Johnson & Johnson Reports 2008 First-Quarter Results:

Sales of $16.2 Billion Increased 7.7% Versus a Year Ago; EPS was $1.26 Excluding 2007 Special Charges, 2008 First-Quarter EPS Increased 8.6%*

NEW BRUNSWICK, N.J., April 15, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Johnson & Johnson today announced record sales of $16.2 billion for the first quarter of 2008, an increase of 7.7% as compared to the first quarter of 2007. Operational growth was 2.6% and currency contributed 5.1%. Domestic sales were up 2.8%, while international sales increased 13.7%, reflecting operational growth of 2.4% and a positive currency impact of 11.3%.

Net earnings and diluted earnings per share for the first quarter of 2008 were $3.6 billion and $1.26, respectively. The first quarter of 2007 included an after-tax in-process research and development charge of $807 million associated with the acquisition of Conor Medsystems, Inc. Excluding this charge, net earnings for the current quarter and diluted earnings per share represent increases of 6.4% and 8.6%, respectively, as compared to the same period in 2007. * The Company raised its earnings guidance for full-year 2008 to $4.40 - $4.45 per share, which does not include the impact of any in- process research and development charges or other special items.

"We achieved solid earnings in the first quarter which reflects our continued focus on profitable growth for Johnson & Johnson," said William C. Weldon, Chairman and Chief Executive Officer. "Our strategy of being broadly based remains one of the keys to our consistent long-term performance."

Worldwide Consumer sales of $4.1 billion for the first quarter represented a 16.2% increase over the prior year with operational growth of 9.9% and a positive impact from currency of 6.3%. Domestic sales increased 11.7%, while international sales increased 20.2% (8.3% from operations and 11.9% from currency).

Sales results reflect the strong performance of the U.S. launch of ZYRTEC, an over-the-counter allergy treatment; LISTERINE antiseptic mouthrinse and whitening products; Baby Care products; and the skin care lines of NEUTROGENA, CLEAN & CLEAR, and AVEENO.

Worldwide Pharmaceutical sales of $6.4 billion for the first quarter represented an increase over the prior year of 3.3% with an operational decline of .6% and a positive impact from currency of 3.9%. Domestic sales increased .9%, while international sales increased 7.9%, which reflected an operational decline of 3.1% and a positive currency impact of 11.0%.

Sales growth reflects the strong performance of REMICADE, a biologic approved for the treatment of a number of immune mediated inflammatory diseases; VELCADE, a treatment for multiple myeloma; RISPERDAL CONSTA outside the U.S., an antipsychotic medication; and CONCERTA, a treatment for attention deficit hyperactivity disorder.

Growth was negatively impacted by lower sales of PROCRIT, a product for the treatment of anemia, due to a decline in the market. Generic competition in certain markets also impacted sales results for RISPERDAL Oral, an antipsychotic medication, and DURAGESIC, a transdermal patch for chronic pain. In addition, ACIPHEX/PARIET, a proton pump inhibitor for gastrointestinal disorders, was negatively impacted by generic launches of competitive products in this market.

During the quarter, the Company announced that it received an approvable letter from the U.S. Food and Drug Administration (FDA) regarding its New Drug Application for ceftobiprole for the treatment of complicated skin and skin structure infections, including diabetic foot infections.

The Company also submitted a New Drug Application to the FDA for tapentadol hydrochloride immediate release tablets, an investigational oral analgesic for the relief of moderate to severe acute pain. In addition, the Company submitted a Marketing Authorization Application to the European Medicines Agency requesting the approval of golimumab (CNTO 148) as a monthly subcutaneous treatment for adults with rheumatoid arthritis, psoriatic arthritis and ankylosing spondylitis.

Worldwide Medical Devices and Diagnostics sales of $5.7 billion for the first quarter represented a 7.2% increase over the prior year with operational growth of 1.4% and a positive impact from currency of 5.8%. Domestic sales increased .2%, while international sales increased 13.8% (2.6% from operations and 11.2% from currency).

Primary contributors to the operational growth included Vistakon's disposable contact lenses; Ethicon Endo-Surgery's minimally invasive products; LifeScan's blood glucose monitoring and Animas's insulin delivery products. Growth was negatively impacted by lower sales of drug-eluting stents in our Cordis franchise due to new competitive entries as well as a decline in the market versus the prior year.

During the quarter, the Company submitted a Premarket Approval application to the FDA for the SEDASYS System, the first computer-assisted personalized sedation system.

About Johnson & Johnson

Caring for the world one person at a time inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our 119,500 employees at more than 250 Johnson & Johnson companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* Net earnings and diluted earnings per share excluding after-tax in- process research and development charges are non-GAAP financial measures and should not be considered replacements for GAAP results. For a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, see the accompanying tables to this release.

NOTE TO INVESTORS

Johnson & Johnson will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.

Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. The schedules include supplementary sales data, a condensed consolidated statement of earnings, and sales of key products/franchises.

Additional information on Johnson & Johnson can be found on the Company's website at www.jnj.com.

(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from Johnson & Johnson's expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2007. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward- looking statements as a result of new information or future events or developments.)

    Johnson & Johnson and Subsidiaries
    Supplementary Sales Data

    (Unaudited; Dollars in Millions)             FIRST QUARTER

                                                            Percent
                                                             Change
                                     2008     2007  Total  Operations Currency
    Sales to customers by
     segment of business

    Consumer
        U.S.                        $1,819    1,629  11.7 %  11.7          -
        International                2,245    1,867  20.2     8.3       11.9
                                     4,064    3,496  16.2     9.9        6.3

    Pharmaceutical
        U.S.                         4,070    4,034   0.9     0.9          -
        International                2,359    2,187   7.9    (3.1)      11.0
                                     6,429    6,221   3.3    (0.6)       3.9

    Med Devices & Diagnostics
        U.S.                         2,588    2,584   0.2     0.2          -
        International                3,113    2,736  13.8     2.6       11.2
                                     5,701    5,320   7.2     1.4        5.8

    U.S.                             8,477    8,247   2.8     2.8          -
    International                    7,717    6,790  13.7     2.4       11.3
    Worldwide                      $16,194   15,037   7.7 %   2.6        5.1



    Johnson & Johnson and Subsidiaries
    Supplementary Sales Data

    (Unaudited; Dollars in Millions)             FIRST QUARTER

                                                            Percent
                                                             Change
                                      2008    2007  Total  Operations Currency
    Sales to customers by
     geographic area
    U.S.                             $8,477   8,247   2.8%    2.8         -

    Europe                            4,308   3,812  13.0     0.8      12.2
    Western Hemisphere excluding U.S. 1,245   1,046  19.0     6.2      12.8
    Asia-Pacific, Africa              2,164   1,932  12.0     3.2       8.8
    International                     7,717   6,790  13.7     2.4      11.3

    Worldwide                       $16,194  15,037   7.7%    2.6       5.1



    Johnson & Johnson and Subsidiaries
    Condensed Consolidated Statement of Earnings

    (Unaudited; in Millions Except
     Per Share Figures)                            FIRST QUARTER

                                      2008              2007
                                         Percent            Percent  Percent
                                           to                 to     Increase
                                 Amount   Sales   Amount     Sales  (Decrease)
    Sales to customers          $16,194   100.0  $15,037     100.0      7.7
    Cost of products sold         4,614    28.5    4,385      29.1      5.2
    Selling, marketing and
     administrative expenses      5,123    31.6    4,802      31.9      6.7
    Research expense              1,712    10.6    1,652      11.0      3.6
    In-process research &
     development                      -       -      807       5.4
    Interest (income)expense, net    16     0.1      (33)     (0.2)
    Other (income)expense, net      (18)   (0.1)    (228)     (1.5)
    Earnings before provision for
     taxes on income              4,747    29.3    3,652      24.3     30.0
    Provision for taxes on income 1,149     7.1    1,079       7.2      6.5
    Net earnings                 $3,598    22.2   $2,573      17.1     39.8


    Net earnings per share
     (Diluted)                    $1.26            $0.88               43.2

    Average shares outstanding
     (Diluted)                  2,866.3          2,924.3

    Effective tax rate             24.2%            29.5%

    Adjusted earnings before
     provision for taxes and net
     earnings
         Earnings before provision
          for taxes on income    $4,747    29.3   $4,459 (1)  29.7      6.5
         Net earnings            $3,598    22.2   $3,380 (1)  22.5      6.4
         Net earnings per share
          (Diluted)               $1.26            $1.16 (1)            8.6
         Effective tax rate        24.2%            24.2%

    (1) The difference between as reported earnings and as adjusted earnings
        before provision for taxes, net earnings and earnings per share
        (diluted) is the exclusion of  IPR&D of $807 million with no tax
        benefit and $0.28 per share, respectively.



                       REPORTED SALES vs. PRIOR PERIOD
                                     $MM

                                            FIRST QUARTER

                                                       % Change

                                2008  2007  Reported  Operational(1) Currency

    PHARMACEUTICAL SEGMENT(2)(3)

    ACIPHEX/PARIET
    US                           116    159   -27.0%      -27.0%         -
    Intl                         161    177    -9.0%      -19.4%      10.4%
    WW                           277    336   -17.6%      -23.1%       5.5%

    CONCERTA
    US                           224    200    12.0%       12.0%         -
    Intl                          66     52    26.9%       14.8%      12.1%
    WW                           290    252    15.1%       12.6%       2.5%

    DURAGESIC/FENTANYL TRANSDERMAL
    US                            75    116   -35.3%      -35.3%         -
    Intl                         158    187   -15.5%      -24.2%       8.7%
    WW                           233    303   -23.1%      -28.5%       5.4%

    LEVAQUIN/FLOXIN
    US                           474    459     3.3%        3.3%         -
    Intl                          22     20    10.0%        4.0%       6.0%
    WW                           496    479     3.5%        3.3%       0.2%

    PROCRIT/EXPREX
    US                           334    530   -37.0%      -37.0%         -
    Intl                         295    287     2.8%       -9.3%      12.1%
    WW                           629    817   -23.0%      -27.2%       4.2%

    RAZADYNE/REMINYL
    US                            50     51    -2.0%       -2.0%         -
    Intl                          99     77    28.6%       13.6%      15.0%
    WW                           149    128    16.4%        7.4%       9.0%

    REMICADE
    US                           676    600    12.7%       12.7%         -
    US Exports(4)                320    131   144.3%      144.3%         -
    Intl                          2      0    436.0%      410.7%      25.3%
    WW                           998    731    36.5%       36.5%         -

    RISPERDAL
    US                           582    559     4.1%        4.1%         -
    Intl                         227    308   -26.3%      -33.6%       7.3%
    WW                           809    867    -6.7%       -9.3%       2.6%

    RISPERDAL CONSTA
    US                           101    101     0.0%        0.0%         -
    Intl                         208    160    30.0%       15.8%      14.2%
    WW                           309    261    18.4%        9.7%       8.7%

    TOPAMAX
    US                           520    501     3.8%        3.8%         -
    Intl                         126    109    15.6%        4.2%      11.4%
    WW                           646    610     5.9%        3.9%       2.0%

    VELCADE
    US                            2       2     0.0%        0.0%         -
    Intl                         182     111   64.0%       49.9%      14.1%
    WW                           184     113   62.8%       48.9%      13.9%

    OTHER
    US                           596     625   -4.6%       -4.6%         -
    Intl                         813     699   16.3%        2.8%      13.5%
    WW                         1,409   1,324    6.4%       -0.7%       7.1%

    TOTAL PHARMACEUTICAL
    US                         4,070   4,034    0.9%        0.9%         -
    Intl                       2,359   2,187    7.9%       -3.1%      11.0%
    WW                         6,429   6,221    3.3%       -0.6%       3.9%


    (1) Operational growth excludes the effect of currency
    (2) Select areas (unaudited)
    (3) Prior year amounts have been reclassified to conform with current
        presentation
    (4) For external purposes, reported as U.S. sales



                       REPORTED SALES vs. PRIOR PERIOD
                                     $MM

                                            FIRST QUARTER

                                                       % Change

                                2008   2007  Reported  Operational(1) Currency


    MEDICAL DEVICES AND DIAGNOSTICS(2)(3)

    CORDIS(4)
    US                           357    424   -15.8%      -15.8%         -
    Intl                         478    504    -5.2%      -14.7%       9.5%
    WW                           835    928   -10.0%      -15.2%       5.2%

    DEPUY
    US                           694    678     2.4%        2.4%         -
    Intl                         559    479    16.7%        5.6%      11.1%
    WW                         1,253  1,157     8.3%        3.7%       4.6%

    DIABETES CARE
    US                           303    292     3.8%        3.8%         -
    Intl                         312    257    21.4%        8.0%      13.4%
    WW                           615    549    12.0%        5.7%       6.3%

    ETHICON(5)
    US                           341    345    -1.2%       -1.2%         -
    Intl                         604    529    14.2%        2.9%      11.3%
    WW                           945    874     8.1%        1.3%       6.8%

    ETHICON ENDO-SURGERY
    US                           429    417     2.9%        2.9%         -
    Intl                         574    474    21.1%        8.9%      12.2%
    WW                         1,003    891    12.6%        6.1%       6.5%

    ORTHO-CLINICAL DIAGNOSTICS(5)
    US                           238    233     2.1%        2.1%         -
    Intl                         205    175    17.1%        5.2%      11.9%
    WW                           443    408     8.6%        3.5%       5.1%

    VISION CARE
    US                           226    195    15.9%       15.9%         -
    Intl                         381    318    19.8%        9.2%      10.6%
    WW                           607    513    18.3%       11.7%       6.6%

    TOTAL MEDICAL DEVICES AND
     DIAGNOSTICS
    US                         2,588  2,584     0.2%        0.2%         -
    Intl                       3,113  2,736    13.8%        2.6%      11.2%
    WW                         5,701  5,320     7.2%        1.4%       5.8%


    (1) Operational growth excludes the effect of currency
    (2) Select areas (unaudited)
    (3) Prior year amounts have been reclassified to conform with current
        presentation
    (4) Includes sale of Cypher for Q1 2008 of $169, $231 and $400 million
        Domestic, International and Worldwide respectively Includes sale of
        Cypher for Q1 2007 of $236, $292 and $528 million Domestic,
        International and Worldwide respectively
    (5) Restated to include portion of sales previously reported in the
        "Other" category



                       REPORTED SALES vs. PRIOR PERIOD
                                     $MM

                                           FIRST QUARTER

                                                       % Change

                                2008   2007  Reported  Operational(1) Currency

    CONSUMER SEGMENT(2)

    SKIN CARE
    US                           382    357    7.0%       7.0%           -
    Intl                         458    407   12.5%       1.5%        11.0%
    WW                           840    764    9.9%       4.0%         5.9%

    BABY CARE
    US                           115    109    5.5%       5.5%           -
    Intl                         418    338   23.7%      12.9%        10.8%
    WW                           533    447   19.2%      11.1%         8.1%

    ORAL CARE
    US                           199    203   -2.0%      -2.0%           -
    Intl                         187    156   19.9%       9.4%        10.5%
    WW                           386    359    7.5%       2.9%         4.6%

    OTC/NUTRITIONALS
    US                           842    655   28.5%      28.5%           -
    Nutritional
    Intl                         752    602   24.9%      11.8%        13.1%
    WW                         1,594  1,257   26.8%      20.5%         6.3%

    WOMEN'S HEALTH
    US                           148    163   -9.2%      -9.2%           -
    Intl                         313    258   21.3%       8.8%        12.5%
    WW                           461    421    9.5%       1.8%         7.7%

    WOUND CARE / OTHER
    US                           133    142   -6.3%      -6.3%           -
    Intl                         117    106   10.4%      -1.4%        11.8%
    WW                           250    248    0.8%      -4.2%         5.0%

    TOTAL CONSUMER
    US                         1,819  1,629   11.7%      11.7%           -
    Intl                       2,245  1,867   20.2%       8.3%        11.9%
    WW                         4,064  3,496   16.2%       9.9%         6.3%


    (1) Operational growth excludes the effect of currency
    (2) Select areas (unaudited)




SOURCE Johnson & Johnson

http://www.jnj.com

Copyright (C) 2008 PR Newswire. All rights reserved

News Provided by COMTEX

Posted: April 2008


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