Johnson and Johnson 2006 Annual Report Download - page 9

C H A I R M A N ’ S L E T T E R
diabetes monitoring devices,
to enter the diabetes treatment
market. Even more important,
this acquisition is an initial
step in LifeScan’s plan to
develop integrated solutions
for total management of a
patient’s disease.
Future Medical Systems,
SA, a company that develops,
manufactures and markets
arthroscopic systems, adds
strength to DePuy’s fast-
growing sports medicine
business with an emphasis on
minimally invasive procedures.
The acquisition of Vascular
Control Systems, Inc. by
Ethicon, Inc. adds momentum to Ethicon’s women’s health
portfolio with the addition of less invasive treatment options
for uterine fibroids and related symptoms.
Two acquisitions add critical mass to our cardiovascular
businesses. Ensure Medical adds complementary post-
catheterization closure technology for the femoral artery,
but just as important, it brings critical mass to Cordis
Corporation’s R&D talent pool with a premier advanced
research and development facility for interventional
cardiology near San Francisco. Conor Medsystems has a
unique controlled drug-delivery technology that will be
explored across a range of therapeutic categories. It
immediately contributes to the development of next-
generation technologies aimed at advancing the standard of
care in treatment of cardiac and vascular diseases.
We believe the impressive number of new product intro-
ductions, the many exciting products in our MD&D pipeline
and the acquisitions we made in 2006—many of which bring us
unique competitive advantages—will enable us to remain the
world’s leader in medical technology and accelerate our growth
in this exciting health care segment.
OUR THANKS Before concluding, I’d like to take a moment to
acknowledge two retiring Board members for their exceptional
contributions to our Company.
First, I wish to recognize Ann Jordan, who will retire
from our Board of Directors in April 2007. Mrs. Jordan was
elected to our Board 26 years ago and has brought her deep
experience in health care and social services to bear in helping
guide our Company, especially in her roles as chairman of the
Nomination & Corporate Governance Committee, member of
the Compensation & Benefits Committee and past chairman
of the Public Policy Advisory Committee.
I also wish to thank our recently retired Vice
Chairman, Board of Directors, and Chief Financial Officer,
Robert J. Darretta, for his 39 years of commitment to
Johnson & Johnson and his steady hand at the financial helm
of this corporation during the past decade. Bob has been
instrumental in helping us deliver consistent sustainable,
superior performance and has been a visible and vocal
proponent of our enduring strategic principles.
OUR COMMITMENT TO YOU As
you read the “stories behind
the stories” of some of our key
2006 business developments
on the following pages, I trust
you’ll see why we believe human
health is such an exceptional
business and why the type of
people attracted to this
business—and specifically
to Johnson & Johnson—are
driven by more than an ordinary
desire to serve and succeed
in business.
We remain highly
optimistic about future
growth prospects for our
business of improving human
health and well-being, based on unprecedented demographic,
geographic and social trends.
As the most broadly based and comprehensive company
in this field—one with a well-balanced portfolio of businesses
in consumer health care, medical devices and diagnostics, and
pharmaceuticals—we will harness the benefits of increasing
demand while continuing to work closely with various
stakeholders throughout the health care system.
Our management philosophy, anchored in the value system
embodied in Our Credo, allows us to deal with the complexities
of balancing short-term and long-term growth.
Based on the outlook for growth in health care and our
confidence in our strategic approach—including the unique
benefits of our broadly based health care businesses—we are
committed to delivering capital-efficient, profitable growth by:
· Participating in the fastest-growing segments of human
health care
· Building and sustaining leadership positions based on
superior science and innovation
· Managing our businesses to achieve superior rates of
return for our shareholders
The real strength of this corporation is and always has been
our people . . . their talent, their drive, their passion and their
aspirations to make a difference in this world. These traits
enable us to bring forward innovations that improve the lives
and well-being of people all over the world. These same traits—
embodied in the character and quality of our people—have also
helped us deliver superior performance to our shareholders
and will continue to be the source of our enduring success in
the future.
William C. Weldon
Chairman, Board of Directors,
and Chief Executive Officer
March 14, 2007
7
Our management
philosophy, anchored in
the value system embodied
in Our Credo, allows us to
deal with the complexities
of balancing short-term
and long-term growth.
(1)Excludes in-process research and development and the Guidant acquisition agree-
ment termination fee. See Reconciliation of Non-GAAP Financial Measures, page 80.