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Johnson & Johnson Highlights Strategies for Growth Through Differentiated Medicines, Transformational Pipeline and Global Product Launches

NEW BRUNSWICK, N.J., May 26, 2011 /PRNewswire-FirstCall/ -- Johnson & Johnson (NYSE: JNJ) will review growth strategies for its Pharmaceuticals business at a meeting with the investment community today.  Senior leaders from the company's executive committee and pharmaceuticals segment will review how the business plans to address some of the world's major unmet medical needs and outpace pharmaceutical market growth with an optimized product portfolio, robust pipeline and a demonstrated track record of successful global product launches.

"Our people focus every day on addressing the world's major unmet medical needs with superior science," said Vice Chairman, Executive Committee, Sheri McCoy.  "Since our last Pharmaceuticals Business Review with analysts in 2009, we have built a highly productive pharmaceuticals pipeline, with six key new products launching and another two pending regulatory review, some in multiple geographies.  Our disciplined approach to research and development, rigorous investment prioritization, and internal and external sources of innovation have enabled us to be well-positioned for long-term growth.  Our revitalized portfolio and launch capabilities have led to market leadership in key categories."

Johnson & Johnson's pharmaceuticals business will highlight its plans for continuing to address major medical needs and build on its market leadership in five therapeutic areas: Neuroscience; Cardiovascular and Metabolism; Immunology; Oncology and Infectious Diseases/Vaccines.  Brief summaries of the therapeutic areas, products and compounds being discussed in today's presentations are available in a separate backgrounder: Pharmaceuticals Segment Review Highlights.

Pharmaceuticals Growth Strategies

Johnson & Johnson's pharmaceuticals business generated $22.4 billion in sales last year, 36 percent of the company's total revenue, and it ranks as the world's eighth largest pharmaceutical company and fifth largest biotech company.  The pharmaceuticals business saw over 6% operational growth in the first quarter of 2011 as new products contributed to growth and core brands delivered solid performance.  

Johnson & Johnson's pharmaceuticals business has taken a disciplined management approach to increasing its efficiency in order to invest in its pipeline and new product launches.  For example, the pharmaceuticals business has seen a significant increase in productivity over the last two years based on the ratio of sales per employee, and it continues investing in R&D at higher rates than its competitive set.

Ms. McCoy added, "The health care industry is undergoing dramatic change and with science evolving rapidly, we are well-positioned for the new demands, requirements, demographics and trends shaping the health care market."

With the pharmaceutical market at an estimated $850 billion* globally and expected to grow to more than $1 trillion by 2015, Ms. McCoy and other leaders will outline four strategies for growth for the company's pharmaceuticals business:

  • Deliver differentiated medicines – In recent years, the pharmaceuticals business has transformed its portfolio by expanding its leadership in immunology, deepened its expertise in oncology and entered vaccines.  The company's pharmaceuticals businesses are in the process of launching six significant new products between 2009 and 2011, some in multiple geographies.  Two of the new products are pending regulatory review in the European Union (EU), and two additional key compounds are in registration in key markets. Many of these products could represent significant advances over the current standards of care.  
  • Build transformational pipeline – The pharmaceuticals business' prioritized investments in internal R&D, strategic licensing arrangements, partnerships and select acquisitions continue to build a robust pipeline for the long-term.  The company's pharmaceuticals businesses expect to file 11 new products and over 30 important line extensions between 2011 and 2015.  
  • Strengthen geographic presence – The pharmaceuticals business will grow its geographic footprint and increase investments in emerging markets, evaluating market appropriate commercial approaches and portfolios.  It also remains focused on key developed markets.  Japan, the second largest pharmaceuticals market, is a key growth market and the company's pharmaceuticals businesses have seven launches planned there for 2011.  
  • Invest in talented people and organizational capabilities – The company's pharmaceuticals business is strengthening leadership capabilities locally, regionally and globally.  A key component involves rotating key talent into important roles to quickly accelerate skills development to address a growing and complex business environment.  The pharmaceuticals business  is also building R&D capabilities in new technology areas and emerging markets.

Transformational Innovation

Paul Stoffels, M.D., Worldwide Chairman, Pharmaceuticals, will report today on the business' approach to identifying medical need and accessing the best science – internally and externally, to deliver differentiated medicines that will address some of the most important unmet medical needs in the world today.  

Johnson & Johnson's pharmaceuticals business invested just over $4.4 billion in R&D programs last year.  "Innovation and sustained R&D productivity are key to our long-term future," said Dr. Stoffels.  "The future drivers for success in pharmaceuticals will depend on matching the medical need with the best science and operational excellence.  We have strong therapeutic area expertise to anticipate the medical need and the scientific acumen to access the best science internal or external.

"Our development programs incorporate an outcomes-based approach, embedding customer, physician, and patient insights, while our broad-based expertise and global development operations allow us to deliver competitive products globally, with enhanced productivity and accelerated timelines," Stoffels added.

Joaquin Duato, Worldwide Chairman, Pharmaceuticals, will review the company's growing core pharmaceuticals businesses and key category strength.  Among some of the core growth businesses being discussed today are market-leading immunology medicines, REMICADE®, SIMPONI®, STELARA®, and the long-acting injectable anti-psychotics, RISPERDAL® CONSTA® and INVEGA® SUSTENNA®.  Mr. Duato, Dr. Stoffels and R&D leaders will discuss the company's expectations for new filings and early-stage compounds across the pharmaceuticals business'  five therapeutic areas throughout the day.

"Launch leadership in the United States for 2010 demonstrates not only the strength of our pipeline but our capacity to successfully commercialize important medicines," says Mr. Duato.  "We are leveraging that expertise in key markets around the world, particularly as we launch important global compounds in 2011. I have great confidence in our ability to deliver the promise of our portfolio to make a real difference in patients' lives."  

Full copies of the presentations, as well as a replay and podcast, will be available approximately two hours after the live webcast concludes.  

About Johnson & Johnson

Caring for the world, one person at a time…inspires and unites the people of Johnson & Johnson. We embrace research and science – bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 115,000 employees at more than 250 Johnson & Johnson companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995.  These statements are based on current expectations of future events.  If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson.  Risks and uncertainties include, but are not limited to, general industry conditions and competition; economic factors, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; trends toward health care cost containment; and increased scrutiny of the healthcare industry by government agencies.  A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 2, 2011.  Copies of this Form 10-K, as well as subsequent filings, are available online at,  or on request from Johnson & Johnson.  Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or developments.)

*IMS Health

SOURCE Johnson & Johnson
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