J&J's Electrophysiology Unit Rebounds Amid Fierce PFA Competition

Johnson & Johnson's electrophysiology division has shown signs of recovery in the second quarter of 2025, marking a significant turnaround from its previous decline. This resurgence comes as the company faces intense competition in the rapidly growing pulsed field ablation (PFA) market.

Varipulse Platform Drives Growth

J&J's electrophysiology unit reported an 11% year-over-year growth, reaching $1.47 billion in sales for Q2 2025. This positive performance follows a nearly 2% decline in the previous quarter. Tim Schmid, J&J's worldwide chairman for medtech, attributed the rebound to the continued adoption of the company's Varipulse PFA platform, which has now been used in over 10,000 cases globally.

The Varipulse system has expanded its reach across all commercial regions, including new markets such as China and Australia. Despite a temporary pause in January due to safety concerns, J&J resumed sales in February and has since seen accelerated growth within the second quarter.

Competitive Landscape and Market Position

While J&J's electrophysiology unit is showing signs of recovery, it still trails behind rival Boston Scientific, whose electrophysiology division has experienced triple-digit growth since launching its Farapulse PFA system in early 2024. Medtronic has also reported strong success with its PFA offerings.

Despite the fierce competition, Schmid remains confident in J&J's ability to maintain its global market leadership position in the long term. He emphasized the company's history in creating the electrophysiology category and highlighted the sequential growth of more than 9% over the first quarter of 2025.

Financial Outlook and Future Developments

J&J has revised its tariff charge expectations for the year, now anticipating approximately $200 million exclusively related to its medtech business. This figure is half of what was initially forecast during the company's first-quarter earnings call in April 2025.

Looking ahead, J&J plans to file a de novo application for its Ottava soft tissue surgical robot with the FDA in the first quarter of 2026. The system, which aims to compete in the soft tissue market dominated by Intuitive Surgical, began clinical trial cases in April 2025 after receiving an investigational device exemption from the FDA late last year.