2. 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.
3. 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.
6. Agenda
Morning
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
7. Agenda
Afternoon
Lunch
Biotechnology & Immunology J. Siegel, M.D., Chief Biotechnology Officer
Oncology B. Hait, M.D., Ph.D., Global Therapeutic Head
Q&A Panel
D. Caruso, Vice President, Finance
Closing Remarks
& Chief Financial Officer
8. Our Focus Today
• Johnson & Johnson overview
• Johnson & Johnson Pharmaceutical business
• Pharmaceutical market overview
• Johnson & Johnson growth strategies
• Johnson & Johnson R&D strategy
and pipeline
9. Strength of Our Operating Model
Our Credo
Broadly Based Managed Decentralized Focused on
in Human for the Management People
Health Care Long Term Approach and Values
10. World’s Most Comprehensive and
Broadly 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
11. 2008 Johnson & Johnson Sales by Segment
$ U.S. Billions
Total Sales: $63.7B
36%
Medical Devices
$23.1B 25%
& Diagnostics Consumer
3.5%* $16.0B
8.3%*
39%
Pharmaceuticals $24.6B
3.1%*
* Operational Growth. Excludes the impact of foreign currency translation. Total sales growth can be found on the Investor Relations section of www.jnj.com
12. Johnson & Johnson Pharmaceuticals:
Competitively Positioned
#7 Worldwide 2008 Market Rank
#4 Global Biotech 2008 Market Rank
IMS Data
13. Johnson & Johnson Pharmaceuticals
2008 Sales $24.6 Billion
3.1% Operationally
9 Products with sales $1 Billion+
REMICADE® RISPERDAL® CONSTA®
TOPAMAX® CONCERTA®
PROCRIT®/EPREX® ACIPHEX®/PARIET®
RISPERDAL® DURAGESIC®/DUROGESIC®
LEVAQUIN®
17. The Global Pharmaceuticals Market
• $750 billion* global market
• Projected CAGR of 3-6% through 2013*
– U.S. growth slowing
– Significant opportunity in emerging markets
– Large and growing therapeutic areas
* IMS Health
18. Global Market Projections Moving Forward
• Growth projections in developed markets flat/declining
– 5-year U.S. CAGR projections flat
• Emerging markets growth promising
– Growth projected at 13-16% through 2013
• 7 emerging markets will contribute 50%+ of growth in 2009
• China will be 3rd largest Pharma market by 2011
IMS Data
19. Sales ($ U.S. Billions)
0
10
20
30
40
50
60
70
80
Oncology
Lipid Regulators
Respiratory
Agents
Source: IMS Health, MIDAS, Therapy Forecaster 2007
Acid Pump
Inhibitors
Anti-diabetes
Antipsychotics
Antidepressants
Angiotensin II
Antagonists
Global Major Therapeutic Areas
Erythropoietins
Anti-epileptics
Major Therapeutic Areas Forecast 2007-2011
HIV Antivirals
Platelet
Aggregation
2007
Inhibitors
Topical
Nasal Preps
Antivirals
2011
By 2025, 50% of new patients in high growth TAs, such as diabetes and oncology, will come from BRIC
20. Sales ($ U.S. Billions)
0
10
20
30
40
50
60
70
80
Oncology
Lipid Regulators
Respiratory
Agents
Source: IMS Health, MIDAS, Therapy Forecaster 2007
Acid Pump
Inhibitors
Anti-diabetes
Antipsychotics
Antidepressants
Angiotensin II
Antagonists
Global Major Therapeutic Areas
Erythropoietins
Anti-epileptics
Major Therapeutic Areas Forecast 2007-2011
HIV Antivirals
Platelet
Aggregation
2007
Inhibitors
Topical
Nasal Preps
Antivirals
2011
By 2025, 50% of new patients in high growth TAs, such as diabetes and oncology, will come from BRIC
21. Industry Dynamics
• Significant unmet needs
• Aging demographics
• Rising cost of health care
• Evolving stakeholder influences
• Opportunity to reduce the burden
of disease
22. Reducing the Burden of Disease
Addressing unmet
medical needs
Demonstrated, compelling
economic and clinical value
Differentiated products
23. 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
25. 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
27. 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
29. 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
30. 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
37. Grow Core Business Globally
“Pipeline in a product” examples
®
REMICADE STELARA™ Rivaroxaban
Indications Indications Filings/Clinical Studies
Crohn’s disease Moderate to severe plaque psoriasis VTE prevention post THR/TKR
surgery
Rheumatoid arthritis
Planned Filings/Clinical Studies Planned Filings/Clinical Studies
Ankylosing spondylitis
Crohn’s disease VTE treatment/long-term
Psoriatic arthritis secondary prevention
Psoriatic arthritis
Ulcerative colitis Stroke prevention in patients
Sarcoidosis
Pediatric Crohn’s disease w/a-fib
Plaque psoriasis VTE prevention in hospitalized
acute medically ill
Planned Filings/Clinical Studies
Secondary prevention of CV
Pediatric ulcerative colitis events in patients w/ACS
38. Successfully Execute Product Launches
• Expect to launch significant new
products over 18 months
• Address unmet medical need
• Differentiation required
• Early and diverse stakeholder input
– Patients
– Physicians and providers
– Regulators and payors
• Commercial execution
39. Build Robust Pipeline
• Five therapeutic areas
– End-to-end
• Scientific strategies
• NMEs and major LEs
• Biologic and small molecules
• Internally discovered and
externally sourced
43. Fuel Emerging Market Growth
• Continued growth from
core products
• Localized approaches
• Focus on sharing best practices
• Tap into global resources
and capabilities
47. 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
48. Optimistic About Our Future
• Integrated global R&D
• Global reach with regional
commercial teams
• Growth focus
49. 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
