have worked at Johnson & Johnson for many years.

Ashley McEvoy joined Johnson & Johnson in 1996 and has worked there for 27 years. She spent the first 10 years of her tenure in the consumer health sector, overseeing classic brands such as Tylenol® and Zyrtec®, and also served as President of McNeil Consumer Healthcare.

In 2009, Ashley McEvoy moved to Johnson & Johnson MedTech to serve as the Global President of Ethicon; in early 2012, she was promoted to Chairman of the Company Group for Vision and Diabetes Care; in June 2018, Ashley McEvoy became the leader of Johnson & Johnson MedTech. In 2022, Ashley McEvoy received a compensation of nearly $7.4 million, entering the TOP 5 of Johnson & Johnson's executive compensation.

Tim Schmid, the new head of Johnson & Johnson Medical Technologies, holds an undergraduate degree from the University of Western Ontario in Canada and an MBA from Richmond University in the UK. He has lived and worked in six countries across four continents, making him a highly globalized leader.

Tim Schmid's career at Johnson & Johnson began in 1993, where he held the position of "Strategic Customers and Professional Sales" in the LifeScan blood glucose business. In 2009, Tim Schmid became the Global Strategic Marketing Vice President of Johnson & Johnson's Ethicon division and was promoted to President in 2012. In 2016, Tim Schmid became the Chief Strategy Officer of Johnson & Johnson Medical and in 2018, he was appointed as the Chairman of Johnson & Johnson Medical Asia-Pacific region, based in Singapore.

Tim Schmid has played a key role in elevating the Asia-Pacific region as a hub for medical technology experimentation, digital innovation, and talent. Johnson & Johnson stated that under Tim Schmid's leadership, the Asia-Pacific market became one of the fastest-growing regions for the company.

Pruning and Focusing on Core Business

Since the beginning of this year, Johnson & Johnson has made several adjustments globally with a focus on its core business.

On July 6, according to Business Wire, Johnson & Johnson Vision's Blink product line will be sold to Bausch + Lomb for $106.5 million.

Johnson & Johnson Vision, the eye health business of Johnson & Johnson, includes "Acuvue" for contact lenses, contact lens care solutions, and eye drops, as well as "Abbott Medical Optics (AMO)" which covers ophthalmic implants, surgical medical devices, and consumables. The Blink product line mainly produces over-the-counter eye drops and contact lens solutions.

On August 23, Johnson & Johnson officially announced the successful completion of the spin-off exchange offer for Johnson & Johnson and Kenvue. Kenvue will operate fully independently. The spin-off was officially announced on September 28, 2022, aiming to focus more on its pharmaceuticals and medical devices businesses.

Less than a month before the completion of the spin-off, Johnson & Johnson announced a brand renewal on September 14. Specifically, Johnson & Johnson's pharmaceutical business, Janssen, will be renamed Johnson & Johnson Innovative Medicine, while Johnson & Johnson MedTech will remain unchanged. These two businesses will be integrated under the Johnson & Johnson name. This integration means that Johnson & Johnson's operations will be further focused globally.

Subsequently, on October 17, while releasing the third-quarter financial report, Johnson & Johnson announced a two-year restructuring plan for its orthopedics business, including exiting low-profit "markets, product lines, and distribution networks." It is expected that by the end of 2025, this restructuring plan will cost between $700 million and $800 million.

Johnson & Johnson CEO Joaquin Duato stated that in the orthopedics field, Johnson & Johnson has a very strong team, focusing on the right product portfolio.

According to the latest financial report data, Johnson & Johnson's revenue in the third quarter of this year increased by 6.8% year-on-year, reaching 21.351 billion US dollars. From the perspective of business areas, pharmaceuticals business revenue was 13.893 billion US dollars, increasing by 5.1%; medical device business revenue was 7.458 billion US dollars, growing by +10.0%.

Overall in the first three quarters, Johnson & Johnson's total revenue increased by 6.2% year-over-year, reaching 63.764 billion USD; including R&D investment of 10.605 billion USD, up 1.7% year-over-year. Based on the performance in the first three quarters, Johnson & Johnson has raised its full-year revenue forecast to 83.6-84 billion USD, with the revenue growth rate adjusted to 7.5%-8.0%.

References:
[1]Johnson&Johnson:Johnson&JohnsonAnnouncesDepartureofAshleyMcEvoy,TimSchmidNamedExecutiveVicePresident,WorldwideChairmanofMedTech
[2]Johnson&Johnson:Johnson&JohnsonMarksNewEraasGlobalHealthcareCompanywithUpdatedVisualIdentity
[3]FierceBiotech:Johnson&JohnsonMedTechheadAshleyMcEvoytoleavecompanyafternearly30years
[4]FierceBiotech:J&Jtoditch'less-profitable'orthopedicsmarketsin2-yearrestructuring
[5] MedTrend: "Just In! Johnson & Johnson Medical Technologies Appoints New Leader! Asia-Pacific Head Takes Office"
[6] MedTrend: "Latest! Johnson & Johnson Announces Restructuring of Orthopedics Business"
[7] PharmaCube: "Johnson & Johnson 2023 First Three Quarters: Ustekinumab 8.1 Billion USD, Carvykti Revenue 341 Million USD"

Editor: Bai Ji

Disclaimer: This article is a reprint from Pharmacist Network. The images and text are owned by the original author, and the purpose of the reprint is to convey more information. It does not represent the views of this platform. If there are any issues regarding the content, copyright, or other aspects, please leave a message on this platform, and we will address it promptly.