In an effort to capitalize on the booming pharmaceutical market, which is expected to grow to more than $1 trillion by 2015, Johnson & Johnson (NYSE:JNJ) said it will review growth strategies for its pharmaceuticals business at a meeting with investors on Thursday.
Senior leaders from the company’s executive committee and pharmaceuticals segment will review how the business plans to address unmet medical needs and outpace the market’s growth by optimizing its product portfolio.
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“The health care industry is undergoing dramatic change and with science evolving rapidly, we are well-positioned for the new demands, requirements, demographics and trends shaping the health care market,” Sheri McCoy, vice chairman of the executive committee, said in a statement.
The segment, which generated $22.4 billion in sales last year, 36% of J&J’s total revenue, plans filing 11 new products and 30 line extensions between 2011 and 2015.
In an effort to expand its geographic footprint in the coming years, J&J said it will increase investments in emerging markets while continue its focus on key markets such as Japan, which is the world’s second largest pharmaceutical market. The company plans on launching seven drugs in Japan this year alone.
The pharmaceuticals unit also intends to strengthen leadership capabilities by rotating key talent into specific roles to quickly accelerate skills development, and said it will build R&D capabilities in new technology areas and emerging markets. The segment invested just over $4.4 billion in R&D programs last year.
“Innovation and sustained R&D productivity are key to our long-term future,” said Dr. Paul Stoffels, J&J’s worldwide chairman of pharmaceuticals.
The unit’s last major review with analysts was in 2009. Since then, McCoy said the company has built a “highly productive pharmaceuticals pipeline,” including six key new products and another two pending regulatory review.