WELL POSITIONED FOR GROWTH

Overall, Johnson & Johnson is well positioned to address these evolving market forces and opportunities:

  • Because of the ways we are delivering meaningful innovations to patients and customers;
  • Because of the steps we have taken to build a more agile company;
  • And because of our commitment to the operating model and values that have enabled such a consistent track record of success.

ACHIEVING MEANINGFUL INNOVATION

We have learned there are many paths to achieving meaningful innovation. For us, the first step is to identify the significant unmet need and market opportunity where we believe Johnson & Johnson can make a difference for patients.

We first look for areas where we have capabilities, insights and unique advantages that can shape the opportunity. Then we search both inside and outside our companies to find the latest science and research to address these needs. In addition to our own R&D, we use strategic alliances, licensing arrangements, acquisitions and venture capital investments to give us insight into and access to the next big breakthrough. Finally, we leverage the breadth of our resources in development, supply chain, marketing and sales to bring these innovative products to market.

Our Pharmaceuticals business has followed this model with its pursuit of better treatments for hepatitis C and cardiovascular disease. For hepatitis C, which infects about 170 million people worldwide, we partnered with Vertex Pharmaceuticals Inc. on the development of telaprevir. It was approved in 2011 and is now being marketed as INCIVO® in Europe.

Also in 2011, we partnered with Bayer Healthcare on the development and launch of XARELTO®, for prevention of deep vein thrombosis in knee or hip replacement surgery and for reducing the risk of stroke and systemic embolism in patients with nonvalvular atrial fibrillation.

Other times, we may choose an acquisition to broaden our portfolio with a new capability or to gain entry into a new piece of the market with a technology we don't have in our own pipeline. That was the case with the REVIVE™ SE Device, the innovative product that helped save Mrs. Wecker's life, which came to us through the acquisition of Micrus Endovascular LLC in 2010. It is now an important new option in the treatment of ischemic stroke.

In the case of the Fibrin Pad, we started out as strategic partners with Israel-based Omrix Pharmaceuticals Ltd., working to solve unmet medical needs in surgical bleeding. As the collaboration developed, we determined that an acquisition would allow us to better manage the complex development and intricate regulatory filings necessary to achieve success for this convergent product, which is anxiously awaited by surgeons.

Another approach is to use our broad base of businesses and expertise to tackle a disease state on multiple fronts. Diabetes is one example. We can offer devices like blood glucose monitors and insulin pumps; develop new drugs, as we are with canagliflozin; and help patients and consumers achieve healthier living through our Consumer Wellness & Prevention business and nutritional products such as SPLENDA® Sweeteners.