NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, April 6, 2016

Johnson & Johnson is deepening its business in Africa, adding new research, development and distribution capabilities to boost sales of new medicines to fight HIV/AIDS and other major killer diseases.

The makeover formally kicks off Wednesday in Cape Town, South Africa, with the opening of the first office of a new global public health unit the company created last year.

The unit has two objectives. First, it will carry out its normal pharmaceutical activities, from supporting promising drug research in local universities to selling J&J products, the company says. The unit will also work with governments, nongovernmental organizations and others to build medical-testing capabilities, supply chains and other systems needed to get medicines distributed and into patients’ hands, J&J says.

“Part of it is the right thing to do. Part of it is building those kinds of relationships, those kinds of capabilities that over the long term are going to result in a very significant market opportunity for us,” J&J CEO Alex Gorsky said in an interview.