Johnson & Johnson

Summary

Johnson & Johnson, together with its subsidiaries, researches and develops, manufactures, and sells various products in the healthcare field worldwide. The company's Consumer Health segment offers baby care products under the JOHNSON'S and AVEENO Baby brands; oral care products under the LISTERINE brand; skin health/beauty products under the AVEENO, CLEAN & CLEAR, DR. CI:LABO, NEUTROGENA, and OGX brands; TYLENOL acetaminophen products; SUDAFED cold, flu, and allergy products; BENADRYL and ZYRTEC allergy products; MOTRIN IB ibuprofen products; NICORETTE smoking cessation products; and PEPCID acid reflux products. It also offers STAYFREE and CAREFREE sanitary pads; o.b. tampons; adhesive bandages under the BAND-AID brand; and first aid products under the NEOSPORIN brand. It serves general public, retail outlets, and distributors. The company's Pharmaceutical segment offers products for rheumatoid arthritis, psoriatic arthritis, inflammatory bowel disease, and psoriasis; HIV/AIDS and COVID-19 infectious diseases; mood disorders, neurodegenerative disorders, and schizophrenia; prostate cancer, hematologic malignancies, lung cancer, and bladder cancer; thrombosis, diabetes and macular degeneration; and pulmonary arterial hypertension. This segment serves retailers, wholesalers, distributors, hospitals, and healthcare professionals directly for prescription use. Its MedTech segment provides electrophysiology products to treat cardiovascular diseases; neurovascular care products to treat hemorrhagic and ischemic stroke; orthopaedics products in support of hips, knees, trauma, spine, sports, and other; advanced and general surgery solutions that focus on breast aesthetics, ear, nose, and throat procedures; and disposable contact lenses and ophthalmic products related to cataract and laser refractive surgery under the ACUVUE brand. This segment serves wholesalers, hospitals, and retailers. The company was founded in 1886 and is based in New Brunswick, New Jersey.

Johnson & Johnson (J&J) is a multinational corporation hailing from the United States, specializing in pharmaceuticals and medical technologies. Its headquarters are situated in New Brunswick, New Jersey, and it's publicly traded on the New York Stock Exchange. The company's common stock is part of the Dow Jones Industrial Average, and it holds the 40th position on the 2023 Fortune 500 list, showcasing the largest corporations in the United States. Johnson & Johnson boasts a global workforce of around 130,000 employees, with Joaquin Duato currently serving as the chairman and chief executive officer.

Founded in 1886 by three brothers, Robert Wood Johnson, James Wood Johnson, and Edward Mead Johnson, the company initially focused on selling pre-packaged sterile surgical dressings. In 2023, Johnson & Johnson underwent a significant transformation, spinning off its consumer healthcare business group into a new publicly traded entity called Kenvue. The company's exclusive dedication now lies in the development and manufacture of pharmaceutical prescription drugs and medical device technologies. It stands as one of the world's most valuable firms and is among the select few U.S.-based companies with a coveted AAA credit rating.

Headquartered in New Brunswick, New Jersey, with its consumer division located in Skillman, New Jersey, Johnson & Johnson's vast corporate structure encompasses approximately 250 subsidiary companies operating in 60 countries, with products distributed in over 175 nations. In the calendar year 2021, the company achieved worldwide sales totaling $93.8 billion.

In November 2021, Johnson & Johnson made a strategic announcement of its intention to split into two publicly traded companies: one with a primary focus on consumer products and the other dedicated to pharmaceuticals and medical technologies.

Company mission

At Johnson & Johnson they believe good health is the foundation of vibrant lives, thriving communities and forward progress. For more than 135 years, their company mission has been to keep people well at every age and every stage of life. In the present day, as the world’s largest and most diversified healthcare products company, Johnson & Johnson is committed to improving access and affordability, creating healthier communities, and putting a healthy mind, body and environment within reach of everyone, everywhere.

There employees across the world are blending heart, science and ingenuity to profoundly change the trajectory of health for humanity.

One of their main company statements involves #HealthForAll which involves:

• Health Partner: a digital platform designed to help patients prepare physically, mentally and emotionally for surgery
• Targeting Unmet Medical Needs: cancer, infectious disease, serious mental illness, pulmonary hypertension...
• Thinking Locally and Globally: with programmes such as Born On Time (focused on preventing preterm birth) and NurseConnect (helps to build peer support and learning communities among nurses and midwives in South Africa)
• Accelerating Innovation as they believe that when people are healthy, entire communities thrive
• Putting Safety First: development of Yale University Open Data Access Project which enables scientists around the world to access data from clinical trials
• Raising the Bar on Research
• Tackling Healthcare Disparities: Genius Plaza (a multicultural education platform that educates children and their parents about healthy behaviours and nutrition)

ESG Highlights

Championing Global Health Equity:

• In 2022, we Ranked #2 in the Access to Medicine Index and were featured as an Index top-three performer for the sixth consecutive year, reflecting our decades-long deliberate and focused strategy to enable access to our innovative medicines and technologies.

• Expanded our network of global health discovery centers that aim to accelerate science to tackle pandemic threats with a new center in Singapore to advance dengue and zika research.

• Since 2019, Johnson & Johnson Impact Ventures, a fund within the Johnson & Johnson Foundation, has invested in companies and supported entrepreneurs innovating to improve health equity for underserved patients around the world. In 2022, it received its first return on investment and has reinvested the financial returns into new investments.

• In 2022, the Johnson & Johnson Center for Health Worker Innovation advanced several initiatives, including a $15 million commitment from the Johnson & Johnson Foundation to the Africa Frontline First Catalytic Fund to support community health workers across 10 African countries.

• Through Our Race to Health Equity the $100 million, five-year initiative, by the end of 2022, Johnson & Johnson committed over $52 million in programs focused on closing the racial health gap, with investments in community health centers, community health workers, health literacy education and community engagement, increasing the racial and ethnic diversity of the health care talent pipeline and workforce.

Empower our Employees:

• More than 130,000 employees (92%) responded to Our Credo Survey ― a testament to our values-driven culture.

• Launched J&J Learn, a dynamic learning and development ecosystem that empowers employees to provide our workforce with continuous opportunities for reskilling, upskilling and development.

• Introduced the Company’s evolved enterprise DEI strategy, which recognizes how DEI accelerates our ability to meet the changing needs of the communities we serve, while driving innovation and growth within our business to serve diverse markets around the world.

• In recognition of the Company’s commitment to help employees balance their personal and professional responsibilities, Johnson & Johnson extended its paid parental leave benefit globally from 8 to 12 weeks for all eligible employees. In the U.S., the benefit was effective on January 1, 2022, with retroactive coverage for new family additions as of July 1, 2021.

• Enhanced mental health resources for employees and their families.

Advance Environmental Health:

• For the fifth consecutive year, Johnson & Johnson was recognized with a CDP A-List rating for our leadership in climate action.

• Finalized a deal to source 100% renewable electricity for our operations in Brazil.

• Expanded our single-use device hospital recycling program to six European countries and three categories within MedTech.

• Joined a collaboration of pharmaceutical companies, known as Activate, to support active pharmaceutical ingredient suppliers in their decarbonization efforts.

• Expanded our U.S. Safe Returns program (pharma) to Switzerland with more countries planned for 2023.

Lead with Accountability and Innovation:

• Included in the FTSE4Good Index Series for the 22nd year, which measures the performance of publicly traded companies demonstrating ESG practices, scoring in the 97th percentile in our sector in 2022.

• Ranked 1st in the pharmaceuticals sector for Moody’s ESG Scorecard in 2022.

• Achieved a MSCI "A" ESG Rating in 2022.

• Ranked #9 on Drucker Institute’s Top 250 Best-Managed Companies of 2022.

Macroeconomic Analysis and Markets

The pharmaceutical industry is responsible for the research, development, production, and distribution of medications. The market has experienced significant growth during the past two decades, and pharma revenues worldwide totalled 1.48 trillion U.S. dollars in 2022.

Revenue of the worldwide pharmaceutical market from 2001 to 2022

Pharma industry by country

Several prominent pharmaceutical companies are based in the United States, which explains why the country boasts the world's largest national pharmaceutical market. China has emerged as a significant contender in the industry, experiencing robust annual growth rates in its burgeoning pharmaceutical market in recent years. Nevertheless, forecasts for pharmaceutical sales indicate that the well-established markets of North America and Europe will continue to be at the forefront in 2025.

How much do companies spend on R&D?

Above all other industries, the pharmaceutical sector places significant reliance on research and development, with firms allocating roughly 20 percent or more of their sales earnings towards R&D endeavours. This proportion can soar even higher for companies that center their operations on research and generate relatively modest sales figures. Uncovering novel drugs holds paramount importance for the sustained expansion of pharmaceutical enterprises, and the sales of new branded medications can yield substantial contributions to overall revenues. Conversely, the expiration of patent protections can lead to severe repercussions, as the presence of generic drugs introduces a formidable challenge for these companies.

All eyes on pharma and biotech

Shortly following the onset of the COVID-19 pandemic's global impact, it became evident that the absence of novel treatments, notably vaccines, would result in a perpetual cycle of lockdowns and crises. As a result, pharmaceutical companies garnered heightened public attention, facing mounting pressure to deliver swift outcomes.

Products

Johnson & Johnson offers its products in two main sectors MedTech and Pharmaceutical products.

MedTech

In the MedTech sector JNJ focuses on transforming the future of medical intervention with the aim of allowing the global population to live their best life possible. For more than a century they have driven scientific innovation to meet global needs.

Major focus on helping patients along their journey from the early intervention to surgical replacement to then helping them return to living a fulfilling and active live.

• Joint Reconstruction : extensive portfolio of hip, knee and shoulder replacement. Fully equipped from operating room products, bone cements and accessories.
• Trauma : medical devices used to treat orthopaedic trauma. The company has a complete stock of screws, plates, nails and fixation products to treat fractures and deformities related to extremities and pelvis.
• Spine: extensive portfolios on spinal care solutions including treatments in thoracolumbar, cervical, aging, spine, interbody fusion and arthroplasty.
• Sports Medicine: DePuy Synthes Mitek is a global leader in orthopaedic sports medicine devices used to treat traumatic and degenerative pathologies of soft tissues and joint injuries related to physical activity.
• Power Tools: involving air, electric and battery driven systems that help large and small bones and offer high speed.
• CMF ( cranio- maxillofacial devices) : products to treat patients who have conditions affecting their face, head, neck and thorax.
• Biomaterials: innovative products that complement metal implants used in trauma, spine, cranio-maxillofacial surgical procedures. Their final mission is to repair, protect and strengthen the structural core of the human body.

Surgery:

Provide trusted surgical systems and instruments to provide the safest and most effective treatment. Ethicon: represents the products and services of Ethicon Inc. Created the first sutures to perform surgeries with minimal invasive procedures.

• Energy: complete energy portfolio for open and laparoscopic procedures to help improve patients outcome by extensive knowledge of tissues and energy sciences.
• Endomechanical: offers advanced tissue management, surgical stapling and endocutter technologies.
• Biosurgery: portfolio of adjunctive hemostats aids surgery by focusing on biosurgery technolgies to minimise intra- and postoperative complications such as problematic bleeing.
• Wound Closure: specialised medical products for every type of tissue including skin, fascia and organs.
• Breast Aesthetics: science based products for both surgical and non-surgical medical procedures in two strategic areas the breast and body aesthetics.
• Ear, Nose and Throat: innovative devices to aid conditions such as chronic sinusitis.

Interventional Solutions:

Tools to treat heart rhythm disorders and neurovascular care.

• Arrhythmias: treating irregular heartbeats in hospitals and teaching institutions. Biosense Webster is the global leader in the science of diagnosing and treating heart disorders.
• Neurovascular and Stroke: Cerenovus is a global leader in neurovascular care and offers a broad portfolio of devices used to treat hemorrhagic and ischemic stroke.

Vision:

' Help protect the most precious human sense-eyesight'

Encourage patients to preserve and enhance sight for life. JNJ's eye health products are available in 103 countries.

Pharmaceutical Products

Janssen Pharmaceutical Companies address complex diseases faced. Investments made in a transformative future, changing the way diseases are prevented, intercepted, treated and cured.

Immunology:

• Mission is to redefine treatments for immune diseases by delivering transformational and accessible therapies to patients with autoimmune disease.
• Delivery of novel medicines.
• Innovative biological and oral therapies in core areas: rheumatoid arthritis, inflammatory bowel diseases and psoriasis.
• Ongoing efforts in discovery, biomarkers, clinical research and external innovation.

Cardiovascular & Metabolic Disease:

• Work to eliminate diabetes and cardiovascular diseases by developing new therapies.
• Targeting underlying disease pathways and mechanism of actions.

Pulmonary Hypertension:

• Transform into a long-term, manageable condition so patients can live a normal life.
• Developing a thorough understanding of pulmonary arterial hypertension to develop complex pathways and molecular mechanisms to create tailored machines to improve patient outcomes.

Infectious Diseases & Vaccines:

• Discovering and developing transformational therapies and vaccines to prevent and treat diseases such as HIV, viral hepatitis, respiratory syncytial virus, influenza and Ebola.

Neuroscience:

• Main mission is to reduce the burden and devastation caused by serious neuropsychiatric and neurodegenerative diseases such as Alzheimer's disease and myasthenia gravis. This is done by identifying synergies among neuropsychiatric and neurodegenerative diseases to maximise the potential clinical values of their treatments and developing therapies designed to modify disease with the goal to address unmet needs.

Oncology:

• JNJ envisions a world where cancer is preventable, curable and where the aim is to develop solutions to prolong and improve patient lives by delivering diagnostics and therapeutic solutions.