Is Johnson & Johnson's Orthopedics Business on Safe Footing? (The Motley Fool)
When it comes to health care companies, there's no bigger name than the largest firm in the business: Johnson & Johnson (NYSE: JNJ ) .
What doesn't J&J produce? From pharmaceuticals to consumer care goods to medical devices, this major medical player has it all. That can make it tough on investors trying to understand this highly diversified company, however: With so many parts, what do you need to keep an eye on? To get a grip on this colossus of the health care sector, let's take a look at Johnson & Johnson's orthopedics business, its largest medical device segment by sales.
Changing the game with Synthes
Johnson & Johnson's huge acquisition of Synthes last year for nearly $20 billion set the stage for this company's orthopedics might. The combined power of Synthes and fellow J&J subsidiary DePuy fueled J&J's segment revenue to nearly $7.8 billion in 2012 alone, a sum that made up more than 11% of total company revenue. The Synthes acquisition alone made up most of J&J's medical device revenue growth last year; however, the company still posted 4% year-over-year growth ...
