JNJ



 

JNJ

 

Is apart of the Health care industry.

 

In total, there are more than 250 Johnson & Johnson operating companies employ approximately 120,500 men and women in 57 countries and sell products throughout the world. Johnson & Johnson is located in New Brunswick, New Jersey, about 40 miles southwest of New York City. Main company headquarters address:

 

One Johnson & Johnson Plaza

New Brunswick, NJ 08933

Phone: 732-524-0400

 

 

General Info

 

Johnson & Johnson (NYSE:JNJ) is the world's second largest and most broadly based manufacturer of health care products, with annual sales of $53.3 billion. The company holds a significant share of the consumer and pharmaceutical markets, and is the world's largest developer and manufacturer of medical treatment and diagnostic devices.

Johnson & Johnson's diverse business mix is beneficial by sheltering the company from the impact of market forces that can affect a single segment of the health care industry. Johnson & Johnson constantly acquires other companies to diversify its business and enter new markets, acquiring 8 companies in the last year alone. In total, the corporation owns over 250 operating companies and franchises, which are managed through a decentralized approach.

 

The consumer health market is expanding as consumers are taking greater responsibility and interest in their own health. Johnson & Johnson owns highly successful brands such as Tylenol, Band-Aid, and Neutrogena. The acquisition of Pfizer's Consumer Healthcare division in 2006 and addition of brands such as Listerine, Lubriderm, Visine, and Neosporin further solidified Johnson & Johnson dominance in consumer health care.

 

The company's pharmaceutical segment faces many of the challenges that face all pharmaceutical companies, including issues surrounding patent expiration and FDA approval. In addition, there are constant threats of litigation and a growing pressure in the US and abroad to lower the price of medication. As of the end of 2006, there are 10 to 13 products in the late stages of development that the Johnson & Johnson plans to file or secure approval for in 2007.

 

 

 

 

Financial Information:

 

Worldwide Sales in 2006 were $53.3 billion.

Net Earnings for 2006 were $11.1 billion.

Diluted earnings per share for 2006 were $3.73.

Dividends issued to shareowners every quarter since 1944.

Dividend raised each year for 44 consecutive years.

Sales have increased each year for 73 consecutive years.

Double digit earnings increases for 21 consecutive years.

 

History

Johnson & Johnson Corporation was founded in 1886 by Robert Wood Johnson, an American entrepreneur and Industrialist. Inspired by the developing scientific understanding of proper of sanitation, Johnson aimed to make antiseptic surgical procedures easier. Through numerous targeted acquisitions and research over the next century, the company steadily diversified its business to encompass pharmaceutical, medical devices, and consumer packaged goods.

 

 

 

Corporate Overview

Johnson & Johnson has interests in a broad spectrum of the health care market, and takes a decentralized approach to managing its 250 operating companies and franchises. In the company's continuing effort to diversify its business and increase profits, Johnson & Johnson is constantly acquiring new companies, including 8 in the last year alone. In 2006, worldwide sales totaled $53.3 billion, making Johnson & Johnson the second largest manufacturer of health care products, behind Pfizer.

 

Business Segments

 

The company consists of three major divisions: consumer healthcare, medical devices, and pharmaceuticals.

 

Consumer Health Care: 18%

Consumer products are non-prescription health care products marketed directly to the general public. Johnson & Johnson has diverse franchises in over-the-counter pharmaceuticals and nutritionals, skin care, baby & kids care, and women's health products, totaling $9.8 billion in sales in 2006. Although the Consumer Health Care division is the smallest of the company's three segments, it includes some of the company's most recognizable brands such as Tylenol, Neutrogena, and Band-Aid.

 

In 2006, Johnson & Johnson bought Pfizer's Consumer Healthcare for $16.6 billion. This acquisition represents a significant expansion in Johnson & Johnson's Consumer Health Care division, adding brands such as Listerine, Sudafed, and Neosporin.

 

Pharmaceuticals: 44%

The Pharmaceutical division is the largest of the three business segments, bringing in $23.2 billion in revenue for 2006. Pharmaceutical products are usually prescription medications distributed to retailers, wholesalers, and health care professionals. Johnson & Johnson's pharmaceutical program is ranked third in sales in the United States and fourth in the world. It uses the same business model and faces similar challenges as other major pharmaceutical companies.

 

Of Johnson & Johnson's pharmaceutical portfolio, the three most successful drugs each brought in over $3 billion in annual revenue, and are:

 

 

Medical Devices and Diagnostics: 38%

Johnson & Johnson is the world's largest developer and manufacturer of medical treatment and diagnostic devices. This segment includes a wide variety of equipment and supplies used mostly in the professional fields, by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. Major franchises in this division include:

 

 

 

Trends and Forces

 

Product Development

Developing a new product is a time-consuming and costly endeavor. In 2006, Johnson & Johnson spent a total of $7.1 billion in research and development in its three business segments. New products introduced in the last five years accounted for over 30% of sales. The company currently holds almost 54,000 patents domestically and internationally.

 

For pharmaceutical products, hundreds of thousands of candidate compounds must be screened to identify a handful of potential drugs. Even fewer of these candidate drugs are found to be effective at treating a disease. The drug must then pass strict safety standards in several series of clinical trials. According to The Pharmaceutical Research and Manufacturers of America's 2006 Pharmaceutical Industry Profile, developing a new drug and bringing it to the market takes up to 10 to 15 years and on average costs $800 million. Johnson & Johnson has a solid product pipeline, and expects to file or gain approval for 10-13 new drugs in 2007.

 

Over-the-counter products, such as Johnson & Johnson's Tylenol or LifeScan blood glucose monitors, are also subject to FDA regulation and approval. Medical devices, such as products by DePuy and Cordis, also must undergo clinical trials in order to meet efficacy and safety requirements.

 

Generic Drugs

Due to Food and Drug Administration (FDA) regulations, pharmaceutical patents last 17 years, during which a pharmaceutical company has an exclusive right to manufacture a particular drug. After the patent expires, generic versions of the product can be produced and sold by competitors. Generic medication is cheaper than brand medication, and the lower cost is often a strong incentive for consumers to choose generic over brands. In addition, the presence of a generic alternative may prompt a decrease in the brand name medication price.

 

Like products of other major drugmakers, most of Johnson & Johnson's pharmaceutical products has been or will eventually be affected by the loss of market exclusivity. The U.S. patent for Risperdal, the company's most profitable drug, will expire in the end of 2007, and sales are likely to decline significantly after the loss of patent protection.

 

Litigation

Companies in the health care industry face significant liabilities if a product is later found to be defective or produce adverse reactions. Even though such adverse effects are previously unknown and impossible to predict, damages claimed in such lawsuits are usually substantial. All three segment's of Johnson & Johnson's business face the risk of litigation.

 

As of the end of 2006, Johnson & Johnson faces 1,500 such lawsuits against its products. Notably, there are 700 claimants for the antipsychotic drug Risperdal, which is also the company's bestselling drug. Although insurance covers some of Johnson & Johnson's litigation costs, unexpected liabilities could have a serious financial impact on the company.

 

Health insurance

Changes in health care coverage may impact sales. If an insurance program changes its policies and removes coverage for a certain treatment, sales are likely to decrease. In general, insurance programs are more likely to cover essential expenses, such as heart disease medication, and less likely to cover nonessential expenses, such as cosmetic surgery.

 

Johnson & Johnson's Procrit is often used by chemotherapy patients, and Risperdal is often prescribed to the elderly. These prescriptions are covered by Medicare, which helps to increase sales.

 

Consumer Health

Consumers are beginning to take greater responsibility and interest in their own health, especially as technology makes health information readily accessible. In 2006, 53% of adults used the internet to find health information. This trend for increased consumer awareness affects Johnson & Johnson's consumer health and pharmaceutical segments, as products are now targeted more towards the consumer.

 

personal health records

personal health records JNJ has teamed up with Microsoft

 

 

 

 

 

Comparison to Competitors

Competition in the health care industry lies mostly in specific markets. For example, a new diabetes drug is not going to have any effect on an existing cholesterol drug, no matter how successful it is. This concept is especially true in the case of Johnson & Johnson, which due to its diverse product offerings in multiple segments of the industry, simultaneously competes in hundreds of distinct markets. With this in mind, success in this competitive environment requires substantial investments in research and sales. Johnson & Johnson's major competitors include Pfizer, Merck, and Novartis.

 

 

 

 

 

Charity

 

 

 

JNJ - Johnson & Johnson

list of charity ideas

OLPC

online tutor

 

 

 

Johnson & Johnson supports a wide range of programs focused on three key strategies:

 

 

This approach builds upon a strong legacy of community-based partnerships with hundreds of organizations that share the Company’s vision.

 

Numbers:

 

Johnson & Johnson contributed $544.8 million in cash and products to philanthropic causes worldwide in 2006. Our 2006 Contributions Annual Report includes more detail.

 

 

 

 

 

Saving and improving the lives of women and children,

 

Saving and Improving Lives

 

In partnership with Johnson & Johnson, community-based partnerships around the world are working to save and improve the lives of vulnerable women and children. Here are a few examples:

 

Task Force for Child Survival and Development

 

Johnson & Johnson is partnering with the Task Force for Child Survival and Development to help reduce the global burden of soil transmitted helminthiasis (STH), an infection of intestinal worms, in the most at-risk children of the world. Johnson & Johnson has committed to donating 50 million doses of mebendazole, a member of the class of medicines known as antihelmintics that are used to treat numerous kinds of worm infections. STH is widely found in tropical and subtropical areas, and is connected to a lack of sanitation and clean water. Its effects are especially dire for children because it causes malnutrition, increases susceptibility to other serious infections, and stunts growth during a critical developmental period.

 

UNICEF

 

To increase the availability of basic obstetric care, reduce the maternal mortality rate, and provide infants and their mothers an opportunity for a healthy beginning to life, Johnson & Johnson partners with the UNICEF/Safe Motherhood Initiative in China, India and the Philippines. For example, four of the most affected provinces in the Philippines- Masbate, Aurora, Isabela and Camarines Norte- were identified for capacity building efforts. Teams of doctors, nurses and midwives from each province received training through the Basic Emergency Obstetric Care program and supply kits at Fabella Memorial Hospital in Manila. Visit the 2006 Contributions Annual Report to learn more.

 

Neonatal Resuscitation Program

 

Each year in China, as many as 125,000 babies may succumb to neonatal asphyxia, the inability to breathe at or immediately after birth. Of the children who survive from severe breathing problems, many suffer from developmental disabilities. In response to this crisis, Johnson & Johnson Pediatric Institute, L.L.C., collaborated with the Chinese Ministry of Health, the American Academy of Pediatrics, the Chinese Society of Perinatal Medicine, and the Chinese Nursing Society to form a national Neonatal Resuscitation Program (NRP), titled Freedom of Breath, Fountain of Life. The NRP’s mission is to reduce infant mortality through educational intervention, and to ensure that there is at least one person who is trained in NRP present at every hospital birth. The program has trained more than 18,000 medical professionals across China since 2004 in the techniques of neonatal resuscitation. These professionals will train thousands more as the program works toward having someone skilled in neonatal resuscitation present at every hospital birth in China by 2010.

 

Read the complete story in our 2006 Contributions Annual Report.

 

Theotokos

 

Ensuring that adults and children with developmental disabilities reach full potential has been the goal of the Theotokos Foundation during its 42 years of providing service. The Theotokos Foundation works with families in Greece helping children with developmental disabilities to enter schools within their community, and with young adults to enter the working world. Johnson & Johnson supports Theotokos Foundation’s Inclusion and Supported Employment programs.

 

Pratham

 

Pratham, with sponsorship from Johnson & Johnson, is working to reduce and eliminate child labor practices in India. In Mumbai alone, 30,000 children have received services through Pratham. Since 2005, over 15,000 children have been released or removed from their work situations in the city. It is estimated that 4,000 continue without service and remain at work. The Company supports Pratham’s ongoing efforts to provide education through multi-purpose health and residential centers. The centers provide continuous support as the children transition from work back into childhood and prepare for a return to school and family life.

 

Safe Kids

 

You can view a video about Safe Kids Week 2007 through our jnj.com Streaming Media Player. The Media player features a number of videos highlighting various aspects of the Johnson & Johnson Family of Companies. The quality of the image you receive is dependent on your modem, the speed of your connection and can be affected by network traffic.

 

This global public awareness campaign and educational program helps parents and caregivers to prevent unintentional injuries among children under 14 years of age. Supported by Johnson & Johnson as Founding Sponsor, SAFE KIDS Worldwide programs are under way in the U.S., Puerto Rico and Canada, as well as the United Kingdom, Austria, Germany, United Arab Emirates, China, Australia and Brazil. In the U.S., Puerto Rico and Canada, Johnson & Johnson Consumer companies work closely with more than 60,000 retail partners to distribute safety information in stores and sponsor special television and advertising programming with a safety message – all in coordination with the 600 local SAFE KIDS Coalitions and partners in all 50 states/10 provinces.

 

 

 

 

 

 

Building Skills & Health Care Capacity

The Company supports leadership and management training programs for emerging and established health care professional leaders, and technical skills development for students pursuing health care careers. Here are a few examples:

 

Ghana Surgical Skills Training Center

 

In 2005, International Aid, Johnson & Johnson and the West African College of Surgeons opened the Ghana Surgical Skills Training Center at Korle bu Hospital in Accra and conducted the first Advanced Trauma Operative Management (ATOM) course in West Africa. Since then, the center has trained nearly two dozen top trauma surgeons in the region. The ATOM course is guided by three key objectives: 1) improving the level of care for severely injured trauma patients in West Africa, 2) forging professional exchanges between trauma surgeons in the U.S. and surgeons in West Africa, and 3) training surgeons in West Africa on the techniques of Advanced Trauma Operative Management.

 

INSEAD

 

The partnership between Johnson & Johnson and INSEAD, one of Europe’s leading business schools, has enabled the development of programs that support research, teaching and education in health care. Johnson & Johnson supports several efforts of INSEAD’s Health Management Initiative. For example, the European Health Leadership Program provides senior health care industry managers leadership training to help advance their roles in a rapidly changing and challenging industry. The program focuses on strategic and operations management, leadership and organizational design, global health care perspectives, knowledge management and information technology trends and the new consumer.

 

Johnson & Johnson - Wharton Fellows Program in Management for Nurse Executives

 

For 25 years, Johnson & Johnson has partnered with the Wharton School at the University of Pennsylvania to provide nurse executives with essential business management knowledge for health care industry leadership. The Johnson & Johnson – Wharton Fellows Program in Management for Nurse Executives has graduated nearly 1,000 senior nurse executives from several countries since the program’s inception.

 

Johnson & Johnson Bridge to Employment Program

 

The Company partners with the Academy for Educational Development (AED) on the Johnson & Johnson Bridge to Employment Program (BTE) to help young people build solid futures by introducing them to a broad array of careers in health care. The idea is to engage students through real world experiences to demonstrate that learning can be meaningful, engaging and relevant to their future. By fostering long-term partnerships among businesses, educators, community-based organizations and parents, BTE helps prepare young people to meet the challenges and requirements of careers in the health care industry and in today's knowledge-rich society.

 

JHPIEGO/Indonesian Midwives Association

 

Working through JHPIEGO, an affiliate of Johns Hopkins University, the Indonesian Midwives Association (IMA) is trying to increase the standard of care among private practice midwives in the country. The Bidan Delima Program, a component of the Sustaining Technical Achievements in Reproductive Health/Family Planning project operated by IMA, was implemented in 2003. Since its inception, Johnson & Johnson has supported midwife training.

 

Leaders 2 Leaders

 

Since 1989, the reforms of health care systems from state-controlled care to decentralized, privatized systems have posed difficulties to Central European policy makers. With Johnson & Johnson support, Project HOPE Hungary offered its Leaders 2 Leaders Continual Professional Development Program to senior health care managers from Hungary, Slovakia, Poland, Romania, the Czech Republic and Macedonia. Through the program, participants established a strong professional network for ongoing dialogue and shared learning.

 

Society for Arts and Healthcare

 

Since 1991, the Society for the Arts in Healthcare (SAH) has advocated for the integration of the arts into health care services, the development of arts programming and further research into the beneficial effects of the arts. Johnson & Johnson has partnered with SAH since 2001 to provide grants to organizations that use the arts to enhance the health care experience for patients, their families and caregivers. Over the past six years, 107 programs demonstrating the role of arts in the healing process have received funding.

 

To learn more about Johnson & Johnson Corporate Contributions, please read our 2006 Contributions Annual Report.

 

 

 

 

 

Preventing diseases and reducing stigma and disability in underserved communities where Johnson & Johnson has a high potential for impact.

 

 

Preventing Diseases & Reducing Stigma

 

The Company supports community-based approaches to prevent HIV/AIDS infections, initiatives to prevent and reduce the impact of chronic diseases, and interventions and public awareness programs to reduce the stigma associated with mental illness. Here are a few examples:

 

Addis Ababa Fistula Hospital

 

Johnson & Johnson has collaborated with organizations in Africa to both prevent and treat fistula, a serious and painful disorder that develops when blood supply between organs or vessels is cut off during prolonged obstructed labor. The Addis Ababa Fistula Hospital is a key partner in the Global Campaign to End Fistula. Serving as the only health facility in Ethiopia dedicated exclusively to victims of obstetric fistula, the hospital has been treating fistula patients for more than three decades. Johnson & Johnson provides support to the hospital for education outreach programs throughout the region, including training for traditional birth attendants.

 

Circle of Care Mental Health Program

 

Circle of Care has helped more than 1,000 families in Malaysia cope with their various mental illnesses. The program also provides job placement support programs in nine cities. Johnson & Johnson supports Circle of Care’s efforts to educate and support families through Family Link, assist patients in finding jobs and re-entering their communities, and reduce existing public stigmas associated with mental illness.

 

Johnson & Johnson - Dartmouth Community Mental Health Program

 

Since 2000, the Company has partnered with Dartmouth Medical School and the New Hampshire-Dartmouth Psychiatric Research Center on the Johnson & Johnson Community Mental Health Program, an innovative public-private partnership that helps people disabled by mental illness reclaim their lives with enhanced vocational skills and opportunities. Unlike other vocational programs that relegate patients to sheltered work, this program moves people from disability to self-sustaining competitive employment.

 

Johnson & Johnson - World Wildlife Fund, "Healthy Communities, Healthy Ecosystems" Program

 

Johnson & Johnson has been a longstanding supporter of the World Wildlife Fund (WWF), from project-based support to design and implementation of community-based conservation and livelihood initiatives in vulnerable ecosystems, to core support for the organization to pursue the conservation of nature. Since 2003, the Company has supported innovative “Healthy Communities, Healthy Ecosystems” projects in the East Africa, Congo Basin and Eastern Himalayas ecoregions. In East Africa, for instance, the Eastern African Marine Ecoregion (EAME) program addresses community development aspects of ecosystem conservation by promoting protection of the environment and facilitating access to health care by very poor, and often isolated, communities.

 

Johnson & Johnson Community Health Care Program

 

The Company partners with the Johns Hopkins Bloomberg School of Public Health on the Johnson & Johnson Community Health Care Program to provide funding and support to innovative community-based health care organizations that assist medically underserved populations in the U.S. Established in 1987, the program has recognized nearly 150 pioneering health centers in 36 states and Puerto Rico. These organizations are recognized for their distinctive programs, offering innovative solutions to complicated health care challenges. In 2007, the program awarded 10 grants to community health centers along the U.S. Gulf Coast.

 

Elizabeth Glaser Pediatric AIDS Foundation

 

The Elizabeth Glaser Pediatric AIDS Foundation first partnered with Johnson & Johnson in 2003 for the prevention of mother-to-child transmission of HIV. In 2006, the partnership reached more than 270,000 pregnant women at over 670 health care facilities in Cameroon, China, India, Russia and Zimbabwe. Of the total women reached, more than 11,000 pregnant women tested positive and received antiretroviral treatment for themselves and for their infants. Johnson & Johnson support has expanded EGPAF’s work in India, Malawi, Russia, Swaziland, and Zimbabwe with the expectation of reaching at least 30,000 HIV-positive pregnant women annually.

 

Mothers 2 Mothers

 

Mothers 2 Mothers (M2M) provides education for South African HIV-positive pregnant women to prevent mother-to-child transmission of the disease and later trains new HIV-positive mothers to mentor other HIV-positive pregnant women. Johnson & Johnson first began its partnership with M2M in 2005, opening its first sites in the Eastern Cape at Ndende Hospital and Frere Clinic in East London. More than 2,400 women were reached at these two sites. Recently, Johnson & Johnson support expanded to six sites in the East London area in hopes of reaching more women in need. For more information, please visit the Mothers2Mothers Web site.

 

National AIDS Fund

 

In 2005, Johnson & Johnson collaborated with the National AIDS Fund (NAF), an organization dedicated to reducing the incidence and impact of HIV/AIDS in the U.S., to create GENERATIONS: Strengthening Women and Families Affected by HIV/AIDS.

 

Recognizing the critical need to bring science-based prevention programs to communities where women are at highest risk for infection, GENERATIONS supports nine community-based organizations implementing evidence-based models targeting high-risk populations, including homeless and runaway girls, intravenous drug users, incarcerated women and sex workers.

 

Additional information can be found at www.aidsfund.org/naf.

 

Johnson & Johnson - UCLA HIV/AIDS Management Development Institute

 

The Johnson & Johnson/UCLA Management Development Institute, in partnership with the African Medical and Research Foundation (AMREF), is an intensive management program held in Kenya for leaders of East African organizations providing HIV/AIDS prevention, treatment, care, and support services. Taught by local faculty from Kenyatta University Business School, United States International University, and Strathmore University, the program has enabled 110 leaders to expand program scope and to increase quantity and quality of services.

 

For more information, visit www.anderson.ucla.edu/x13888.xml.

 

 

 

 

other charity links:

list of charity ideas

 

 

Did You Know?

 

The Company's international expansion began in 1919 with the establishment of an affiliate company in Canada.

Over 100 billion BAND-AID® Brand Adhesive Bandages have been made to date.

Johnson & Johnson was founded in New Brunswick, New Jersey, USA in 1886, and the Company's headquarters has remained there ever since.

Johnson & Johnson manufactured and marketed the first-ever antiseptic surgical dressings, which dramatically increased the survival rate of surgery patients.

The beginning of the Company's worldwide philanthropy program officially dates to 1906, when Johnson & Johnson sent medical supplies to aid the victims of the San Francisco earthquake and fire.

BAND-AID® Brand Adhesive Bandages were invented by a Johnson & Johnson employee named Earle Dickson in 1920, as a ready-made bandage his wife could apply by herself after accidents in the kitchen. His idea grew into one of the Company's best-known consumer products.

JOHNSON'S® Baby Powder, one of the Company's most recognizable consumer brands, was introduced in 1893.

Johnson & Johnson was named #6 on Fortune's 2006 Most Admired Companies list and ranked as the number one company in the annual survey's Pharmaceuticals category.

An annual reputation poll conducted in by Harris Interactive and published in The Wall Street Journal in December 2005, cited Johnson & Johnson for having the best corporate reputation in America for the seventh straight year, since the inception of the survey.

Johnson & Johnson was ranked 32nd on the 2006 Fortune 500.

Johnson & Johnson was ranked 26th in the Business Week list of the "50 Best-Performing Companies."

Johnson & Johnson has more than 179,000 registered shareowners.

Johnson & Johnson has been named one of the best employers for Hispanic women, working women, people with disabilities and biopharmaceutical employees.

Johnson & Johnson has been honored for its corporate philanthropy, benefits programs and health and wellness efforts for employees.

Johnson & Johnson's pharmaceutical companies were ranked third in sales in the United States and fourth in the world during 2003, by IMS Health.

Johnson & Johnson's medical device companies develop, market and sell more medical devices than any other company in the world.

Johnson & Johnson Vision Care, Inc., is the world leader in contact lenses.

Johnson & Johnson holds nearly 54,000 U.S. and foreign patents.

 

 

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