Robust Pipelines Across Seven MD&D Franchises Poised to Deliver Innovation
and Growth
Consumer Leadership Positions Built on Superior Science and Technology
NEW BRUNSWICK, N.J., June 5 /PRNewswire-FirstCall/ -- Johnson & Johnson
is reviewing its Medical Devices & Diagnostics and Consumer businesses at a
meeting with the investment community today, focusing on the strengths,
strategies and innovations that will keep the broadly based health care
business growing in the coming years. Senior leaders from the company are
outlining strategies for two of the business segments that will enable the
company to capitalize on growing demand in the $4 trillion global market
for health care products and services. A similar review with the investment
community last year highlighted the company's Pharmaceutical and Consumer
segments.
The company presentations address recent product launches, development
pipelines, and market strategies that these businesses are deploying to
achieve long-term, faster-than-market, growth rates across their
businesses. They include new ways the company is addressing chronic
diseases related to cardiovascular disease, metabolic disease and
ophthalmology in a more comprehensive way; new surgical products to address
the growing demand in areas like orthopaedics, obesity and minimally
invasive surgery; and the continuing application of superior science and
technology to the company's broad range of consumer health care products.
"Johnson & Johnson remains a company committed to serving unmet health
care needs with superior science and technology, while growing our
businesses profitably for the long-term," said Dominic Caruso, Vice
President, Finance, and Chief Financial Officer for Johnson & Johnson. "The
businesses we are highlighting at today's meeting -- the world's largest
medical technology business and premier consumer health care company --
develop important innovations for the benefit of patients, customers and
shareholders."
World's Largest Medical Technology Business
In 2007, Johnson & Johnson's Medical Devices & Diagnostics (MD&D)
segment generated $21.7 billion in sales across its seven franchises, which
was 35 percent of the company's total sales. Excluding a decline in the
company's drug-eluting stent business, the segment grew almost 10 percent
operationally.
The MD&D segment's seven franchises are organized into Surgical Care
and Comprehensive Care Groups, and consist of DePuy, Ethicon, Ethicon
Endo-Surgery in Surgical Care, and Cordis, Ortho-Clinical Diagnostics,
Diabetes Care and Johnson & Johnson Vision Care in Comprehensive Care.
These franchises compete in a global MD&D market valued at approximately
$270 billion.
Surgical Care
Sheri McCoy, Worldwide Chairman of the Surgical Care Group, describes
her business this way, "We have three well-established, solid and growing
franchises that are the market leaders in their respective categories. We
are well-positioned with approved products and a robust pipeline to meet
the needs of patients and surgeons alike, in high-growth areas like
orthopaedics, obesity, and core surgical products like advanced
energy-based instruments and biosurgicals."
In their presentations today, McCoy and her leadership team are
outlining four growth strategies for the Surgical Care Group:
-- Expand leadership positions in surgery by growing core businesses --
The group's three franchises will continue to build on their existing
market leadership positions. For example, DePuy, a leader in
orthopaedic surgery, has 10 new knee entries coming in its SIGMA(R)
Knee system over the next 18 months. DePuy is strengthening the
breadth of its offerings with established and expanding products in
knee repair from the earliest stages of knee pain treatment -- with
products like ORTHOVISC(R) and partial knees -- to total knee
replacement.
-- Invest to win in fast growing categories like orthopaedics and obesity
-- The Surgical Care Group is discussing a range of products in its
franchise that address problems associated with obesity, a condition
affecting more than 300 million people around the world. The
company's Ethicon Endo-Surgery business introduced the REALIZE(TM)
Adjustable Gastric Band for the treatment of morbid obesity in the
U.S. in the first quarter of 2008. Ethicon's PRINEO(TM) Skin Closure
System is a new product designed to reduce skin closure time an
average of 75 percent compared to standard intradermal suturing in
procedures such as body contouring, which some patients choose after
having experienced significant weight loss. PRINEO was launched in
Europe last year and a regulatory filing in the U.S. is expected later
this year.
-- Broaden portfolio by investing in new technologies and businesses that
have the potential to advance the standard of care - The group is re-
defining the way common medical procedures are performed with its
innovations. Ethicon Endo-Surgery, for example, has developed the
first computer-assisted, personalized sedation system, the SEDASYS(TM)
system. The device, which is currently under review by the FDA, may
make it possible for physician and nurse teams to deliver the sedative
propofol to patients undergoing screening and diagnostic procedures
for colorectal cancer and disorders of the upper gastrointestinal
tract. Ethicon Endo-Surgery is also exploring Natural Orifice
Translumenal Endoscopic Surgery, or NOTES, which is surgery performed
through the body's natural orifices by using instruments and cameras
attached to long, flexible shafts. To date, the company has patented
many innovations in translumenal and intralumenal natural orifice
surgery and continues to support clinical trials to develop tools and
technology for the next evolution of minimally invasive surgery.
-- Accelerate and invest in growth in emerging markets -- The Surgical
Care Group has continued to increase its presence in emerging markets
as part of Johnson & Johnson's overall focus on this business
priority. It has established a research and development (R&D)
presence in India and opened a medical manufacturing campus in China,
where DePuy products are now being produced. To address the global
need to train surgeons, the group plans to continue opening surgical
training institutes in countries around the world. This year, the
company opened its first such training institute in Russia and plans
another one in Brazil in 2009. Another priority for emerging markets
is developing market-appropriate products that address unmet medical
needs.
Comprehensive Care
Don Casey, Worldwide Chairman of the Comprehensive Care Group,
describes his business this way: "We are focused on two core priorities,"
says Casey. "Our first priority is to maximize the potential of our current
franchises. We've been able to deliver an aggressive pipeline in 2007 and
2008 with several major launches, and we expect most of the franchises to
continue to deliver this kind of innovation in the next few years to help
continue driving growth. Our second priority is delivering on our vision
for Comprehensive Care by developing patient-centric solutions to address
chronic diseases."
The Comprehensive Care Group and its business leaders are addressing
the group's two core priorities in its presentations today:
-- Maximize the potential of our current franchises -- With the
introduction of various new products, the Comprehensive Care
franchises will continue to build their market leadership positions by
competing in attractive categories, accelerating market adoption in
emerging markets, utilizing their market development expertise, and
delivering their pipeline. For example, Johnson & Johnson Vision
Care, the world leader in contact lenses, is planning to launch
ACUVUE(R) TruEye(TM), the world's first daily disposable silicone
hydrogel contact lens in the fall. The Cordis business has begun
clinical trials for the NEVO(TM) Sirolimus-eluting Coronary Stent,
which is the first sirolimus-based stent with unique reservoir-based
delivery technology, and it has completed the pivotal clinical trial
for the EXOSEAL (TM) Vascular Closure Device.
In addition, the Ortho-Clinical Diagnostics business is developing a
new method of testing for prostate cancer, ProMu, which is a confirmatory
test done prior to a biopsy to provide patients and doctors with more
accurate results to help avoid unnecessary procedures. Earlier this year,
the Diabetes Care franchise introduced the OneTouch(R) Ultralink(TM) meter
that communicates wirelessly with Medtronic insulin pumps. Later this year,
Johnson & Johnson's LifeScan and Animas businesses are planning to launch
an integrated meter/insulin pump in North America, which will have enhanced
functionality beyond products in the marketplace today.
With most of Comprehensive Care's franchises generating double-digit
operational growth in emerging markets, the group is also expanding its
presence outside the U.S. with targeted, incremental investments in
high-growth segments.
-- Develop comprehensive patient-centric solutions to address chronic
diseases -- The group will also be looking to use the breadth of
Johnson & Johnson's health care businesses to deliver unique
comprehensive care plans for chronic diseases in cardiology,
ophthalmology and metabolic disease. For example, in the case of a
metabolic disease like diabetes, the company is able to leverage its
strong positions in blood glucose monitoring, insulin delivery,
nutritionals and diagnostics as well as related areas like surgical
treatments for obesity and early-stage pharmaceuticals. Its
development of the Johnson & Johnson Diabetes Institute, LLC, (JJDI)
is one avenue for advancing professional education and patient
awareness about this disease's management. The JJDI, which has opened
facilities in Japan and the U.S., provides a powerful outlet for the
resources and experience Johnson & Johnson can harness in this area of
health care; additional facilities in Paris and Beijing are scheduled
to open later this year.
Science-based Innovation Anchors Consumer Health Care Success
In 2007, Johnson & Johnson's Consumer segment generated $14.5 billion
dollars in sales. Its five major franchises -- OTC/Nutritionals; Skin Care;
Baby Care; Women's Health and Oral Care -- feature some of the world's
leading brands and compete in an estimated $480 billion global consumer
products market.
The Consumer segment focuses on science-based innovations to drive the
growth of its existing iconic brands, its development of new products and
new ventures, and its expansion into emerging markets. Presentations on the
Consumer segment address recent successes in the Skin Care franchise, the
expansion of LISTERINE(R) and the Oral Care franchise, and the successful
U.S. launch of over-the-counter Zyrtec(R).
Colleen Goggins, Worldwide Chairman of the Consumer Group says, "Our
vision, 'Bringing science to the art of healthy living,' reflects the
essence of how we create value and drive innovation." Goggins cites
critical strengths of the business that enable it to continue its growth:
expanding R&D capabilities around the world; its proprietary technologies
and patents; clinical trial design expertise; and its core research
competencies in areas like skin biology, pharmacokinetics, drug delivery,
microbiology and enzymology.
"Every development effort we undertake is a collaboration between our
R&D teams, our consumer insight experts and marketing teams," said Goggins.
"The result is that an increasing number of our new products across our
franchises are protected by meaningful, clinical-trials- backed,
intellectual property, and are professionally endorsed."
Dominic Caruso said, "Johnson & Johnson remains a company committed to
growth. The pipelines and strategies we are sharing today demonstrate how
Johnson & Johnson can continue growing profitably, increasing shareowner
value and touching the lives of more than a billion people every day."
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 119,500 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.
Full copies of the presentations made today as well as a replay and
podcast will be available approximately two hours after the live webcast
concludes at http://www.investor.jnj.com. To preview, download, or order broadcast
video, stills, logos, text and more, please visit: http://jnj.mediaseed.tv.
Registration and video are free to the media.
Third-party trademarks used herein are the trademarks of their
respective owners.
(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 30, 2007. Copies of this
Form 10-K, as well as subsequent filings, are available online at
http://www.sec.gov, http://www.jnj.com 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.)
SOURCE Johnson & Johnson
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