Johnson & Johnson Reports 2012 Second-Quarter Results: Sales of $16.5 Billion decreased 0.7% Versus 2011 Second Quarter; Second-Quarter EPS was $0.50 Excluding Special Items, 2012 Second-Quarter EPS of $1.30 increased 1.6%*
Sales of $16.5 Billion decreased 0.7%
Versus 2011 Second Quarter; Second-Quarter EPS was $0.50
Excluding Special Items, 2012 Second-Quarter EPS of $1.30 increased
1.6%*
New Brunswick, NJ (July 17, 2012) – Johnson & Johnson
today announced sales of $16.5 billion for the second quarter of
2012, a decrease of 0.7% as compared to the second quarter of
2011. Operational results increased 3.5% and the negative
impact of currency was 4.2%. Domestic sales decreased 1.2%.
International sales decreased 0.4%, reflecting operational growth
of 7.1% and a negative currency impact of 7.5%. Sales included the
impact of the recently completed acquisition of Synthes, Inc.,
which contributed 1.2% to worldwide operational sales growth.
Net earnings and diluted earnings per share for the second quarter
of 2012 were $1.4 billion and $0.50, respectively. Second-quarter
2012 net earnings include after-tax special items of $2.2 billion,
consisting of non-cash charges primarily attributed to a
partial write-down of in-process research and development and
intangible assets related to the Crucell vaccines business, an
increase in the accrual for the potential settlement of previously
disclosed civil litigation matters, and transaction and integration
costs related to the acquisition of Synthes, Inc. Second-quarter
2011 net earnings included after-tax special items of $772 million,
consisting of net charges related to the restructuring by Cordis
Corporation, the net impact of expenses related to litigation,
DePuy ASRTM Hip recall costs, and
a currency adjustment related to the acquisition of Synthes,
Inc. Excluding these special items, net earnings for the current
quarter were $3.6 billion and diluted earnings per share were
$1.30, representing increases of 2.7% and 1.6%, respectively, as
compared to the same period in 2011.*
“Our talented associates around the world are building a
strong foundation for sustainable growth through meaningful
innovations and an expanding global footprint. Our pharmaceutical
pipeline continued its strong momentum this quarter with the
submission of several new drug applications, as well as strong
growth from several recently launched products that meet critical
patient needs,” said Alex Gorsky, Chief Executive
Officer. “The completion of the Synthes acquisition also
marks an important milestone in strengthening our leadership in key
health care markets, creating a powerful portfolio of orthopaedic
and neurological solutions to advance patient health and
well-being,” said Gorsky.
The Company adjusted its earnings guidance for full-year 2012 to
$5.00 - $5.07 per share. The Company’s guidance excludes the
impact of special items and reflects the negative impact of recent
currency movements, partially offset by the positive contribution
from the Synthes acquisition.
Worldwide Consumer sales of $3.6 billion for the second quarter
represented a decrease of 4.6% versus the prior year consisting of
an operational increase of 0.6% and a negative impact from currency
of 5.2%. Domestic sales decreased 1.9%. International sales
decreased 6.0%, which reflected an operational increase of 2.0% and
a negative currency impact of 8.0%.
Positive contributors to operational results were international
sales of oral care products; NEUTROGENA® skin care products;
and international baby care products.
Worldwide Pharmaceutical sales of $6.3 billion for the second
quarter represented an increase of 0.9% versus the prior year with
operational growth of 5.1% and a negative impact from currency of
4.2%. Domestic sales decreased 4.5%. International sales
increased 6.8%, which reflected an operational increase of 15.5%
and a negative currency impact of 8.7%.
Positive contributors to international sales were strong results
for REMICADE® (infliximab), a biologic approved for the
treatment of a number of immune-mediated, inflammatory diseases,
primarily related to incremental sales from international
territories included in the amended distribution agreement with
Merck; PREZISTA® (darunavir), a treatment for HIV; and
sales of recently launched products.
The strong sales results of recently launched products include
ZYTIGA® (abiraterone acetate), an oral, once-daily medication
for use in combination with prednisone, for the treatment of
metastatic, castration-resistant prostate cancer; INVEGA®
SUSTENNA®/XEPLION® (paliperidone palmitate), a
once-monthly, long-acting, injectable atypical antipsychotic for
the acute and maintenance treatment of schizophrenia in
adults; international sales of INCIVO® (telaprevir),
a direct acting antiviral protease inhibitor, for the treatment of
genotype-1 chronic hepatitis C virus, in combination with
peginterferon alfa and ribavirin, in adults; STELARA®
(ustekinumab), a biologic approved for the treatment of moderate to
severe plaque psoriasis; and XARELTO® (rivaroxaban), an oral
anticoagulant.
Sales results in the U.S. were negatively impacted by generic
competition for LEVAQUIN® (levofloxacin), a treatment for
bacterial infections, and the manufacturing suspension at a third
party supplier for DOXIL® (doxorubicin HCl liposome
injection)/CAELYX® (pegylated liposomal doxorubicin
hydrochloride), a medication to treat ovarian and other
cancers.
During the quarter, several drug marketing applications were
submitted in the U.S. and European Union. These included a New Drug
Application (NDA) to the U.S. Food and Drug Administration (FDA)
and a Marketing Authorization Application (MAA) to the European
Medicines Agency (EMA) seeking approval for the use of
canagliflozin, an oral, once-daily, selective sodium glucose
co-transporter 2 (SGLT2) inhibitor, for the treatment of adult
patients with type 2 diabetes. A supplemental NDA was submitted to
the FDA and a type II variation to the EMA to extend the use of
ZYTIGA® (abiraterone acetate) administered with prednisone to
include the treatment of patients with metastatic castration
resistant prostate cancer who have not received chemotherapy.
Supplemental NDAs were also submitted to the FDA seeking approval
for the use of XARELTO® (rivaroxaban) to treat patients with
deep vein thrombosis or pulmonary embolism and prevention of
recurrent venous thromboembolism. In addition, an NDA was submitted
to the FDA seeking accelerated approval for the use of bedaquiline
(TMC207) as an oral treatment, to be used as part of combination
therapy for pulmonary, multi-drug resistant tuberculosis in
adults.
Also during the quarter, Janssen-Cilag GmbH completed the
acquisition of CorImmun GmbH, a privately held drug development
company in Germany, whose lead compound, COR-1, is a small cyclic
peptide currently in early clinical development for the treatment
of heart failure.
Worldwide Medical Devices and Diagnostics sales of $6.6 billion for
the second quarter represented a decrease of 0.1% versus the prior
year consisting of an operational increase of 3.4% and a negative
currency impact of 3.5%. Domestic sales increased 2.9%.
International sales decreased 2.4%, which reflected an operational
increase of 3.8% and a negative currency impact of 6.2%. Sales
included the impact of the recently completed acquisition of
Synthes, Inc., which contributed 2.9%, 3.7%, and 2.3% to worldwide,
domestic and international operational sales growth,
respectively.
Primary contributors to operational growth were orthopaedic sales
from the recently completed acquisition of Synthes; Biosense
Webster’s electrophysiology products in our Cardiovascular
Care business; Ethicon’s wound care products in our General
Surgery business; LifeScan’s blood glucose monitoring
products in our Diabetes Care business; and international sales of
energy products in our Specialty Surgery business. The growth was
impacted by lower sales in the Cardiovascular Care business,
reflecting the decision to exit the drug eluting stent market at
the end of the second quarter of 2011.
During the quarter, the Company announced the completion of the
acquisition of Synthes for $19.7 billion in cash and stock,
creating the world’s most innovative and comprehensive
orthopaedics business. In connection with the Synthes acquisition,
DePuy Orthopaedics, Inc. agreed to divest its trauma business to
Biomet, Inc. and completed the initial closing for this
transaction, including those countries that represented the
majority of sales.
In addition, Johnson & Johnson (China) Investment Ltd.
completed its first medical device acquisition in China - the
purchase of Guangzhou Bioseal Biotech Co., Ltd., a privately held
biopharmaceutical company specializing in the design, development
and commercialization of a porcine plasma-derived biologic product
for controlling bleeding during surgery.
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 approximately 128,000
employees at more than 250 Johnson & Johnson operating
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 special
items are non-GAAP financial measures and should not be considered
replacements for, and should be read together with, the most
comparable GAAP financial measures. A reconciliation of these
non-GAAP financial measures to the most directly comparable GAAP
financial measures is included in the financial schedules
accompanying this press release and can be found in the Investor
Relations section of the Company’s website at
www.investor.jnj.com.
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 meeting 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. These
schedules include supplementary sales data, condensed
consolidated statements of earnings, and sales of key
products/franchises. Additional information on Johnson &
Johnson, including a pharmaceutical pipeline of selected compounds
in late stage development and medical devices and diagnostics
pipeline of selected products, can be found on the Company's
website at www.jnj.com
Financial charts associated with this release are
available in PDF format: Second-Quarter 2012 Financial Results.
(This press release contains "forward-looking statements" as
defined in the Private Securities Litigation Reform Act of
1995. The reader is cautioned not to rely on these
forward-looking statements. 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 the expectations and
projections of Johnson & Johnson. Risks and uncertainties
include, but are not limited to, general industry conditions and
competition; economic factors, such as interest rate and currency
exchange rate fluctuations; technological advances, new products
and patents attained by competitors; challenges inherent in new
product development, including obtaining regulatory approvals;
challenges to patents; significant adverse litigation; impact of
business combinations; financial distress and bankruptcies
experienced by significant customers and suppliers; changes to
governmental laws and regulations and domestic and foreign health
care reforms; trends toward health care cost containment; increased
scrutiny of the health care industry by government agencies;
changes in behavior and spending patterns of purchasers of health
care products and services; financial instability of international
economies and sovereign risk; disruptions due to natural disasters;
manufacturing difficulties or delays; and product efficacy or
safety concerns resulting in product recalls or regulatory action.
A further list and description of these risks, uncertainties and
other factors can be found in Exhibit 99 of Johnson &
Johnson’s Annual Report on Form 10-K for the fiscal year
ended January 1, 2012. Copies of this Form 10-K, as well as
subsequent filings, are available online at www.sec.gov,
www.investor.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.)
###
Press Contacts:
Bill Price
(732) 524-6623
(732) 668-3735 (M)
Al Wasilewski
(732) 524-1130
(732) 447-5918 (M)
Investor Contacts:
Louise Mehrotra
(732) 524-6491
Stan Panasewicz
(732) 524-2524
Lesley Fishman
(732) 524-3922
Ellen Sipos
(732) 524-3709
Posted: July 2012
