Johnson & Johnson shares fell 2.7% after the company reported quarterly results that beat estimates but revealed a sharp slowdown in its MedTech division, raising doubts about the balanced growth story underpinning the streamlined healthcare giant. While the Innovative Medicine unit delivered double-digit operational growth excluding STELARA biosimilar impacts, fueled by a 71% surge in TREMFYA and nearly 18% growth in DARZALEX, the MedTech business posted only a 3.6% operational sales increase, with cardiovascular sales declining 2% and electrophysiology growth slowing to 3.1%. Management raised full-year operational sales growth guidance to 6.5%–7.1%, but analysts questioned whether pharma strength was masking MedTech weakness, highlighting the market's concern that one segment is over-delivering to compensate for the other. The stock's decline reflects investor skepticism about whether the MedTech division, particularly its cardiovascular business, can regain momentum and restore the company's two-engine growth narrative.
Johnson & JohnsonMedTech division slowdown, especially cardiovascular sales decline and electrophysiology growth deceleration, raises doubts about balanced growth
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