Boston, MA 05/27/2014 (wallstreetpr) – Investment advisor Goldman Sachs Group Inc. (NYSE:GS) expects pharmaceutical division as a key driver for the growth of the manufacturer of a wide range of products, Johnson & Johnson (NYSE:JNJ) and its stock as well. The health care company is also targeting more than 30 new launches in the next couple of years.
Pharma Division To Drive Growth
The brokerage’s comment has come after its pharmaceutical analyst Jami Rubin attended Johnson & Johnson’s Medical Device and Diagnostics (MD&D) analyst meeting. The analyst views that Goldman Sachs Group Inc (NYSE:GS)’s MD&D division appears to be on the right track with regard to new product introductions or innovation besides reasonable access of emerging markets or EM for growth opportunities though execution could be an important aspect to monitor.
However, Goldman Sachs analyst expects its pharma sector to be a key driver for growth both for the company as well as its stock, since Pharma segment was the biggest contribution to both revenue as well as profit as it had done in the first quarter of the current year. However, the brokerage understood the current business dynamics that may not completely support a Pharma division as payers consolidate.
New Product Launches
The health care company is expected to launch more than 30 big new products in the next two and half years, i.e. till the end of 2016. Among its Global Surgery division, which has 42% of division sales, the key for growth areas included Electrophysiology that contributes over 12% compounded annual growth rate OR CAGR, 9% CAGR of Endocutters, over 6% CAGR of Biosurgery, and more than 5% of CAGR in Energy Devices.
Similarly, among energy segments, the brokerage is hopeful of the launch of the Evarrest Fibrin Sealant Patch in the U.S. during the second half of the current year providing enough opportunities to gain market share in Biosurgery. The analyst pointed out that the management highlighted expected FDA approval for its new Animas Vibe insulin pump during the period of the second half of 2014 and expressed the hope that Calibra gets approved within 24 months.
