Johnson & Johnson Reports 2018 Third-Quarter Results:
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
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SOURCE Johnson & Johnson
