A Medical Device Daily

Johnson & Johnson (J&J; New Brunswick, New Jersey) reported that it is consolidating management, starting by eliminating the smallest of its four business groups, with more changes expected over the next several weeks.

The company is eliminating its comprehensive care business, one of three business units created in a January 2008 restructuring meant to boost sales. However, comprehensive care sales dropped 8% in the first half compared to last year.

The unit, which makes medical devices and tests, aims to sell doctors and their patients with chronic disorders such as diabetes and obesity on every type of J&J product that might help them, from nutrition products to gastric bands for stomach-shrinking surgery. Its operations will move into other parts of the company.

"We remain focused on driving growth in this challenging business and economic environment," explained J&J spokesman Bill Price.

The latest consolidation is aimed at ensuring the company operates "in the most efficient manner," he told the Associated Press. The company did not report job cuts, but he said J&J regularly assesses staffing needs and will continue to do so.

Donald Casey was named head of comprehensive care when it was set up, along with the surgical care business group, and was made a member of J&J's executive committee, which includes eight executives.

Comprehensive care comprises businesses making contact lenses, artery-opening stents and related guidewires and catheters, diabetes items and diagnostic tests – each with its own sales and marketing, research, manufacturing and administrative staff. Together, the group had 2008 revenue totaling $10 billion, out of about $64 billion companywide.

"The comprehensive care unit tried to take the view of putting the patient first and how we could serve the entire spectrum of their needs," Price said.

For example, diabetes patients and their health care team could get pitches for One-Touch Ultra Blood sugar monitors and test strips, insulin pumps, artificial sweetener Splenda, low-cholesterol spread Benecol, even products for stomach-reducing surgery.

Price said many of the group's programs will continue.

Casey, who has worked for J&J since 1985, will lead a transition to shift its businesses into the other three groups: pharmaceuticals, consumer health products and surgical care.

Word of the change came in a letter from longtime J&J chairman/CEO Bill Weldon to employees last Friday.

Price said there will be a series of other "organizational and management announcements in the near future."