johnson and jjohnson, large swath of companies acquired using 26 billion debt load

Accuracy score :
97%

Johnson & Johnson  JNJ
Summary (from latest annual report 2015 and quarterly report 2016)
•    Total equity  : 72.47 billion USD
•    Market Cap is 326.4 billion USD ( last price of the stock is 119.32 USD)
•    Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices segments
•    Equity of total company increased from 69.75 billion USD in 2014 to 72.47 billion in 2016
•    Company has 18.64 billion USD in cash on account (from latest quarterly report)
•     Total equity – cash on account = 72.47 billion USD – 18.64 billion USD = 53.83 billion USD
•    Company has 24.67 billion USD Treasury stock
•    In 2016 company has 24.53 billion USD long-term debt, short – term debt is 1.7 billion USD                                                                                                                                                            (In 2014 company had 12.85 billion USD long-term debt, short – term debt was 7 billion USD)
•    In 2016 quarterly report - total equity increased to 72.47 billion  USD from 69.75 billion USD in 2014, total debt is 26.23 billion USD in 2016)
•    Company's revenue decreased in 2015 to 70.07 billion USD from 74.33 billion in 2014
•    Net income in 2015 was 15.4 billion USD, Net income in 2014 was 16.3 billion USD
•    In 2015 company paid 8.17 billion USD dividend to its shareholders

Johnson & Johnson  JNJ
Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturer founded in 1886. The corporation has operations in over 57 countries and products sold in over 175 countries. Johnson & Johnson's brands include numerous household names of medications and first aid supplies. Among its well-known consumer products are the Band-Aid Brand line of bandages, Tylenol medications, Johnson's baby products, Neutrogena skin and beauty products, Clean & Clear facial wash and Acuvue contact lenses. The Company increased its dividend in 2015 for the 53rd consecutive year. Cash dividends paid were $2.95 per share in 2015 compared with dividends of $2.76 per share in 2014, and $2.59 per share in 2013.
The company operates in three broad divisions; Consumer Healthcare, Medical Devices and Pharmaceuticals.
•    Pharmaceuticals - the company's major franchises in the Pharmaceutical segment include Immunology, Neuroscience, Infectious Disease, and Oncology. Pharmaceuticals Division together with standalone subsidiary ( Janssen Pharmaceutica (Cilag, Janssen-Cilag, Covagen, Aragon Pharmaceuticals, Alios BioPharma, Novira Therapeutics), Janssen R&D LLC, Janssen Healthcare Innovation, Janssen Biotech, Ortho Biotech, RespiVert, Janssen Therapeutics, Janssen Diagnostics, Janssen Scientific Affairs, Crucell) is worth 146.88 billion USD  (represents 45% of total revenue)
•    Medical Devices Division together with standalone subsidiary (Advanced Sterilization Products, Animas Corporation, Biosense Webster, DePuy, Ethicon (Mentor, Acclarent, NeuWave Medical), Janssen Diagnostics BVBA, LifeScan, Ethicon Endo-Surgery) is worth 116.85 billion USD  (represents 35.8% of total revenue)
•    Consumer Healthcare (Baby Care, Nutritionals, Oral Health Care, Over-the-Counter Medicines, Skin & Hair Care, Vision Care, Wound Care & Topicals) is worth 62.66 billion USD (represents 19.2% of total revenue)
•    United States division represents 51% of total revenue
•    International divisions represent 49% of total revenue

Important history dates
•    In 1915, George F. Merson opened a facility in Edinburgh for the manufacturing, packaging and sterilising of catgut, silk and nylon sutures. Johnson & Johnson acquired Mr. Merson’s company in 1947, and this was renamed Ethicon Suture Laboratories. In 1953 this became Ethicon Inc (subsidiary of Johnson & Johnson)
•    In 1959, Johnson & Johnson acquired McNeil Laboratories and a year later the company was able to sell Tylenol for the first time ever, without a prescription
•    In 1959, Cilag joined the Johnson & Johnson family of companies. In the early nineties the marketing organizations of Cilag and Janssen Pharmaceutica were joined to form Janssen-Cilag. The non-marketing activities of both companies still operate under their original name.
•    On 24 October 1961, Janssen Pharmaceuticals was acquired by Johnson & Johnson

JNJ standalone subsidiaries and acquisitions :
•    In March 2016, J&Js Ethicon business unit announced it would acquire NeuWave Medical (financial terms of the transaction have not been disclosed)
•    In 2016 Johnson & Johnson acquired Vogue International for 3.3 billion USD
•    In 2015, subsidiary Janssen Pharmaceuticals acquired XO1 Limited and Novira Therapeutics (financial terms of the transaction have not been disclosed)
•    In August 2014 Cilag acquired Covagen a biopharmaceutical company which specialises in the development of multi-specific protein based therapeutics (financial terms of the transaction have not been disclosed)
•    In November 2014, subsidiary Janssen Pharmaceuticals acquired Alios BioPharma, Inc. for 1.75 billion USD
•    In August 2013, subsidiary Janssen Pharmaceuticals acquired Aragon Pharmaceuticals worth 1 billion USD
•    On June 14, 2012, Johnson and Johnson completed the acquisition of Synthes for 19.7 billion USD, which was then integrated with the DePuy franchise to establish the DePuy Synthes Companies of Johnson & Johnson which includes; Codman & Shurteff, Inc., DePuy Mitek, Inc., DePuy Orthopaedics, Inc. and DePuy Spine, Inc
•    In October 2010 J&J acquired Crucell for 2.4 billion USD
•    Subsidiary Acclarent was acquired for 785 million USD in 2009
•    In 2008 J&J announced it would acquire Mentor Corporation for 1 billion USD and merge its operations into Ethicon
•    In 2008 Johnson & Johnson acquired Omrix Biopharmaceuticals for 430 million USD
•    In 2005 Johnson & Johnson acquired Transform Pharmaceuticals for 230 million USD
•    In 2001 Johnson & Johnson acquired LXN Corporation for 1.3 billion USD
•    In 1999, Centocor (Janssen Biotech)  became a wholly owned subsidiary of Johnson & Johnson (in deal worth 4.9 billion USD). In 2008, Centocor, Inc. and Ortho Biotech Inc. merged to form Centocor Ortho Biotech Inc. In June 2010 Centocor Ortho Biotech acquired RespiVert (for 100 million USD), a privately held drug discovery company focused on developing small-molecule, inhaled therapies for the treatment of pulmonary diseases. In June 2011 Centocor Ortho Biotech changed its name to Janssen Biotech
•    DePuy was acquired by J&J in 1998, rolling it into the Johnson & Johnson Medical Devices group. Johnson acquired DePuy for $35.00 per share, for an aggregate transaction value of 3.5 billion USD

Total = 40.39 billion usd

 

Opinion about the company
Fundamentally it is a good company and in the future we can expect its growth (Total debt is 26.23 billion USD, company has 18.64 billion USD in cash on account, ROE is around 20 %).

 

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