Johnson & Johnson Highlights Growth Strategies for Pharmaceutical and Consumer Businesses
Expects to File for Five More New Pharmaceutical Compounds by End of 2007; Anticipates Another 7 to 10 New Compound Filings by End of 2010
NEW BRUNSWICK, N.J., June 7 /PRNewswire-FirstCall/ -- Johnson & Johnson highlighted its Pharmaceutical and Consumer businesses at a meeting with financial analysts today, describing its broadly based health care business as strong and poised for continued growth in the coming years. Senior leaders from the company outlined the current pharmaceutical and consumer business portfolios and growth strategies that will enable the company to capitalize on growing demand in the area of human health and well-being.
Johnson & Johnson's Vice Chairman Christine Poon underscored how the company believes it is uniquely positioned with its breadth of businesses and flexible operating model to outperform its competitors in a $4 trillion global market for health solutions. "Being broadly based is a cornerstone of our success and will amplify our growth going forward," Poon said in her opening remarks.
Poon discussed several early-stage ventures that illustrate how the company cultivates innovation across its broad base of businesses. The ventures are based on collaborative work that capitalizes on capabilities and resources across the company's three businesses - Consumer, Pharmaceuticals, and Medical Devices and Diagnostics.
Poon described projects related to: a treatment for retinitis pigmentosa, which is a hereditary condition leading to blindness; a treatment for uncontrolled bleeding, which is the world's leading cause of death due to injury; a therapy to fight cancer cells using a patient's own strengthened immune cells; and a technology for "smart" consumer products that uses tiny molecules to adhere substances onto the body and allow them to be pulled off quickly and easily.
"We have the people, proprietary technology and capabilities of many diverse, entrepreneurial companies," said Poon. "This enables us to innovate at the intersections of our businesses. That's an important competitive advantage and why we're truly more than the sum of our many vibrant businesses."
Pharmaceuticals - Most Robust Pipeline in its History
Johnson & Johnson's Pharmaceutical segment generated $23.2 billion in revenues last year, which would make it the fifth largest pharmaceutical business and third largest biotech business in the world if it were a stand- alone company, according to IMS Health. The company said that it continues to see a great deal of growth potential for its pharmaceutical business in the coming years as it looks to address a nearly $650 billion global market opportunity. "The lion's share of future industry growth will go to those companies with the size, scale and know-how to take advantage of the rapidly changing dynamics of this marketplace - both scientific and economic," said Joe Scodari, Worldwide Chairman of the Pharmaceutical segment for Johnson & Johnson. "We believe we are one of those companies."
Scodari continued, "We invested approximately $5 billion in R&D in 2006. More important than the level of investment, of course, is the level of productivity that this investment generates, and we believe our pipeline is more robust today than at any point in our history."
The company said that it had received regulatory approvals for four new products in 2006 (INVEGA(TM), IONSYS(TM), JURNISTA(TM), PREZISTA(TM)) and filed applications for approval of two new compounds in recent months (doripenem in December 2006 and ceftobiprole in May 2007). The company indicated that it was on schedule to file regulatory applications for five more new compounds by the end of 2007 and an additional 7 to 10 new compounds between 2008 and 2010.
The company also said it would continue focusing its research and development on eight therapeutic areas: central nervous system disorders; infectious diseases; cardiovascular diseases, hematology/oncology; immunology; metabolics; pain; and reproductive health. "Our pipeline encompasses a broad range of therapeutic areas, giving us the opportunity to participate in a variety of large and growing markets," said Scodari. "Just as importantly, we're able to 'see the whole field' and take the knowledge, technology, talent and capabilities we have in one therapeutic area and leverage it across the others."
Creating the World's Premier Consumer Health Care Company
In 2006, Johnson & Johnson's Consumer segment, including the recently acquired Pfizer Consumer Healthcare (PCH) business, generated $13.6 billion dollars in sales on a pro forma basis(1). Its collection of some of the world's leading brands are spread across six consumer franchises -- OTC Medicines and Nutritionals; Skin Care; Baby Care; Oral Care; Women's Health and Wound Care - and compete in a $315 billion global consumer products market.
"Each of our franchises has an extraordinary lineup of brands, known and trusted by millions of consumers around the world," said Colleen Goggins, Worldwide Chairman of the Johnson & Johnson Consumer segment.
"Looking ahead, we will continue to drive growth by building on our iconic brands through superior science, consumer insight and excellence in professional and consumer marketing," said Goggins. "We will grow through further expansion in developing markets, through new technologies, and we continue to look for selected acquisitions that offer new avenues for growth."
In speaking of the PCH acquisition, Goggins noted that Johnson & Johnson still expects that its integration will deliver $500 million to $600 million in synergies by 2009. "This gives us the opportunity to make an already profitable business even more profitable," Goggins said. "We now consider ourselves the world's premier consumer health care business. We believe we will deliver strong performance into the future with revenue growth significantly outpacing the market and income growing faster than revenue."
Brief summaries of the pharmaceutical and consumer business presentations made today can be accessed at http://www.jnj.com/news/jnj_news/analyst_highlights.htm. Full copies of the presentations as well as a replay and podcast will be available approximately two hours after the live webcast concludes at http://www.investor.jnj.com/. For free broadcast-standard video related to this release, the media may log onto http://www.thenewsmarket.com/jnj. Registration and video is free to the media.
Johnson & Johnson is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. The more than 250 Johnson & Johnson operating companies employ approximately 121,000 men and women in 57 countries and sell products throughout the world.
(1) Sales calculated on a pro forma basis to include the PCH business is a non-GAAP financial measure and should not be considered a replacement for GAAP results. A reconciliation of this non-GAAP financial measure to the most
directly comparable GAAP financial measure can be found in the Investor Relations section of the Company's website at http://www.jnj.com/.
(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 Johnson & Johnson's expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, 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; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006. Copies of this Form 10-K, as well as subsequent filings, are available online at http://www.sec.gov/ 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.)