Johnson and Johnson 2010 Annual Report Download - page 34

32 JOHNSON & JOHNSON 2010 ANNUAL REPORT
Company continues to communicate with the FDA on remediation
actions and is on schedule with the commitments made in the CAP.
The Skin Care franchise sales were $3.5 billion, a decline of
0.4% compared to the prior year due in part to a temporary reduc-
tion in shipments of Neutrogena products due to product supply
constraints partially offset by growth in the AVEENO®, JOHNSON’s®
Adult, LE PETIT MARSEILLAIS®and DABAO® skin care lines. The
Baby Care franchise sales grew by 4.4% to $2.2 billion in 2010,
primarily due to growth in the Asia Pacific region partially offset by
the impact of the economic situation in Venezuela. The Women’s
Health franchise sales were $1.8 billion, a decrease of 2.7% primarily
due to increased competitive pressures and the impact of the eco-
nomic situation in Venezuela. The Oral Care franchise sales were
$1.5 billion, a decrease of 2.7% primarily due to the divestiture of the
EFFERDENT®/Effergrip® brands in the fiscal fourth quarter of 2009
and lower sales of mouth rinses and toothbrushes in the United
States. The Wound Care/Other franchise sales were $1.0 billion, a
decrease of 10.4% primarily due to private label competition and
slower category growth.
Consumer segment sales in 2009 were $15.8 billion, a
decrease of 1.6% from 2008, with 2.0% of this change due to opera-
tional growth and negative currency impact of 3.6%. U.S. Consumer
segment sales were $6.8 billion, a decrease of 1.4%. International
sales were $9.0 billion, a decrease of 1.7%, with growth of 4.7%
achieved by operations and a decrease of 6.4% resulting from the
negative impact of currency fluctuations.
PHARMACEUTICAL SEGMENT
Pharmaceutical segment sales in 2010 were $22.4 billion, a
decrease of 0.6% from 2009, with an operational decline of 1.0%
and a positive currency impact of 0.4%. U.S. sales were $12.5 billion,
a decrease of 4.0%. International sales were $9.9 billion, an
increase of 4.2%, which included 3.4% operational growth and a
positive currency impact of 0.8%. Pharmaceutical segment sales in
2010 were reduced by approximately $400 million as a result of
U.S. health care reform legislation.
REMICADE®(infliximab), a biologic approved for the treatment
of a number of immune mediated inflammatory diseases, achieved
sales of $4.6 billion in 2010, with growth of 7.1% over the prior year.
U.S. export sales grew 24.3% versus the prior year primarily driven
by market growth. REMICADE®is competing in a market that is
experiencing increased competition due to new entrants, including
the successful launches of STELARA®(ustekinumab) and
SIMPONI®(golimumab) and the expansion of indications for
existing competitors.
PROCRIT®(Epoetin alfa) and EPREX®(Epoetin alfa) had com-
bined sales of $1.9 billion in 2010, a decline of 13.9% compared to
the prior year. Lower sales of PROCRIT®and EPREX® were primarily
due to the declining markets for Erythropoiesis Stimulating Agents
(ESAs). EPREX®also experienced increased competition.
RISPERDAL® CONSTA® (risperidone), a long-acting injectable
antipsychotic, achieved sales of $1.5 billion in 2010, representing an
increase of 5.3% as compared to the prior year. Solid growth of 16.4%
was achieved outside the U.S., with very strong growth in Japan. In
the U.S. the successful launch of INVEGA®SUSTENNA™(paliperi-
done palmitate) also increased the growth of the long-acting
injectable antipsychotic market.
LEVAQUIN®(levofloxacin)/FLOXIN®(ofloxacin) sales were
$1.4 billion, a decline of 12.5% versus the prior year primarily due to
the decline in the market and increased penetration of generics.
Market exclusivity in the U.S. expires in June 2011. The expiration
of a product’s market exclusivity is likely to result in a significant
reduction in sales.
CONCERTA®(methylphenidate HCl), a product for the treat-
ment of attention deficit hyperactivity disorder (ADHD), achieved
sales of $1.3 billion in 2010, a decrease of 0.5% compared to the
prior year. Sales growth in the U.S. was impacted by lower market
share and the health care reform legislation enacted in March 2010
resulting from changes to rebates to Medicaid managed care organ-
izations. On November 1, 2010, the Company entered into a U.S.
supply and distribution agreement with Watson Laboratories, Inc. to
distribute an authorized generic version of CONCERTA®beginning
May 1, 2011. This authorized generic launch is likely to result in a
significant reduction in CONCERTA®sales.
VELCADE®(bortezomib), a product for the treatment for mul-
tiple myeloma, for which the Company has commercial rights in
Europe and the rest of the world outside the U.S., achieved sales of
$1.1 billion in 2010, representing an increase of 15.8% as compared
to the prior year.
ACIPHEX®/PARIET®(rabeprazole sodium) sales were
$1.0 billion, a decline of 8.2% versus the prior year due to increased
competition from generics in the category.
TOPAMAX®(topiramate), experienced a sales decline
of 53.3% compared to the prior year. Market exclusivity for
TOPAMAX®expired in March 2009 in the U.S. and in September
2009 in most European countries. Multiple generics have entered
the market. Loss of market exclusivity for the TOPAMAX®patent
has resulted in the significant reduction of sales in the U.S.
and Europe.
In 2010, Other Pharmaceutical sales were $9.1 billion, represent-
ing a growth of 6.6% over the prior year. Contributors to the increase
were sales of STELARA®(ustekinumab), SIMPONI®(golimumab),
Major Pharmaceutical Product Revenues*:
% Change
______________________
(Dollars in Millions) 2010 2009 2008 ’10 vs. ’09 ’09 vs. ’08
REMICADE®(infliximab)$4,610 4,304 3,748 7.1% 14.8
PROCRIT®/EPREX®(Epoetin alfa) 1,934 2,245 2,460 (13.9) (8.7)
RISPERDAL®CONSTA®(risperidone) 1,500 1,425 1,309 5.3 8.9
LEVAQUIN®/FLOXIN®(levofloxacin/ofloxacin) 1,357 1,550 1,591 (12.5) (2.6)
CONCERTA®(methylphenidate HCl) 1,319 1,326 1,247 (0.5) 6.3
VELCADE®(bortezomib)1,080 933 787 15.8 18.6
ACIPHEX®/PARIET®(rabeprazole sodium) 1,006 1,096 1,158 (8.2) (5.4)
TOPAMAX®(topiramate) 538 1,151 2,731 (53.3) (57.9)
Other Pharmaceuticals 9,052 8,490 9,536 6.6 (11.0)
Total $22,396 22,520 24,567 (0.6)% (8.3)
* Prior year amounts have been reclassified to conform to current presentation.