Just How Much of a Dent is TOS Making in JNJ's ASP Division?JNJ is notorious for not making it at all clear what the financials coming out of their ASP division (that makes the inferior Sterrad low temp sterilizers). But, looking at their first quarter results reported last month, the Specialty Division of Surgical Products in the US (where they moved ASP's numbers a year or so ago) showed a decline in revenue of -14.3% from the first quarter 2016, going from 210,000,000 to 180,000,000. How much of this is attributable to a decline in Sterrad sales is unclear, (just the way JNJ wants it to be), but the division is clearly on the decline.
I still think JNJ is watching TSO3 very very closely, as we have the best low temperature sterilizer in the market by far and in every way, including existing and future FDA endorsements, and we are eating ASP's lunch in the field. How long will the executives at JNJ stand by and allow this little competitor from Canada take business from them and make them obsolete in the low temperature field? JNJ's executives continue to state that they will be Number 1 on every field on which they play. And, TSO3 is, as I have argued previously, worth easily $10+ per share to them today, and even more in a year or two.
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