Johnson and Johnson 2014 Annual Report Download - page 17

Pharmaceutical segment sales in 2013 were $28.1 billion, representing an increase of 10.9% over the prior year, with
strong operational growth of 12.0% and a negative currency impact of 1.1%. U.S. sales were $13.9 billion, an increase of
12.3%. International sales were $14.2 billion, an increase of 9.6%, which included 11.8% operational growth and a
negative currency impact of 2.2%. The Pharmaceutical segment operational growth was impacted by 0.8% in 2013 due to
a positive adjustment to previous estimates for Managed Medicaid rebates.
Medical Devices Segment
The Medical Devices segment sales in 2014 were $27.5 billion, a decrease of 3.4% from 2013, which included an
operational decline of 1.6% and a negative currency impact of 1.8%. U.S. sales were $12.3 billion, a decrease of 4.3% as
compared to the prior year. International sales were $15.3 billion, a decline of 2.7% as compared to the prior year, with
operational growth of 0.5% offset by a negative currency impact of 3.2%. In 2014, the divestiture of the Ortho-Clinical
Diagnostics business had a negative impact of 3.2% on the operational growth of the Medical Devices segment.
Major Medical Devices Franchise Sales:*
% Change
(Dollars in Millions) 2014 2013 2012 ’14 vs. ’13 ’13 vs. ’12
Orthopaedics $9,675 9,509 7,799 1.7% 21.9
Surgical Care 6,176 6,269 6,483 (1.5) (3.3)
Specialty Surgery/Other 3,541 3,504 3,478 1.1 0.7
Vision Care 2,818 2,937 2,996 (4.1) (2.0)
Cardiovascular Care 2,208 2,077 1,985 6.3 4.6
Diabetes Care 2,142 2,309 2,616 (7.2) (11.7)
Diagnostics 962 1,885 2,069 (49.0) (8.9)
Total Medical Devices Sales $27,522 28,490 27,426 (3.4)% 3.9
* Previously referred to as Medical Devices and Diagnostics. Prior year amounts have been reclassified to conform to current year
presentation. Infection Prevention is included in Specialty Surgery/Other.
The Orthopaedics franchise achieved sales of $9.7 billion in 2014, a 1.7% increase over the prior year. Growth was
primarily driven by sales of trauma, sports medicine, knee and hip products. Growth was negatively impacted by continued
pricing pressures.
The Surgical Care franchise sales were $6.2 billion in 2014, a decrease of 1.5% from the prior year. U.S. pricing pressure,
lower sales of women’s health and urology products due to the Company’s decision to exit from certain women’s health
products, and the impact from negative currency were partially offset by worldwide sales growth of sutures and the
success of the ECHELON FLEX™ powered ENDOPATH®Stapler outside the U.S.
The Specialty Surgery/Other franchise sales were $3.5 billion in 2014, a 1.1% increase over the prior year. Contributors
to the growth were strong sales from biosurgical products, sales of energy products outside the U.S. and Mentor products
due to new product launches and market growth.
The Vision Care franchise sales were $2.8 billion in 2014, a decrease of 4.1% from the prior year. The decline was
primarily due to increased competition and pricing pressures in the U.S. and the Asia Pacific region, partially offset by
sales growth in Europe.
The Cardiovascular Care franchise achieved sales of $2.2 billion, a 6.3% increase over the prior year. The increased sales
were driven by strong growth of Biosense Webster products in all regions.
The Diabetes Care franchise sales were $2.1 billion, a decrease of 7.2% versus the prior year. In the U.S., lower prices
were partially offset by volume growth.
The Diagnostics franchise sales were $1.0 billion, a decline of 49.0% versus the prior year. The decline was due to the
divestiture of the Ortho-Clinical Diagnostics business (the Diagnostics franchise) to The Carlyle Group on June 30, 2014.
Medical Devices segment sales in 2013 were $28.5 billion, representing an increase of 3.9% over the prior year, with
operational growth of 6.1% and a negative currency impact of 2.2%. U.S. sales were $12.8 billion, an increase of 3.5% as
compared to the prior year. International sales were $15.7 billion, an increase of 4.2% over the prior year, with operational
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