Johnson and Johnson 2009 Annual Report Download - page 5

     
CHAIRMAN’S LETTER 3
Our ability to develop, challenge, motivate and reward a diverse
workforce is our cornerstone for sustained growth.
The people in our Medical Devices and Diagnostics, Pharma-
ceuticals and Consumer segments have consistently delivered
against plans for growth.These segments are each market leaders,
with No.  or No.  positions in many of their businesses.In fact,
 percent of sales are from products with leading market share
positions, with approximately one-fourth of sales last year coming
from new products introduced in the past five years.
The Medical Devices and
Diagnostics (MD&D) franchises comprise the world’s largest
medical technology business, with  sales of $. billion,
an increase of . percent operationally.Four of the seven
franchises had solid sales gains during the past year.Tougher
competition for drug-eluting stents and tighter out-of-pocket
spending on products like contact lenses and diabetes test strips
pressured sales in our Cordis Corporation, Diabetes and Vision
Care franchises.
Growth products spanned a range of treatment categories,
including wound care products and biosurgicals from Ethicon,
Inc.; energy technology and the
® Adjustable Gastric
Band-C from Ethicon Endo-Surgery, Inc.; artificial joints, spine
and sports medicine products from DePuy, Inc.; and new products
from Ortho-Clinical Diagnostics, Inc.
Several products introduced new standards of care for the
medical devices industry.
®  from Biosense Webster, Inc.,
gives physicians a detailed three-dimensional view of the heart so
they can treat cardiac arrhythmias, including atrial fibrillation.
The
® Hemostatic Matrix Kit, our advanced owable
hemostat for use in a broad range of surgical procedures, is the
first product launch from the acquisition of Omrix Biopharma-
ceuticals, Inc. and an example of technology resulting from the
combination of our medical device and biologics expertise.
Our Vision Care franchise continued the global rollout
of ·Day
® TruEye
™
, the world’s first daily disposable
silicone hydrogel contact lens and an exciting breakthrough in
contact lens technology.We anticipate introduction in the
U.S. in .
MD&D also strengthened its portfolio through several recent
strategic acquisitions.These included Acclarent, Inc. in the ear,
nose and throat surgical space; Finsbury Orthopaedics, Ltd. in
hip implants; and Gloster Europe, a developer of innovative
area-decontamination technologies to help prevent health care-
acquired infections, a growing global concern.
The pipeline is strong with promising new products such as
® System, the first computer-assisted personalized
sedation system, and the
® CoMplete
™
Acetabular Hip
System, the first ceramic-on-metal hip replacement.Both products
received favorable recommendations from U.S. Food and Drug
Administration (FDA) Advisory Committees in .
In addition to new product introductions and robust pipelines,
MD&D continually expanded its global reach, particularly in
emerging markets, with research and development centers,
professional training centers and manufacturing facilities.
Our Pharmaceuticals segment, with sales
of $. billion, represents the world’s seventh largest pharmaceu-
tical business and fourth largest biotech business.The segment
STRATEGIC FRAMEWORK
OPERATING MODEL
BUSINESS PRIORITIES

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


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
The source of our enduring strength is a fundamental
commitment to Our Credo and an operating model
that has served us well for decades. High-level business
priorities reect the changing global environment and
provide leaders with a common set of growth priorities.
Our strategic framework has delivered enduring
performance and, we believe, will continue to provide
long-term value for our shareholders.
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