J&J Electrophysiology Unit Rebounds Amid Fierce PFA Competition

Johnson & Johnson's electrophysiology unit has shown a strong recovery in the second quarter of 2025, marking a significant turnaround from its decline in the previous quarter. 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 sales grew by 11% year over year to $1.47 billion in Q2, a notable improvement from the nearly 2% decline observed in Q1. Tim Schmid, J&J's worldwide chairman for medtech, attributed this 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 presence in all commercial regions, including new markets such as China and Australia. This growth is particularly significant given the temporary pause in Varipulse's initial launch earlier this year due to safety concerns related to four neurovascular events.

Competitive Landscape and Market Position

Despite the positive momentum, J&J's growth in the electrophysiology sector still trails that of its main rivals. Boston Scientific has seen triple-digit growth in its electrophysiology unit since launching its Farapulse PFA system in early 2024. Medtronic has also reported strong success with its PFA offerings.

Schmid remains confident in J&J's ability to compete effectively in this space, stating, "Given that we created the [electrophysiology] category, for us, this one is very personal." He emphasized the company's commitment to retaining its global market leadership position over the long term, citing the development of next-generation catheters as a key factor in maintaining competitiveness.

Financial Outlook and Strategic Developments

In addition to the electrophysiology unit's performance, J&J provided updates on other aspects of its medtech business:

1. The company has revised its expected tariff charge for the year to approximately $200 million, half of what was initially forecast in April. This charge is exclusively related to J&J's medtech business.

2. J&J plans to file a de novo application for its Ottava soft tissue surgical robot with the FDA in Q1 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.

As the electrophysiology market continues to evolve rapidly, J&J's ability to innovate and adapt will be crucial in maintaining its competitive edge against formidable rivals in the PFA space.