Johnson & Johnson's electrophysiology sales decline due to a sluggish start of Varipulse sales
In the rapidly growing and highly competitive pulsed field ablation (PFA) market, Johnson & Johnson (J&J) has faced challenges in gaining significant traction compared to industry leaders Medtronic and Boston Scientific.
The early success of Boston Scientific's Farapulse PFA system, which was launched in 2021, has given the company a significant advantage. This system has gained momentum, with positive clinical and economic assessments from regulatory bodies such as the UK's NICE. In contrast, J&J's Varipulse system entered the market later, leaving the company as a late entrant struggling to differentiate.
Key reasons for J&J's comparatively limited traction include the timing and market positioning, lack of clinical and economic validation, market dynamics, and the focus on established ablation technologies by Medtronic and Boston Scientific.
The pause of U.S. cases of Varipulse in January 2021 for about five weeks due to safety concerns has raised concerns among Wall Street analysts. There are several safe alternatives currently on the market for electrophysiology procedures, and the potential lasting impact of the challenges faced by the Varipulse device on physician perception of its safety is a cause for concern.
Analysts, such as those from J.P. Morgan and RBC Capital Markets, have advised J&J to take steps to educate healthcare professionals about Varipulse to drive adoption. The device was launched in the U.S. in 2025, trailing Boston Scientific and Medtronic by almost one year, having received FDA approval in November 2020.
Despite the struggles of J&J's Varipulse device, the overall medtech sales brought in $8.02 billion, representing a 2.5% increase year over year. However, J&J's electrophysiology sales fell by nearly 2% year over year in the first quarter of 2025, contrasting with the strong growth reported by rivals Medtronic and Boston Scientific.
PFA systems, including those from Medtronic and Boston Scientific, are replacing cryoablation and radiofrequency ablation procedures, offering advantages such as reduced complication rates, shorter procedure times, and lower total treatment costs. The competitive landscape of the PFA market, dominated by Boston Scientific and Medtronic, continues to pose challenges for new entrants like J&J.
- Regulatory bodies like the FDA have yet to issue a full assessment for J&J's Varipulse system, limiting its market validation in comparison to competitors like Medtronic and Boston Scientific.
- The healthcare industry is closely following the progress of AI analytics in medical-conditions management, a sector where both Medtronic and Boston Scientific have made significant investments.
- J&J's medtech division is investing heavily in developing AI devices, aiming to bridge the gap with competitors and improve patient outcomes.
- The news of the FDA's approval for the integrative fitness-and-exercise app developed by Medtronic has caused a stir in the health-and-wellness industry, as it combines cardiovascular health tracking with personalized coaching.
- Investors seeking opportunities in the healthcare sector keep a close eye on the earnings reports of major companies like J&J, Medtronic, and Boston Scientific, with their performance often indicative of market trends in medtech.
- The blend of finance and medicine has given rise to investing opportunities in cutting-edge medtech, with analysts forecasting potential growth in sectors like cardiovascular health devices.
- In the realm of medical events, industry giants such as Medtronic and Boston Scientific utilize major trade shows as platforms to showcase their latest advancements in PFA technologies.
- As part of their efforts to promote the Varipulse system, J&J has organized a series of presentations at health-and-wellness events to educate attendees about the devices' benefits and unique features.
- Although J&J's Varipulse device faced temporary safety concerns, the company maintains a strong commitment to ensuring the safety of all its health-and-wellness products.
- The science behind each medical-condition and the technologies employed to treat them continues to advance, keeping industry leaders like Medtronic and Boston Scientific at the forefront of the medtech industry.
