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Source | Cpharm Medical DevicesJohnson & Johnson MedTech Global Chair Resigns, Successor Already Determined.Change of Global Chairperson at Johnson & Johnson MedTech
On October 23, Johnson & Johnson announced,Johnson & Johnson Executive Vice President Worldwide and Johnson & Johnson MedTech Worldwide Chair Ashley McEvoy notified the company on October 20, 2023, that she will step down to pursue other opportunities. Ms. McEvoy will remain with the company until the first quarter of 2024 to support a successful transition.
Tim Schmid Appointed as New Global Executive Vice President of Johnson & Johnson, Global Chair of Johnson & Johnson MedTech, and Joins the Company's Executive CommitteeMs. McEvoy joined Johnson & Johnson Consumer Companies 27 years ago, overseeing iconic brands including Tylenol® and Zyrtec®, and advanced her career to serve as President of McNeil Consumer Healthcare. In 2009, McEvoy joined MedTech, serving as Worldwide President of Ethicon, and was later promoted to Chair of the Company’s Vision and Diabetes Care Group.
Ashley McEvoy
Ms. McEvoy currently serves as the Chairman of the AdvaMed Board of Directors and is also a member of the Board of Trustees of the Children's Hospital of Philadelphia (CHOP).Chairman and Chief Executive Officer Joaquin Duato said, "We thank Ashley for her leadership and 27 years of service at Johnson & Johnson. She has led a significant transformation of our medical technology business, which has improved performance and enabled us to better meet the needs of patients and consumers worldwide. Her leadership of employees and commitment to their development have been hallmarks of her tenure. We wish her all the best in the next chapter of her career."Mr. Schmid, the newly appointed Global Executive Vice President of Johnson & Johnson and Global Chair of Johnson & Johnson MedTech, brings 30 years of experience with Johnson & Johnson, most recently serving as Company Group Chairman of Johnson & Johnson Medical Technologies Asia-Pacific (APAC). Under his leadership, the Asia-Pacific region achieved above-market growth and further strengthened Johnson & Johnson's leadership position across multiple business areas.Mr. Schmid has also played a significant role in enhancing the region's position as a center for medical technology experimentation, digital innovation, and the continuous development of talent.
Tim Schmid
Mr. Schmid has held various leadership roles in sales, strategic marketing, and general management across multiple businesses and regions, including Chief Strategic Customer Officer at Johnson & Johnson MedTech, where he helped lead a transformative change in Johnson & Johnson’s business-to-business relationships with U.S. health systems.Duato pointed out, "We are delighted that Johnson & Johnson has a deep pool of talent, enabling us to transition to Tim, a respected, results-oriented, and credo-based leader."In March last year, Johnson & Johnson announced that its medical device business (Johnson & Johnson Medical Devices) would officially be renamed "Johnson & Johnson MedTech" worldwide.This new identity marks Johnson & Johnson MedTech's genuine transformation into an innovative enterprise that is patient-centered and driven by business growth.In August this year, Johnson & Johnson successfully completed the spin-off of its consumer health business. In September, Johnson & Johnson announced a brand renewal, integrating its two major businesses, medical technology and pharmaceuticals, under the name of Johnson & Johnson.Interventional Sales Surge, Orthopedics Faces RestructuringJust a week ago, Johnson & Johnson released its Q3 2023 financial report.Financial reports show that Johnson & Johnson's sales in the third quarter were $21.351 billion, a year-on-year increase of 6.8%, with a business growth rate of 9.0% excluding the COVID-19 vaccine; net income was $4.309 billion, basically flat compared to the same period last year.
Among them,Johnson & Johnson MedTech Sales Reach $7.458 Billion, Global Adjusted Operating Sales Increase by 6.0%, mainly driven by electrophysiology products in interventional solutions, wound closure products in general surgery, contact lenses in ophthalmology, and biosurgery products in advanced surgery. Global operational sales of MedTech increased by 10.4%, with the acquisition of Abiomed contributing 4.6%.Compared with the same period last year, interventional solutions have seen significant growth, and the other three major segments have also experienced some growth.Specifically, the Q3 revenue for the Interventional Solutions was $1.558 billion, increasing by 47.0%, with the first three quarters of 2023 revenue at $4.681 billion; the Q3 revenue for Orthopedics was $2.164 billion, increasing by 3.4%, with the first three quarters of 2023 revenue at $6.674 billion; the Q3 revenue for Surgery was $2.479 billion, increasing by 2.3%, with the first three quarters of 2023 revenue at $7.507 billion; the Q3 revenue for Vision was $1.256 billion, increasing by 4.2%, with the first three quarters of 2023 revenue at $3.864 billion.
Notably, Johnson & Johnson disclosed the progress of its orthopedics restructuring.It was previously rumored that Johnson & Johnson might lay off at least 1,000 employees, with the layoffs focused on the company's medical technology-related departments, including at least the sports medicine and shoulder reconstruction divisions as well as the minimally invasive surgical robotics project.Johnson & Johnson CFO Joe Wolk recently stated,Johnson & Johnson Takes Steps to Improve Future Profitability of MedTech in This Quarter, Implementing a Restructuring Plan Aimed at Simplifying and Concentrating Orthopedics Business Operations. The Restructuring is Expected to be Completed by the End of 2025, Costing $700 Million to $800 Million, but Will Enhance the Division's Ability to Meet Product Demand.
Joe Wolk pointed out that the two-year restructuring plan will allow the company's orthopedics division to exit "lower-margin markets and product lines" to enhance the division's profitability, following a 2.6% sales growth reported in the third quarter.
Jessica Moore, Vice President of Johnson & Johnson Investor Relations, stated that considering market and product line exits, DePuy Synthes' total revenue will decrease by approximately $250 million over the next two years. However, we believe these actions will enhance our ability to meet demand, accelerate growth, and improve profitability.Today, the leader of Johnson & Johnson MedTech will continue to lead.Johnson & Johnson MedTechInnovation and Deep Cultivation in the Medical Field.
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