Johnson & Johnson Reports 2017 Third-Quarter Results

Johnson & Johnson Reports 2017 Third-Quarter Results

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NEW BRUNSWICK, N.J.Oct. 17, 2017 /PRNewswire/ — Johnson & Johnson (NYSE: JNJ) today announced sales of $19.7 billion for the third quarter of 2017, an increase of 10.3% as compared to the third quarter of 2016. Operational sales results increased 9.5% and the positive impact of currency was 0.8%. Domestic sales increased 9.7%. International sales increased 10.9%, reflecting operational growth of 9.3% and a positive currency impact of 1.6%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide, domestic and international sales each increased 3.8%.*

 Net earnings and diluted earnings per share for the third quarter of 2017 were $3.8 billion and $1.37, respectively. 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. Third-quarter 2016 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a charge for after-tax special items of approximately $0.2 billion. Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $5.2 billion and adjusted diluted earnings per share were $1.90, representing increases of 11.2% and 13.1%, respectively, as compared to the same period in 2016.* On an operational basis, adjusted diluted earnings per share also increased 10.1%.A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

“Johnson & Johnson accelerated growth in the third quarter.  This is driven by the strong performance of our Pharmaceutical business, and augmented by Actelion and other recent acquisitions across the enterprise that will continue to fuel growth,” said Alex Gorsky, Chairman and Chief Executive Officer. “Our dedicated colleagues continue to focus on advancing our pipelines to bring innovative solutions to patients and consumers around the globe.”

The Company increased its sales guidance for the full-year 2017 to a range of $76.1 billion to $76.5 billion. Additionally, the Company increased its adjusted earnings guidance for full-year 2017 to $7.25 – $7.30 per share.*

Worldwide Consumer sales of $3.4 billion for the third quarter 2017 represented an increase of 2.9% versus the prior year, consisting of an operational increase of 1.6% and a positive impact from currency of 1.3%. Domestic sales decreased 0.5%, international sales increased 5.1%, which reflected an operational increase of 3.0% and a positive currency impact of 2.1%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.1%, domestic sales decreased 0.7% and international sales increased 2.3%*.

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by over-the-counter products primarily TYLENOL® analgesic products and international smoking cessation aids; as well as OGX® and NEUTROGENA® beauty products partially offset by the negative impact of domestic baby care products.

During the quarter, the divestiture of COMPEED® to HRA Pharma was completed.

Worldwide Pharmaceutical sales of $9.7 billion for the third quarter 2017 represented an increase of 15.4% versus the prior year with an operational increase of 14.6% and a positive impact from currency of 0.8%. Domestic sales increased 15.4%; international sales increased 15.5%, which reflected an operational increase of 13.5% and a positive currency impact of 2.0%. Sales included the impact of the first full quarter of the acquisition of Actelion Ltd. which contributed 7.9%, to worldwide operational sales growth. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 6.7%, domestic sales increased 7.7% and international sales increased 5.1%.*

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by new products and the strength of core products. Strong growth in new products include DARZALEX® (daratumumab), for the treatment of patients with multiple myeloma and IMBRUVICA® (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer.  Additional contributors to operational sales growth included STELARA® (ustekinumab), a biologic for the treatment of  a number of immune-mediated inflammatory diseases, XARELTO® (rivaroxaban), an oral anticoagulant, ZYTIGA®  (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer and INVEGA® SUSTENNA®/XEPLION®/TRINZA® (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults.

During the quarter, the U.S. Food and Drug Administration (FDA) approved an additional indication for IMBRUVICA®(ibrutinib) for the treatment of adult patients with chronic graft-versus-host-disease after failure of one or more lines of systemic therapy.  The European Commission granted approval for SYMTUZA® (darunavir/cobicistat/ emtricitabine/tenofovir alafenamide) for the treatment of human immunodeficiency virus type 1 (HIV-1) infection in adults and pediatric patients aged 12 years and older.

New Drug Applications were submitted to the FDA for apalutamide, an oral androgen receptor inhibitor for men with non-metastatic castration-resistant prostate cancer and also for darunavir/cobicistat/emtricitabine/tenofovir alafenamide for the treatment of HIV-1 infection in adults and pediatric patients aged 12 years and older.   In addition, a supplemental New Drug Application (sNDA) was submitted to the FDA to expand the indication for ZYTIGA®(abiraterone acetate), in combination with prednisone and ADT to include treatment of patients with high-risk metastatic hormone naïve prostate cancer or newly diagnosed, high-risk metastatic hormone sensitive prostate cancer.

The Company has made a decision not to pursue global approvals of sirukumab for the treatment of moderately to severely active rheumatoid arthritis.  In addition, the clinical trial for talacotuzumab, an investigational compound being studied in patients with acute myeloid leukemia, has been discontinued.

Worldwide Medical Devices sales of $6.6 billion for the third quarter 2017 represented an increase of 7.1% versus the prior year consisting of an operational increase of 6.6% and a positive currency impact of 0.5%. Domestic sales increased 4.6%; international sales increased 9.6%, which reflected an operational increase of 8.6% and a positive currency impact of 1.0%. Sales included the impact of the acquisition of Abbott Medical Optics which contributed 5.2%, to worldwide operational sales growth. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.2%, domestic sales decreased 0.8% and international sales increased 3.2%.*

Worldwide operational results, excluding the net impact of acquisitions and divestitures, were driven by electrophysiology products in the Cardiovascular business, ACUVUE® contact lenses in the Vision Care business, and wound closure products in the General Surgery business, partially offset by declines in the Diabetes Care business.

During the quarter, the acquisitions of TearScience, Inc., a manufacturer of products dedicated to treating meibomian gland dysfunction and Sightbox, Inc., an e-commerce company that provides subscription vision care services connecting consumers with eye care professionals for their contact lens needs, were completed.

Subsequent to the quarter, the Company announced the completion of the divestiture of its Codman Neurosurgery business to Integra LifeSciences Holding Corporation.

About Johnson & Johnson

Caring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. We embrace research and science – bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 134,100 employees at more than 250 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* 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 and financial market factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures, including the Company’s ability to successfully integrate Actelion Ltd.’s products and operations and realize the expected benefits and opportunities of the transaction in the expected time frame or at all; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; 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; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government agencies; and the potential failure to meet obligations in compliance agreements with government bodies. 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 January 1, 2017, including under “Item 1A. Risk Factors,” its most recently filed Quarterly Report on Form 10-Q, including in the section captioned “Cautionary Note Regarding Forward-Looking Statements,” and the company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.govwww.investor.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

2017

2016

Total

Operations

Currency

2017

2016

Total

Operations

Currency

Sales to customers by

segment of business

Consumer

    U.S.

$   1,285

$   1,291

(0.5)

%

(0.5)

$   4,186

$   4,033

3.8

%

3.8

    International

2,071

1,970

5.1

3.0

2.1

5,876

5,842

0.6

0.2

0.4

3,356

3,261

2.9

1.6

1.3

10,062

9,875

1.9

1.6

0.3

Pharmaceutical

    U.S.

5,816

5,042

15.4

15.4

15,698

15,123

3.8

3.8

    International

3,879

3,358

15.5

13.5

2.0

10,877

10,109

7.6

8.4

(0.8)

9,695

8,400

15.4

14.6

0.8

26,575

25,232

5.3

5.6

(0.3)

Medical Devices

    U.S.

3,189

3,048

4.6

4.6

9,510

9,118

4.3

4.3

    International

3,410

3,111

9.6

8.6

1.0

10,108

9,559

5.7

6.3

(0.6)

6,599

6,159

7.1

6.6

0.5

19,618

18,677

5.0

5.3

(0.3)

U.S.

10,290

9,381

9.7

9.7

29,394

28,274

4.0

4.0

International

9,360

8,439

10.9

9.3

1.6

26,861

25,510

5.3

5.8

(0.5)

Worldwide

$ 19,650

$ 17,820

10.3

%

9.5

0.8

$ 56,255

$ 53,784

4.6

%

4.8

(0.2)

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions)

THIRD QUARTER

NINE MONTHS

Percent Change

Percent Change

2017

2016

Total

Operations

Currency

2017

2016

Total

Operations

Currency

Sales to customers by

geographic area

U.S.

$ 10,290

$   9,381

9.7

%

9.7

$ 29,394

$ 28,274

4.0

%

4.0

Europe

4,308

3,832

12.4

7.9

4.5

12,398

11,769

5.3

6.2

(0.9)

Western Hemisphere excluding U.S.

1,569

1,396

12.4

10.1

2.3

4,522

4,269

5.9

3.1

2.8

Asia-Pacific, Africa

3,483

3,211

8.5

10.6

(2.1)

9,941

9,472

5.0

6.4

(1.4)

International

9,360

8,439

10.9

9.3

1.6

26,861

25,510

5.3

5.8

(0.5)

Worldwide

$ 19,650

$ 17,820

10.3

%

9.5

0.8

$ 56,255

$ 53,784

4.6

%

4.8

(0.2)

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings 

(Unaudited; in Millions Except Per Share Figures)

THIRD QUARTER

2017

2016

Percent

Percent

Percent

Increase

Amount

to Sales

Amount

to Sales

(Decrease)

Sales to customers

$    19,650

100.0

$    17,820

100.0

10.3

Cost of products sold

6,902

35.1

5,486

30.8

25.8

Selling, marketing and administrative expenses

5,396

27.5

4,772

26.8

13.1

Research and development expense

2,574

13.1

2,178

12.2

18.2

Interest (income) expense, net

155

0.8

95

0.5

Other (income) expense, net

(236)

(1.2)

(54)

(0.2)

Restructuring

69

0.3

62

0.3

Earnings before provision for taxes on income

4,790

24.4

5,281

29.6

(9.3)

Provision for taxes on income

1,026

5.2

1,009

5.6

1.7

Net earnings

$      3,764

19.2

$      4,272

24.0

(11.9)

Net earnings per share (Diluted)

$        1.37

$        1.53

(10.5)

Average shares outstanding (Diluted)

2,737.7

2,785.4

Effective tax rate

21.4

%

19.1

%

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

Earnings before provision for taxes on income

$      6,573

33.5

$      5,831

32.7

12.7

Net earnings

$      5,208

26.5

$      4,683

26.3

11.2

Net earnings per share (Diluted)

$        1.90

$        1.68

13.1

Effective tax rate

20.8

%

19.7

%

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

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings 

(Unaudited; in Millions Except Per Share Figures)

NINE MONTHS

2017

2016

Percent

Percent

Percent

Increase

Amount

to Sales

Amount

to Sales

(Decrease)

Sales to customers

$    56,255

100.0

$    53,784

100.0

4.6

Cost of products sold

18,111

32.2

16,151

30.0

12.1

Selling, marketing and administrative expenses

15,395

27.4

14,636

27.2

5.2

Research and development expense

6,919

12.3

6,455

12.0

7.2

In-process research and development

29

0.1

Interest (income) expense, net

360

0.6

274

0.5

Other (income) expense, net

192

0.3

464

0.9

Restructuring

165

0.3

296

0.5

Earnings before provision for taxes on income

15,113

26.9

15,479

28.8

(2.4)

Provision for taxes on income

3,100

5.5

2,753

5.1

12.6

Net earnings

$    12,013

21.4

$    12,726

23.7

(5.6)

Net earnings per share (Diluted)

$        4.37

$        4.55

(4.0)

Average shares outstanding (Diluted)

2,746.4

2,796.6

Effective tax rate

20.5

%

17.8

%

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

Earnings before provision for taxes on income

$    18,961

33.7

$    17,656

32.8

7.4

Net earnings

$    15,263

27.1

$    14,403

26.8

6.0

Net earnings per share (Diluted)

$        5.56

$        5.15

8.0

Effective tax rate

19.5

%

18.4

%

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

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Third Quarter

% Incr. /

Nine Months YTD

% Incr. /

(Dollars in Millions Except Per Share Data)

2017

2016

(Decr.)

2017

2016

(Decr.)

Earnings before provision for taxes on income – as reported

$ 4,790

5,281

(9.3)

%

$ 15,113

15,479

(2.4)

%

Intangible asset amortization expense

1,077

319

1,886

927

Litigation expense, net

118

55

611

721

Restructuring/Other (1)

187

109

476

387

Actelion acquisition related cost

367

580

Diabetes asset impairment

(2)

180

AMO acquisition related cost

36

115

In-process research and development

29

Other

67

113

Earnings before provision for taxes on income – as adjusted

$ 6,573

5,831

12.7

%

$ 18,961

17,656

7.4

%

Net Earnings – as reported

$ 3,764

4,272

(11.9)

%

$ 12,013

12,726

(5.6)

%

Intangible asset amortization expense

933

236

1,555

679

Litigation expense, net

97

46

449

595

Restructuring/Other

136

76

358

293

Actelion acquisition related cost

255

454

Diabetes asset impairment

(5)

120

AMO acquisition related cost

28

314

In-process research and development

23

Other

53

87

Net Earnings – as adjusted 

$ 5,208

4,683

11.2

%

$ 15,263

14,403

6.0

%

Diluted Net Earnings per share – as reported

$   1.37

1.53

(10.5)

%

$     4.37

4.55

(4.0)

%

Intangible asset amortization expense

0.34

0.08

0.57

0.24

Litigation expense, net

0.04

0.02

0.16

0.21

Restructuring/Other

0.05

0.03

0.14

0.11

Actelion acquisition related cost

0.09

0.16

Diabetes asset impairment

0.05

AMO acquisition related cost

0.01

0.11

In-process research and development

0.01

Other

0.02

0.03

Diluted Net Earnings per share – as adjusted 

$   1.90

1.68

13.1

%

$     5.56

5.15

8.0

%

Operational Diluted Net Earnings per share – as adjusted at
2015 foreign currency exchange rates

1.68

5.19

Impact of currency at 2016 foreign currency exchange rates

(0.05)

0.01

(0.04)

Operational Diluted Net Earnings per share – as adjusted at
2016 foreign currency exchange rates

$   1.85

1.68

10.1

%

$     5.57

5.15

8.2

%

(1) 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.  Includes $3M recorded in cost of products sold and $44M recorded in other (income) expense for the 

third quarter 2016.  Includes $27M recorded in cost of products sold and $64M recorded in other (income) expense for nine months 2016 YTD.

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Operational Sales Growth Excluding Acquisitions and Divestitures

 THIRD QUARTER 2017 ACTUAL vs. 2016 ACTUAL 

 Segments 

 Consumer 

 Pharmaceutical 

 Medical Devices 

 Total 

Operational %(1)

 WW As Reported: 

1.6%

14.6%

6.6%

9.5%

 U.S. 

(0.5)%

15.4%

4.6%

9.7%

 International 

3.0%

13.5%

8.6%

9.3%

Beauty

Dr. Ci: Labo

(0.6)

(0.1)

 U.S. 

0.0

0.0

 International 

(1.0)

(0.2)

Vision Care

Abbott Medical Optics

(5.2)

(1.8)

 U.S. 

(4.6)

(1.5)

 International 

(5.7)

(2.1)

Pulmonary Hypertension

Actelion

(7.9)

(3.7)

 U.S. 

(7.7)

(4.1)

 International 

(8.4)

(3.3)

All Other Acquisitions and Divestitures

0.1

(0.2)

(0.1)

 U.S. 

(0.2)

(0.8)

(0.3)

 International 

0.3

0.3

0.1

WW Ops excluding Acquisitions and Divestitures

1.1%

6.7%

1.2%

3.8%

 U.S. 

(0.7)%

7.7%

(0.8)%

3.8%

 International 

2.3%

5.1%

3.2%

3.8%

(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 2017 ACTUAL vs. 2016 ACTUAL 

 Segments 

 Consumer 

 Pharmaceutical 

 Medical Devices 

 Total 

Operational %(1)

 WW As Reported: 

1.6%

5.6%

5.3%

4.8%

 U.S. 

3.8%

3.8%

4.3%

4.0%

 International 

0.2%

8.4%

6.3%

5.8%

Beauty

Vogue

(1.9)

(0.4)

 U.S. 

(4.1)

(0.6)

 International 

(0.5)

(0.1)

Other Neuroscience

Controlled Substance Raw Material and API Business

0.5

0.2

 U.S. 

0.6

0.3

 International 

0.3

0.1

Diagnostics

Ortho-Clinical Diagnostics

0.4

0.1

 U.S. 

0.0

0.0

 International 

0.8

0.3

Beauty

Dr. Ci: Labo 

(0.3)

(0.1)

 U.S. 

0.0

0.0

 International 

(0.5)

(0.1)

Vision Care

Abbott Medical Optics

(4.1)

(1.4)

 U.S. 

(3.7)

(1.2)

 International 

(4.6)

(1.7)

Pulmonary Hypertension

Actelion

(3.0)

(1.4)

 U.S. 

(2.8)

(1.5)

 International 

(3.3)

(1.3)

All Other Acquisitions and Divestitures

(0.1)

(0.3)

0.0

 U.S. 

(0.4)

(0.7)

(0.3)

 International 

0.2

0.2

0.0

WW Ops excluding Acquisitions and Divestitures

(0.7)%

3.1%

1.3%

1.8%

 U.S. 

(0.7)%

1.6%

(0.1)%

0.7%

 International 

(0.6)%

5.4%

2.7%

3.0%

(1) Operational growth excludes the effect of translational currency

THIRD QUARTER

NINE MONTHS

% Change

% Change

2017

2016

Reported

Operational (1)

Currency

2017

2016

Reported

Operational (1)

Currency

CONSUMER SEGMENT (2) (3)

BABY CARE

US

$           100

$               118

-15.3%

-15.3%

$                  326

$                  365

-10.7%

-10.7%

Intl

377

377

0.0%

0.0%

0.0%

1,100

1,143

-3.8%

-3.8%

0.0%

WW

477

495

-3.6%

-3.6%

0.0%

1,426

1,508

-5.4%

-5.4%

0.0%

BEAUTY

US

523

517

1.2%

1.2%

1,739

1,555

11.8%

11.8%

Intl

510

462

10.4%

8.0%

2.4%

1,351

1,279

5.6%

5.4%

0.2%

WW

1,033

979

5.5%

4.4%

1.1%

3,090

2,834

9.0%

8.9%

0.1%

ORAL CARE

US

154

156

-1.3%

-1.3%

460

485

-5.2%

-5.2%

Intl

228

227

0.4%

-1.4%

1.8%

678

686

-1.2%

-1.6%

0.4%

WW

382

383

-0.3%

-1.3%

1.0%

1,138

1,171

-2.8%

-3.0%

0.2%

OTC

US

401

386

3.9%

3.9%

1,310

1,257

4.2%

4.2%

Intl

601

557

7.9%

4.7%

3.2%

1,711

1,681

1.8%

1.4%

0.4%

WW

1,002

943

6.3%

4.4%

1.9%

3,021

2,938

2.8%

2.6%

0.2%

WOMEN’S HEALTH

US

3

3

0.0%

0.0%

9

16

-43.8%

-43.8%

Intl

267

266

0.4%

-1.9%

2.3%

779

787

-1.0%

-2.6%

1.6%

WW

270

269

0.4%

-1.8%

2.2%

788

803

-1.9%

-3.5%

1.6%

WOUND CARE / OTHER

US

104

111

-6.3%

-6.3%

342

355

-3.7%

-3.7%

Intl

88

81

8.6%

5.9%

2.7%

257

266

-3.4%

-4.0%

0.6%

WW

192

192

0.0%

-1.2%

1.2%

599

621

-3.5%

-3.8%

0.3%

TOTAL CONSUMER

US

1,285

1,291

-0.5%

-0.5%

4,186

4,033

3.8%

3.8%

Intl

2,071

1,970

5.1%

3.0%

2.1%

5,876

5,842

0.6%

0.2%

0.4%

WW

$        3,356

$            3,261

2.9%

1.6%

1.3%

$             10,062

$               9,875

1.9%

1.6%

0.3%

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

NINE MONTHS

% Change

% Change

2017

2016

Reported

Operational (1)

Currency

2017

2016

Reported

Operational (1)

Currency

PHARMACEUTICAL SEGMENT (2) (3)

IMMUNOLOGY

US

$        2,420

$            2,294

5.5%

5.5%

$               6,644

$               6,689

-0.7%

-0.7%

Intl

849

790

7.5%

4.9%

2.6%

2,514

2,343

7.3%

7.3%

0.0%

WW

3,269

3,084

6.0%

5.3%

0.7%

9,158

9,032

1.4%

1.4%

0.0%

  REMICADE

  US 

1,206

1,222

-1.3%

-1.3%

3,452

3,669

-5.9%

-5.9%

  US Exports (4)

156

255

-38.8%

-38.8%

448

673

-33.4%

-33.4%

  Intl

285

306

-6.9%

-10.2%

3.3%

949

1,000

-5.1%

-5.9%

0.8%

  WW

1,647

1,783

-7.6%

-8.2%

0.6%

4,849

5,342

-9.2%

-9.4%

0.2%

  SIMPONI / SIMPONI ARIA

  US

242

256

-5.5%

-5.5%

701

716

-2.1%

-2.1%

  Intl

234

225

4.0%

3.2%

0.8%

642

603

6.5%

6.6%

-0.1%

  WW

476

481

-1.0%

-1.4%

0.4%

1,343

1,319

1.8%

1.9%

-0.1%

  STELARA

  US

800

561

42.6%

42.6%

2,027

1,631

24.3%

24.3%

  Intl

324

253

28.1%

24.7%

3.4%

903

722

25.1%

26.1%

-1.0%

  WW

1,124

814

38.1%

37.0%

1.1%

2,930

2,353

24.5%

24.8%

-0.3%

  OTHER IMMUNOLOGY

  US

16

*

*

16

*

*

  Intl

6

6

20

18

11.1%

9.4%

1.7%

  WW

22

6

*

*

36

18

100.0%

98.3%

1.7%

INFECTIOUS DISEASES

US

353

387

-8.8%

-8.8%

1,020

1,107

-7.9%

-7.9%

Intl

460

455

1.1%

-2.3%

3.4%

1,334

1,340

-0.4%

-0.4%

0.0%

WW

813

842

-3.4%

-5.3%

1.9%

2,354

2,447

-3.8%

-3.8%

0.0%

  EDURANT

  US

15

13

15.4%

15.4%

44

38

15.8%

15.8%

  Intl

179

136

31.6%

26.0%

5.6%

478

370

29.2%

28.9%

0.3%

  WW

194

149

30.2%

25.1%

5.1%

522

408

27.9%

27.7%

0.2%

  PREZISTA / PREZCOBIX / REZOLSTA

  US

287

310

-7.4%

-7.4%

824

860

-4.2%

-4.2%

  Intl

180

183

-1.6%

-5.5%

3.9%

527

544

-3.1%

-2.7%

-0.4%

  WW

467

493

-5.3%

-6.7%

1.4%

1,351

1,404

-3.8%

-3.7%

-0.1%

  OTHER INFECTIOUS DISEASES

  US

51

64

-20.3%

-20.3%

152

209

-27.3%

-27.3%

  Intl

101

136

-25.7%

-26.4%

0.7%

329

426

-22.8%

-23.1%

0.3%

  WW

152

200

-24.0%

-24.5%

0.5%

481

635

-24.3%

-24.5%

0.2%

See footnotes at end of schedule

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

NINE MONTHS

% Change

% Change

2017

2016

Reported

Operational (1)

Currency

2017

2016

Reported

Operational (1)

Currency

NEUROSCIENCE

US

647

622

4.0%

4.0%

1,931

1,997

-3.3%

-3.3%

Intl

851

842

1.1%

0.6%

0.5%

2,531

2,618

-3.3%

-2.2%

-1.1%

WW

1,498

1,464

2.3%

2.0%

0.3%

4,462

4,615

-3.3%

-2.7%

-0.6%

  CONCERTA / METHYLPHENIDATE

  US

100

102

-2.0%

-2.0%

284

365

-22.2%

-22.2%

  Intl

98

88

11.4%

10.5%

0.9%

304

294

3.4%

4.1%

-0.7%

  WW

198

190

4.2%

3.8%

0.4%

588

659

-10.8%

-10.5%

-0.3%

  INVEGA SUSTENNA / XEPLION / TRINZA

  US

395

339

16.5%

16.5%

1,154

983

17.4%

17.4%

  Intl

248

217

14.3%

11.0%

3.3%

722

646

11.8%

12.8%

-1.0%

  WW

643

556

15.6%

14.3%

1.3%

1,876

1,629

15.2%

15.6%

-0.4%

  RISPERDAL CONSTA

  US

87

94

-7.4%

-7.4%

273

289

-5.5%

-5.5%

  Intl

107

128

-16.4%

-18.0%

1.6%

335

394

-15.0%

-14.0%

-1.0%

  WW

194

222

-12.6%

-13.5%

0.9%

608

683

-11.0%

-10.4%

-0.6%

  OTHER NEUROSCIENCE

  US

65

87

-25.3%

-25.3%

220

360

-38.9%

-38.9%

  Intl

398

409

-2.7%

-1.4%

-1.3%

1,170

1,284

-8.9%

-7.7%

-1.2%

  WW

463

496

-6.7%

-5.6%

-1.1%

1,390

1,644

-15.5%

-14.5%

-1.0%

ONCOLOGY

US

846

622

36.0%

36.0%

2,207

1,740

26.8%

26.8%

Intl

1,052

895

17.5%

15.2%

2.3%

3,012

2,605

15.6%

16.8%

-1.2%

WW

1,898

1,517

25.1%

23.8%

1.3%

5,219

4,345

20.1%

20.8%

-0.7%

  DARZALEX

  US

230

124

85.5%

85.5%

643

320

*

*

  Intl

87

39

*

*

*

228

52

*

*

*

  WW

317

163

94.5%

92.0%

2.5%

871

372

*

*

*

  IMBRUVICA

  US

230

179

28.5%

28.5%

622

455

36.7%

36.7%

  Intl

282

170

65.9%

61.8%

4.1%

749

450

66.4%

67.7%

-1.3%

  WW

512

349

46.7%

44.7%

2.0%

1,371

905

51.5%

52.1%

-0.6%

  VELCADE

  US

  Intl

273

304

-10.2%

-11.2%

1.0%

843

950

-11.3%

-9.8%

-1.5%

  WW

273

304

-10.2%

-11.2%

1.0%

843

950

-11.3%

-9.8%

-1.5%

  ZYTIGA

  US

352

282

24.8%

24.8%

826

840

-1.7%

-1.7%

  Intl

317

300

5.7%

4.4%

1.3%

924

901

2.6%

3.5%

-0.9%

  WW

669

582

14.9%

14.2%

0.7%

1,750

1,741

0.5%

1.0%

-0.5%

  OTHER ONCOLOGY

  US

34

37

-8.1%

-8.1%

116

125

-7.2%

-7.2%

  Intl

93

82

13.4%

11.1%

2.3%

268

252

6.3%

7.3%

-1.0%

  WW

127

119

6.7%

5.1%

1.6%

384

377

1.9%

2.6%

-0.7%

PULMONARY HYPERTENSION(5)

US

387

*

*

427

*

*

Intl

283

*

*

334

*

*

WW

670

*

*

761

*

*

  OPSUMIT

  US

150

*

*

174

*

*

  Intl

109

*

*

130

*

*

  WW

259

*

*

304

*

*

  TRACLEER

  US

83

*

*

85

*

*

  Intl

127

*

*

151

*

*

  WW

210

*

*

236

*

*

  UPTRAVI

  US

113

*

*

121

*

*

  Intl

11

*

*

12

*

*

  WW

124

*

*

133

*

*

  OTHER 

  US

41

*

*

47

*

*

  Intl

36

*

*

41

*

*

  WW

77

*

*

88

*

*

CARDIOVASCULAR / METABOLISM / OTHER

US

1,163

1,117

4.1%

4.1%

3,469

3,590

-3.4%

-3.4%

Intl

384

376

2.1%

1.0%

1.1%

1,152

1,203

-4.2%

-2.2%

-2.0%

WW

1,547

1,493

3.6%

3.3%

0.3%

4,621

4,793

-3.6%

-3.1%

-0.5%

  XARELTO

  US

635

529

20.0%

20.0%

1,790

1,690

5.9%

5.9%

  Intl

  WW

635

529

20.0%

20.0%

1,790

1,690

5.9%

5.9%

  INVOKANA / INVOKAMET

  US

220

294

-25.2%

-25.2%

723

939

-23.0%

-23.0%

  Intl

45

34

32.4%

31.6%

0.8%

121

97

24.7%

26.5%

-1.8%

  WW

265

328

-19.2%

-19.3%

0.1%

844

1,036

-18.5%

-18.3%

-0.2%

  PROCRIT / EPREX

  US

168

168

0.0%

0.0%

511

581

-12.0%

-12.0%

  Intl

70

82

-14.6%

-17.6%

3.0%

229

265

-13.6%

-13.3%

-0.3%

  WW

238

250

-4.8%

-5.8%

1.0%

740

846

-12.5%

-12.4%

-0.1%

  OTHER

  US

140

126

11.1%

11.1%

445

380

17.1%

17.1%

  Intl

269

260

3.5%

2.9%

0.6%

802

841

-4.6%

-2.1%

-2.5%

  WW

409

386

6.0%

5.6%

0.4%

1,247

1,221

2.1%

3.8%

-1.7%

TOTAL PHARMACEUTICAL

US

5,816

5,042

15.4%

15.4%

15,698

15,123

3.8%

3.8%

Intl

3,879

3,358

15.5%

13.5%

2.0%

10,877

10,109

7.6%

8.4%

-0.8%

WW

$        9,695

8,400

15.4%

14.6%

0.8%

$             26,575

25,232

5.3%

5.6%

-0.3%

See footnotes at end of schedule

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

NINE MONTHS

% Change

% Change

MEDICAL DEVICES SEGMENT (2)

2017

2016

Reported

Operational (1)

Currency

2017

2016

Reported

Operational (1)

Currency

CARDIOVASCULAR

US

$           261

235

11.1%

11.1%

$                  785

701

12.0%

12.0%

Intl

245

216

13.4%

13.9%

-0.5%

743

663

12.1%

13.5%

-1.4%

WW

506

451

12.2%

12.5%

-0.3%

1,528

1,364

12.0%

12.7%

-0.7%

DIABETES CARE

US

168

191

-12.0%

-12.0%

482

548

-12.0%

-12.0%

Intl

237

236

0.4%

-2.6%

3.0%

743

779

-4.6%

-4.6%

0.0%

WW

405

427

-5.2%

-6.9%

1.7%

1,225

1,327

-7.7%

-7.7%

0.0%

DIAGNOSTICS

US

Intl

7

*

*

*

1

66

*

*

*

WW

7

*

*

*

1

66

*

*

*

ORTHOPAEDICS

US 

1,326

1,343

-1.3%

-1.3%

4,092

4,099

-0.2%

-0.2%

Intl

925

908

1.9%

0.0%

1.9%

2,827

2,848

-0.7%

-0.2%

-0.5%

WW

2,251

2,251

0.0%

-0.8%

0.8%

6,919

6,947

-0.4%

-0.2%

-0.2%

  HIPS

  US

195

190

2.6%

2.6%

612

590

3.7%

3.7%

  Intl

133

130

2.3%

-0.1%

2.4%

418

421

-0.7%

-0.1%

-0.6%

  WW

328

320

2.5%

1.5%

1.0%

1,030

1,011

1.9%

2.2%

-0.3%

  KNEES

  US

220

223

-1.3%

-1.3%

702

696

0.9%

0.9%

  Intl

123

132

-6.8%

-9.5%

2.7%

424

433

-2.1%

-1.4%

-0.7%

  WW

343

355

-3.4%

-4.4%

1.0%

1,126

1,129

-0.3%

0.0%

-0.3%

  TRAUMA

  US

398

389

2.3%

2.3%

1,179

1,151

2.4%

2.4%

  Intl

264

248

6.5%

4.6%

1.9%

768

764

0.5%

0.8%

-0.3%

  WW

662

637

3.9%

3.1%

0.8%

1,947

1,915

1.7%

1.8%

-0.1%

  SPINE & OTHER

  US

513

541

-5.2%

-5.2%

1,599

1,662

-3.8%

-3.8%

  Intl

405

398

1.8%

0.3%

1.5%

1,217

1,230

-1.1%

-0.5%

-0.6%

  WW

918

939

-2.2%

-2.8%

0.6%

2,816

2,892

-2.6%

-2.3%

-0.3%

SURGERY

US

1,002

1,002

0.0%

0.0%

3,009

3,003

0.2%

0.2%

Intl

1,344

1,282

4.8%

3.7%

1.1%

3,992

3,906

2.2%

2.9%

-0.7%

WW

2,346

2,284

2.7%

2.1%

0.6%

7,001

6,909

1.3%

1.7%

-0.4%

  ADVANCED

  US

398

390

2.1%

2.1%

1,190

1,131

5.2%

5.2%

  Intl

525

494

6.3%

5.3%

1.0%

1,543

1,478

4.4%

5.4%

-1.0%

  WW

923

884

4.4%

3.9%

0.5%

2,733

2,609

4.8%

5.3%

-0.5%

  GENERAL

  US

430

414

3.9%

3.9%

1,276

1,254

1.8%

1.8%

  Intl

675

649

4.0%

2.8%

1.2%

2,017

2,006

0.5%

1.1%

-0.6%

  WW

1,105

1,063

4.0%

3.2%

0.8%

3,293

3,260

1.0%

1.4%

-0.4%

  SPECIALTY

  US

174

198

-12.1%

-12.1%

543

618

-12.1%

-12.1%

  Intl

144

139

3.6%

2.8%

0.8%

432

422

2.4%

2.1%

0.3%

  WW

318

337

-5.6%

-5.9%

0.3%

975

1,040

-6.3%

-6.4%

0.1%

VISION CARE

US

432

277

56.0%

56.0%

1,142

767

48.9%

48.9%

Intl

659

462

42.6%

43.9%

-1.3%

1,802

1,297

38.9%

39.8%

-0.9%

WW

1,091

739

47.6%

48.4%

-0.8%

2,944

2,064

42.6%

43.2%

-0.6%

  CONTACT LENSES / OTHER

  US

302

277

9.0%

9.0%

832

767

8.5%

8.5%

  Intl

498

462

7.8%

9.1%

-1.3%

1,404

1,297

8.2%

9.1%

-0.9%

  WW

800

739

8.3%

9.1%

-0.8%

2,236

2,064

8.3%

8.9%

-0.6%

  SURGICAL

  US

130

*

*

310

*

*

  Intl

161

*

*

398

*

*

  WW

291

*

*

708

*

*

TOTAL MEDICAL DEVICES

US

3,189

3,048

4.6%

4.6%

9,510

9,118

4.3%

4.3%

Intl

3,410

3,111

9.6%

8.6%

1.0%

10,108

9,559

5.7%

6.3%

-0.6%

WW

$        6,599

6,159

7.1%

6.6%

0.5%

$             19,618

18,677

5.0%

5.3%

-0.3%

* Percentage greater than 100% or not meaningful

(1) Operational growth excludes the effect of translational currency

(2) Unaudited

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

(4) Reported as U.S. sales

(5) Actelion acquisition completed June 16, 2017

 

SOURCE Johnson & Johnson

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