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JNJ Earnings Presentation 4Q2015
JNJ Earnings Presentation 4Q2015
Louise Mehrotra
Vice President
Investor Relations
BTG International Ltd.; YONDELIS developed in collaboration with Pharma Mar S.A.
Orthopaedics: MONOVISC/ORTHOVISC licensed from Anika Therapeutics, Inc.
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U.S.
Europe
Western Hemisphere
(ex U.S.)
Asia-Pacific, Africa
International
Worldwide (WW)
4Q 2015
4Q 2014
Reported
Operational*
$9.3
$8.6
8.0
8.0
4.0
4.6
(12.2)
0.8
1.4
1.8
(19.1)
2.8
3.1
3.3
(7.1)
0.9
8.5
9.7
(11.7)
1.2
$17.8
$18.3
(2.4)
4.4
4Q 2014
% Change
$17.8
$18.3
(2.4) Total
4.4 Ops*
GAAP Earnings
3.2
2.5
27.5
GAAP EPS
1.15
0.89
29.2
Adjusted Earnings**
4.0
3.9
4.0
Adjusted EPS**
1.44
1.37
5.1 Total
12.4 Ops*
Sales
2014
% Change
$70.1
$74.3
(5.7) Total
1.8 Ops*
GAAP Earnings
15.4
16.3
(5.6)
GAAP EPS
5.48
5.70
(3.9)
Adjusted Earnings**
17.4
18.3
(4.8)
Sales
Adjusted EPS**
6.20
6.39
(3.0) Total
5.8 Ops*
15.9
14.8
7.4
TOTAL WW
SALES $MM
REPORTED
% GROWTH
OPERATIONAL
% GROWTH*
Baby Care
$484
(7.6%)
3.7%
Oral Care
408
(1.4)
8.2
1,045
(2.6)
8.2
Skin Care
871
(8.9)
(1.1)
Womens
Health
283
(8.1)
7.4
Wound
Care/Other
229
(30.8)
(26.7)
OTC
Total
Consumer
$3,320
(7.9%)
1.8%
Skin Care
U.S. negatively impacted by
timing of shipments and
inventory builds
OUS new products partially
offset by soft sales in China
Women's Health
OUS new products & sales
momentum
Wound Care/Other
Excluding divestitures +~6.5%
Total Consumer
Excl. net impact of Acq./Div.**,
WW growth +4.7%, U.S.
+1.7%, OUS +6.3%
Additional shipping days
contributed ~4% to J&J WW
growth
Immunology
Infectious Diseases
Neuroscience
TOTAL WW
SALES $MM
$2,771
REPORTED
% GROWTH
7.5%
OPERATIONAL
% GROWTH*
11.7%
801
(25.6)
(20.4)
1,601
(3.0)
3.9
Oncology
1,273
5.0
14.8
Cardiovascular/
Metabolism/ Other **
1,618
9.2
13.0
$8,064
0.8%
6.5%
Total Pharma
Immunology
Strong U.S. immunology market
growth and increased penetration
of SIMPONI ARIA
OUS - Strong results for STELARA
due to increased penetration of PsA
indication partially offset by lower
sales to distribution partner for
REMICADE and SIMPONI
Infectious Diseases
Lower sales of hepatitis C products
due to competitive launches
Increased sales of HIV products with
introduction of PREZCOBIX
Neuroscience
Long-acting injectable products
growth of +13% WW ;+30% U.S.;
uptake of INVEGA TRINZA
CONCERTA positive impact of
reclassification of generic competitor
products in U.S.
Oncology
Oncology (cont.)
Strong launch of DARZALEX
ZYTIGA strong U.S. market growth
partially offset by share decline
OUS - strong sales in Asia
Pac/Africa; Canada and LA partially
offset by lower sales in Europe due to
increased competition
Cardiovascular / Metabolism /
Other**
INVOKANA/INVOKAMET achieved
6.5% TRx share in defined U.S. T2D
market and ~13%TRx share with
endocrinologists
XARELTO continued novel oral
anticoagulant U.S. market leadership;
16.1% TRx share of broader oral
anticoagulant market
Total Pharmaceutical
Excl. net impact of Acq/Div and Hep C
sales***, WW growth +11.1%, U.S.
+21.0% and OUS -0.2%
Additional shipping days contributed
~4% to J&J WW growth
TOTAL WW
SALES $MM
REPORTED OPERATIONAL
% GROWTH
% GROWTH*
Cardiovascular
$439
(21.3%)
(16.4%)
Diabetes
480
(6.6)
2.2
Diagnostics
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71.4
N/M
2,423
(0.7)
4.5
Hips
354
1.1
6.4
Knees
405
1.0
5.5
Trauma
644
0.8
6.3
1,020
(2.9)
2.4
2,413
(2.5)
4.7
870
2.5
9.7
General
1,147
(8.5)
(1.0)
Specialty
396
5.9
12.4
648
0.3
8.4
$6,427
(3.3%)
3.4%
Orthopaedics
Advanced
Vision Care
Total Med Dev
Diabetes
Orthopaedics (cont.)
Surgery
ANIMAS VIBE
Diagnostics
Divestiture of Ortho-Clinical
Diagnostics in June 2014
Orthopaedics
Vision Care
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U.S. Food and Drug Administration (FDA) approval of DARZALEX (daratumumab) for the treatment of double refractory
multiple myeloma
U.S. FDA approval of YONDELIS (trabectedin) for the treatment of patients with unresectable or metastatic liposarcoma or
leiomyosarcoma
European Commission approval of EDURANT (rilpiravine) in combination with other anti-retroviral agents, for treatment-nave
adolescent patients aged 12 to 18 years with human immunodeficiency virus-1 (HIV-1) infection
U.S. FDA New Drug Application (NDA) submitted for INVOKAMET XR, a once-daily therapy combining fixed doses of
canagliflozin and metformin hydrochloride extended release for the treatment of adults with type 2 diabetes
U.S. FDA and European Medicines Agency (EMA) submissions for STELARA (ustekinumab) for the treatment of adult patients
with moderately to severely active Crohn's disease
U.S. FDA and EMA submissions for IMBRUVICA (ibrutinib) for patients with relapsed or refractory chronic lymphocytic
leukemia (CLL) or small lymphocytic lymphoma in combination with bendamustine and rituximab; EMA submission for patients
with relapsed/refractory mantle cell lymphoma
European Extension Marketing Authorization Application submitted for IMBRUVICA (ibrutinib) for treatment-nave chronic
lymphocytic leukemia
Completion of the acquisition of Novira Therapeutics, Inc.
Medical Devices:
U.S. FDA approved the pediatric indication for the Animas Vibe insulin pump
Completion of the acquisition of Coherex Medical, Inc.
The company announced the restructuring of certain Medical Devices businesses
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Alex Gorsky
Chairman of the Board
&
Chief Executive Officer
12
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BROAD GLOBAL
FOOTPRINT
ENTERPRISE
CAPABILITIES &
EFFICIENCIES
BREAKTHROUGH
INNOVATION
STRONG
FINANCIAL
PERFORMANCE
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BROAD GLOBAL
FOOTPRINT
20%
Emerging
51%
49%
US
OUS
80%
Developed
Robust investments in
market appropriate portfolios
and R&D centers
Strategic acquisitions and
partnerships with local players
to further accelerate growth
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CUSTOMER
SOLUTIONS
Early-Stage
Innovators
Hospital
Systems
Information
Technology
Companies
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BREAKTHROUGH
INNOVATION
Insulin Glucagon
Somatostatin DAPI
China Lung
Cancer Center
Developing a holistic
approach to treat lung
cancer in China
PHARMACEUTICAL
Eye Health
Obesity / Diabetes
Bringing together
novel pharma / vision
technologies for an
innovative therapy
treatment for agerelated macular
degeneration
Leveraging innovative
device, pharma and
consumer capabilities
to treat and / or
prevent obesity and
diabetes
MEDICAL DEVICES
Cell Therapy
for Diabetes
Developing a
combination biologicdevice product with
insulin producing cells
encapsulated in an
immune-isolation device
CONSUMER
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Leverage Enterprise
Standards
and Productivity to drive
business growth
ENTERPRISE
CAPABILITIES &
EFFICIENCIES
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STRONG
FINANCIAL
PERFORMANCE
* Non-GAAP measure; excludes intangible amortization expense, special items and the impact of translational currency
** Inclusive of the April 2015 dividend declaration
*** Non-GAAP measure; defined as operating cash flow less capital spending; estimated as of 1/22/16
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GROW SALES
FASTER
THAN THE
MARKET
GROW EARNINGS
FASTER THAN
SALES
CREATE VALUE
THROUGH
STRATEGIC
ACQUISITIONS &
PARTNERSHIPS
GENERATE
STRONG
DIVIDEND YIELD
COMPELLING
LONG-TERM
TOTAL
SHAREHOLDER
RETURNS
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PHARMACEUTICAL
CONSUMER
MEDICAL DEVICES
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Market Leadership
Pharma
Consumer
$13.5B
$14.7B
$28.1B
$31.4B
Medical
Devices
$25.1B
$28.5B
* The sum of the segments do not equal the total due to rounding
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Pharmaceutical
Pharmaceutical
DARZALEXTM
Phase 3
IMBRUVICA
DARZALEXTM
Guselkumab
Psoriasis
SIMPONI /
SIMPONI ARIA
INVOKAMET
Sirukumab
Rheumatoid Arthritis
INVOKAMET XR
STELARA
Crohns Disease
INVEGA TRINZA
Schizophrenia
ZYTIGA
Prostate cancer
3-Month Paliperidone
Palmitate
Schizophrenia (EU)
STELARA
EDURANT STR
Single tablet regimen for HIV (US/ EU)
(Rilpivirine + F/TAF FDC)
Planned Submissions
Sirukumab
Guselkumab
DARZALEXTM
Relapsed/Refractory Multiple
Myeloma (US/EU)
Phase 2
3DAA FDC (AL-335 + odalasvir + simeprevir) Hepatitis C
IMBRUVICA
Consumer
Focus on key
consumer need states
and 12 megabrands
Delivered double-digit
growth in key emerging
markets like Russia, India and
Brazil*
Medical Devices
Key Takeaways
Focusing on near-term priorities
Delivering on our financial and quality commitments
Building on pharmaceutical launch excellence
& robust pipeline
Accelerating our growth in Medical Devices
through innovation and by transforming our
go-to-market models
Expanding our market leadership in key consumer
segments: OTC, Oral Care, Baby and Beauty
Dominic Caruso
Vice President, Finance
&
Chief Financial Officer
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30
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$22.8B
$22.0B
$12.8
$12.3
2015
2014
Pharmaceutical
39.1%
39.6%
Medical Devices
35.6%
32.0%
Consumer
14.3%
15.4%
Total
31.4%
30.7%
Pharmaceutical
$8.8
$8.9
Medical Devices
Consumer
$1.9
($1.1)
2015**
$2.2
($1.0)
2014
* Non-GAAP measure; excludes amortization expense and special items; see reconciliation at www.investor.jnj.com
** Estimated as of 1/26/16.
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