Asia has established itself as the top-notched international market for new as well as large corporate houses over the last few years. In order to take the best advantage of the prevailing market conditions, Johnson & Johnson (NYSE:JNJ) has decided to expand its operations in this region.
Road So Far:
J&J enjoyed one of the best financial performances in the previous year with a total profit of $16 billion and revenue of $74 billion. While talking to reporters, Alex Gorsky, CEO and Chairman of J&J revealed company’s plans to expand in Asian countries like Japan, China, etc. The healthcare industry in these markets has been growing very swiftly; hence, creating an ideal opportunity for J&J.
Apart from the healthcare sector, the company is also looking forward to exploring biotechnology market as well. Some of the market experts consider it as a bubble, which can have positive as well as negative impacts on the future growth plans. Gorsky considers China as the best Asian country for the company to expand health care operations.
There is tremendous value for investment in this country, which J&J would like to grab in the coming years. The company started an innovation center in Shanghai as the first step of its investment in China. The fact that prompted it to do so is nothing but the awareness of this country about the latest technology and the availability of skilled workforce.
It’s not the first time when J&J has done something to establish itself on a higher level in the healthcare field. Recently, it entered into a partnership with Pharmacyclics Inc. with an objective to make use of Imbruvica; a sought after cancer drug. Even though when Pharmacyclics Inc. made itself available for sale, J&J decided to take a back-step than to come forward and buy the company. Now, Johnson & Johnson (NYSE:JNJ) doesn’t want to leave any stone unturned in the healthcare market; hence, it has decided to expand its investment in Asia.