Johnson and Johnson 2006 Annual Report Download - page 42

40 JOHNSON & JOHNSON 2006 ANNUAL REPORT
Major Pharmaceutical Product Revenues:
% Change
_____________________
(Dollars in Millions) 2006 2005 2004 ’06 vs. ’05 ’05 vs. ’04
RISPERDAL®(risperidone)/RISPERDAL® CONSTA® (risperidone) $4,183 3,552 3,050 17.8% 16.5
PROCRIT®/EPREX®(Epoetin alfa) 3,180 3,324 3,589 (4.3) (7.4)
REMICADE®(infliximab)3,013 2,535 2,145 18.9 18.2
TOPAMAX® (topiramate) 2,027 1,680 1,410 20.7 19.1
LEVAQUIN®/FLOXIN®(levofloxacin/ofloxacin) 1,530 1,492 1,296 2.5 15.2
DURAGESIC®/Fentanyl Transdermal (fentanyl transdermal system) 1,295 1,585 2,083 (18.3) (23.9)
ACIPHEX®/PARIET® (rabeprazole sodium) 1,239 1,169 1,116 6.0 4.7
Hormonal Contraceptives 1,016 1,136 1,278 (10.6) (11.1)
Other 5,784 5,849 6,161 (1.1) (5.1)
Total $23,267 22,322 22,128 4.2% 0.9
and international markets. The Women’s Health franchise sales
grew by 6.3% to $1.7 billion in 2006 resulting from solid contri-
butions from the K-Y® and STAYFREE®product lines. Sales in all
other franchises grew by 11.8% to $1.0 billion in 2006. This was
primarily due to the acquisition of the REMBRANDT® Brand of
oral care products.
The operating results of the Consumer Healthcare business
acquired from Pfizer Inc. on December 20, 2006 will be reported in
the Company’s financial statements beginning in 2007, as 2006
results subsequent to the acquisition date were not significant.
Consumer segment sales in 2005 were $9.1 billion, an
increase of 9.2%, over 2004 with operational growth accounting
for 7.8% of the total growth and 1.4% due to positive currency
fluctuations. U.S. Consumer segment sales were $4.4 billion,
an increase of 4.3%. International sales were $4.7 billion, an
increase of 14.2%, with 11.3% as a result of operations and 2.9%
due to currency fluctuations over 2004.
Consumer segment sales in 2004 were $8.3 billion, an increase
of 12.1% over 2003, with operational growth accounting for 8.8% of
the total growth, and 3.3% due to a positive currency impact. U.S.
sales increased by 6.5% while international sales increased by
18.7%, with 11.5% due to operational gains and a positive currency
impact of 7.2% over 2003.
PHARMACEUTICAL SEGMENT
Pharmaceutical segment sales in 2006 were $23.2 billion, an
increase of 4.2% over 2005, with 3.9% of this change due to
operational growth and the remaining 0.3% increase related to
the positive impact of currency. U.S. Pharmaceutical segment
sales were $15.1 billion, an increase of 4.2%. International
Pharmaceutical segment sales were $8.1 billion, an increase of
4.2%, which included 3.4% of operational growth and 0.8%
related to the positive impact of currency.
RISPERDAL®(risperidone), a medication that treats the
symptoms of schizophrenia and bipolar mania, and RISPERDAL®
CONSTA® (risperidone) long acting injection that treats the
symptoms of schizophrenia, achieved $4.2 billion in sales in
2006, an increase of 17.8% over prior year. Sales growth was posi-
tively impacted by lower rebates for RISPERDAL®and higher
demand for RISPERDAL® CONSTA®. U.S. sales of RISPERDAL®
and RISPERDAL® CONSTA® increased by 24.3% to $2.4 billion,
while international sales increased by 9.9% to $1.8 billion. In
October of 2006, the Company received approval from the U.S.
Food and Drug Administration (FDA) to market RISPERDAL® for
the treatment of irritability associated with autistic disorder in
children and adolescents. The RISPERDAL® compound patent is
scheduled to expire in the U.S. in December 2007. The Company
has submitted pediatric data to the FDA in order to extend exclu-
sivity through June 2008. The expiration of a product patent
typically results in a loss of market exclusivity and can result in a
significant reduction in sales.
PROCRIT®(Epoetin alfa) and EPREX®(Epoetin alfa) had
combined sales of $3.2 billion in 2006, a decline of 4.3% com-
pared to prior year. PROCRIT® experienced a sales decline of 8.1%
in 2006 due to a competitor’s anticompetitive contracting strategy
in oncology clinics. EPREX®sales increased by 3.5% in 2006. The
approval of the once weekly administration and the recent restora-
tion to the label of subcutaneous administration for EPREX®in
Europe resulted in volume gains. Although the EPREX®patent has
expired in most major European markets, no erythropoietin prod-
uct has been approved using the biosimilar regulatory pathway.
Several companies have made filings using the pathway and their
filings are under review. The Company cannot predict when such
products may be approved.
REMICADE®(infliximab), a biologic approved for the
treatment of Crohn’s disease, ankylosing spondylitis, psoriatic
arthritis, ulcerative colitis and use in the treatment of rheumatoid
arthritis, achieved sales of $3.0 billion in 2006, with growth of
18.9% over prior year. Continued growth was driven by increased
demand due to expanded indications. During the fiscal third
quarter of 2006, REMICADE® received FDA approval for the
treatment of adults with chronic severe plaque psoriasis.
TOPAMAX® (topiramate), which has been approved for
adjunctive and monotherapy use in epilepsy, as well as for the
prophylactic treatment of migraines, achieved $2.0 billion in
sales in 2006, an increase of 20.7% over prior year. The migraine
indication was the key driver of 2006 sales growth.
LEVAQUIN®(levofloxacin) and FLOXIN® (ofloxacin)
achieved combined sales of $1.5 billion in 2006, representing
growth of 2.5% over prior year. This growth was achieved despite
a lack of growth in the market.
DURAGESIC®/Fentanyl Transdermal (fentanyl transdermal
system) sales declined to $1.3 billion in 2006, a reduction of 18.3%
from 2005. This decline was the result of the impact of generic
competition in the U.S. and certain international markets. Generic
competition in the U.S. began in January 2005.
The hormonal contraceptive franchise sales declined to
$1.0billion in 2006, a reduction of 10.6% from 2005. ORTHO