As expected, the strengthening dollar impacted the company’s revenue growth significantly and the situation is unlikely to change this year. In addition, the decline in Olysio’s sales continued dampening pharmaceutical division’s momentum. While the impact of currency was huge, it is something that is transient and not specific to J&J. We expect most big pharmaceutical firms to suffer in a similar way. It is more important to understand J&J’s operational growth challenges in pharmaceutical and medical devices business, which together constitute more than 95% of the company’s value according to our estimates.
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