Johnson & Johnson
Oct 16, 2018

Johnson & Johnson Reports 2018 Third-Quarter Results:

2018 Third-Quarter Sales of $20.3 Billion Increased 3.6% versus 2017
2018 Third-Quarter EPS was $1.44
2018 Adjusted Third-Quarter EPS of $2.05 increased 7.9%*
Strong Operational Sales and Adjusted EPS Growth*
Company Increased Sales and EPS Guidance

NEW BRUNSWICK, N.J., Oct. 16, 2018 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $20.3 billion for the third quarter of 2018, an increase of 3.6% as compared to the third quarter of 2017. Operational sales results increased 5.5%, partially offset by the negative impact of currency of 1.9%. Domestic sales increased 3.6%. International sales increased 3.5%, reflecting operational growth of 7.5% and a negative currency impact of 4.0%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 6.1%, domestic sales increased 3.9% and international sales increased 8.5%.*

Net earnings and diluted earnings per share for the third quarter of 2018 were $3.9 billion and $1.44, respectively. Third-quarter 2018 net earnings included after-tax intangible amortization expense of approximately $1.0 billion and a net charge for after-tax special items of approximately $0.7 billion, primarily consisting of a non-cash charge attributed to a partial write-down of an in-process research and development asset associated with the acquisition of Alios BioPharma Inc. Third-quarter 2017 net earnings included after-tax intangible amortization expense of approximately $0.9 billion and a charge for after-tax special items of approximately $0.5 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.6 billion and adjusted diluted earnings per share were $2.05, representing increases of 7.3% and 7.9%, respectively, as compared to the same period in 2017.* On an operational basis, adjusted diluted earnings per share also increased 9.5%.* A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

"We are pleased with our strong third-quarter performance, which reflects continued above-market growth in our Pharmaceutical business, accelerating sales momentum in our Consumer business and consistent progress in our Medical Devices business," said Alex Gorsky, Chairman and Chief Executive Officer. "I'm confident that with our collaborative and inspired J&J colleagues around the world, unique broad-based business model and strategic investments in innovation, we are well positioned for success today and into the future."

The Company issued sales guidance for the full-year 2018 in a range of $81.0 to $81.4 billion. This reflects an increase in expected operational growth to a range of 5.5% to 6.0%, partially offset by the estimated lower favorable impact of currency. Additionally, the Company increased its adjusted earnings guidance for full-year 2018 to a range of $8.13 to $8.18 per share. This reflects an increase in expected operational EPS growth to a range of 9.3% to 10.0%.

Segment Sales Performance
Worldwide Consumer sales of $3.4 billion for the third quarter 2018 represented an increase of 1.8% versus the prior year, consisting of an operational increase of 4.9% and a negative impact from currency of 3.1%. Domestic sales increased 6.6%, while international sales decreased 1.3%, which reflected an operational increase of 3.7% and a negative currency impact of 5.0%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 6.1%, with domestic sales increasing 6.4% and international sales increasing 5.9%.*

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by over-the-counter products including MOTRIN and TYLENOL analgesics, ZYRTEC upper respiratory and IMODIUM digestive health products; beauty products including NEUTROGENA, OGX and DR. CI LABO; as well as domestic sales of JOHNSON's baby care products.

During the quarter, the acquisition of Zarbee's, Inc., a leader in naturally-based healthcare products, was completed.

Worldwide Pharmaceutical sales of $10.3 billion for the third quarter 2018 represented an increase of 6.7% versus the prior year with an operational increase of 8.2% and a negative impact from currency of 1.5%. Domestic sales increased 4.8%, international sales increased 9.5%, which reflected an operational increase of 13.2% and a negative currency impact of 3.7%.  Acquisitions and divestitures had a negligible impact to sales growth in the quarter.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, STELARA (ustekinumab), a biologic for the treatment of  a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, TREMFYA (guselkumab), for the treatment of adults living with moderate to severe plaque psoriasis, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, SIMPONI/SIMPONI ARIA (golimumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression, and UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization.

During the quarter, the U.S. Food and Drug Administration (FDA) approved an additional indication for IMBRUVICA (ibrutinib) in combination with rituximab as a non-chemotherapy combination regimen for patients with Waldenström's Macroglobulinemia, a rare blood cancer. The European Commission (EC) granted marketing authorization for DARZALEX (daratumumab) in combination with VELCADE (bortezomib), a proteasome inhibitor, melphalan, an alkylating agent, and prednisone for the treatment of newly diagnosed multiple myeloma patients who are ineligible for autologous stem cell transplant.  In addition, the FDA approved and the EC granted marketing authorization for SYMTUZA (D/C/F/TAF), a complete darunavir-based single-tablet regimen for the treatment of HIV-1 infection.   

A New Drug Application was submitted to the FDA for esketamine nasal spray, a rapidly acting antidepressant for treatment-resistant depression in adults and erdafitinib, a once-daily, oral pan-fibroblast growth factor receptor (FGFR) inhibitor for the treatment of locally advanced or metastatic urothelial cancer. A supplemental New Drug Application was submitted to the FDA seeking to broaden the use of IMBRUVICA (ibrutinib) in chronic lymphocytic leukemia or small lymphocytic lymphoma to include combination use with a non-chemotherapy agent, obinutuzumab, in the frontline setting.  A Type II Variation was submitted to the European Medicines Agency (EMA) seeking to expand the indication of OPSUMIT (macitentan) to include the treatment of adults with inoperable chronic thromboembolic pulmonary hypertension (CTEPH), WHO Group 4, to improve exercise capacity and pulmonary vascular resistance. In addition, the Company also submitted a supplemental Biologics License Application to the FDA and a Type II Variation to the EMA seeking approval of a split dosing regimen for DARZALEX (daratumumab).

Subsequent to the quarter, the FDA approved an additional indication for XARELTO (rivaroxaban) to reduce the risk of major cardiovascular (CV) events, such as CV death, myocardial infarction and stroke, in people with chronic coronary or peripheral artery disease. Additionally, a Marketing Authorization Application was submitted to the EMA for esketamine nasal spray, a rapidly acting antidepressant for treatment-resistant depression in adults.  The Company also entered into an exclusive worldwide license agreement with Arrowhead Pharmaceuticals, Inc. to develop and commercialize a new treatment for chronic Hepatitis B viral infection. 

Worldwide Medical Devices sales of $6.6 billion for the third quarter 2018 represented a decrease of 0.2% versus the prior year consisting of an operational increase of 1.7% and a negative currency impact of 1.9%. Domestic sales increased 0.3%, while international sales decreased 0.6%, which reflected an operational increase of 3.0% and a negative currency impact of 3.6%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 2.9%, domestic sales increased 1.2% and international sales increased 4.4%.*

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by the growth of electrophysiology products in the Interventional Solutions business; ACUVUE contact lenses in the Vision business; endocutters and biosurgicals in the Advanced Surgery business; and wound closure products in the General Surgery business, partially offset by declines in the Diabetes Care business.

During the quarter, the Company received European CE mark approval for its BRAVO Flow Diverter for use in the treatment of patients suffering from intracranial aneurysms.  In addition, the acquisition of Emerging Implant Technologies GmbH, a privately held manufacturer of 3D-printed titanium interbody implants for spinal fusion surgery, was completed. Lastly, the Company accepted the binding offer from Fortive Corporation to acquire its Advanced Sterilization Products business for an aggregate value of approximately $2.8 billion, subject to customary adjustments.

Subsequent to the quarter, the Company announced the completion of the divestiture of its LifeScan business to Platinum Equity for approximately $2.1 billion, subject to customary adjustments.

About Johnson & Johnson
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That's why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world's largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

* Operational sales growth excluding the net impact of acquisitions and divestitures, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted diluted earnings per share excluding after-tax intangible amortization expense and 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. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at www.investor.jnj.com. Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

Johnson & Johnson will conduct a conference call with investors 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. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can be found on the company's website at www.investor.jnj.com.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy. 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 known 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: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including unexpected clinical trial results, additional analysis of existing clinical data, uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; the impact of business combinations and divestitures; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including restructuring plans; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws, global health care reforms and import/export and trade laws; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 31, 2017, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," in the company's most recently filed Quarterly Report on Form 10-Q and in the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

 

Johnson & Johnson and Subsidiaries




















Supplementary Sales Data








































(Unaudited; Dollars in Millions)

THIRD QUARTER


NINE MONTHS






Percent Change






Percent Change


2018


2017


Total


Operations


Currency


2018


2017


Total


Operations


Currency

Sales to customers by




















segment of business








































Consumer




















    U.S.

$   1,370


1,285


6.6

%

6.6


-


$   4,282


4,186


2.3

%

2.3


-

    International

2,045


2,071


(1.3)


3.7


(5.0)


6,035


5,876


2.7


1.6


1.1


3,415


3,356


1.8


4.9


(3.1)


10,317


10,062


2.5


1.9


0.6





















Pharmaceutical




















    U.S.

6,097


5,816


4.8


4.8


-


17,350


15,698


10.5


10.5


-

    International

4,249


3,879


9.5


13.2


(3.7)


13,194


10,877


21.3


17.5


3.8


10,346


9,695


6.7


8.2


(1.5)


30,544


26,575


14.9


13.4


1.5





















Medical Devices




















    U.S.

3,197


3,189


0.3


0.3


-


9,623


9,510


1.2


1.2


-

    International

3,390


3,410


(0.6)


3.0


(3.6)


10,703


10,108


5.9


3.2


2.7


6,587


6,599


(0.2)


1.7


(1.9)


20,326


19,618


3.6


2.2


1.4





















U.S.

10,664


10,290


3.6


3.6


-


31,255


29,394


6.3


6.3


-

International

9,684


9,360


3.5


7.5


(4.0)


29,932


26,861


11.4


8.6


2.8

Worldwide

$ 20,348


19,650


3.6

%

5.5


(1.9)


$ 61,187


56,255


8.8

%

7.5


1.3

 

 

Johnson & Johnson and Subsidiaries




















Supplementary Sales Data








































(Unaudited; Dollars in Millions)

THIRD QUARTER


NINE MONTHS






Percent Change






Percent Change


2018


2017


Total


Operations


Currency


2018


2017


Total


Operations


Currency

Sales to customers by




















geographic area








































U.S.

$ 10,664


10,290


3.6

%

3.6


-


$ 31,255


29,394


6.3

%

6.3


-





















Europe

4,416


4,308


2.5


5.1


(2.6)


14,023


12,398


13.1


7.1


6.0

Western Hemisphere excluding U.S.

1,550


1,569


(1.2)


11.2


(12.4)


4,657


4,522


3.0


8.4


(5.4)

Asia-Pacific, Africa

3,718


3,483


6.7


8.6


(1.9)


11,252


9,941


13.2


10.8


2.4

International

9,684


9,360


3.5


7.5


(4.0)


29,932


26,861


11.4


8.6


2.8





















Worldwide

$ 20,348


19,650


3.6

%

5.5


(1.9)


$ 61,187


56,255


8.8

%

7.5


1.3

 

 

Johnson & Johnson and Subsidiaries










Condensed Consolidated Statement of Earnings 




















(Unaudited; in Millions Except Per Share Figures)

THIRD QUARTER












2018


2017*


Percent




Percent




Percent


Increase


Amount


to Sales


Amount


to Sales


(Decrease)

Sales to customers

$ 20,348


100.0


$ 19,650


100.0


3.6

Cost of products sold

6,589


32.4


6,925


35.2


(4.9)

Gross Profit

13,759


67.6


12,725


64.8


8.1

Selling, marketing and administrative expenses

5,543


27.3


5,423


27.6


2.2

Research and development expense

2,508


12.3


2,585


13.2


(3.0)

In-process research and development

1,126


5.6


-


-



Interest (income) expense, net

68


0.3


155


0.8



Other (income) expense, net

3


0.0


(297)


(1.5)



Restructuring

88


0.4


69


0.3



Earnings before provision for taxes on income

4,423


21.7


4,790


24.4


(7.7)

Provision for taxes on income

489


2.4


1,026


5.2


(52.3)

Net earnings

$   3,934


19.3


$   3,764


19.2


4.5











Net earnings per share (Diluted)

$     1.44




$     1.37




5.1











Average shares outstanding (Diluted)

2,727.6




2,737.7















Effective tax rate

11.1

%



21.4

%














Adjusted earnings before provision for taxes and net earnings (1)










Earnings before provision for taxes on income

$   6,780


33.3


$   6,573


33.5


3.1

Net earnings

$   5,590


27.5


$   5,208


26.5


7.3

Net earnings per share (Diluted)

$     2.05




$     1.90




7.9

Effective tax rate

17.6

%



20.8

%














(1)See Reconciliation of Non-GAAP Financial Measures.




















*2017 Statement of Earnings line items have been restated to reflect impact of ASU 2017-07

 

 

Johnson & Johnson and Subsidiaries










Condensed Consolidated Statement of Earnings 




















(Unaudited; in Millions Except Per Share Figures)

NINE MONTHS












2018


2017*


Percent




Percent




Percent


Increase


Amount


to Sales


Amount


to Sales


(Decrease)

Sales to customers

$ 61,187


100.0


$ 56,255


100.0


8.8

Cost of products sold

20,130


32.9


18,180


32.3


10.7

Gross Profit

41,057


67.1


38,075


67.7


7.8

Selling, marketing and administrative expenses

16,549


27.1


15,475


27.5


6.9

Research and development expense

7,551


12.3


6,951


12.4


8.6

In-process research and development

1,126


1.8


-


-



Interest (income) expense, net

340


0.6


360


0.6



Other (income) expense, net

427


0.7


11


0.0



Restructuring

187


0.3


165


0.3



Earnings before provision for taxes on income

14,877


24.3


15,113


26.9


(1.6)

Provision for taxes on income

2,622


4.3


3,100


5.5


(15.4)

Net earnings

$ 12,255


20.0


$ 12,013


21.4


2.0











Net earnings per share (Diluted)

$     4.49




$     4.37




2.7











Average shares outstanding (Diluted)

2,729.6




2,746.4















Effective tax rate

17.6

%



20.5

%














Adjusted earnings before provision for taxes and net earnings (1)










Earnings before provision for taxes on income

$ 20,652


33.8


$ 18,961


33.7


8.9

Net earnings

$ 16,943


27.7


$ 15,263


27.1


11.0

Net earnings per share (Diluted)

$     6.21




$     5.56




11.7

Effective tax rate

18.0

%



19.5

%














(1)See Reconciliation of Non-GAAP Financial Measures.




















*2017 Statement of Earnings line items have been restated to reflect impact of ASU 2017-07

 

 

Johnson & Johnson and Subsidiaries















Reconciliation of Non-GAAP Financial Measures
































Third Quarter


% Incr. /



Nine Months YTD


% Incr. /


(Dollars in Millions Except Per Share Data)


2018


2017


(Decr.)



2018


2017


(Decr.)

















Earnings before provision for taxes on income - as reported


$      4,423


4,790


(7.7)

%


$    14,877


15,113


(1.6)

%

Intangible asset amortization expense


1,085


1,077





3,284


1,886




In-process research and development


1,126


-





1,126


-




Litigation expense, net


-


118





703


611




Restructuring/Other (1)


190


187





473


476




Actelion acquisition related cost


40


367





200


580




Contingent liability reversal


(184)


-





(184)


-




AMO acquisition related cost


36


36





82


115




Diabetes asset impairment


-


(2)





4


180




Unrealized loss/(gain) on securities


9


-





(3)


-




Other


55


-





90


-



















Earnings before provision for taxes on income - as adjusted


$      6,780


6,573


3.1

%


$    20,652


18,961


8.9

%
















Net Earnings - as reported


$      3,934


3,764


4.5

%


$    12,255


12,013


2.0

%

Intangible asset amortization expense


968


933





2,931


1,555




In-process research and development


859


-





859


-




Litigation expense, net


-


97





609


449




Restructuring/Other


162


136





395


358




Actelion acquisition related cost


37


255





193


454




Contingent liability reversal


(184)


-





(184)


-




AMO acquisition related cost


29


28





68


314




Diabetes asset impairment


-


(5)





3


120




Unrealized loss/(gain) on securities


8


-





(2)


-




Impact of tax legislation (2)


(265)


-





(253)


-




Other


42


-





69


-



















Net Earnings - as adjusted 


$      5,590


5,208


7.3

%


$    16,943


15,263


11.0

%
















Diluted Net Earnings per share - as reported


$        1.44


1.37


5.1

%


$        4.49


4.37


2.7

%

Intangible asset amortization expense


0.35


0.34





1.07


0.57




In-process research and development


0.32


-





0.32


-




Litigation expense, net


-


0.04





0.22


0.16




Restructuring/Other


0.06


0.05





0.15


0.14




Actelion acquisition related cost


0.02


0.09





0.07


0.16




Contingent liability reversal


(0.07)


-





(0.07)


-




AMO acquisition related cost


0.01


0.01





0.02


0.11




Diabetes asset impairment


-


-





-


0.05




Unrealized loss/(gain) on securities


-


-





-


-




Impact of tax legislation


(0.10)


-





(0.09)


-




Other


0.02


-





0.03


-



















Diluted Net Earnings per share - as adjusted 


$        2.05


1.90


7.9

%


$        6.21


5.56


11.7

%
















Operational Diluted Net Earnings per share - as adjusted 















at 2016 foreign currency exchange rates




1.85







5.57



















Impact of currency at 2017 foreign currency exchange rates


0.03


0.05





(0.17)


(0.01)



















Operational Diluted Net Earnings per share - as adjusted 















at 2017 foreign currency exchange rates


$        2.08


1.90


9.5

%


$        6.04


5.56


8.6

%
















(1)Includes $23M recorded in cost of products sold and $79M recorded in other (income) expense for the third quarter 2018. Includes $73M recorded in cost of products sold




and $213M recorded in other (income) expense for nine months 2018 YTD.  Includes $29M recorded in cost of products sold and $89M recorded in other (income) expense for the 



third quarter 2017.  Includes $46M recorded in cost of products sold and $265M recorded in other (income) expense for nine months 2017 YTD.






















(2)Includes foreign currency translation















 

 

Johnson & Johnson and Subsidiaries









Reconciliation of Non-GAAP Financial Measure


















Operational Sales Growth Excluding Acquisitions and Divestitures

 THIRD QUARTER 2018 ACTUAL vs. 2017 ACTUAL 











 Segments 



 Consumer 


 Pharmaceutical 


 Medical Devices 


 Total 



Operational % (1)

 WW As Reported: 


4.9%


8.2%


1.7%


5.5%

 U.S. 


6.6%


4.8%


0.3%


3.6%

 International 


3.7%


13.2%


3.0%


7.5%



















Spine & Other 









Codman Neuroscience






1.0


0.4

 U.S. 






0.6


0.2

 International 






1.4


0.5










Wound Care / Other









Compeed


0.8






0.1

 U.S. 


0.0






0.0

 International 


1.3






0.3










Beauty









Nizoral


0.5






0.1

 U.S. 


0.3






0.0

 International 


0.7






0.1










All Other Acquisitions and Divestitures


(0.1)


0.0


0.2


0.0

 U.S. 


(0.5)


0.0


0.3


0.1

 International 


0.2


0.0


0.0


0.1










WW Ops excluding Acquisitions and Divestitures


6.1%


8.2%


2.9%


6.1%

 U.S. 


6.4%


4.8%


1.2%


3.9%

 International 


5.9%


13.2%


4.4%


8.5%










(1)Operational growth excludes the effect of translational currency









 

 

Johnson & Johnson and Subsidiaries









Reconciliation of Non-GAAP Financial Measure


















Operational Sales Growth Excluding Acquisitions and Divestitures

 NINE MONTHS 2018 ACTUAL vs. 2017 ACTUAL 










 Segments 



 Consumer 


 Pharmaceutical 


 Medical Devices 


 Total 



Operational % (1)

 WW As Reported: 


1.9%


13.4%


2.2%


7.5%

 U.S. 


2.3%


10.5%


1.2%


6.3%

 International 


1.6%


17.5%


3.2%


8.6%










Pulmonary Hypertension









Actelion




(4.3)




(2.0)

 U.S. 




(4.7)




(2.5)

 International 




(3.8)




(1.6)










Cardiovascular / Metabolism / Other









Actelion




(0.2)




(0.1)

 U.S. 




(0.1)




(0.1)

 International 




(0.3)




(0.1)










Spine & Other 









Codman Neuroscience






1.0


0.4

 U.S. 






0.6


0.3

 International 






1.4


0.6










Wound Care / Other









Compeed


0.9






0.2

 U.S. 


0.0






0.0

 International 


1.5






0.3










Vision









Vision Surgical & Eye Health Business






(1.0)


(0.4)

  U.S.  






(0.9)


(0.3)

  International  






(1.1)


(0.4)










Beauty









Nizoral


0.2






0.0

  U.S.  


0.1






0.0

  International  


0.3






0.1










All Other Acquisitions and Divestitures


0.0


0.0


0.1


0.0

 U.S. 


(0.1)


0.0


0.0


0.0

 International 


0.2


0.0


0.2


0.1










WW Ops excluding Acquisitions and Divestitures


3.0%


8.9%


2.3%


5.6%

 U.S. 


2.3%


5.7%


0.9%


3.7%

 International 


3.6%


13.4%


3.7%


7.6%










(1)Operational growth excludes the effect of translational currency









 

 




REPORTED SALES vs. PRIOR PERIOD ($MM)



THIRD QUARTER


NINE MONTHS







% Change






% Change




2018


2017

Reported

Operational (1)

Currency



2018


2017

Reported

Operational (1)

Currency


CONSUMER SEGMENT (2) 

















BABY CARE

















US


$         120


$             100

20.0%

20.0%

-



$               306


$               326

-6.1%

-6.1%

-


Intl


352


377

-6.6%

0.1%

-6.7%



1,079


1,100

-1.9%

-0.5%

-1.4%


WW


472


477

-1.0%

4.3%

-5.3%



1,385


1,426

-2.9%

-1.8%

-1.1%


BEAUTY

















US


543


523

3.8%

3.8%

-



1,791


1,739

3.0%

3.0%

-


Intl


535


510

4.9%

9.2%

-4.3%



1,480


1,351

9.5%

7.7%

1.8%


WW


1,078


1,033

4.4%

6.5%

-2.1%



3,271


3,090

5.9%

5.1%

0.8%


ORAL CARE

















US


158


154

2.6%

2.6%

-



472


460

2.6%

2.6%

-


Intl


226


228

-0.9%

3.6%

-4.5%



684


678

0.9%

-0.5%

1.4%


WW


384


382

0.5%

3.2%

-2.7%



1,156


1,138

1.6%

0.7%

0.9%


OTC
















US


440


401

9.7%

9.7%

-



1,359


1,310

3.7%

3.7%

-


Intl


608


601

1.2%

4.8%

-3.6%



1,827


1,711

6.8%

3.8%

3.0%


WW


1,048


1,002

4.6%

6.8%

-2.2%



3,186


3,021

5.5%

3.8%

1.7%


WOMEN'S HEALTH

















US


3


3

0.0%

0.0%

-



10


9

11.1%

11.1%

-


Intl


266


267

-0.4%

8.0%

-8.4%



782


779

0.4%

2.0%

-1.6%


WW


269


270

-0.4%

7.9%

-8.3%



792


788

0.5%

2.1%

-1.6%


WOUND CARE / OTHER

















US


106


104

1.9%

1.9%

-



344


342

0.6%

0.6%

-


Intl


58


88

-34.1%

-31.3%

-2.8%



183


257

-28.8%

-30.0%

1.2%


WW


164


192

-14.6%

-13.3%

-1.3%



527


599

-12.0%

-12.5%

0.5%



















TOTAL CONSUMER

















US


1,370


1,285

6.6%

6.6%

-



4,282


4,186

2.3%

2.3%

-


Intl


2,045


2,071

-1.3%

3.7%

-5.0%



6,035


5,876

2.7%

1.6%

1.1%


WW


$      3,415


$          3,356

1.8%

4.9%

-3.1%



$          10,317


$          10,062

2.5%

1.9%

0.6%




























See footnotes at end of schedule



















REPORTED SALES vs. PRIOR PERIOD ($MM)





THIRD QUARTER


NINE MONTHS









% Change






% Change






2018


2017

Reported

Operational (1)

Currency



2018


2017

Reported

Operational (1)

Currency




PHARMACEUTICAL SEGMENT (2)(5)



















IMMUNOLOGY



















US


$      2,400


$          2,420

-0.8%

-0.8%

-



$            6,717


$            6,644

1.1%

1.1%

-




Intl


998


849

17.6%

21.7%

-4.1%



3,061


2,514

21.8%

18.6%

3.2%




WW


3,398


3,269

3.9%

5.0%

-1.1%



9,778


9,158

6.8%

5.9%

0.9%




REMICADE



















US 


987


1,206

-18.2%

-18.2%

-



2,821


3,452

-18.3%

-18.3%

-




US Exports (3)


100


156

-35.9%

-35.9%

-



346


448

-22.8%

-22.8%

-




Intl


292


285

2.5%

8.2%

-5.7%



921


949

-3.0%

-3.9%

0.9%




WW


1,379


1,647

-16.3%

-15.3%

-1.0%



4,088


4,849

-15.7%

-15.9%

0.2%




SIMPONI / SIMPONI ARIA



















US


281


242

16.1%

16.1%

-



779


701

11.1%

11.1%

-




Intl


255


234

9.0%

13.5%

-4.5%



823


642

28.2%

25.3%

2.9%




WW


536


476

12.6%

14.8%

-2.2%



1,602


1,343

19.3%

17.9%

1.4%




STELARA



















US


889


800

11.1%

11.1%

-



2,460


2,027

21.4%

21.4%

-




Intl


421


324

29.9%

33.0%

-3.1%



1,252


903

38.6%

32.9%

5.7%




WW


1,310


1,124

16.5%

17.4%

-0.9%



3,712


2,930

26.7%

24.9%

1.8%




OTHER IMMUNOLOGY



















US


143


16

*

*

-



311


16

*

*

-




Intl


30


6

*

*

*



65


20

*

*

*




WW


173


22

*

*

*



376


36

*

*

*




INFECTIOUS DISEASES



















US


345


353

-2.3%

-2.3%

-



1,006


1,020

-1.4%

-1.4%

-




Intl


478


460

3.9%

7.4%

-3.5%



1,496


1,334

12.1%

8.1%

4.0%




WW


823


813

1.2%

3.2%

-2.0%



2,502


2,354

6.3%

4.0%

2.3%




EDURANT / rilpivirine



















US


13


15

-13.3%

-13.3%

-



42


44

-4.5%

-4.5%

-




Intl


189


179

5.6%

6.8%

-1.2%



581


478

21.5%

14.2%

7.3%




WW


202


194

4.1%

5.2%

-1.1%



623


522

19.3%

12.6%

6.7%




PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA



















US


297


287

3.5%

3.5%

-



847


824

2.8%

2.8%

-




Intl


193


180

7.2%

12.4%

-5.2%



613


527

16.3%

13.5%

2.8%




WW


490


467

4.9%

6.9%

-2.0%



1,460


1,351

8.1%

7.0%

1.1%




OTHER INFECTIOUS DISEASES



















US


35


51

-31.4%

-31.4%

-



117


152

-23.0%

-23.0%

-




Intl


96


101

-5.0%

-0.3%

-4.7%



302


329

-8.2%

-9.3%

1.1%




WW


131


152

-13.8%

-10.7%

-3.1%



419


481

-12.9%

-13.7%

0.8%


















REPORTED SALES vs. PRIOR PERIOD ($MM)





THIRD QUARTER


NINE MONTHS









% Change






% Change






2018


2017

Reported

Operational (1)

Currency



2018


2017

Reported

Operational (1)

Currency




NEUROSCIENCE



















US


651


647

0.6%

0.6%

-



1,914


1,931

-0.9%

-0.9%

-




Intl


839


851

-1.4%

2.1%

-3.5%



2,663


2,531

5.2%

2.3%

2.9%




WW


1,490


1,498

-0.5%

1.5%

-2.0%



4,577


4,462

2.6%

0.9%

1.7%




CONCERTA / methlyphenidate



















US


57


100

-43.0%

-43.0%

-



191


284

-32.7%

-32.7%

-




Intl


100


98

2.0%

7.3%

-5.3%



322


304

5.9%

4.4%

1.5%




WW


157


198

-20.7%

-18.1%

-2.6%



513


588

-12.8%

-13.6%

0.8%




INVEGA SUSTENNA / XEPLION / TRINZA / TREVICTA



















US


468


395

18.5%

18.5%

-



1,306


1,154

13.2%

13.2%

-




Intl


281


248

13.3%

16.6%

-3.3%



859


722

19.0%

14.2%

4.8%




WW


749


643

16.5%

17.8%

-1.3%



2,165


1,876

15.4%

13.5%

1.9%




RISPERDAL CONSTA



















US


76


87

-12.6%

-12.6%

-



238


273

-12.8%

-12.8%

-




Intl


99


107

-7.5%

-4.0%

-3.5%



321


335

-4.2%

-7.3%

3.1%




WW


175


194

-9.8%

-7.9%

-1.9%



559


608

-8.1%

-9.8%

1.7%




OTHER NEUROSCIENCE



















US


50


65

-23.1%

-23.1%

-



179


220

-18.6%

-18.6%

-




Intl


359


398

-9.8%

-6.6%

-3.2%



1,161


1,170

-0.8%

-2.9%

2.1%




WW


409


463

-11.7%

-9.0%

-2.7%



1,340


1,390

-3.6%

-5.4%

1.8%




ONCOLOGY



















US


1,250


846

47.8%

47.8%

-



3,268


2,207

48.1%

48.1%

-




Intl


1,338


1,052

27.2%

31.2%

-4.0%



4,087


3,012

35.7%

30.9%

4.8%




WW


2,588


1,898

36.4%

38.6%

-2.2%



7,355


5,219

40.9%

38.1%

2.8%




DARZALEX



















US


318


230

38.3%

38.3%

-



880


643

36.9%

36.9%

-




Intl


180


87

*

*

*



561


228

*

*

*




WW


498


317

57.1%

60.0%

-2.9%



1,441


871

65.4%

63.6%

1.8%




IMBRUVICA



















US


334


230

45.2%

45.2%

-



811


622

30.4%

30.4%

-




Intl


371


282

31.6%

36.6%

-5.0%



1,101


749

47.0%

42.2%

4.8%




WW


705


512

37.7%

40.4%

-2.7%



1,912


1,371

39.5%

36.9%

2.6%




VELCADE



















US


-


-

-

-

-



-


-

-

-

-




Intl


271


273

-0.7%

1.8%

-2.5%



864


843

2.5%

-1.7%

4.2%




WW


271


273

-0.7%

1.8%

-2.5%



864


843

2.5%

-1.7%

4.2%




ZYTIGA



















US


527


352

49.7%

49.7%

-



1,420


826

71.9%

71.9%

-




Intl


431


317

36.0%

38.8%

-2.8%



1,292


924

39.8%

34.2%

5.6%




WW


958


669

43.2%

44.5%

-1.3%



2,712


1,750

55.0%

52.0%

3.0%




OTHER ONCOLOGY



















US


71


34

*

*

-



157


116

35.3%

35.3%

-




Intl


85


93

-8.6%

-4.7%

-3.9%



269


268

0.4%

-2.5%

2.9%




WW


156


127

22.8%

25.6%

-2.8%



426


384

10.9%

8.9%

2.0%




PULMONARY HYPERTENSION(4)



















US


425


371

14.6%

14.6%

-



1,215


408

*

*

-




Intl


231


261

-11.5%

-8.9%

-2.6%



691


309

*

*

 * 




WW


656


632

3.8%

4.9%

-1.1%



1,906


717

*

*

 * 




OPSUMIT



















US


182


150

21.3%

21.3%

-



511


174

*

*

-




Intl


128


109

17.4%

20.9%

-3.5%



381


130

*

*

 * 




WW


310


259

19.7%

21.2%

-1.5%



892


304

*

*

 * 




TRACLEER



















US


69


83

-16.9%

-16.9%

-



208


85

*

*

-




Intl


70


127

-44.9%

-43.6%

-1.3%



214


151

41.7%

37.5%

4.2%




WW


139


210

-33.8%

-33.0%

-0.8%



422


236

78.8%

76.1%

2.7%




UPTRAVI



















US


154


113

36.3%

36.3%

-



433


121

*

*

-




Intl


17


11

54.5%

57.3%

-2.8%



49


12

*

*

 * 




WW


171


124

37.9%

38.1%

-0.2%



482


133

*

*

 * 




OTHER



















US


20


25

-20.0%

-20.0%

-



63


28

*

*

-




Intl


16


14

14.3%

21.2%

-6.9%



47


16

*

*

 * 




WW


36


39

-7.7%

-5.2%

-2.5%



110


44

*

*

 * 




CARDIOVASCULAR / METABOLISM / OTHER



















US


1,026


1,179

-13.0%

-13.0%

-



3,230


3,488

-7.4%

-7.4%

-




Intl


365


406

-10.1%

-6.5%

-3.6%



1,196


1,177

1.6%

-1.1%

2.7%




WW


1,391


1,585

-12.2%

-11.3%

-0.9%



4,426


4,665

-5.1%

-5.8%

0.7%




XARELTO



















US


612


635

-3.6%

-3.6%

-



1,869


1,790

4.4%

4.4%

-




Intl


-


-

-

-

-



-


-

-

-

-




WW


612


635

-3.6%

-3.6%

-



1,869


1,790

4.4%

4.4%

-




INVOKANA / INVOKAMET



















US


150


220

-31.8%

-31.8%

-



523


723

-27.7%

-27.7%

-




Intl


40


45

-11.1%

-6.7%

-4.4%



130


121

7.4%

4.8%

2.6%




WW


190


265

-28.3%

-27.6%

-0.7%



653


844

-22.6%

-23.0%

0.4%




PROCRIT / EPREX



















US


178


168

6.0%

6.0%

-



523


511

2.3%

2.3%

-




Intl


77


70

10.0%

12.8%

-2.8%



244


229

6.6%

2.9%

3.7%




WW


255


238

7.1%

7.9%

-0.8%



767


740

3.6%

2.4%

1.2%




OTHER



















US


86


156

-44.9%

-44.9%

-



315


464

-32.1%

-32.1%

-




Intl


248


291

-14.8%

-11.1%

-3.7%



822


827

-0.6%

-3.1%

2.5%




WW


334


447

-25.3%

-22.9%

-2.4%



1,137


1,291

-11.9%

-13.5%

1.6%




TOTAL PHARMACEUTICAL



















US


6,097


5,816

4.8%

4.8%

-



17,350


15,698

10.5%

10.5%

-




Intl


4,249


3,879

9.5%

13.2%

-3.7%



13,194


10,877

21.3%

17.5%

3.8%




WW


$    10,346


$          9,695

6.7%

8.2%

-1.5%



$          30,544


$          26,575

14.9%

13.4%

1.5%


















See footnotes at end of schedule
















REPORTED SALES vs. PRIOR PERIOD ($MM)



THIRD QUARTER


NINE MONTHS







% Change






% Change




2018


2017

Reported

Operational (1)

Currency



2018


2017

Reported

Operational (1)

Currency


MEDICAL DEVICES SEGMENT (2)(5)

















DIABETES CARE

















US


$         125


$             168

-25.6%

-25.6%

-



$               371


$               482

-23.0%

-23.0%

-


Intl


190


237

-19.8%

-16.0%

-3.8%



638


743

-14.1%

-16.3%

2.2%


WW


315


405

-22.2%

-20.0%

-2.2%



1,009


1,225

-17.6%

-19.0%

1.4%


DIAGNOSTICS

















US


-


-

-

-

-



-


-

-

-

-


Intl


-


-

-

-

-



-


1

*

*

*


WW


-


-

-

-

-



-


1

*

*

*


INTERVENTIONAL SOLUTIONS

















US


320


279

14.7%

14.7%

0.0%



947


843

12.3%

12.3%

-


Intl


333


274

21.5%

24.1%

-2.6%



1,013


832

21.8%

17.5%

4.3%


WW


653


553

18.1%

19.4%

-1.3%



1,960


1,675

17.0%

14.9%

2.1%


ORTHOPAEDICS

















US 


1,284


1,308

-1.8%

-1.8%

-



3,923


4,034

-2.8%

-2.8%

-


Intl


827


896

-7.7%

-4.4%

-3.3%



2,700


2,738

-1.4%

-4.6%

3.2%


WW


2,111


2,204

-4.2%

-2.9%

-1.3%



6,623


6,772

-2.2%

-3.5%

1.3%


HIPS

















US


201


195

3.1%

3.1%

-



621


612

1.5%

1.5%

-


Intl


129


133

-3.0%

1.0%

-4.0%



432


418

3.3%

0.1%

3.2%


WW


330


328

0.6%

2.2%

-1.6%



1,053


1,030

2.2%

0.9%

1.3%


KNEES

















US


215


220

-2.3%

-2.3%

-



672


702

-4.3%

-4.3%

-


Intl


126


123

2.4%

6.8%

-4.4%



438


424

3.3%

0.2%

3.1%


WW


341


343

-0.6%

1.0%

-1.6%



1,110


1,126

-1.4%

-2.6%

1.2%


TRAUMA

















US


395


398

-0.8%

-0.8%

-



1,196


1,179

1.4%

1.4%

-


Intl


259


264

-1.9%

1.0%

-2.9%



829


768

7.9%

4.4%

3.5%


WW


654


662

-1.2%

0.0%

-1.2%



2,025


1,947

4.0%

2.6%

1.4%


SPINE & OTHER

















US


473


495

-4.4%

-4.4%

-



1,434


1,541

-6.9%

-6.9%

-


Intl


313


376

-16.8%

-13.9%

-2.9%



1,001


1,128

-11.3%

-14.3%

3.0%


WW


786


871

-9.8%

-8.6%

-1.2%



2,435


2,669

-8.8%

-10.1%

1.3%


SURGERY

















US


1,016


1,002

1.4%

1.4%

-



3,031


3,009

0.7%

0.7%

-


Intl


1,360


1,344

1.2%

5.6%

-4.4%



4,283


3,992

7.3%

5.0%

2.3%


WW


2,376


2,346

1.3%

3.8%

-2.5%



7,314


7,001

4.5%

3.2%

1.3%


ADVANCED

















US


421


398

5.8%

5.8%

-



1,216


1,190

2.2%

2.2%

-


Intl


555


525

5.7%

10.0%

-4.3%



1,731


1,543

12.2%

9.5%

2.7%


WW


976


923

5.7%

8.1%

-2.4%



2,947


2,733

7.8%

6.3%

1.5%


GENERAL

















US


423


430

-1.6%

-1.6%

-



1,282


1,276

0.5%

0.5%

-


Intl


657


675

-2.7%

1.6%

-4.3%



2,094


2,017

3.8%

1.5%

2.3%


WW


1,080


1,105

-2.3%

0.3%

-2.6%



3,376


3,293

2.5%

1.1%

1.4%


SPECIALTY

















US


172


174

-1.1%

-1.1%

-



533


543

-1.8%

-1.8%

-


Intl


148


144

2.8%

7.9%

-5.1%



458


432

6.0%

4.9%

1.1%


WW


320


318

0.6%

2.9%

-2.3%



991


975

1.6%

1.1%

0.5%


VISION

















US


452


432

4.6%

4.6%

-



1,351


1,142

18.3%

18.3%

-


Intl


680


659

3.2%

6.2%

-3.0%



2,069


1,802

14.8%

12.6%

2.2%


WW


1,132


1,091

3.8%

5.6%

-1.8%



3,420


2,944

16.2%

14.9%

1.3%


CONTACT LENSES / OTHER

















US


319


302

5.6%

5.6%

-



948


832

13.9%

13.9%

-


Intl


516


498

3.6%

6.4%

-2.8%



1,538


1,404

9.5%

7.4%

2.1%


WW


835


800

4.4%

6.2%

-1.8%



2,486


2,236

11.2%

9.9%

1.3%


SURGICAL

















US


133


130

2.3%

2.3%

-



403


310

30.0%

30.0%

-


Intl


164


161

1.9%

5.5%

-3.6%



531


398

33.4%

31.0%

2.4%


WW


297


291

2.1%

4.1%

-2.0%



934


708

31.9%

30.5%

1.4%



















TOTAL MEDICAL DEVICES

















US


3,197


3,189

0.3%

0.3%

-



9,623


9,510

1.2%

1.2%

-


Intl


3,390


3,410

-0.6%

3.0%

-3.6%



10,703


10,108

5.9%

3.2%

2.7%


WW


$      6,587


6,599

-0.2%

1.7%

-1.9%



$          20,326


$          19,618

3.6%

2.2%

1.4%




































* Percentage greater than 100% or not meaningful

















(1) Operational growth excludes the effect of translational currency















(2) Unaudited

















(3) Reported as U.S. sales

















(4) Products acquired from Actelion acquisition on June 16, 2017















(5) Prior year amounts have been reclassified to conform to current year product disclosure 











 

 

(PRNewsfoto/Johnson & Johnson)

 

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SOURCE Johnson & Johnson

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