Johnson and Johnson 2005 Annual Report Download - page 4

For example, DePuy, the world’s leader in joint
reconstruction and other important orthopaedic areas, is
focusing on less invasive and more durable, motion-saving
solutions. iOrthopaedics, DePuy’s computer-assisted
navigation platform, affords greater surgical precision and
improved outcomes in minimally invasive procedures.
In interventional cardiology, Cordis’ innovative product
solutions are addressing cardiovascular disease, the world’s
leading cause of death. CYPHER®Sirolimus-Eluting Stent
is now the world’s market leader, building on the most
credible library of clinical evidence on outcomes and
safety to win preference among interventional cardiologists.
Other examples like VICRYL®Plus, the world’s first
and only antibacterial suture, and Veridex, our diagnostic
business focused on cancer cell detection at earlier
stages of disease, demonstrate how product innovations
continue to advance standards of care.
Key business building acquisitions in the Medical
Devices and Diagnostics segment will continue to be
an important source of future growth. Last June, we
acquired Closure Medical Corporation, a global leader
in biomaterial-based medical devices, and in January,
we added Hand Innovations LLC, bringing leading
technology in the fastest-growing segment of the global
extremities market. Just last month, we concluded the
acquisition of Animas Corporation, an insulin delivery
company that will operate as part of our successful
LifeScan business and will strengthen our ability to
further advance the treatment of diabetes.
For our Pharmaceutical segment, 2005 was a challeng-
ing year, with growth well below historical levels. Growth
was affected by the impact of generic competition for
DURAGESIC®and ULTRACET®
, and by negative publicity
related to NATRECOR®
.
Although declines in these categories largely offset
the growth achieved in the balance of our pharmaceutical
business this past year, our long-term record is one of
strong growth that reflects our ability to bring to market
medicines that address important unmet medical needs.
Today, we are leaders in a broad range of traditional
medicines as well as a leader in biologicals, and our capa-
bilities in drug delivery enhance our position in both
these important areas.
We currently have eight therapeutic areas of interest
in our pharmaceutical segment, with leadership posi-
tions in four of them: diseases of the central nervous
system (CNS), immune-mediated inflammatory diseases,
pain management, and anemia. We are focused on
building global growth engines in four other therapeutic
areas: virology, oncology, antibacterials and cardio-
vascular disease.
In the CNS category, we have enjoyed longstanding
leadership positions. In antipsychotics, we are developing
new indications for RISPERDAL®CONSTA®
, an injectable
antipsychotic indicated for the treatment of schizophrenia,
and we are in late-stage development of a further
improvement in long-acting injectable technology. And,
we recently filed a New Drug Application for paliperidone
ER, an extended release oral formulation of our next-
generation antipsychotic.
In pain management, we are excited about the
potential of IONSYSTM
, a novel drug/device combination
PAGE 2 JOHNSON & JOHNSON 2005 ANNUAL REPORT
Robert J. Darretta Vice Chairman, Board of Directors, and Chief Financial Officer