- Noah Cracknell
- Posts
- Johnson & Johnson Invests Billions into Clinical Care Solutions
Johnson & Johnson Invests Billions into Clinical Care Solutions
Health giants rake it in
Noah Cracknell
December 27, 2022
Hello friends, and welcome to The Daily Preneur! If you want to join 167 other readers learning about preneurship and self-improvement, subscribe below:
Health giant Johnson & Johnson is doubling down on clinical care.
What’s happening
Earlier this month, Johnson & Johnson finalized its acquisition of Abiomed, a deal valued at $16.6B, according to Forbes. Abiomed is a biomedical device company specializing in cardiac support devices.
“The completion of this acquisition allows Johnson & Johnson MedTech to expand our portfolio in the high-growth cardiovascular markets, adding solutions for heart recovery to our global market-leading Biosense Webster electrophysiology business. Fueled by Johnson & Johnson’s global scale and commercial and clinical strength, we are excited to explore the opportunities and possibilities ahead to reach even more patients with critical unmet needs.”
Why it matters
As more and more Americans suffer from lifestyle-related diseases every year, clinical care solutions are being developed to provide better treatment options to more patients. As a result, big health companies like Johnson & Johnson are investing in tech-enabled solutions and smart drugs for thousands of ailments.
UpStream Healthcare raised $140M in Series B funding earlier this month. The company supports primary care practices and clinicians via a platform that anticipates patient needs, supports patient care, improves quality, and helps coordinate care.
This month, Pfizer announced a $2.5B project to expand its drug manufacturing in Europe. The drug giant is reinvesting its $101B+ in 2022 revenue to expand manufacturing and distribution centers.
In 2021, Ginger and Headspace finalized a merger to form a $3B mental health company. Although recently, the company has been in turbulent waters as markets continue to decline.
Looking ahead
Large-cap health companies will continue to cash in on treatments for preventable conditions unless Americans adopt healthier behaviors – which is unlikely given the current trajectory.
I’m not claiming that we don’t need these health titans – I believe the US should strive to have the most advanced healthcare network in the world. But with the majority of their dollars coming from treatments for preventable diseases, I believe health giants should be incentivized for more than just profit.
They should be incentivized and rewarded for solving health ailments, not treating them. Without the right incentives, companies will continue to rake it in at the expense of individual health nationwide.
What's your take?
Keep crushing.
Cheers,
Noah Cracknell
Reply