Ashley Cooper

1

• Ashley Cooper
• Jeffrey Eyster
• Craig Kinmon
• Adam Markashevsky
• Carter McLennan
• Massiel Parra

2
Business Summary

• Credo We believe our first responsibility is to
  the doctors, nurses and patients, to mothers and
  fathers and all others who use our products and
  services. In meeting their needs everything we do
  must be of high quality....
• Incorporated in 1887, Johnson Johnson has
  definitely complied with its promise of offering
  high quality products and meeting all
  expectations a quality business should uphold.
• 1886 ,the Johnson brothers introduced its first
  product, the famous Johnsons Baby Powder.
• It has become one of Americas most admired
  companies and is one of the largest healthcare
  firms in the world and one of the most
  diversified. Its operations are organized into
  three business segments Pharmaceutical, medical
  devices and diagnostics, and consumer products.
• 44 of the company sales are focused on the
  pharmaceutical aspect in 2006. The next largest
  portion of the company is the medical devices and
  diagnostic segment accounting for 38 of the
  sales. The net sales for 2006 were 53.3 Billion
  dollars up from 50.5 in 2005.
• Corporate headquarter is located in New Jersey,
  but research facilities and branches are
  dispersed throughout the world.
• Johnson and Johnson, a publically traded company
  on the New York Stock Exchange, historically
  contains a consistent and steady stock growth and
  is a company worthy of any investment.

3
Principal Global Businesses

• Johnson Johnson ships products to over 40
  principles businesses worldwide
• They ship products in 3 different segments
  Pharmaceutical, medical devices and diagnostics,
  and consumer products
• Over 20 brand name consumer products
• Over 10 brand name medical devices and
  diagnostics products
• Over 20 brand name pharmaceutical products

4
Business/Industry Segments

• Consumer goods9.8billion sales (18of JNJ
  total) 1.4billion operating profit (9of JNJ
  total)Pharmaceutical 23.3billion sales
  (43of JNJ total)6.9billion operating profit
  (47of JNJ total)Medical devices 21.1
  billion sales (39of JNJ total) 6.4billion
  operating profit (44of JNJ total)

5
Other Businesses

• JJ Development Corporation
• JJ Gateway, LLC
• JJ Vision Care, Inc.
• JJ Pharmaceutical Research Development, LLC
• JJ Health Care Systems Inc.
• JJ Sales and Logistics Company, LLC
• JJ Healthcare Products Division of McNEIL PPC,
  Inc.
• JJ Merck Consumer Pharmaceuticals Co.

6
Consumer Goods

• Baby Care
• Oral Care
• Skin Care
• Womens health care
• Over-the-counter pharmaceutical and nutritional

7
Consumer Goods

• Baby care Johnson and Johnson manufacturers
  products including tear-free shampoo and soap
• Oral care over the past year Johnson and Johnson
  bought some oral care products including Pfizers
  Listerine and Mercks Rembrandt
• Skin care Johnson and Johnson have both bought
  and produced a number of lotion, acne, and sun
  care. Major brands being Clean and Clear,
  Neutrogena, and Aveeno.

8
Consumer Goods

• Womens health care Johnson and Johnson is also a
  player in the womens healthcare products these
  include sanitary products and contraceptives.
  Major brands include CAREFREE, K-Y and various
  others.
• Over-the-counter pharmaceutical and nutritional
  Johnson and Johnson produce a number of over the
  counter medication and products to address
  headache, allergies, diabetes, and etc. Major
  brands include Tylenol, Splenda, and Benadryl

9
Consumer Products

• BAND-AID
• BENADRYL
• BENGAY
• SUDAFED
• NEOSPORIN
• LISTERINE
• TYLENOL
• VISINE
• NEUTROGENA
• LACTAID
• MOTRIN
• SPLENDA

10
Medical Devices Diagnostics

• ACUVUE
• ONETOUCH
• CIDEX
• ENDOPATH XCEL
• STERRAD
• HARMONIC SCALPEL
• CYPHER
• MAMMOTOME
• VICRYL
• SIGMATM RP

11
Pharmaceutical Goods

• Prescription drugs
• Johnson and Johnson is one of the largest drug
  companies in the U.S. producing many cutting-edge
  medications. These medications are formulated to
  easy symptoms of Crohns disease, ankylosing
  spondylitis, Psoriatic arthritis, ulcerative
  colitis, chronic severe plaque psoriarsis and the
  rheumatoid arthritis.

12
Pharmaceutical Products

• REMICADE
• RISPERDAL
• ACIPHEX
• CONCERTA
• LEVAQUIN
• DOXIL
• ULTRAM ER
• VELCADE
• ORTHO TRI-CYCLEN LO
• LEUSTATIN
• ELMIRON
• TOPAMAX

13
Research Facilities/Money Spent

• Australia
• Belgium
• Brazil
• Canada
• China
• France
• Germany
• India
• Japan
• Netherlands
• Singapore
• United Kingdom
• United States
• 2004 - 5,344,000,000
• 2005 - 6,462,000,000
• 2006 - 7,125,000,000

14
Research

• Developed anti anemia drug PROCRIT, the
  antibacterial FLOXIN , the anti-leukemic drug
  LEUSTATIN , Alzheimer's Disease drug, and the
  antiepileptic drug TOPAMAX.
• Put forward a New Drug Application to the U.S.
  Food and Drug Administration (FDA) for
  paliperidone palmitate, a once-monthly uncommon
  antipsychotic intramuscular injection, for the
  treatment of schizophrenia.
• Discovery toward a significant step in developing
  treatments for patients who suffer from
  hypersensitivity to cold.

15
Distribution

• 2003- required that all of its medical products
  distributors agree to not source any JNJ products
  from any entity other than JNJ
• The aim of the mandate was to reduce the risk of
  counterfeit medical products reaching end
  customers by forcing distributors to agree not to
  participate in the secondary market and to
  purchase only from JNJ.
• The construction of their 440,000 square foot
  distribution in Memphis, TN was complete in
  November, 2003.
• It provides the direct shipment of their medical
  products with no third party distributor
  involvement.
• The facility utilizes much of the same technology
  seen in traditional distributors warehouses

16
E-Business

• Electronic Data Interchange (EDI)
• Electronic Data Interchange is computer to
  computer exchange of structured data, sent in a
  form that allows for automatic processing with no
  manual intervention.
• Electronic messages are usually sent via a value
  added network service (VANs) or the Internet
  which allows data to be sent or retrieved for
  processing at any time.
• Messages can also be sent via a leased line,
  magnetic tape or other electronic media. This
  lets JNJ keep track of their products and what
  they need more of.
• JNJ uses TecSol Ltd. to help them keep track of
  their products and helps to streamline the
  ordering, shipping, and restocking process.

17
Financial
18
Financial
19
Competitors
20
Competitors
21
Recent Developments

• JJPRD began construction of a new building that
  will become the East Coast hub for discovery
  research and early clinical development upon its
  completion in 2009.
• JJPRD was created by the mergers of McNeil
  Pharmaceuticals, Janssen Research Foundation,
  Three Dimensional Pharmaceuticals and the R. W.
  Johnson Pharmaceutical Research Institute.

22
Market Predictions

• A diverse company segmentation allows for a
  defensive growth opportunity even with downturns
  in the economy.
• As baby boomers get older, they should make use
  of all products of Johnson and Johnsons wide
  selection.
• The company is buying back 10 billion in stocks
  with a share-repurchase program.
• Many people consider JNJ a good stock to buy.

23
Another Look
24
Resources

• Lexus-Nexus Academic Universe
• Infotrac
• Hoovers Handbook of American Business
• Morningstar Report
• Rochdale Securities Report
• SP Net Advantage
• Company Website
• Jnjbtw.com
• Seekingalpha.com