Against the backdrop of the current U.S. government encouraging the development of domestic manufacturing, Johnson & Johnson's move is particularly noteworthy. The tariff policy introduced during the Trump administration aimed to promote the revival of American industry, while the Biden administration has been actively encouraging the reshoring of life science supply chains in the wake of the COVID-19 pandemic.

Many life science companies have responded by increasing their investments in the United States. For example, Novo Nordisk announced in 2024 that it would invest $4.1 billion to build a new factory in North Carolina. Last month, Eli Lilly also stated that it would more than double its investment in the U.S., with a total investment exceeding $500 billion since 2020. Meanwhile, BD plans to increase its domestic production capacity for safety injection devices by more than 40%.

Scott Whitaker, President and CEO of the Advanced Medical Technology Association (AdvaMed), praised Johnson & Johnson's investment, noting that it is not only significant for Johnson & Johnson and the patients it serves but will also inject strong momentum into the U.S. economy. Currently,As the largest medical technology market globally, 95% of medical technology R&D takes place in the United States, supporting nearly 3 million direct and indirect jobs, with salaries 37% higher than the national average.Johnson & Johnson's investment will further consolidate the United States' leading position in the medical technology field.

Johnson & Johnson Medical Technologies Continue to Innovate

In fact, in recent years, Johnson & Johnson has continued to innovate and transform, constantly renewing its brand image. In 2023, Johnson & Johnson revamped its iconic logo and announced last yearJohnson & Johnson’s medical technology businesses, including Ethicon, DePuy Synthes, Biosense Webster, Abiomed, and CERENOVUS, have been unified under the new name "Johnson & Johnson MedTech".

In terms of performance, Johnson & Johnson's latest financial report shows that the full-year sales for 2024 increased by 4.3% to 88.8 billion US dollars, with an operational growth of 5.9%. Among them,Johnson & Johnson Medical Technologies 2024 Sales Reach $31.9 Billion, Up 4.8% Year-over-Year, Operational Growth at 6.2%Net acquisitions and divestitures had a positive impact of 1.5% on growth.

The growth was mainly driven by the cardiovascular field.Driven by electrophysiology products and Abiomed (formerly known as interventional solutions) and wound closure products for general surgery.

Cardiovascular 2024 full-year revenue reached $7.707 billion, a year-on-year increase of 21.4%. Electrophysiology revenue was $5.267 billion, up 12.3% year-on-year; Abiomed revenue reached $1.496 billion, growing by 14.5% year-on-year; Shockwave revenue amounted to $564 million (In 2024, Johnson & Johnson acquired Shockwave Medical for $13.1 billion).Other Cardiovascular Businesses (previously known as Interventional Solutions) generated $380 million in revenue, representing a 6.9% increase year-over-year.

In terms of product sales, some of Johnson & Johnson's core medical technology products have demonstrated strong market competitiveness. For instance, the Harmonic ultrasonic scalpel, an important product series from Johnson & Johnson Medical, has served over ten million surgical procedures in China since its entry into the Chinese market.

On February 25, 2025, the HARMONIC® 7s Ultrasonic Scalpel, produced at the Johnson & Johnson Medical Technologies Suzhou Industrial Park, was officially launched in China.This product innovatively features a built-in smart chip and is equipped with a proprietary next-generation Adaptive Tissue Technology (ATT) algorithm, which can continuously and intelligently deliver energy during surgery. Its advanced hemostasis mode is capable of coagulating vessels 7 millimeters or smaller, significantly enhancing surgical safety. The launch of this new product not only enriches the product portfolio of Johnson & Johnson Medical but also has the potential to further boost sales for this product line.

From the perspective of business segments,Johnson & Johnson Medical Technologies occupies an important position in the global market with its innovative products in the medical device field and extensive market layout.Its advanced surgical instruments, medical equipment, and other products meet the needs of various medical scenarios, providing high-quality solutions for medical institutions and patients.

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It should be noted that Johnson & Johnson Medical Technologies also faces some challenges. The current global medical technology market competition is becoming increasingly fierce, with numerous emerging companies and established competitors continuously launching innovative products, posing a threat to Johnson & Johnson's market share. At the same time, the continuous increase in R&D investment puts certain pressure on the company’s profit growth. How to optimize the cost structure while maintaining innovation vitality has become an important issue for Johnson & Johnson Medical Technologies to address.