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CHAIRMAN’S LETTER 3
global developer and manufacturer of minimally invasive
devices for hemorrhagic and ischemic stroke. In February
2011, Johnson & Johnson completed its tender offer for
Crucell N.V., which develops vaccines against infectious
diseases. In addition to strategic acquisitions, we collaborate
and partner with other companies and academic institutions
pursuing exciting discoveries that we can enhance with our
global development capabilities.
• Growth in Emerging Markets: We continued our
strong progress in emerging markets, with sales growing
14 percent operationally in Brazil, Russia, India and China.
We continue maximizing research and development centers
in these regions to develop medical devices, pharmaceuticals
and consumer products based on insights in local markets.
We have a vast and growing network of medical and surgical
institutes around the world to train and educate the doctors
and nurses who use our products. And with rapid economic
growth in emerging markets, we’re expanding our product
offerings to meet the unique needs of the mass market
comprising billions of people who are now gaining a greater
degree of health care coverage.
The opportunity here may reflect more affordable
products or products focused on diseases that are more
common in emerging markets than in developed markets.
Offerings include market-appropriate sutures, consumer
products, staplers, blood glucose meters, knee replacements
and local or regional pharmaceuticals. The objective is
superior outcomes for patients who may not have had access
to such technologies or products.
• Talented People: As we look toward the future, a top
priority for Johnson & Johnson is continued development of a
leadership team that is well-positioned for sustainable growth.
At the end of 2010, we announced organizational changes
designed to further long-term succession plans and assure that
we have talented and experienced leaders at all levels of the
organization. Joining me as part of an expanded Office of the
Chairman are Alex Gorsky, previously Worldwide Chairman,
Medical Devices & Diagnostics, and Sheri McCoy, previously
Worldwide Chairman, Pharmaceuticals.
Other additions to our senior leadership team are a
direct reflection of the strength, depth and diversity of our
talent pipeline. We are committed to giving our people
opportunities to work across our various business groups
and geographies. And we continue to invest more than ever in
our people. Our objective is simple: to develop employees
with the skills, judgment and integrity to carry on the
Johnson & Johnson legacy.
We have the people, products, pipelines and footprints in
global markets to sustain long-term growth. And with a
continuous focus on addressing unmet needs, we invest in
technologies with the potential to significantly improve
health care.
PHARMACEUTICALS
Our Pharmaceuticals segment focuses on meeting important
patient needs. With sales of $22.4 billion, we saw rapid growth
of recently launched products. For the year, the segment
experienced an operational sales decline of 1 percent. Excluding
the impact of generic competition and health care reform,
pharmaceutical sales would have increased by nearly 4 percent
operationally.
We continued to make significant investments to expand
our presence in emerging markets which grew at double-
digit rates, as well as in new therapeutic areas like vaccines
and Alzheimer’s disease. We are the leader in the U.S.
immunology market, with three significant brands. Our
flagship product REMICADE® (infliximab), for the treatment
of a number of immune-mediated inflammatory diseases,
grew 7 percent operationally. Newer products STELARA®
(ustekinumab) and SIMPONI® (golimumab) continued
increasing market share and generated more than a combined
$600 million in sales for the year. REMICADE®, STELARA® and
SIMPONI® contributed to 17 percent operational growth for the
Immunology franchise.
In long-acting antipsychotics, we grew 14 percent
operationally. RISPERDAL® CONSTA® (risperidone) Long-
Acting Injection, an atypical antipsychotic administered
every two weeks for the treatment of schizophrenia or the
maintenance of bipolar 1 disorder, grew 6 percent operationally.
INVEGA® SUSTENNA® (paliperidone palmitate), for the
treatment of schizophrenia, continued to increase U.S. market
share, contributing to our expanding market leadership.
In the HIV area, PREZISTA® (darunavir) and INTELENCE®
(etravirine) grew sales operationally by 46 percent and
41 percent, respectively, achieving together more than $1 billion
in sales for the first time while providing access to markets with
The source of our enduring strength
is a fundamental commitment to
Our Credo
and an operating model that has
served us well for decades.
PEOPLE AND
VALUES
MANAGED FOR
THE LONG TERM
BROADLY BASED IN
HUMAN HEALTH
DECENTRALIZED
APPROACH