2011 Business Segment Highlights
After two challenging years, Johnson & Johnson returned to delivering operational sales growth in 2011. We continued to strengthen our platform for leadership and profitable growth through new product launches, strong pipelines and investments in key growth areas.
Johnson & Johnson has three distinct business segments that share a common focus on human health.
With $24.4 billion in sales in 2011, we are the eighth largest pharmaceuticals business in the world and the sixth largest biotech business. Strong operational growth of
6.2 percent was driven by recently launched products like STELARA® (ustekinumab), SIMPONI® (golimumab), ZYTIGA® (abiraterone acetate), INCIVO® (telaprevir) and INVEGA® SUSTENNA® (paliperidone palmitate).
Through 2011, we built on the continued success of recently launched products to strengthen our leadership position in core therapeutic areas including immunology, infectious disease, neuroscience and oncology. For products launched between 2009 and 2011, Johnson & Johnson led the United States in new pharmaceutical products this past year.
We expanded our immunology leadership and sales with the amendment to our global distribution agreement with Merck & Co. on our largest-selling product, REMICADE® (infliximab), and SIMPONI® (golimumab).
We also received approval of INCIVO® in Europe for hepatitis C, which is marketed as INCIVEK™ by our strategic partner, Vertex Pharmaceuticals Inc., in the U.S.
We completed the acquisition of Crucell N.V., building a key leadership position in vaccines. And we entered into new collaborations with companies like Pharmacyclics, Inc., with which we will jointly develop and market an anti-cancer compound, building our strength in oncology.
In terms of pipeline progress in 2011, we were the U.S. leader in new molecular entity approvals with three: ZYTIGA® in oncology, XARELTO® (rivaroxaban) in cardiovascular disease and EDURANT® (rilpivirine) in HIV. This progress in the Pharmaceuticals business segment is the result of our commitment to continued investment in product launches and pipeline compounds.
MEDICAL DEVICES & DIAGNOSTICS
With $25.8 billion in sales in 2011, our Medical Devices and Diagnostics (MD&D) business unit is the largest medical device business in the world. Operational sales growth was just under 2 percent.
The year saw many challenges in several MD&D markets, as well as issues with the DePuy ASR™ Hip System recall. European austerity measures, pricing pressures and a slowdown in elective surgeries driven by continued economic pressures have all contributed to more tempered growth rates. Despite these challenges, our MD&D business segment is competing well in a global market that has undergone dynamic change.
In 2011, MD&D showed strong double-digit growth in the BRIC (Brazil, Russia, India and China) markets where we have introduced many innovative products. Meanwhile, in Asia-Pacific and Europe, we have been rolling out 1-Day ACUVUE® MOIST® Brand Contact Lenses for Astigmatism.
We continued to advance important products through the regulatory process. In 2011, 75 percent of the MD&D pipeline advanced to the next major milestone. Breakthrough products like the SEDASYS® System, the first computer-assisted personalized sedation system, and the Fibrin Pad, in the area of surgical bleeding, are progressing with the U.S. Food and Drug Administration. We also are increasing investments in emerging markets, with new innovation centers in India and China, while continuing to support a number of training institutes around the world.
With these actions and others, our MD&D business unit has been able to sustain the No. 1 or No. 2 leadership positions in 80 percent of our key platforms while growing or maintaining share in the majority of these platforms.
We've also made some strategic portfolio decisions in this business segment, such as refocusing our cardiovascular business. In 2011, we exited the drug-eluting stent business and shifted investments to higher-growth, higher-need areas like electrophysiology. These decisions will help to fund growth potential in other promising areas. Decisions to acquire Synthes, Inc. and strengthen our leadership position in orthopaedics, as well as our acquisition of SterilMed, Inc. for its experience in re-processing surgical instruments, are examples of how we are continuously looking across our business for the best long-term growth opportunities.
With $14.9 billion in sales in 2011, our Consumer business segment is the sixth largest consumer health care company in the world. Operational sales declined just under 1 percent, reflecting the impact of remediation and supply issues associated with our U.S. over-the-counter (OTC) business. The decline was partially offset by solid growth in certain franchises including Skin Care and Oral Care, with strong performances from NEUTROGENA® and the LISTERINE® Mouthwash brands.
Our Consumer group continued expanding into emerging markets with the acquisition of a line of OTC cough-and-cold brands in Russia from J.B. Chemicals & Pharmaceuticals Limited. We also continued to innovate, introducing NEUTROGENA® Naturals, AVEENO® SMART ESSENTIALS™, NICORETTE® QUICKMIST™ and LISTERINE® ZERO™.
The recovery and remediation of the McNeil Consumer Healthcare business continues. The major commitments to date under the Consent Decree with the U.S. Food and Drug Administration have been achieved, and several products have already returned to market. Volume will continue to ramp up, and products will be reintroduced throughout 2012.