Business Review Deutsche Bank Conference May 4, Gary Pruden Company Group Chairman Worldwide Franchise Chairman Ethicon

Transcription

1 Business Review Deutsche Bank Conference May 4, 2010 Gary Pruden Company Group Chairman Worldwide Franchise Chairman Ethicon

2 Safe Harbor Statement This presentation may contain forward looking statements as defined in the Private Securities Litigation Reform Act of These 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 Ethicon, Inc. and/or Johnson & Johnson s expectations and projections. Risks and uncertainties include general industry conditions and competition; economic conditions, such as interest rate and currency exchange rate fluctuations; technological advances and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; domestic and foreign health care reforms and governmental laws and regulations; and trends toward health care cost containment. 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 January 3, Copies of this Form 10 K, as well as subsequent filings, are available online at or on request from Johnson & Johnson. Neither Ethicon nor Johnson & Johnson undertake to update any forward looking statements as a result of new information or future events or developments. 2

3 Restoration of Body and of Life

4 A Legacy of Quality, Innovation & Performance incorporated 4

5 Transforming Our Portfolio of Businesses Professional Wound Care

6 ETHICON Franchise Sales YE 2009 Growth2009* CAGR * WW Market Position 2009 ** $4.1B 10.7% 6.6% #1 Growth Strategies: * Operational Growth ** Internal Estimates Grow our core businesses faster than the market Wound Closure Hernia Repair Women s Health Globalize our growth platforms ENT Aesthetics Biosurgicals 6

7 Grow Our Core Businesses Faster Than The Market Wound Closure, Hernia Repair, Women s Health 7

8 Core Platforms: Performance Overview 2009 Sales Growth * 2009 WW Market Position ** WW Market Total WW Market CAGR ** Revenue 2014 ** Wound Closure 3.4% #1 4.0% $4.3B Hernia Repair 20.0% #2 8.6% $1.5B Women s Health 4.3% #2 8.6% $2.4B Wound closure: Expanding our market definition to fuel new growth Addressing unmet needs / Building a global TSA growth platform / Accelerating growth and portfolio in emerging markets Hernia Repair: Consistent year over year, +20% WW growth*( 06 09) Leadership in partially absorbable, large pore mesh market / Driving growth through portfolio innovation Women s Health: Largest portfolio of women s health devices on the market today Low market penetration / Driving growth through new product introduction *Operational ** Internal Estimates 8

9 Growth Through Geographic Market Expansion: Wound Closure & Growth of Emerging Markets Rank Top 10 Markets 2014 Sales* 1 US 2 Japan 3 China 4 Germany 5 India 6 Italy 7 UK 8 France 9 Brazil 10 Russia *Ethicon Internal Estimates 2009 WW Suture Sales Emerging 25% Developed 75% 2014 WW Suture Sales* Emerging 32% Developed 68% Significant market growth across all emerging markets Market appropriate products (e.g., SYNSYL Suture) provide access to new customers; balance needs of premium and S2 markets 9

10 Growth Through Innovation: Introducing ETHICON SECURESTRAP Fiber capture in PROCEED mesh Ethicon s first entry into mechanical fixation for use in both laparoscopic and open hernia repair (FDA Clearance: April, 2010) Addresses unmet market needs including: Holding strength at various angle of firing Secure fixation via strap (vs. tack) design Low profile strap design to minimize risk of tissue attachment U.S. launch in Q3 2010, estimated $200 MM worldwide market in 2010 for hernia fixation 6.7 mm 3.5 mm mm grip

11 Globalize Our Growth Platforms ENT, Aesthetics, Biosurgicals 11

12 2009 Sales Growth ENT (Ear, Nose & Throat) 2009 WW WW Market Market Position** CAGR** Total WW Market Revenue 2014** N/A #1 10.6% $2.0B Acclarent acquired January, 2010 current focus is U.S. market Balloon Sinuplasty represents paradigm shift in treating symptoms of sinusitis Large, underserved market opportunity: Chronic rhinosinusitis MM US patients Obstructive sleep apnea MM US patients Hearing impairment and loss MM US patients Robust pipeline: Airway disorders, Myringotomy (ear tube) procedure, visualization **Internal Estimates 12

13 Acclarent Balloon SinuplastyTM Device Demonstration In Room In RoomVideo VideoPresentation Presentation 13

14 Aesthetics 2009 Sales Growth 2009 WW Market Position** WW Market CAGR** Total WW Market Revenue 2014** N/A #1 9.0% $4.1B January 2009 acquired Mentor: U.S market leader in breast aesthetics 2009: U.S. share growth of 2 pts.*,offset procedural declines due to economy Capitalizing on Ethicon global footprint to drive O.U.S. reach and growth Expanding beyond breast aesthetics to fuel new growth in breast reconstruction, surgical facial aesthetics and body aesthetics * Guidepoint Tracker ** Internal Estimates 14

15 Biosurgicals 2009 Sales Growth * 2009 WW Market Position ** WW Market Total WW Market CAGR ** Revenue 2014 ** 12.6% #1 10.3% $2.9B Acquired OMRIX December, 2008 Capitalizing on global footprint to drive O.U.S. growth: EVICEL Fibrin Sealant (Human) now available in over 14 countries Significant growth opportunities to expand beyond hemostasis to seal leaks, join structures and enhance healing *Operational ** Internal Estimates 15

16 The Fibrin Pad Product Candidate Anticipated BLA filing: 4Q10 Product combines two biomaterials and two biologics Clinical capability/ benefits for this product as described during November 2009, Ad Board Meeting* for Project Hercules by: Dr. Mauro Longoni, Hospital Di Sesto, Milan, Italy Dr. Romans Lacis, Paula Stradins University Hospital Cardiac Surgery Center Chairman, Riga, Latvia In Room Video Presentation * Physicians may have received compensation for their participation in Ethicon Ad Board meetings 16

17 Ethicon Pipeline: Selected Highlights as of 5/3/10 ** Becker Adjustable Gel Approved*/Cleared* PROCEED TM Ventral Patch (EU) PDS TM Plus Antibacterial (polydioxanone) Suture (EU) PDS TM Flexible Plates (U.S. and EU) SURGIFLO with Integrated Thrombin Kit NUVANCE TM Facial Rejuvenation System (EU) Approved*/Cleared* ETHICON SECURESTRAP 5mm Strap Fixation Device ETHICON PHYSIOMESH TM Flexible Composite Mesh MENTOR - Sensitive Anatomical Gel (EU) GYNECARE MORCELLEX TM Re-Launch GYNECARE PROSIMA TM Pelvic Floor Repair System OMNEX TM Surgical Sealant 2011 Planned Submissions* Fibrin Pad (EU) VICRYL RAPIDE TM * Plus GYNECARE SUI Sling Next Generation PurTox TM Highly Purified Botulinum Neurotoxin 2012 Planned Submissions* DOLFIN+ Next Generation Wound Closure Mentor - Becker Round Adjustable Gel GYNECARE PROLIFT Next Generation Submitted PREVELLE TM Lift Dermal Filler SURGIFLO with Integrated Thrombin Kit (EU) Submitted DERMABOND Topical Skin Adhesive New Formulation GYNECARE TVT EXACT TM Continence System Planned Submissions* EVERPOINT TM Cardiovascular Needles Fibrin Pad (BLA) GYNECARE TVT ABBREVO TM Continence System GYNECARE V-FIX Acclarent - Cyclops Multi-Angle Endoscope Acclarent - LUMA II Catheter *Filings/approvals assumed to be in U.S. unless otherwise noted **This information is accurate as of the date hereof to the best of the Company s knowledge. Johnson & Johnson /Ethicon assumes no obligation to update this information. 17

18 In Summary Number 1 or 2 market positions across core platforms Business positioned for even higher growth New growth platforms Penetration of O.U.S. and strategic emerging markets Evolution of our technology From biomaterials to biologically active biomaterials Differentiated, strong pipeline across all platforms Consistent track record of strong performance 18

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