Johnson & Johnson - Index

Johnson & Johnson - report - Index

sale of such products. These actions are not expected to have a
significant impact on sales for the OTC Pharmaceuticals and
Nutritionals franchise.
The Skin Care franchise sales in 2007 were $3.1 billion, representing
an increase of 15.9% over 2006. The increase was primarily
due to sales growth in the suncare, CLEAN & CLEAR®,
AVEENO® and NEUTROGENA® product lines, as well as new
products related to acquisitions. The positive impact on Skin
Care total sales growth due to newly acquired brands from Pfizer
Inc. was 5.7% for the fiscal year 2007.
The Baby Care franchise sales grew by 13.9% to $2.0 billion
in 2007. This strong growth was led by the success of the
cleanser, haircare, lotion and cream and powder product lines. An
additional contributor to the growth were the new products
related to acquisitions. The positive impact on Baby Care total
sales growth due to newly acquired brands from Pfizer Inc. and
divestitures related to the acquisition was 1.8% for the fiscal
year 2007.
The Women’s Health franchise sales grew by 8.4% to $1.8 billion
in 2007. This growth was primarily due to newly acquired
brands from Pfizer Inc. The positive impact on Women’s Health
total sales growth due to newly acquired brands from Pfizer Inc.
was 4.8% for the fiscal year 2007.
The Oral Care franchise sales grew by 266.5% to $1.5 billion
in 2007. This strong sales growth was attributable to new products
from acquisitions and newly launched products, such as
LISTERINE® mouthwashes and dissolvable whitening strips. The
positive impact on Oral Care total sales growth due to newly
acquired brands from Pfizer Inc. and divestitures related to the
acquisition was 276.6%.
Consumer segment sales in 2006 were $9.8 billion, an
increase of 7.5%, over 2005 with operational growth accounting
for 6.4% of the total growth and 1.1% due to positive currency
fluctuations. U.S. Consumer segment sales were $4.6 billion,
an increase of 3.8%. International sales were $5.2 billion, an
increase of 10.9%, with 8.7% as a result of operations and
2.2% due to currency fluctuations over 2005.
PHARMACEUTICAL SEGMENT
Pharmaceutical segment sales in 2007 were $24.9 billion, an
increase of 6.9% over 2006, with 4.3% of this change due to
operational growth and the remaining 2.6% increase related to
the positive impact of currency fluctuations. U.S. Pharmaceutical
Major Pharmaceutical Product Revenues*:
% Change
_____________________
(Dollars in Millions) 2007 2006 2005 ’07 vs. ’06 ’06 vs. ’05
Antipsychotics $ 4,697 4,183 3,552 12.3% 17.8
REMICADE® (infliximab) 3,327 3,013 2,535 10.4 18.9
PROCRIT®/EPREX® (Epoetin alfa) 2,885 3,180 3,324 (9.3) (4.3)
TOPAMAX® (topiramate) 2,453 2,027 1,680 21.0 20.7
LEVAQUIN®/FLOXIN® (levofloxacin/ofloxacin) 1,646 1,530 1,492 7.6 2.5
ACIPHEX®/PARIET® (rabeprazole sodium) 1,357 1,239 1,169 9.5 6.0
DURAGESIC® /Fentanyl Transdermal (fentanyl transdermal system) 1,164 1,295 1,585 (10.1) (18.3)
CONCERTA® (methylphenidate HCI) 1,028 930 774 10.5 20.2
Hormonal Contraceptives 925 1,016 1,136 (9.0) (10.6)
Other 5,384 4,854 5,075 10.9 (4.4)
Total $24,866 23,267 22,322 6.9% 4.2
* Prior year amounts have been reclassified to conform with current presentation.
segment sales were $15.6 billion, an increase of 3.4%. International
Pharmaceutical segment sales were $9.3 billion, an
increase of 13.3%, which included 5.9% of operational growth
and 7.4% related to the positive impact of currency fluctuations.
The Antipsychotics franchise achieved sales of $4.7 billion
in 2007, an increase of 12.3% over prior year. The Antipsychotics
franchise includes RISPERDAL® oral (risperidone), a medication
that treats the symptoms of schizophrenia, bipolar mania and
irritability associated with autistic behavior in indicated patients,
RISPERDAL® CONSTA® (risperidone) a long acting injectable
and INVEGA™ (paliperdone) Extended-Release tablets for the
treatment of schizophrenia. Sales growth was positively
impacted by the continued global success of RISPERDAL®
CONSTA®. The patent for the RISPERDAL® compound expired
in the U.S. and most major markets outside the U.S. in 2007.
In March 2007, the FDA granted pediatric exclusivity for
RISPERDAL®, which extends the marketing exclusivity in the U.S.
for RISPERDAL® oral to the end of June 2008. In 2007, U.S. sales
of RISPERDAL® oral were $2.2 billion. Loss of market exclusivity
for RISPERDAL® oral is likely to result in a significant reduction in
sales in the U.S.
REMICADE® (infliximab), a biologic approved for the
treatment of Crohn’s disease, ankylosing spondylitis, psoriasis,
psoriatic arthritis, ulcerative colitis and use in the treatment of
rheumatoid arthritis, achieved sales of $3.3 billion in 2007, with
growth of 10.4% over prior year. Growth was driven by increased
demand due to expanded indications and overall market
growth. During 2007, REMICADE® received approval from the
European Commission for pediatric Crohn’s disease indications.
REMICADE® is competing in a market which is experiencing
increased competition due to new entrants and the expansion
of indications for existing competitors.
PROCRIT® (Epoetin alfa) and EPREX® (Epoetin alfa) had
combined sales of $2.9 billion in 2007, a decline of 9.3%
compared to prior year. The decline was primarily due to the
declining markets for Erythropoiesis Stimulating Agents (ESAs).
Earlier in the year The Centers for Medicare and Medicaid issued
a National Coverage Determination, which significantly limits
the reimbursement of ESAs in oncology in the U.S. Epoetin alfa
products in the U.S. were subject to a label change, which
may negatively impact future sales. The label for Epoetin alfa
products is also under review in jurisdictions outside the U.S.
38 JOHNSON & JOHNSON 2007 ANNUAL REPORT