Johnson & Johnson ignores pressure to focus on drug production only

In the past decade, more and more shareholders have pushed pharmaceutical firms to focus solely on drug production, causing companies like Pfizer and Merck to sell their consumer goods businesses. However, Johnson & Johnson continues to ignore this trend.

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The healthcare conglomerate, based in New Brunswick, N.J., recently acquired hair care company Vogue International for $3.3 billion, according to The New York Times.

While Johnson & Johnson’s drug division thrives, the consumer goods section produces lower margins than rivals and the medical device division remains stagnant since 2010.

Last year, Artisan Partners tried to pressure Johnson & Johnson to split. As Artisan owned well under 1 percent of its stock, the shareholders lacked the power to sway the conglomerate and its $312 billion market value.

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