Core Insights - The medical technology (medtech) sales for 2025 are projected to reach $33.79 billion, reflecting a year-over-year growth of 6.1% [1] - The cardiovascular segment of Johnson & Johnson (J&J) is a significant driver of this growth, with sales totaling $8.93 billion and a year-over-year increase of 15.8% [1][4] - The orthopedic segment, in contrast, has shown minimal growth of 1.1% year over year [1] Group 1: Cardiovascular Business Performance - J&J's cardiovascular business, which includes units like Abiomed and Shockwave Medical, experienced double-digit growth year over year, making it the only medtech unit to achieve such growth [2] - The strong performance in the cardiovascular segment is part of J&J's strategy to focus on higher growth markets, leading to the decision to separate from its orthopedics segment [2] Group 2: Portfolio Transformation and Future Outlook - Tim Schmid, J&J's worldwide chairman of medtech, indicated that the transformation of the portfolio is effective, with nearly 50% of J&J's medtech assets now in higher growth markets, up from 20% in 2018 [3] - This percentage is expected to exceed 70% following the orthopedic separation, suggesting a positive outlook for the company's future growth [3] Group 3: Electrophysiology Segment - J&J's electrophysiology unit reported a year-over-year sales growth of 7%, totaling $5.63 billion, although growth has slowed in the fourth quarter compared to earlier quarters [5] - The Varipulse PFA system has been utilized in nearly 40,000 patients with atrial fibrillation, indicating significant adoption, and J&J plans to release a new PFA catheter annually through the end of the decade [6] - Schmid emphasized that electrophysiology remains a priority for J&J, as the company aims to remain competitive in the face of increasing competition, particularly in pulsed field ablation (PFA) [6]