What Companies Does Johnson & Johnson Own?

Johnson & Johnson (JNJ -0.46%) is a behemoth in the healthcare sector. The iconic company owns a diversified portfolio of innovative medicine and medical technology (medtech) businesses. It has invested heavily in research and development (R&D) to launch healthcare innovations while making acquisitions to accelerate breakthroughs and enhance its position.

The diversified healthcare company uses its strong cash flow and a fortress-like balance sheet to acquire companies and products that enhance its core businesses. Johnson & Johnson's growth has made it a solid company in which to invest money over the years.

Here are some of the notable companies that Johnson & Johnson has acquired over the years and a look at what ones it might acquire next.

List of companies

What companies does Johnson & Johnson own?

Johnson & Johnson has two operating businesses:

• Innovative Medicine: The company has a diverse portfolio across many therapeutic areas, including oncology, immunology, neuroscience, cardiovascular, pulmonary hypertension, and retinal diseases.
• MedTech: Johnson & Johnson has a growing medical device and technology division focused on orthopedics, surgery, interventional solutions, and vision care.

The company also has a 9.5% interest in Kenvue (KVUE -0.84%), its former consumer health products business. Johnson & Johnson spun off most of its consumer staples business to shareholders in 2023. It retained a minority stake in Kenvue, which it intends to monetize over time.

Here's a look at some of the most notable companies Johnson & Johnson has acquired over the years to build its leading Innovative Medicine and MedTech businesses.

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1. Ethicon

Johnson & Johnson acquired the company that is now known as Ethicon in 1947. The company makes surgical sutures and wound closure devices. Johnson & Johnson has acquired and merged several other companies into Ethicon over the years, including Mentor Corporation (2008), Acclarent (2009), SterilMed (2011), Verb Surgical (2019), and Auris Health (2019).

2. Janssen Pharmaceutica

Johnson & Johnson bought Belgian research and drug company Janssen Pharmaceutica in 1961. As it is now known, Janssen Pharmaceuticals formed the bedrock of the company's innovative medicine division. Johnson & Johnson used Janssen to acquire other research companies and drugmakers over the years. Janssen is now Johnson & Johnson Innovative Medicine, which holds its diverse and growing portfolio of therapeutics.

3. DePuy

Johnson & Johnson bought DePuy in 1998 for $3.5 billion. It was one of the world's first orthopedics companies, inventing the first hip and knee replacement implants. Johnson & Johnson combined DePuy with Synthens in 2012 to create the world's largest orthopedic and neurological business.

4. Biosense

Johnson & Johnson bought Biosense in 1997 for $400 million. It would go on to combine that company with its Cordis Webster subsidiary (a company it bought in 1996 for $1.8 billion) to create Biosense Webster, a global market leader in treating cardiac arrhythmia.

5. Centocor Biotech

Johnson & Johnson bought Centocor Biotech for $4.9 billion in 1999 and renamed it Janssen Biotech. Centocor was one of the country's first biotechnology companies. The deal opened the door to a new frontier in medicine for the company. Centocor developed Remicade, a treatment for Crohn's disease, which has become one of the best-selling biotech medications ever developed.

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6. Synthes

The company acquired Synthes for $21.3 billion in 2012. The leading manufacturer of orthopedic devices expanded Johnson & Johnson's medical devices and diagnostic segment. It combined Synthes with its subsidiary, DePuy Companies, to create a larger-scale and more innovative orthopedics business.

7. Actelion

Johnson & Johnson acquired Actelion for $30 billion in cash in 2017. The company combined it with Janssen Pharmaceuticals to expand Janssen's portfolio and late-stage pipeline. Actelion developed therapies to treat pulmonary arterial hypertension, including Opsumit, Uptravi, and Tracleer.

8. Abbott Medical Optics

Johnson & Johnson acquired Abbot Medical Optics from Abbott Laboratories (ABT 0.63%) for $4.3 billion in 2017. The company renamed it Johnson & Johnson Vision, combining the surgical ophthalmic portfolio with its ACUVUE contact lens business.

9. Momenta Pharmaceuticals

The company bought Momenta Pharmaceuticals for $6.5 billion in 2020. The transaction expanded Johnson & Johnson's leadership in novel treatments for autoimmune diseases. Momenta developed a pipeline of potential therapeutics led by nipocalimab.

10. Abiomed

The healthcare giant bought Abiomed in 2022 for $16.6 billion. The company was a leader in heart, lung, and kidney support technologies. It helped broaden and strengthen Johnson & Johnson's MedTech product portfolio. Abiomed developed the breakthrough Impella heart pump to treat patients with severe coronary artery disease.

Potential future acquisitions

What companies could Johnson & Johnson buy in the future?

Johnson & Johnson has had a voracious appetite for acquisitions over the years. It has seemed to get hungrier for deals after spinning off its consumer health products business (Kenvue). It has made a couple of deals since then:

• Laminar: It paid $400 million for the medical device company focused on arterial fibrillation in 2023. It joined its MedTech segment as part of Biosense Webster.
• Ambryx Biopharma: It bought the clinical-stage biopharmaceutical company in 2024 for $2 billion. It enhanced the company's pipeline of next-generation antibody drug conjugates to treat cancer.

The company will likely continue to make acquisitions. It has ample financial flexibility to fund new deals thanks to its fortress-like balance sheet. Johnson & Johnson entered 2024 with $23 billion of cash and securities on its balance sheet against only $29 billion in debt. That supports its pristine AAA bond rating.

The company also generates significant free cash flow ($18 billion in 2023), which gives it money to return to shareholders ($11.8 billion in dividends and $2.5 billion in share repurchases in 2023) while building up its cash balance to help fund future acquisitions. The company also still had a minority stake in Kenvue, which it can monetize to fund future deals.

One of the company's big focuses in recent years has been strengthening its fast-growing MedTech business (e.g., acquiring Abiomed and Laminar). The company's management team has repeatedly said that they have an aggressive mergers and acquisitions strategy and a voracious appetite for deals, particularly in the MedTech space.

The company has a range of options, from mega deals to smaller purchases. Buying Boston Scientific (BSX -0.12%) is a potential blockbuster deal. Analysts have floated the medical technology company as a possible acquisition target of Johnson & Johnson because it would be a good strategic fit. There isn't much overlap between the two companies, so it would enhance Johnson & Johnson's business mix and revenue growth. However, with a $100 billion market cap, Boston Scientific would be a massive deal, even for the $400 billion healthcare behemoth.

If the company wants to pursue a different megadeal to bolster its MedTech business, it could also consider Medtronic (MDT 0.62%), Stryker (SYK -0.46%), or Intuitive Surgical (ISRG 0.59%). Meanwhile, it could consider a smaller medical technology company if those $100 billion-plus price tags are too much. There are countless options, including InMode (INMD 0.7%), which markets surgical devices that use radio frequency technology, and Outset Medical (NASDA:OM), which markets hemodialysis systems.

Another acquisition pathway for Johnson & Johnson is bolstering its innovative medicine business. Many analysts believe the biotechnology sector is ripe for more mergers and acquisitions. There were several deals in early 2024, including Johnson & Johnson's $2 billion acquisition of Ambrx Biopharma, which likely won't be its last acquisition in the space.

Analysts have floated a lot of potential takeover targets for big pharma companies. One likely hot commodity is Viking Therapeutics (NASDAQ:VXTX), which is developing a promising weight-loss drug. Another potential option is cancer drug developer Immunocore (IMCR 0.79%).

Johnson & Johnson could also seek to turn some of its minority investments into wholly-owned companies. The company has several investments in smaller biotech and medical device companies, including Legend Biotech (LEGN 1.98%), CVRx (CVRX 2.08%), and Protagonist Therapeutics (PTGX 1.99%). Buying companies it's already familiar with would potentially be less risky than acquiring an unfamiliar company.

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The bottom line on companies Johnson & Johnson owns

Johnson & Johnson has become a healthcare giant by acquiring companies that enhance and expand its capabilities. The company will likely remain an active acquirer, especially after sharpening its focus on innovative medicine and medical technology by spinning off its consumer health products business. Future deals should help grow the company's earnings and value for shareholders, which could make it a great stock to buy and hold.

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