Note on Forward-looking Statements
These presentations contain “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 Company’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 obtained 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.
Note on Forward-looking Statements
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 28, 2008. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com or on request from the Company.
The Company does not undertake to update any forward-looking statements as a result of new information or future events or developments.
Pharmaceuticals Business Review
Sheri McCoyWorldwide Chairman, Pharmaceuticals Group
Agenda
Pharmaceuticals Group Overview S. McCoy, Worldwide Chairman, Pharmaceuticals
Research & Development Overview P. Stoffels, M.D., Global Head, Pharmaceuticals R&D
Neuroscience H. Manji, M.D., Global Therapeutic Head
Break
Cardiovascular & Metabolism J. Waldstreicher, M.D., Chief Medical Officer
Infectious Diseases R. Pomerantz, M.D., F.A.C.P., Global Therapeutic Head
Q&A Panel
Morning
Agenda
Lunch
Biotechnology & Immunology J. Siegel, M.D., Chief Biotechnology Officer
Oncology B. Hait, M.D., Ph.D., Global Therapeutic Head
Q&A Panel
Closing Remarks D. Caruso, Vice President, Finance & Chief Financial Officer
Afternoon
Our Focus Today
• Johnson & Johnson overview
• Johnson & Johnson Pharmaceutical business
• Pharmaceutical market overview
• Johnson & Johnson growth strategies
• Johnson & Johnson R&D strategy and pipeline
Strength of Our Operating Model
Our Credo
Managedfor the
Long Term
Broadly Basedin Human
Health Care
DecentralizedManagement
Approach
Focused onPeople
and Values
World’s Most Comprehensive andBroadly Based Health Care Company• 2008 Sales of $63.7 Billion
• Over 250 operating companies worldwide
• Leadership positions:– Pharmaceuticals (ethical and OTC)– Medical Devices & Diagnostics– Broad array of Consumer brands
2008 Johnson & Johnson Sales by Segment
Pharmaceuticals3.1%*
Medical Devices& Diagnostics
3.5%*Consumer
8.3%*
39%$24.6B
36%$23.1B
$ U.S. BillionsTotal Sales: $63.7B
25%$16.0B
* Operational Growth. Excludes the impact of foreign currency translation. Total sales growth can be found on the Investor Relations section of www.jnj.com
Johnson & Johnson Pharmaceuticals: Competitively Positioned
#7 Worldwide 2008 Market Rank
#4 Global Biotech 2008 Market Rank
IMS Data
2008 Sales $24.6 Billion3.1% Operationally
REMICADE®
TOPAMAX®
PROCRIT®/EPREX®
RISPERDAL®
LEVAQUIN®
RISPERDAL® CONSTA®
CONCERTA®
ACIPHEX®/PARIET®
DURAGESIC®/DUROGESIC®
9 Products with sales $1 Billion+
Johnson & Johnson Pharmaceuticals
2008 Pharmaceutical Growth Drivers
* Operational Growth
13%* 117%* 13%* 163%* 41%* 11%*
REMICADE® INVEGA® RISPERDAL® CONSTA® PREZISTA® VELCADE® TOPAMAX®
60%
40%OUS
US
Johnson & Johnson 2008 Global Pharmaceutical Sales
PharmaceuticalsMarketOverview
The Global Pharmaceuticals Market
• $750 billion* global market
• Projected CAGR of 3-6% through 2013* – U.S. growth slowing– Significant opportunity in emerging markets– Large and growing therapeutic areas
* IMS Health
•
Global Market Projections Moving Forward
• Growth projections in developed markets flat/declining– 5-year U.S. CAGR projections flat
• Emerging markets growth promising– Growth projected at 13-16% through 2013
• 7 emerging markets will contribute 50%+ of growth in 2009• China will be 3rd largest Pharma market by 2011
IMS Data
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2007 2011
Sal
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Source: IMS Health, MIDAS, Therapy Forecaster 2007
Major Therapeutic Areas Forecast 2007-2011
Global Major Therapeutic Areas
By 2025, 50% of new patients in high growth TAs, such as diabetes and oncology, will come from BRIC
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Source: IMS Health, MIDAS, Therapy Forecaster 2007
Global Major Therapeutic Areas
By 2025, 50% of new patients in high growth TAs, such as diabetes and oncology, will come from BRIC
Major Therapeutic Areas Forecast 2007-2011
Eryt
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•
Industry Dynamics
• Significant unmet needs
• Aging demographics
• Rising cost of health care
• Evolving stakeholder influences
• Opportunity to reduce the burden of disease
Addressing unmet medical needs
Demonstrated, compelling economic and clinical value
Differentiated products
Reducing the Burden of Disease
Reducing the Burden of Disease: Neuroscience
As many as 50 million people globally with schizophrenia*
Cost of treating relapsed patients 4x that of stable patients
* www.schizophrenia.com
Husseini Manji, M.D. Global Therapeutic Head
Reducing the Burden of Disease: Immunology
More than 200 million people live with immunologic disorders
Rheumatoid arthritis patients have 10x work disability rate of general population
Jay P. Siegel, M.D.Chief Biotechnology Officer
Reducing the Burden of Disease: Cardiovascular Disease
Cardiovascular disease creates a major cost burden on societies
Patients’ care remains challenging
Rates of venous thromboembolism and atrial fibrillation continue to rise
Joanne Waldstreicher, M.D.Chief Medical Officer
Reducing the Burden of Disease: Diabetes
250 million people are living with diabetes and the number is growing
Heart disease and stroke deaths are 2 to 4 times higher in adults with diabetes
Reducing the Burden of Disease:Infectious Diseases
3% of the world’s population has chronic hepatitis C
The majority are undiagnosed
80% of those diagnosed remain untreated
Consequences can include chronic liver disease, cirrhosis, and liver cancer
Roger Pomerantz, M.D., F.A.C.P.Global Therapeutic Head
Reducing the Burden of Disease:Oncology
World’s leading cause of death by 2010
Cancer accounts for 13% of all deaths worldwide
Bill Hait, M.D., Ph.D.Global Therapeutic Head
• Changing level of risk tolerance
• Increasing demands for evidence
• Higher hurdles for differentiation
• Diverse stakeholders
• Consumer participation
Evolving Stakeholder Influences
Strategies for Growth
• Grow core business globally
• Successfully execute product launches
• Build robust pipeline
• Fuel emerging market growth
• Shape external environment
• Focus on our people
Grow Core Business Globally
• Market share growth
• Increase penetration
• Robust clinical strategies –life cycle management
• Geographic expansion
• Evolving commercial approaches
Grow Core Business Globally
REMICADE® STELARA™ Rivaroxaban
“Pipeline in a product” examples
Pediatric ulcerative colitis
Crohn’s disease
Psoriatic arthritis
Sarcoidosis
Moderate to severe plaque psoriasisCrohn’s disease
Rheumatoid arthritis
Ankylosing spondylitis
Psoriatic arthritis
Ulcerative colitis
Pediatric Crohn’s disease
Plaque psoriasis
Indications Indications Filings/Clinical Studies
Planned Filings/Clinical Studies
Planned Filings/Clinical Studies Planned Filings/Clinical Studies
VTE prevention post THR/TKR surgery
VTE treatment/long-term secondary prevention
Stroke prevention in patients w/a-fib
VTE prevention in hospitalized acute medically ill
Secondary prevention of CV events in patients w/ACS
• Expect to launch significant newproducts over 18 months
• Address unmet medical need
• Differentiation required
• Early and diverse stakeholder input– Patients– Physicians and providers– Regulators and payors
• Commercial execution
Successfully Execute Product Launches
Build Robust Pipeline
• Five therapeutic areas– End-to-end
• Scientific strategies
• NMEs and major LEs
• Biologic and small molecules
• Internally discovered and externally sourced
$5.1
2003 2008
$3.3
$ U.S. Billions
Build Robust PipelinePharmaceuticals R&D Investment
5-Year CAGR: 9.3%
% to NTS 16.7% 20.7%
Build Robust PipelineNME approvals and filings 2007-2010
Filings assumed to be in U.S. unless otherwise noted
2007 2008 2009-2010ApprovedDORIBAX™ (doripenem)
Infectious diseasesFiledZEFTERA™ (ceftobiprole)
Infectious diseasesINVEGA® SUSTENNA™
(paliperidone palmitate) Neuroscience
STELARA™ (ustekinumab) Immunology
ApprovedINTELENCE™ (etravirine)
Infectious diseasesNUCYNTA™ (tapentadol IR)
PainDORIBAX™ (doripenem) (EU)
Infectious diseasesFiledRivaroxaban
Cardiovascular diseaseCOMFYDE™ (carisbamate)
NeuroscienceYONDELIS®
OncologySIMPONI™ (golimumab) (EU)
Immunology
ApprovedSTELARA™ (ustekinumab) (EU)
ImmunologyPRILIGY® (dapoxetine) (EU)
Sexual healthSIMPONI™ (golimumab)
ImmunologyPlanned FilingsDACOGEN™ (EU)
OncologyTMC278
Infectious diseasesTelaprevir (EU)
Infectious diseases
Build Robust Pipeline
Planned Filings 2010-2013Anti-NGF
NeuroscienceMTP inhibitor
MetabolismCanagliflozin (SGLT-2)
MetabolismTelaprevir (EU)
Infectious diseasesCNTO 136
ImmunologyTMC207
Infectious diseasesCNTO 328
OncologyTMC278
Infectious diseasesDACOGEN™ (EU)
OncologyTMC435
Infectious diseasesHistamine H3 Antagonist
Neuroscience
Fuel Emerging Market Growth
• Continued growth from core products
• Localized approaches
• Focus on sharing best practices
• Tap into global resources and capabilities
Tianjin Medical University Cancer Hospital
Shape the External Environment: Reduce the Burden of Care • Reduce and redefine cost of care
• Offer broad access programs
• Realize the promise of personalized medicine
Optimistic About Our Future
• Integrated global R&D
• Global reach with regional commercial teams
• Growth focus
Strategies for Growth
• Grow core business globally
• Successfully execute product launches
• Build robust pipeline
• Fuel emerging markets’ growth
• Shape external environment
• Focus on our people