2010 HIGHLIGHTS
Even as we faced challenges throughout 2010, we remained unwavering in who we are as a company. The source of our enduring strength is a fundamental commitment to Our Credo and an operating model that has served us well for decades.
Our operating model includes a commitment to being broadly based in human health care; a decentralized management approach that keeps our people close to customers; managing for the long term; and a focus on people and values. We focus on four growth enablers—products, pipelines, global presence and people—that support the model and enable accelerated growth. Our 2010 accomplishments reflect the strength of our model and growth enablers.
- New Products: We introduced innovative products across our businesses and saw strong growth in recently introduced products. These include consumer products that address emerging health care needs, such as JOHNSON’S® NATURAL® baby products and LISTERINE® ZERO™ mouthwash. In our Medical Devices and Diagnostics (MD&D) segment, we launched more than 50 new products. For example, a new ENSEAL® tissue-sealing device for large vessel sealing in open surgery was introduced in the U.S., strengthening our energy surgical instrument portfolio. In Pharmaceuticals, we saw growth of key innovations approved in 2009—NUCYNTA®* (tapentadol) for pain, STELARA® (ustekinumab) and SIMPONI® (golimumab) in immunology, and INVEGA® SUSTENNA® (paliperidone palmitate) for schizophrenia.
With a consistent flow of new products based on scientific innovation, approximately a quarter of Johnson & Johnson sales last year came from new products introduced in the past five years, and approximately 70 percent of our sales were from products with No. 1 or No. 2 global market share positions.
- Leading Product Pipelines: Across our businesses, we invested nearly $7 billion in research and development to advance our newest technologies and pipeline compounds. Our Pharmaceuticals pipeline is recognized as among the best in the industry.
Rivaroxaban**, our anti-coagulant, has been filed in the U.S. for the prevention of stroke in patients with atrial fibrilation, a condition that can lead to major physical and behaviorial impairments, or death. The Company also responded to the FDA Complete Response Letter for its review of the rivaroxaban filing for preventing deep vein thrombosis and pulmonary embolism following total knee and hip replacement surgery. Abiraterone acetate, an investigational compound for the treatment of metastatic advanced prostate cancer from last year’s acquisition of Cougar Biotechnology, was granted priority review in the U.S. and accepted for accelerated assessment in Europe. Telaprevir,*** for hepatitis C, an undertreated global infectious disease, has also been accepted for accelerated assessment in Europe. Additionally, we filed TMC278 for HIV in both the U.S. and Europe.
In MD&D, the Fibrin Pad, a revolutionary hemostasis product that combines two biomaterials and two biologics to stop bleeding during surgical procedures, was filed for regulatory approval with the FDA. - Targeted Acquisitions: We believe in an organic and collaborative approach to innovation. In addition to our own internal research and development programs, we create partnerships through licensing and make targeted acquisitions to either add a capability or gain an asset from which we can drive more value. We acquired Micrus Endovascular, a 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.
* NUCYNTA® is licensed from Grünenthal GmBH
** Rivaroxaban is co-developed with Bayer HealthCare.
*** Telaprevir is developed in collaboration with Vertex Pharmaceuticals, Inc.