In one of our most challenging years, the people of Johnson & Johnson delivered results that were as impressive as any we have ever achieved.

We are stronger today than a year ago, with outstanding new products, robust pipelines and talented people–people who remain inspired and united by a common purpose . . . caring for others.

2009 HIGHLIGHTS

While managing short-term challenges, we took important steps for sustainable growth and an expanded leadership position in health care.

  • We strengthened core businesses and invested in the launches of a number of recently approved innovative products. R&D investments from the last several years are coming to fruition in exciting and meaningful ways, and in 2009 we invested another $7 billion in R&D.
  • In addition to advancing pipelines through internal development, we continued to acquire, invest in and collaborate with other companies to generate new platforms for growth. Since the beginning of 2008, we have made eight major acquisitions and invested in several strategic transactions. Recent highlights include the acquisitions of Cougar Biotechnology, Inc. for oncology, and a key compound from Elan Corporation, plc for Alzheimer’s disease. We formed strategic alliances with Crucell NV for vaccines and Gilead Sciences, Inc. for HIV therapies. In 2010, we acquired Acclarent, Inc. for minimally invasive sinus surgery.
  • We also continued to expand our global presence, including building operations and expanding our reach in the BRIC countries—Brazil, Russia, India and China—and other fast-growing developing markets.
  • And we continued to play a role in helping to shape health care policy around the world, given our broad perspective on the sector.

The future of health care is promising and exciting. It is not, however, without ongoing challenges that must be addressed. Development costs are increasing. Changes in patient and consumer behaviors, as well as constrained health care budgets, are lingering effects from the economic downturn.

As we assessed this evolving global environment in 2009, we concluded that restructuring our organization was needed to ensure sustainable growth. This included the necessary plan to eliminate approximately 7,500 positions, by far the most difficult decision of the past year. However, our actions will increase efficiency and make additional resources available for investment in long-term growth platforms and new product launches. We began implementing these restructuring plans shortly after our announcement in November 2009 and are continuing in accordance with the required consultation procedures in each market.