10/26/11

Key Industry Leader Gains Even More


Johnson & Johnson Inc. is one of the leaders in the global pharmaceutical industry with 36% of the market share in the United States alone. Johnson & Johnson has adapted a very unique and successful business model. The company highly supports diversification in both its products and its target consumer. They offer hundreds of different kinds of products to people of all ages, genders, and various needs all over the world. The Johnson & Johnson website claims that they have great responsibility in this expanding global environment by reaching out to more and more people everyday, everywhere. The company is a strong multi-national company with operations in over 57 countries. Even with its large customer base of household products, Johnson & Johnson’s top market is its pharmaceuticals, which includes its flagship product Remicade.

Johnson & Johnson’s financial statement for 2010 reported revenue of $61.6 Billion, down $200 Million from 2009 but up $2 Billion from 2008. Total company assets increased from $94.7 Billion in 2009 to $102.9 Billion last year. The company experienced a huge $10 Billion growth between 2005 and 2007 and eventually it became a steady growth through the recession, however the recession did not cause any negative consequences in growth. In fact, the net income has growth significantly as well without any dips. From 2007 to 2010 the company gained $3 Billion in net income. Cash flow has also steadily increased over the years; from $12.5 Billion in 2005 to $16.3 Billion last year. Current company liabilities have consequently increased too; from $20.9 Billion in 2008 to $23.1 Billion last year.

Johnson & Johnson is one of the top five key industry players. It owns a huge chunk of the US pharmaceutical market and is inching its way over to a bigger global market share in the next couple years through its diversification strategy and the production of generic medication.

Djeki Bidjerano

Sources:

http://finance.yahoo.com/q/ks?s=JNJ

http://www.netadvantage.standardandpoors.com.proxyau.wrlc.org/NASApp/NetAdvantage/cp/companyFinancials.do

http://www.investor.jnj.com/2010annualreport/chairman/pharmaceuticals.html

http://www.wikinvest.com/stock/JOHNSON_%26_JOHNSON_(JNJ)

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