Post on 25-Dec-2014
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Louise MehrotraVice President, Investor Relations
Safe Harbor Statement• This presentation may contain “forward-looking statements” as defined in the Private Securities
Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the Company’s expectations and projections.
• Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment.
• A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2008. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com, or on request from the Company. The Company does not undertake to update any forward-looking statements as a result of new information or future events or developments.
Dominic CarusoVice President, FinanceChief Financial Officer
Alex GorskyWorldwide Chairman
Medical Devices & Diagnostics
WW Medical Devices & Diagnostics Market – $335B2008-12CAGR
MD&D Market Segments*Blue = Where J&J MD&D Competes
$157B47%$178B
53%
Overall MD&D Market CAGR (2008-12) 6.5%
Total 2008 WW MD&D Market
OUS
Segment Value(US $ in Billions)
Source: HRI, Internal Estimates
US
Surgical Instrument / Other 47 7.4%Imaging 42 2.9%Cardiovascular 32 6.9%In‐Vitros Diagnostics 30 7.4%Orthopaedics 27 8.1%Vision 20 6.3%Dental 18 3.5%Urology & Renal 15 5.6%Wound Care 12 6.9%Endoscopy 11 7.0%Drug Delivery 10 6.8%Energy‐Based/Radiotherapy 10 6.9%Diabetes SMBG & Int. Sol 9 7.0%Critical Care 7 3.7%Opthalmic Surgery 6 6.3%Sports Medicine 4 9.5%Blood Donation & Proc. 3 5.3%Neuromodulation 3 16.0%Infection Control 3 6.0%Aesthetics 2 21.6%Neurosurgery/ICU/Instruments 2 3.1%
Insulin Delivery – Pumps 1 15.2%*Market Segments listed above do not include certain minor categories such as Patients Aids & Home, Non Electrical Diagnostics and other minor markets
Largest MD&D Business in the World
• Strong track record of financial performance• Leadership positions (#1 or #2) in key segments• Compete in attractive categories• Global capabilities and advantages of scale• Unique understanding of chronic disease states• Depth and breadth of Johnson & Johnson
Seven Extraordinary Franchises
Diabetes Care
Diabetes Care
Ethicon Endo
MD&D Segment – Major Franchise
Cordis
YTD’09 Sales: $17.3 Billion YTD’09 Ops Growth Rate: 3.3%
OCD
DePuy
Ethicon
Vision Care
$3.0+9%
$3.2+8%
$2.0 (11%)
$1.5+9%
$3.9+7%
$1.8(4%)
$1.9 +1%
$ U.S. Billions
Sales & Operational Growth Rates – Nine Months 2009
Key Growth Strategies
• Grow core businesses• Launch breakthrough new products/technologies• Accelerate growth in emerging markets• Drive operational effectiveness and efficiency
Key Growth Strategies:
SuturesJoint
Reconstruction SMBGContact Lenses
Clinical Labs
WW Market $3.1B $13.2B $8.5B $5.7B $13.3BJ&J WW Market Position #1 #2 #2 #1 #5J&J WW $ Market Share
75% 20% 27% 45% 7%
Source: Combination of external and internal estimates. WW Market data reflect 2009 estimates; WW Market Position and Market Share data reflect YE’08 actuals.
Grow Core Businesses
Sutures:
• Faster, event-free closure• First and only suture
of its kind• Protects against
bacterial colonization• Tiered strategy for developed
vs. emerging markets
Coated VICRYL™ Plus Antibacterial Suture
Joint Reconstruction:
• First ceramic-on-metal hip bearing considered by FDA• Combines durability/stability of metal-on-metal bearings with
enhanced wear characteristics of ceramic-on-ceramic bearings • Laboratory testing showed:
– >90% wear reduction compared to metal-on-metal under normal gait conditions
– 80% reduction in wear under adverse conditions• FDA Advisory Committee unanimously recommended
approval in August 2009
Pinnacle® CoMplete Acetabular Cup System
Self-monitoring of Blood Glucose (SMBG):
• Automatically double-checks each result for accuracy• OneTouch® Ultra® Test Strips are glucose-specific and eliminate
the risk of falsely elevated results from other sugars– Nearly 7 years of proven accuracy reinforces patient
and HCP confidence• Leverages competitive advantage of one strip platform
for multiple meters• Does not contain the GDH-PQQ enzyme• U.S. launch in September 2009
New Blue OneTouch® Ultra® Test Strips with DoubleSure™ Technology
Contact Lenses:
• World’s first daily disposable silicone hydrogel
• Sets the standard in healthy contact lens wear for today’s non-stop eye
• Only contact lens to deliver on the four dimensions of eye health:
– HEALTH YOU CAN SEE™
– HEALTH YOU CAN FEEL™
– PROTECTIVE HEALTH– EVERYDAY HEALTH
• OUS Launches in 2008/09
• Planned U.S. Launch 2Q/3Q’10
1•DAY ACUVUE® TruEye™
Clinical Labs:
• Market penetration: New systems double the markets served
• Menu expansion: Competitive menu of clinical chemistry and immunoassay tests
• New medical content: Emerging assays
• FDA approved: 4Q08
VITROS® 5600 and 3600 Systems
Key Growth Strategies:
DES Electrophysiology Energy Biosurgicals SedationWW Market 2009
$4.8B $1.8B $1.5B $0.7B New Market
2009-2014 CAGR*
2% 15% 15% 10% New Market
*Operational growthSource: Combination of external and internal estimates
Launch Breakthrough New Products/Technologies
Drug-Eluting Stents (DES):
• First and only drug-eluting stent utilizing RES Technology • 75% bare metal upon insertion; fully bare metal in ~3 months • Contains the drug Sirolimus – unmatched safety and
efficacy data• Excellent deliverability• Robust clinical strategy • CE Mark Filing: 1Q 2010• PMA Filing: 2012
NEVO™ Sirolimus-Eluting Coronary Stent
Electrophysiology:
• Advancing the use of ablation for treatment of arrhythmias
• Focused on atrial fibrillation– Most common sustained cardiac rhythm disturbance– Prevalence of 22MM…only 88K treated with ablation– Ablation fast-growing as second-line therapy– Biosense Webster has first and only FDA approval to
treat Afib– CARTO® 3 system launching OUS
Atrial Fibrillation Ablation
Energy:
• Acquired SurgRX in 2008• Expand leadership in “energy-based” surgical
instruments• ENSEAL® and HARMONIC® are complementary
technologies• ENSEAL® – Advanced bipolar device for large
vessel sealing• HARMONIC® – Ultrasonic device for procedures
requiring multi-functionality
ENSEAL® + HARMONIC®
Biosurgicals:
• Acquired Omrix Biopharmaceuticals in 2008
• Advanced hemostat to address bleeding in surgical settings
• Combines functions of mechanical sealing and biological hemostasis
• BLA Submission: 2009
Fibrin Pad
Sedation:
• First Computer-Assisted Personalized Sedation System
• Integrates precise drug delivery and patient monitoring
• For use by physician/nurse teams to deliver minimal-to-moderate propofol sedation
• Targeting colonoscopy and EGD procedures –16 million U.S. screening procedures per year*
• Favorable FDA advisory panel recommendation in May 2009
*Internal Estimate
The SEDASYS® System
Accelerate Growth in Emerging Markets
*Data source: Internal Estimates and based on markets J&J competes in and is not reflective of the entire MD&D market; Constant Dollars
Market Size 2009-2014 CAGRMD&D BRIC Market $6.0 Billion 15%Brazil $1.7 Billion 11%Russia $0.9 Billion 14%India $0.8 Billion 18%China $2.6 Billion 18%
Key Growth Strategies:
Key Growth Strategies:
• Improve access, affordability, education– Market-appropriate products – Partnerships with government
• Gain meaningful local market insights– R&D Centers in China/India– Manufacturing in Brazil/China/India– Surgical Training Centers in all BRIC countries– Johnson & Johnson Diabetes Institute in China
Accelerate Growth in Emerging Markets
Key Growth Strategies:Drive Operational Effectiveness and Efficiency
* Excludes IPR&D and other special items
0
2000
4000
6000
8000
2003 2004 2005 2006 2007 2008Ope
ratin
g P
rofit
($ in
Bn)
15%
20%
25%
30%
35%
% to
Sal
es
Operating Profit $'s % to Sales
MD&D Operating Profit*, 2003 - 2008
35%
30%
25%
20%
15%
$8.0
$6.0
$4.0
$2.0
$0
Medical Devices & Diagnostics:
• Strong history of delivering clinically-relevant solutions• Favorable demographics and significant unmet needs globally• Market-leading franchises with established growth platforms
and robust pipeline• Broad technology, scientific, and regulatory expertise• Global infrastructure, capabilities and networks• Exceptional financial profile enables continued investment
in new markets, companies, and technologies
Well Positioned for Growth