Joaquin Duato Worldwide Chairman, Pharmaceuticals February 24, Judith Hinton Andrew, Rock Composite 22 Artwork from The Creative Center

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1 Joaquin Duato Worldwide Chairman, Pharmaceuticals February 24, 2014 Judith Hinton Andrew, Rock Composite 22 Artwork from The Creative Center

2 Note on Forward-looking Statements This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of These statements use words, and variations of words, such as will, expect, next, project, potential, continue, expand and grow in discussions of topics such as strategy for growth and expectations for future product development, regulatory approvals and market position. Forwardlooking statements are based on current expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections in this presentation and accompanying remarks. 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 development, including obtaining regulatory approvals; challenges to patents; significant adverse litigation or government action; changes to governmental laws and regulations; domestic and foreign health care reforms including trends toward health care cost containment; manufacturing difficulties or delays; and product efficacy or safety concerns resulting in product recalls or regulatory action. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson s Annual Report on Form 10-K for the fiscal year ended December 29, None of the Janssen Pharmaceutical Companies or Johnson & Johnson undertakes to update any forward-looking statements as a result of new information or future events or developments. Note on Non-GAAP Financial Measures This presentation may refer to certain non-gaap financial measures. These non-gaap financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. A reconciliation of these non-gaap financial measures to the most directly comparable GAAP financial measures can be found in the Investor Relations section of the Company s website at Note: Operational sales growth excludes currency impact and is a non-gaap financial measure. 1

3 Strategic Partnerships, Collaborations and Licensing Arrangements Cardiovascular/ Metabolism Immunology Infectious Diseases & Virology Oncology INVOKANA licensed from Mitsubishi Tanabe Pharma Corporation; XARELTO co-developed with Bayer HealthCare. REMICADE and SIMPONI marketing partners are Schering-Plough (Ireland) Company, a subsidiary of Merck & Co., Inc. and Mitsubishi Tanabe Pharma Corporation; Sirukumab developed in collaboration with GlaxoSmithKline. SOVRIAD /OLYSIO /GALEXOS developed in collaboration with Medivir AB; INCIVO developed in collaboration with Vertex Pharmaceuticals; Flubendazole redeveloped in collaboration with the Bill & Melinda Gates Foundation and the Drugs for Neglected Diseases initiative. IMBRUVICA developed in collaboration with Pharmacyclics, Inc.; ZYTIGA licensed from BTG International Ltd.; DACOGEN developed in collaboration with Eisai Corporation of North America; Daratumumab licensed from Genmab A/S; YONDELIS developed in collaboration with Pharma Mar S.A; VELCADE developed in collaboration with Millennium: The Takeda Oncology Company. Neuroscience INVEGA SUSTENNA /XEPLION includes technology licensed from Alkermes, Inc.; NUCYNTA co-developed with Grünenthal GmbH. 2

4 Transforming Our Business: 15 Consecutive Quarters of Growth WW Pharmaceuticals: Operational Sales Change vs. Prior Year Respective Quarter* 13.1% Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Q4 11 Q2 12 Q4 12 Q2 13 Q4 13 * Q and Q operational sales change adjusted for the dynamics of the 53 rd week in Q

5 Sales of New Products Are Driving Growth $0.2B WW sales of new products contributed $7.3B in 2013 and continue to grow 1 $0.9B $2.1B $4.4B $7.3B J&J leads the industry in cumulative US sales of products launched since RANK COMPANY ($M) 1 JOHNSON & JOHNSON $8,824 2 NOVARTIS $4,747 3 PFIZER $4,033 4 SANOFI AVENTIS $3,944 5 BMS $3,868 6 BOEHRINGER INGELHEIM $3,661 7 TAKEDA $3,552 8 NOVO NORDISK $3,187 9 VERTEX PHARMA $3, GLAXOSMITHKLINE $2, Source: 1. Internal analysis of ZYTIGA, INVEGA SUSTENNA /XEPLION, INCIVO, STELARA, SIMPONI, XARELTO, NUCYNTA, EDURANT / COMPLERA, OLYSIO TM /GALEXOS TM /SOVRIAD TM and INVOKANA Source: 2. IMS National Sales Perspectives, November

6 Fastest Growing Top 10 Global Pharmaceutical Company in US, Europe and Japan Growth vs. Previous Year 1 Rank Company Growth #1 Janssen 14% #2 Lilly 9% #3 Roche 8% #4 GSK 0% #5 Sanofi -2% Industry Growth Rate: 0% Rank Company Growth #1 Janssen 7% #2 Novartis 4% #2 Teva 4% #4 Roche 2% #5 Merck & Co -1% Industry Growth Rate: 2% Rank Company Growth #1 Janssen 25% #2 AZ 10% #3 Roche 6% #4 Lilly 5% #4 Teva 5% Industry Growth Rate: 2% Source: 1. IMS MIDAS as of 3Q 2013 (Growth vs. previous year (MAT) in LCD) 5

7 Strategic Priorities for Pharmaceutical Sector Innovation focused on five core therapeutic areas Robust late stage pipeline Robust late stage pipeline Best-in-class commercial capabilities Best-in-class commercial capabilities Accelerate emerging market performance with innovation focus Leadership in global public health and access 6

8 We Concentrate on Five Core Therapeutic Areas 13 new products approved since 2009 Focused Innovation IMMUNOLOGY NEUROSCIENCE INFECTIOUS DISEASES & VACCINES CARDIOVASCULAR & METABOLISM ONCOLOGY 7

9 Focused Innovation IMBRUVICA : One of the First Medicines with FDA s Breakthrough Therapy Designation to Receive Approval Received approval for MCL and CLL via FDA s accelerated approval program Oral treatment approved in the US for patients with mantle cell lymphoma (MCL) and refractory chronic lymphocytic leukemia (CLL) who have received at least one prior therapy Filed for EU approval for MCL and CLL in October 2013 Other indications under clinical investigation include: Diffuse large B-cell lymphoma Multiple myeloma Follicular lymphoma Waldenstrom s Macroglobulinemia (Breakthrough Therapy Designation) 8

10 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 INVOKANA : A New Approach in the Treatment of Type 2 Diabetes Focused Innovation Regulatory Approvals SGLT2 inhibitor approved in 35 countries to date, including US, EU, Australia, Chile, Mexico VOKANAMET TM fixed-dose combination (FDC) with metformin recommended for EU approval by CHMP Response submitted to FDA s FDC complete response letter US Total NBRx Share in Endocrinology; Type 2 Diabetes Market (less Metformin/ Insulin) 1 8-Week Moving Average 20% 16% 12% INVOKANA Victoza Januvia Launches Most successful US launch for Oral Type 2 Diabetes Agent since Januvia Launched in Australia, Mexico, UK; Germany expected, March % 4% Tradjenta Onglyza Reimbursement Approved in Australia; submissions in UK, Scotland, France; Germany submission expected, March % Source: 1. IMS Market Dynamics Weekly thru 01/31/14 9

11 Pipeline Highlights Projected Filings for >10 NMEs & >25 LEs between * Robust Pipeline APPROVED IN REGISTRATION PLANNED FILINGS * Oncology Infectious Diseases & Vaccines Immunology Infectious Diseases & Vaccines IMBRUVICA (US) (ibrutinib) Previously treated Mantle Cell Lymphoma Previously treated Chronic Lymphocytic Leukemia SIRTURO (EU) (bedaquiline) Multi-drug resistant tuberculosis Simeprevir (EU) Chronic Hepatitis C virus Sirukumab Rheumatoid arthritis Guselkumab Psoriasis TMC647055/JNJ (GSK805)/Simeprevir Combination for Chronic Hepatitis C Infectious Diseases & Vaccines Oncology Neuroscience Oncology OLYSIO (US) (simeprevir) Chronic Hepatitis C virus Cardiovascular & Metabolism Ibrutinib (EU) Previously treated Mantle Cell Lymphoma Previously treated Chronic Lymphocytic Leukemia Esketamine Treatment resistant depression Daratumumab Refractory multiple myeloma YONDELIS (US) 2nd Line soft tissue sarcoma INVOKANA (canagliflozin) Type 2 diabetes Siltuximab Multicentric Castleman s disease JNJ /ARN-509 Pre-metastatic prostate cancer * Filings/approvals assumed to be in US and EU unless otherwise noted. This information is accurate as of the date hereof to the best of the Company s knowledge. The Janssen Pharmaceutical Companies and Johnson & Johnson do not assume any obligation to update this information. Updated February 21,

12 Best-In-Class Commercial Capabilities Have Driven Growth of Key New Products Commercial Capabilities Product 2013 US Sales (Millions) 2013 OUS Sales (Millions) Year-Over-Year Growth (WW)* $864 - >100% $750 $948 76% $404 $528 57% $690 $558 56% $957 $547 47% - $517 18% *Operational change 11

13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 ZYTIGA : The Most Successful Oral Oncology Launch in History 1 Commercial Capabilities Changed treatment paradigm for metastatic Castration-Resistant Prostate Cancer (mcrpc) 35% 30% 25% US Monthly Patient Share 2 : Total Chemo Refractory & Chemo Naïve ZYTIGA Approved in >85 countries for chemo refractory and >75 countries for chemo naïve More than 100,000 patients treated worldwide 20% 15% 10% 5% 0% Chemo Refractory Xtandi Sources: 1. EvaluatePharma, Oncology launch view orals, May 14, 2013; 2. IMS Weekly thru January, 2014; 3. Ipsos Oncology Monitor Syndicated G5 Patient Record Study, Quarterly MAT report thru Q

14 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 XARELTO : Broadest Indication Profile of Any Novel Oral Anticoagulant #1 Prescribed Novel Oral Anticoagulant Among US Cardiologists 1 Commercial Capabilities Approved in >125 countries; 6 FDA-approved indications More than 1.5M patients prescribed XARELTO in the US 2, 7M worldwide 3 Strong customer value proposition with once-a-day dosing convenience 25% 20% 15% 10% US Novel Oral Anti-Coagulant TRx Share in Cardiology 1 XARELTO Pradaxa Broad market access in US 90% of Commercial and 90% of Part D have Tier 2 access and lowest branded co-pay 5% 0% Eliquis Sources: 1. IMS Weekly NPA thru 01/31/14; 2. Data on file - Janssen Pharmaceuticals, Inc. Based on IMS Health NPA thru August 2013; 3. Data on file - based on internal Bayer Healthcare AG and IMS MIDAS Dataview Database thru August

15 29-Nov 6-Dec 13-Dec 20-Dec 27-Dec 3-Jan 10-Jan 17-Jan 24-Jan 31-Jan 29-Nov 6-Dec 13-Dec 20-Dec 27-Dec 3-Jan 10-Jan 17-Jan 24-Jan 31-Jan OLYSIO /SOVRIAD /GALEXOS : Next Generation Hepatitis C Treatment Robust clinical development program led to SOVRIAD approval in Japan before any other country Subsequently approved in the US (OLYSIO ) & Canada (GALEXOS ) Extensive market development to raise awareness about treatment availability #1 HCV antiviral market share in first month in Japan 1 ; #1 PI in the US 2 Opportunity in IFN-free regimens: Efficacy with other direct acting antivirals (NI, NNI and NS5A) being explored in multiple Phase II studies 50% 40% 30% 20% 10% 0% 70% 60% 50% 40% 30% 20% 10% 0% Commercial Capabilities Japan Weekly Sales Market Share (All Anti-Virals, HCV) 1 Victrelis Peg-Intron Copegus SOVRIAD Pegasys Rebetol Telavic US Weekly NBRx Market Share (Protease Inhibitors, HCV) 2 Incivek OLYSIO Source: 1. IMS Weekly thru 1/31/14. Note: Telavic market share normalized to 0% when net sales were negative due to returned product. 2. IMS Weekly thru 1/31/14 adjusted to account for Sovaldi usage in Genotype 1 based on Chart Pulse 2014, not product utilization. 3. Lawitz, et al. CROI 2013; abstract 155 LB. 14

16 Key Success Factors in Developed Markets Outside the US Commercial Capabilities Well Differentiated Products Deep Market Access Expertise NICE Health Technology Assessment Success Rate Since Janssen Industry 83% 100% Global/Regional/Local Alignment Novel Access Models Local Global Country Functions Value Teams Regional Integrated Local Country Brand Value Teams Local Local Country Country Value Value Teams Teams Outcome Performance Based Contracts Source: 1. Internal analysis (January 2014) 15

17 Strategic Investments Strengthening Our Presence in Emerging Markets Emerging Markets 10-13% projected growth in pharmerging markets from ; Specialty pharmaceuticals market expected to grow by 90% 1 China Beginning construction in 2014 on state-of-the-art manufacturing facility in Xi an Opening Shanghai Innovation Center in 2014 Russia Brazil Increasing local production capacity through technology transfer projects (e.g., VELCADE ) Forming public-private partnerships to establish standard of care and improve infrastructure Prioritizing key launches (5 since 2011) while evaluating new models to manage mature products (e.g., licensing, co-marketing, etc.) Engaging with stakeholders to ensure access to public and private markets for key products (e.g. REMICADE, INCIVO, PREZISTA ) ASEAN Leveraging cross-sector One Johnson & Johnson operating model to drive efficiency and effectiveness Launching first half of 2014 in 9 ASEAN nations Source: 1. IMS The Global Use of Medicines: Outlook through 2017 November

18 Public Health/ Access Janssen Global Public Health: Sustainably Harnessing Innovation and Ensuring Product Access Innovative R&D TB: Launched SIRTURO for treatment of pulmonary multidrug resistant tuberculosis HIV: Partnering to develop HIV prevention technologies and longacting treatments NTDs: Redeveloping flubendazole to treat certain forms of parasitic worms; developing pediatric mebendazole formulation Key Partners: Sustainable Access Ranked 2 nd on the Access to Medicines Index Creating innovative access models for key medicines (e.g., SIRTURO, PREZISTA ) and working with generics companies Launched pediatric donation program for PREZISTA Key Partners: 17

19 Key Takeaways Innovative products driving growth across five core therapeutic areas Advancing pipeline to deliver our next wave of growth Best-in-class commercial capabilities critical to success in US and OUS Significant focus on succeeding in emerging economies Strong commitment to improving global health through R&D and novel access models Building on the Strong Momentum in Pharmaceuticals 18

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