Johnson & Johnson: Pharmaceutical Business Review

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Johnson & Johnson: Pharmaceutical Business Review

  1. 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. 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. 3. Pharmaceuticals Business Review Sheri McCoy Worldwide Chairman, Pharmaceuticals Group
  4. 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. 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. 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. 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. 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. 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. 10. Johnson & Johnson Pharmaceuticals: Competitively Positioned #7 Worldwide 2008 Market Rank #4 Global Biotech 2008 Market Rank IMS Data
  11. 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. 12. 2008 Pharmaceutical Growth Drivers REMICADE® INVEGA® RISPERDAL® CONSTA® PREZISTA® VELCADE® TOPAMAX® 13%* 117%* 13%* 163%* 41%* 11%* * Operational Growth
  13. 13. Johnson & Johnson 2008 Global Pharmaceutical Sales US 60% 40% OUS
  14. 14. Pharmaceuticals Market Overview
  15. 15. The Global Pharmaceuticals Market • $750 billion* global market • Projected CAGR of 3-6% through 2013* – U.S. growth slowing – Significant opportunity in emerging markets – Large and growing therapeutic areas * IMS Health
  16. 16. Global Market Projections Moving Forward • Growth projections in developed markets flat/declining – 5-year U.S. CAGR projections flat • Emerging markets growth promising – Growth projected at 13-16% through 2013 • 7 emerging markets will contribute 50%+ of growth in 2009 • China will be 3rd largest Pharma market by 2011 IMS Data
  17. 17. Sales ($ 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. 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. 19. Industry Dynamics • Significant unmet needs • Aging demographics • Rising cost of health care • Evolving stakeholder influences • Opportunity to reduce the burden of disease
  20. 20. Reducing the Burden of Disease Addressing unmet medical needs Demonstrated, compelling economic and clinical value Differentiated products
  21. 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. 22. Husseini Manji, M.D. Global Therapeutic Head
  23. 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. 24. Jay P. Siegel, M.D. Chief Biotechnology Officer
  25. 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. 26. Joanne Waldstreicher, M.D. Chief Medical Officer
  27. 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. 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. 29. Roger Pomerantz, M.D., F.A.C.P. Global Therapeutic Head
  30. 30. Reducing the Burden of Disease: Oncology World’s leading cause of death by 2010 Cancer accounts for 13% of all deaths worldwide
  31. 31. Bill Hait, M.D., Ph.D. Global Therapeutic Head
  32. 32. Evolving Stakeholder Influences • Changing level of risk tolerance • Increasing demands for evidence • Higher hurdles for differentiation • Diverse stakeholders • Consumer participation
  33. 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. 34. Grow Core Business Globally • Market share growth • Increase penetration • Robust clinical strategies – life cycle management • Geographic expansion • Evolving commercial approaches
  35. 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. 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. 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. 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. 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. 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. 41. Fuel Emerging Market Growth • Continued growth from core products • Localized approaches • Focus on sharing best practices • Tap into global resources and capabilities
  42. 42. Tianjin Medical University Cancer Hospital
  43. 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. 44. Optimistic About Our Future • Integrated global R&D • Global reach with regional commercial teams • Growth focus
  45. 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

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