10-KPeriod: FY2006

JOHNSON & JOHNSON Annual Report, Year Ended Jan 1, 2006

Filed March 14, 2006For Securities:JNJ

Summary

Johnson & Johnson's 2005 Form 10-K report highlights a robust, diversified healthcare business operating across three core segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. The company's global reach is extensive, with operations in 56 countries and a workforce of approximately 115,600 employees. A decentralized management structure allows for operational flexibility, while a strong emphasis on research and development underpins its innovation-driven strategy. The company's significant brand portfolio and its commitment to product development across various health sectors position it as a leader in the global healthcare market.

Key Highlights

  • 1Johnson & Johnson operates through three primary segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics, demonstrating a diversified revenue base.
  • 2The company has a significant global presence, with operations in 56 countries and a workforce of approximately 115,600 employees.
  • 3Key pharmaceutical products include RISPERDAL®, PROCRIT®/EPREX®, and REMICADE®, which accounted for a substantial portion of revenue.
  • 4The Consumer segment boasts well-known brands such as BAND-AID®, TYLENOL®, and NEUTROGENA®.
  • 5The Medical Devices and Diagnostics segment covers a broad range of products, including orthopaedics, surgical instruments, and diagnostic tools.
  • 6The company is actively engaged in research and development, with worldwide research costs totaling $6,312 million for fiscal year 2005.
  • 7Patent expirations for DURAGESIC® and EPREX® are noted as potential risks, with RISPERDAL®'s patent set to expire in December 2007.

Frequently Asked Questions

Johnson & Johnson operates through three main business segments: Consumer, which includes baby care, skin care, and oral care products; Pharmaceutical, which focuses on prescription drugs across various therapeutic areas; and Medical Devices and Diagnostics, offering products for surgery, orthopaedics, cardiovascular health, and diagnostics.

Key pharmaceutical products highlighted include RISPERDAL® (for schizophrenia), PROCRIT®/EPREX® (stimulates red blood cell production), REMICADE® (for autoimmune diseases), TOPAMAX® (anti-epileptic), DURAGESIC® (pain management), LEVAQUIN® (anti-infective), ORTHO EVRA® (contraceptive patch), and CONCERTA® (ADHD treatment).

Johnson & Johnson places a strong emphasis on research and development across all its segments. In fiscal year 2005, worldwide company-sponsored research activities amounted to $6,312 million, reflecting a commitment to developing new products and improving existing ones.

Yes, the report mentions that DURAGESIC® and EPREX® have already lost or will soon lose their basic patent protection, leading to generic competition. RISPERDAL®, a significant product, has its U.S. patent scheduled to expire in December 2007, with a potential for a pediatric extension.