Johnson & Johnson Reports 2007 Second-Quarter Results: Sales Increase of 13.2% and EPS increase of 10.5% Versus a Year Ago; Excluding Special Charges in 2006, EPS increased 7.1%*

NEW BRUNSWICK, N.J., July 17, 2007 /PRNewswire-FirstCall/ -- Johnson & Johnson today announced second-quarter sales of $15.1 billion, an increase of 13.2% as compared to the second quarter of 2006. Operational growth was 10.8% and currency contributed 2.4%. Domestic sales were up 9.0%, while international sales increased 18.4%, reflecting operational growth of 13.0% and a positive currency impact of 5.4%. On a pro-forma basis, including the net impact of the acquisition of Pfizer Consumer Healthcare in both periods, worldwide sales increased 3.6% operationally.

Net earnings and diluted earnings per share for the second quarter of 2007 were $3.1 billion and $1.05, respectively. Prior-year second-quarter net earnings included an after-tax in-process research and development charge of $87 million associated with the acquisition of Vascular Control Systems, Inc. Excluding this charge, net earnings for the current quarter and diluted earnings per share represent increases of 6.0% and 7.1%, respectively, as compared to the same period in 2006.* The Company confirmed its previous earnings guidance for full-year 2007, which excludes the impact of in-process research and development charges or other special items, of between $4.02 and $4.07 per share.

"Our broadly-based approach to health care is serving us well as challenges in the marketplace intensify across certain businesses," said William C. Weldon, Chairman and Chief Executive Officer. "We continue to grow earnings while successfully integrating acquisitions and continuing to invest in promising new growth opportunities."

In July, the Company announced a $10 billion share repurchase program. Share repurchases will take place on the open market from time to time based on market conditions. The repurchase program has no time limit and may be suspended or discontinued at any time.

Worldwide Medical Devices and Diagnostics sales of $5.4 billion for the second quarter represented a 5.1% increase over the prior year with operational growth of 2.8% and a positive impact from currency of 2.3%. Domestic sales increased 1.1%, while international sales increased 9.1% (4.4% from operations and 4.7% from currency).

Primary contributors to the operational growth included Vistakon's disposable contact lenses; LifeScan's blood glucose monitoring and insulin delivery products; Ethicon Endo-Surgery's minimally invasive products; DePuy's orthopaedic joint reconstruction and sports medicine businesses; Ethicon's wound care and women's health products; and Ortho-Clinical Diagnostics' professional diagnostic products. This growth was largely offset by lower sales of drug-eluting stents in our Cordis franchise due to a decline in the market versus the prior year.

Worldwide Pharmaceutical sales of $6.1 billion for the second quarter represented an increase over the prior year of 5.8% with operational growth of 3.8% and a positive impact from currency of 2.0%. Domestic sales increased 4.8%, while international sales increased 7.6% (2.0% from operations and 5.6% from currency).

Sales growth reflects the strong performance of TOPAMAX, an antiepileptic and a treatment for the prevention of migraine headaches; REMICADE, a biologic approved for the treatment of a number of immune mediated inflammatory diseases; our antipsychotic franchise, which includes RISPERDAL, RISPERDAL CONSTA and INVEGA; and CONCERTA, a treatment for attention deficit hyperactivity disorder.

During the quarter, the European Commission granted marketing authorization for INVEGA, an atypical antipsychotic medication for the treatment of schizophrenia. In addition, the U.S. Food and Drug Administration (FDA) granted approval for an additional indication for INVEGA for long-term maintenance of schizophrenia. In May, the FDA approved the use of DOXIL in combination with VELCADE for Injection to treat patients with multiple myeloma who have not previously received VELCADE and have received at least one prior therapy.

Also in the quarter, the Company filed new drug applications in both the U.S. and Europe for ceftobiprole, an antibiotic for the treatment of complicated skin and skin structure infections. Doripenem, a carbapenem antibiotic, was filed in the U.S. and Europe for the treatment of nosocomial pneumonia and in Europe for complicated urinary tract infections and complicated intra-abdominal infections.

Worldwide Consumer segment sales of $3.6 billion for the second quarter represented a 48.6% increase over the prior year with operational growth of 45.1% and a positive impact from currency of 3.5%. Domestic sales increased 41.6%, while international sales increased 54.6% (48.1% from operations and 6.5% from currency). On a pro-forma basis, including the net impact of the acquisition of Pfizer Consumer Healthcare in both periods, worldwide sales for the Consumer segment increased 4.6% operationally.

Sales growth in the combined business reflects the strong performance of the skin care lines of NEUTROGENA and AVEENO; Baby and Kids Care products; and LISTERINE antiseptic mouthrinse.

Johnson & Johnson is the world's most comprehensive and broadly based manufacturer of health care products, as well as a provider of related services, for the consumer, pharmaceutical, and medical devices and diagnostics markets. The more than 250 Johnson & Johnson operating companies employ approximately 120,500 men and women in 57 countries and sell products 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 Daylight Time. A simultaneous webcast of the call for interested investors and others 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.

A copy of the financial schedules accompanying this press release are available at http://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 http://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 31, 2006. 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)                SECOND QUARTER

                                                         Percent Change

                                     2007      2006  Total Operations Currency

    Sales to customers by segment

     of business

    Consumer

        U.S.                        $1,562    $1,103   41.6 %    41.6        -

        International                2,002     1,295   54.6      48.1      6.5

                                     3,564     2,398   48.6      45.1      3.5

    Pharmaceutical

        U.S.                         3,860     3,682    4.8       4.8        -

        International                2,289     2,128    7.6       2.0      5.6

                                     6,149     5,810    5.8       3.8      2.0

    Med Devices & Diagnostics

        U.S.                         2,619     2,590    1.1       1.1        -

        International                2,799     2,565    9.1       4.4      4.7

                                     5,418     5,155    5.1       2.8      2.3


    U.S.                             8,041     7,375    9.0       9.0        -

    International                    7,090     5,988   18.4      13.0      5.4

    Worldwide                      $15,131   $13,363   13.2 %    10.8      2.4



    (Unaudited; Dollars in Millions)                  SIX MONTHS

                                                         Percent Change

                                     2007      2006  Total Operations Currency

    Sales to customers by segment

     of business

    Consumer

        U.S.                         3,191    $2,253   41.6 %    41.6        -

        International                3,869     2,500   54.8      48.9      5.9

                                     7,060     4,753   48.5      45.4      3.1

    Pharmaceutical

        U.S.                         7,894     7,383    6.9       6.9        -

        International                4,476     4,053   10.4       4.7      5.7

                                    12,370    11,436    8.2       6.2      2.0

    Med Devices & Diagnostics

        U.S.                         5,203     5,110    1.8       1.8        -

        International                5,535     5,056    9.5       4.6      4.9

                                    10,738    10,166    5.6       3.2      2.4


    U.S.                            16,288    14,746   10.5      10.5        -

    International                   13,880    11,609   19.6      14.2      5.4

    Worldwide                      $30,168   $26,355   14.5 %    12.1      2.4




    Johnson & Johnson and Subsidiaries

    Supplementary Sales Data


    (Unaudited; Dollars in Millions)                SECOND QUARTER

                                                         Percent Change

                                          2007  2006 Total Operations Currency

    Sales to customers by

     geographic area

    U.S.                                $8,041  $7,375  9.0 %     9.0        -


    Europe                               3,907   3,295 18.6      11.0      7.6

    Western Hemisphere excluding U.S.    1,131     876 29.1      24.1      5.0

    Asia-Pacific, Africa                 2,052   1,817 12.9      11.3      1.6

    International                        7,090   5,988 18.4      13.0      5.4


    Worldwide                          $15,131 $13,363 13.2 %    10.8      2.4



    (Unaudited; Dollars in Millions)                  SIX MONTHS

                                                         Percent Change

                                          2007  2006 Total Operations Currency

    Sales to customers by

     geographic area

    U.S.                               $16,288 $14,746 10.5 %    10.5        -


    Europe                               7,720   6,366 21.3      13.0      8.3

    Western Hemisphere excluding U.S.    2,177   1,698 28.2      25.5      2.7

    Asia-Pacific, Africa                 3,983   3,545 12.4      10.9      1.5

    International                       13,880  11,609 19.6      14.2      5.4


    Worldwide                          $30,168 $26,355 14.5 %    12.1      2.4




    Johnson & Johnson and Subsidiaries

    Condensed Consolidated Statement of Earnings



    (Unaudited; in Millions Except

     Per Share Figures)                           SECOND QUARTER


                                         2007             2006        Percent

                                           Percent          Percent  Increase

                                   Amount to Sales  Amount to Sales (Decrease)

    Sales to customers            $15,131    100.0 $13,363    100.0      13.2

    Cost of products sold           4,358     28.8   3,788     28.3      15.0

    Selling, marketing and

     administrative expenses        5,029     33.3   4,351     32.6      15.6

    Research expense                1,866     12.3   1,828     13.7       2.1

    In-process research &

     development (IPR&D)                -        -      87      0.6

    Interest (income)expense, net     (36)    (0.2)   (196)    (1.5)

    Other (income)expense, net       (117)    (0.8)    (98)    (0.7)

    Earnings before provision for

     taxes on income                4,031     26.6   3,603     27.0      11.9

    Provision for taxes on income     950      6.2     783      5.9      21.3

    Net earnings                   $3,081     20.4  $2,820     21.1       9.3



    Net earnings per share

     (Diluted)                      $1.05            $0.95               10.5


    Average shares outstanding

     (Diluted)                    2,922.5          2,974.4


    Effective tax rate               23.6%            21.7%


    Adjusted earnings before

     provision for taxes and net

     earnings

         Earnings before provision

          for taxes on income      $4,031     26.6  $3,690(1)  27.6       9.2

         Net earnings              $3,081     20.4  $2,907(1)  21.7       6.0

         Net earnings per share

          (Diluted)                 $1.05            $0.98(1)             7.1

         Effective tax rate          23.6%            21.2%


    (1) The difference between as reported earnings before provision for taxes

        on income and net earnings and adjusted earnings before provision for

        taxes on income and net earnings is the exclusion of IPR&D of $87

        million before tax with no tax benefit, or $0.03 per share.




    Johnson & Johnson and Subsidiaries

    Condensed Consolidated Statement of Earnings



    (Unaudited; in Millions Except

     Per Share Figures)                           SIX MONTHS


                                         2007             2006        Percent

                                           Percent          Percent  Increase

                                   Amount to Sales  Amount to Sales (Decrease)


    Sales to customers            $30,168    100.0 $26,355    100.0      14.5

    Cost of products sold           8,743     29.0   7,400     28.1      18.1

    Selling, marketing and

     administrative expenses        9,831     32.5   8,446     32.0      16.4

    Research expense                3,518     11.7   3,360     12.7       4.7

    In-process research &

     development (IPR&D)              807      2.7     124      0.5

    Interest (income)expense, net     (69)    (0.2)   (377)    (1.4)

    Other (income)expense, net       (345)    (1.1)   (816)    (3.1)

    Earnings before provision for

     taxes on income                7,683     25.4   8,218     31.2      (6.5)

    Provision for taxes on income   2,029      6.7   2,093      8.0      (3.1)

    Net earnings                   $5,654     18.7  $6,125     23.2      (7.7)



    Net earnings per share

     (Diluted)                      $1.93            $2.05               (5.9)


    Average shares outstanding

     (Diluted)                    2,924.9          2,982.5


    Effective tax rate               26.4%            25.5%


    Adjusted earnings before

     provision for taxes and net

     earnings

         Earnings before provision

          for taxes on income      $8,490(1)  28.1  $7,720(2)  29.3      10.0

         Net earnings              $6,461(1)  21.4  $5,873(2)  22.3      10.0

         Net earnings per share

          (Diluted)                 $2.21(1)         $1.97(2)            12.2

         Effective tax rate          23.9%            23.9%


    (1) The difference between as reported earnings before provision for taxes

        on income and net earnings and net earnings per share (diluted) is

        IPR&D of $807 million with no tax benefit and $0.28 per share,

        respectively.


    (2) The difference between as reported earnings before provision for taxes

        on income and net earnings and net earnings per share (diluted)is the

        Guidant acquisition termination fee of $622 million and $368 million

        and $0.12 per share, respectively, and IPR&D of $124 million and

        $116 million and $0.04 per share, respectively.




                              Johnson & Johnson

                       REPORTED SALES vs. PRIOR PERIOD

                                     $MM


                                               CURRENT QUARTER


                                                       % Change

                                              --------------------------------

                                     2Q   2Q  Reported  Operational** Currency

                                    2007 2006

    PHARMACEUTICAL SEGMENT*


    ACIPHEX/PARIET

    US                              161   145     10%       10%         0%

    Intl                            175   163      8%        2%         6%

    WW                              336   308      9%        6%         3%


    Anti-Psychotics(1)

    US                              653   568     15%       15%         0%

    Intl                            484   468      3%       -2%         5%

    WW                            1,137 1,036     10%        7%         3%


    CONCERTA

    US                              199   174     14%       14%         0%

    Intl                             56    43     32%       25%         7%

    WW                              255   217     18%       16%         2%


    DURAGESIC

    US                               97   121    -20%      -20%         0%

    Intl                            192   215    -11%      -15%         4%

    WW                              289   336    -14%      -17%         3%


    EPREX/PROCRIT

    US                              449   524    -14%      -14%         0%

    Intl                            309   284      9%        2%         7%

    WW                              758   808     -6%       -8%         2%


    Hormonal Contraceptives

    US                              175   188     -7%       -7%         0%

    Intl                             65    59      9%        3%         6%

    WW                              240   247     -3%       -4%         1%


    LEVAQUIN

    US                              343   330      4%        4%         0%

    Intl                             14    10     44%       40%         4%

    WW                              357   340      5%        5%         0%


    REMICADE

    US                              625   595      5%        5%         -

    Intl                            244   182     34%       34%         -

    WW                              869   777     12%       12%         -


    TOPAMAX

    US                              472   393     20%       20%         0%

    Intl                            106   102      4%       -2%         6%

    WW                              578   495     17%       16%         1%


    (1) Includes Risperdal, Risperdal Consta & Invega



                                                  YEAR TO DATE


                                                        % Change

                                               -------------------------------

                                  2007   2006  Reported Operational** Currency

                                   YTD    YTD

    PHARMACEUTICAL SEGMENT*


    ACIPHEX/PARIET

    US                            320     291    10%          10%       0%

    Intl                          352     323     9%           3%       6%

    WW                            672     614     9%           6%       3%


    Anti-Psychotics(1)

    US                          1,363   1,154    18%          18%       0%

    Intl                          952     901     6%           0%       6%

    WW                          2,315   2,055    13%          10%       3%


    CONCERTA

    US                            399     367     9%           9%       0%

    Intl                          109      85    29%          21%       8%

    WW                            508     452    12%          11%       1%


    DURAGESIC

    US                            212     231    -8%          -8%       0%

    Intl                          379     430   -11%         -16%       5%

    WW                            591     661   -11%         -14%       3%


    EPREX/PROCRIT

    US                            979   1,052    -7%          -7%       0%

    Intl                          596     542    10%           3%       7%

    WW                          1,575   1,594    -1%          -3%       2%


    Hormonal Contraceptives

    US                            350     386   -10%         -10%       0%

    Intl                          127     115    11%           5%       6%

    WW                            477     501    -5%          -6%       1%


    LEVAQUIN

    US                            802     723    11%          11%       0%

    Intl                           30      20    47%          47%       0%

    WW                            832     743    12%          12%       0%


    REMICADE

    US                          1,225   1,160     6%           6%       -

    Intl                          375     297    26%          26%       -

    WW                          1,600   1,457    10%          10%       -


    TOPAMAX

    US                            973     765    27%          27%       0%

    Intl                          215     200     8%           2%       6%

    WW                          1,188     965    23%          22%       1%


    (1) Includes Risperdal, Risperdal Consta & Invega




                              Johnson & Johnson

                       REPORTED SALES vs. PRIOR PERIOD

                                     $MM


                                                CURRENT QUARTER


                                                       % Change

                                              --------------------------------

                                     2Q   2Q  Reported  Operational** Currency

                                    2007 2006

    MEDICAL DEVICES AND

     DIAGNOSTICS*


    Cordis

    US                              397   537    -26%       -26%        0%

    Intl                            455   531    -14%       -17%        3%

    WW                              852 1,068    -20%       -21%        1%


    DePuy

    US                              663   643      3%         3%        0%

    Intl                            472   392     21%        14%        7%

    WW                            1,135 1,035     10%         7%        3%


    Ethicon

    US                              350   321      9%         9%        0%

    Intl                            551   495     11%         5%        6%

    WW                              901   816     10%         6%        4%


    Ethicon Endo-Surgery

    US                              454   417      9%         9%        0%

    Intl                            503   440     14%         9%        5%

    WW                              957   857     12%         9%        3%


    LifeScan

    US                              310   290      7%         7%        0%

    Intl                            286   232     23%        16%        7%

    WW                              596   522     14%        11%        3%


    Ortho-Clinical Diagnostics

    US                              216   185     16%        16%        0%

    Intl                            190   183      4%         0%        4%

    WW                              406   368     10%         8%        2%


    Total Vision Care

    US                              213   183     16%        16%        0%

    Intl                            340   291     17%        17%        0%

    WW                              553   474     17%        17%        0%



                                                 YEAR TO DATE


                                                        % Change

                                               -------------------------------

                                  2007   2006  Reported Operational** Currency

                                   YTD    YTD

    MEDICAL DEVICES AND

     DIAGNOSTICS*


    Cordis

    US                             821  1,067   -23%        -23%         0%

    Intl                           959  1,076   -11%        -14%         3%

    WW                           1,780  2,143   -17%        -18%         1%


    DePuy

    US                           1,341  1,287     4%          4%         0%

    Intl                           951    787    21%         14%         7%

    WW                           2,292  2,074    11%          8%         3%


    Ethicon

    US                             694    617    12%         12%         0%

    Intl                         1,077    973    11%          5%         6%

    WW                           1,771  1,590    11%          7%         4%


    Ethicon Endo-Surgery

    US                             871    797     9%          9%         0%

    Intl                           977    854    14%          9%         5%

    WW                           1,848  1,651    12%          9%         3%


    LifeScan

    US                             602    578     4%          4%         0%

    Intl                           543    449    21%         14%         7%

    WW                           1,145  1,027    12%          9%         3%


    Ortho-Clinical Diagnostics

    US                             434    384    13%         13%         0%

    Intl                           365    354     3%         -2%         5%

    WW                             799    738     8%          6%         2%


    Total Vision Care

    US                             408    355    15%         15%         0%

    Intl                           658    560    17%         16%         1%

    WW                           1,066    915  16.4%       15.2%       0.7%




                              Johnson & Johnson

                       REPORTED SALES vs. PRIOR PERIOD

                                     $MM


                                                CURRENT QUARTER


                                                       % Change

                                              --------------------------------

                                     2Q   2Q  Reported  Operational** Currency

                                    2007 2006

    CONSUMER SEGMENT* (2)


    Skin Care

    US                              338   281     20%       20%         0%

    Intl                            419   373     12%        6%         6%

    WW                              757   654     16%       12%         4%


    Baby & Kids Care

    US                              106    96     10%       10%         0%

    Intl                            381   325     17%       11%         6%

    WW                              487   421     16%       11%         5%


    Oral Care (3)

    US                              186    NA      -         -          -

    Intl                            167    NA      -         -          -

    WW                              353    NA      -         -          -


    OTC/Nutritionals

    US                              584   414     41%       41%         0%

    Intl                            622   219    185%      179%         6%

    WW                            1,206   633     91%       89%         2%


    Women's Health

    US                              164   149     10%       10%         0%

    Intl                            299   266     12%        5%         7%

    WW                              463   415     11%        7%         4%


    (2) 2007 Includes sales from acquisition of PCH

    (3) Oral Care not disclosed in 2006



                                                  YEAR TO DATE


                                                        % Change

                                               -------------------------------

                                  2007   2006  Reported Operational** Currency

                                   YTD    YTD

    CONSUMER SEGMENT* (2)


    Skin Care

    US                             695    598    16%        16%          0%

    Intl                           826    715    16%        10%          6%

    WW                           1,521  1,313    16%        13%          3%


    Baby & Kids Care

    US                             215    199     8%         8%          0%

    Intl                           719    628    15%         9%          6%

    WW                             934    827    13%         9%          4%


    Oral Care (3)

    US                             389     NA     -          -           -

    Intl                           324     NA     -          -           -

    WW                             713     NA     -          -           -


    OTC/Nutritionals

    US                           1,239    859    44%        44%          0%

    Intl                         1,224    427   187%       181%          6%

    WW                           2,463  1,286    91%        89%          2%


    Women's Health

    US                             326    297    10%        10%          0%

    Intl                           558    517     8%         2%          6%

    WW                             884    814     9%         5%          4%


    (2) 2007 Includes sales from acquisition of PCH

    (3) Oral Care not disclosed in 2006

CONTACT: Press: Jeffrey J. Leebaw, +1-732-524-3350, or home,+1-821-732-6007, or Bill Price, +1-732-524-6623, or mobile,+1-732-668-3735; Investors: Louise Mehrotra, +1-732-524-6491, or StanPanasewicz, +1-732-524-2524, or Lesley Fishman, +1-732-524-3922, all forJohnson & Johnson

Ticker Symbol: (:JNJ)

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Posted: July 2007


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