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Johnson & Johnson: Pharmaceutical Business Review

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  • 1. 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.
  • 2. 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.
  • 3. Pharmaceuticals Business Review Sheri McCoy Worldwide Chairman, Pharmaceuticals Group
  • 4. 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
  • 5. 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
  • 6. Our Focus Today • Johnson & Johnson overview • Johnson & Johnson Pharmaceutical business • Pharmaceutical market overview • Johnson & Johnson growth strategies • Johnson & Johnson R&D strategy and pipeline
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. Johnson & Johnson Pharmaceuticals: Competitively Positioned #7 Worldwide 2008 Market Rank #4 Global Biotech 2008 Market Rank IMS Data
  • 11. 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®
  • 12. 2008 Pharmaceutical Growth Drivers REMICADE® INVEGA® RISPERDAL® CONSTA® PREZISTA® VELCADE® TOPAMAX® 13%* 117%* 13%* 163%* 41%* 11%* * Operational Growth
  • 13. Johnson & Johnson 2008 Global Pharmaceutical Sales US 60% 40% OUS
  • 14. Pharmaceuticals Market Overview
  • 15. The Global Pharmaceuticals Market • $750 billion* global market • Projected CAGR of 3-6% through 2013* – U.S. growth slowing – Significant opportunity in emerging markets – Large and growing therapeutic areas * IMS Health
  • 16. Global Market Projections Moving Forward • Growth projections in developed markets flat/declining – 5-year U.S. CAGR projections flat • Emerging markets growth promising – Growth projected at 13-16% through 2013 • 7 emerging markets will contribute 50%+ of growth in 2009 • China will be 3rd largest Pharma market by 2011 IMS Data
  • 17. Sales ($ 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
  • 18. 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
  • 19. Industry Dynamics • Significant unmet needs • Aging demographics • Rising cost of health care • Evolving stakeholder influences • Opportunity to reduce the burden of disease
  • 20. Reducing the Burden of Disease Addressing unmet medical needs Demonstrated, compelling economic and clinical value Differentiated products
  • 21. 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
  • 22. Husseini Manji, M.D. Global Therapeutic Head
  • 23. 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
  • 24. Jay P. Siegel, M.D. Chief Biotechnology Officer
  • 25. 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
  • 26. Joanne Waldstreicher, M.D. Chief Medical Officer
  • 27. 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
  • 28. 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
  • 29. Roger Pomerantz, M.D., F.A.C.P. Global Therapeutic Head
  • 30. Reducing the Burden of Disease: Oncology World’s leading cause of death by 2010 Cancer accounts for 13% of all deaths worldwide
  • 31. Bill Hait, M.D., Ph.D. Global Therapeutic Head
  • 32. Evolving Stakeholder Influences • Changing level of risk tolerance • Increasing demands for evidence • Higher hurdles for differentiation • Diverse stakeholders • Consumer participation
  • 33. 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
  • 34. Grow Core Business Globally • Market share growth • Increase penetration • Robust clinical strategies – life cycle management • Geographic expansion • Evolving commercial approaches
  • 35. 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
  • 36. 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
  • 37. Build Robust Pipeline • Five therapeutic areas – End-to-end • Scientific strategies • NMEs and major LEs • Biologic and small molecules • Internally discovered and externally sourced
  • 38. Build Robust Pipeline Pharmaceuticals R&D Investment 5-Year CAGR: 9.3% $ U.S. Billions $5.1 $3.3 % to NTS 16.7% 20.7% 2003 2008
  • 39. Build Robust Pipeline NME approvals and filings 2007-2010 2007 2008 2009-2010 Approved Approved Approved DORIBAX™ (doripenem) INTELENCE™ (etravirine) STELARA™ (ustekinumab) (EU) Infectious diseases Infectious diseases Immunology Filed NUCYNTA™ (tapentadol IR) PRILIGY® (dapoxetine) (EU) ZEFTERA™ (ceftobiprole) Pain Sexual health Infectious diseases DORIBAX™ (doripenem) (EU) SIMPONI™ (golimumab) INVEGA® SUSTENNA™ Infectious diseases Immunology (paliperidone palmitate) Filed Planned Filings Neuroscience Rivaroxaban DACOGEN™ (EU) STELARA™ (ustekinumab) Cardiovascular disease Oncology Immunology COMFYDE™ (carisbamate) TMC278 Neuroscience Infectious diseases YONDELIS® Telaprevir (EU) Oncology Infectious diseases SIMPONI™ (golimumab) (EU) Immunology Filings assumed to be in U.S. unless otherwise noted
  • 40. Build Robust Pipeline Planned Filings 2010-2013 Anti-NGF MTP inhibitor Neuroscience Metabolism Canagliflozin (SGLT-2) Telaprevir (EU) Metabolism Infectious diseases CNTO 136 TMC207 Immunology Infectious diseases CNTO 328 TMC278 Oncology Infectious diseases DACOGEN™ (EU) TMC435 Oncology Infectious diseases Histamine H3 Antagonist Neuroscience
  • 41. Fuel Emerging Market Growth • Continued growth from core products • Localized approaches • Focus on sharing best practices • Tap into global resources and capabilities
  • 42. Tianjin Medical University Cancer Hospital
  • 43. 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
  • 44. Optimistic About Our Future • Integrated global R&D • Global reach with regional commercial teams • Growth focus
  • 45. 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