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Johnson & Johnson MedTech reported 3Q24 orthopedic sales of $2,189.8 million, up 1.2% compared to the third quarter of 2023. The company generated $6,842.2 million in orthopedic sales through the first nine months of 2024, up 2.5% compared to the year prior.
The company’s orthopedic sales found modest success in joint replacement, attributable to the impact of the VEYLS system and its surrounding technologies. However, company leadership said its previously-announced orthopedic restructure and SKU rationalization disrupted revenue in the third quarter.
Additionally, Johnson & Johnson MedTech faced a long list of challenges in the Asia Pacific region, including healthcare workers striking in Korea, macroeconomic pressure in Japan, and ongoing impacts from volume-based procurement (VBP) in China exacerbated by the country’s anti-corruption campaign.
“We have the largest medtech company in China,” said Tim Schmid, Executive Vice President of MedTech at Johnson & Johnson. “Given the high leadership positions, we are seeing a disproportionate impact from VBP. We have five major categories impacted through tenders in 2023 in electrophysiology, trauma, spine, endocutters and energy, and more recently, IOLs and sports in our Orthopaedics business. We do believe that this will be a headwind through the remainder of ’24 and into ’25.”
The company said a shortage of IV saline in the U.S. could potentially lead to delayed elective surgeries if the shortage persists. (Baxter’s Marion North Carolina plant was damaged during hurricane Helene)
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| 3Q24 | 3Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $851.5 | $826.6 | $24.9 | 3% |
| Knees | $351.6 | $338.0 | $13.6 | 4% |
| Hips | $381.6 | $375.0 | $6.6 | 1.8% |
| Extremities | $118.4 | $113.6 | $4.8 | 4.2% |
| Spine | $214.6 | $211.2 | $3.4 | 1.6% |
| Trauma | $676.8 | $659.5 | $17.3 | 2.6% |
| Sports Medicine | $170.6 | $170.4 | $0.2 | 0.1% |
| Orthobiologics | $84.9 | $85.2 | ($0.3) | (0.3%) |
| Enabling Technology | $19.1 | $17.8 | $1.4 | 7.9% |
| Other | $172.3 | $193.4 | ($21.1) | (10.9%) |
| Total | $2,189.8 | $2,164.0 | $25.8 | 1.2% |
| 9m24 | 9m23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,735.8 | $2,584.6 | $151.2 | 5.8% |
| Knees | $1,146.5 | $1,069.4 | $77.1 | 7.2% |
| Hips | $1,220.2 | $1,162.4 | $57.8 | 5% |
| Extremities | $369.1 | $352.8 | $16.2 | 4.6% |
| Spine | $722.7 | $730.4 | ($7.7) | (1.1%) |
| Trauma | $2,033.2 | $1,990.8 | $42.4 | 2.1% |
| Sports Medicine | $542.4 | $529.2 | $13.2 | 2.5% |
| Orthobiologics | $250.9 | $249.7 | $1.2 | 0.5% |
| Enabling Technology | $51.3 | $47.7 | $3.6 | 7.6% |
| Other | $506.0 | $541.4 | ($35.4) | (6.5%) |
| Total | $6,842.2 | $6,673.7 | $168.5 | 2.5% |
Orthopedic Sales by Geography
| 3Q24 | 3Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,358.9 | $1,349.0 | $9.9 | 0.7% |
| OUS | $830.9 | $815.0 | $15.9 | 2% |
| EMEA | $394.7 | $374.9 | $19.8 | 5.3% |
| Asia Pacific | $249.3 | $260.8 | ($11.5) | (4.4%) |
| Rest of World | $187.0 | $179.3 | $7.7 | 4.3% |
| Total | $2,189.8 | $2,164.0 | $25.8 | 1.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22,471.0 | |
| Cost of Sales | $6,963.0 | 31% |
| Selling and Admin | $5,478.0 | 24.4% |
| R & D | $4,952.0 | 22% |
| Other | $2,384.0 | 10.6% |
| Net Earnings | $2,694.0 | 12% |
Johnson & Johnson MedTech reported 3Q24 orthopedic sales of $2,189.8 million, up 1.2% compared to the third quarter of 2023. The company generated $6,842.2 million in orthopedic sales through the first nine months of 2024, up 2.5% compared to the year prior.
The company's orthopedic sales found modest success in joint replacement,...
Johnson & Johnson MedTech reported 3Q24 orthopedic sales of $2,189.8 million, up 1.2% compared to the third quarter of 2023. The company generated $6,842.2 million in orthopedic sales through the first nine months of 2024, up 2.5% compared to the year prior.
The company’s orthopedic sales found modest success in joint replacement, attributable to the impact of the VEYLS system and its surrounding technologies. However, company leadership said its previously-announced orthopedic restructure and SKU rationalization disrupted revenue in the third quarter.
Additionally, Johnson & Johnson MedTech faced a long list of challenges in the Asia Pacific region, including healthcare workers striking in Korea, macroeconomic pressure in Japan, and ongoing impacts from volume-based procurement (VBP) in China exacerbated by the country’s anti-corruption campaign.
“We have the largest medtech company in China,” said Tim Schmid, Executive Vice President of MedTech at Johnson & Johnson. “Given the high leadership positions, we are seeing a disproportionate impact from VBP. We have five major categories impacted through tenders in 2023 in electrophysiology, trauma, spine, endocutters and energy, and more recently, IOLs and sports in our Orthopaedics business. We do believe that this will be a headwind through the remainder of ’24 and into ’25.”
The company said a shortage of IV saline in the U.S. could potentially lead to delayed elective surgeries if the shortage persists. (Baxter’s Marion North Carolina plant was damaged during hurricane Helene)
Orthopedic Sales Data
Unless otherwise noted, all orthopedic sales data is provided in USD millions. We estimate orthopedic sales and growth rates on an as-reported basis.
Orthopedic Sales by Segment
| 3Q24 | 3Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $851.5 | $826.6 | $24.9 | 3% |
| Knees | $351.6 | $338.0 | $13.6 | 4% |
| Hips | $381.6 | $375.0 | $6.6 | 1.8% |
| Extremities | $118.4 | $113.6 | $4.8 | 4.2% |
| Spine | $214.6 | $211.2 | $3.4 | 1.6% |
| Trauma | $676.8 | $659.5 | $17.3 | 2.6% |
| Sports Medicine | $170.6 | $170.4 | $0.2 | 0.1% |
| Orthobiologics | $84.9 | $85.2 | ($0.3) | (0.3%) |
| Enabling Technology | $19.1 | $17.8 | $1.4 | 7.9% |
| Other | $172.3 | $193.4 | ($21.1) | (10.9%) |
| Total | $2,189.8 | $2,164.0 | $25.8 | 1.2% |
| 9m24 | 9m23 | $ Chg | % Chg | |
|---|---|---|---|---|
| Joint Replacement | $2,735.8 | $2,584.6 | $151.2 | 5.8% |
| Knees | $1,146.5 | $1,069.4 | $77.1 | 7.2% |
| Hips | $1,220.2 | $1,162.4 | $57.8 | 5% |
| Extremities | $369.1 | $352.8 | $16.2 | 4.6% |
| Spine | $722.7 | $730.4 | ($7.7) | (1.1%) |
| Trauma | $2,033.2 | $1,990.8 | $42.4 | 2.1% |
| Sports Medicine | $542.4 | $529.2 | $13.2 | 2.5% |
| Orthobiologics | $250.9 | $249.7 | $1.2 | 0.5% |
| Enabling Technology | $51.3 | $47.7 | $3.6 | 7.6% |
| Other | $506.0 | $541.4 | ($35.4) | (6.5%) |
| Total | $6,842.2 | $6,673.7 | $168.5 | 2.5% |
Orthopedic Sales by Geography
| 3Q24 | 3Q23 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $1,358.9 | $1,349.0 | $9.9 | 0.7% |
| OUS | $830.9 | $815.0 | $15.9 | 2% |
| EMEA | $394.7 | $374.9 | $19.8 | 5.3% |
| Asia Pacific | $249.3 | $260.8 | ($11.5) | (4.4%) |
| Rest of World | $187.0 | $179.3 | $7.7 | 4.3% |
| Total | $2,189.8 | $2,164.0 | $25.8 | 1.2% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $22,471.0 | |
| Cost of Sales | $6,963.0 | 31% |
| Selling and Admin | $5,478.0 | 24.4% |
| R & D | $4,952.0 | 22% |
| Other | $2,384.0 | 10.6% |
| Net Earnings | $2,694.0 | 12% |
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
