OREANDA-NEWS. Johnson & Johnson (NYSE: JNJ) today announced sales of $18.5 billion for the second quarter of 2016, an increase of 3.9% as compared to the second quarter of 2015. Operational sales results increased 5.3% and the negative impact of currency was 1.4%. Domestic sales increased 7.4%. International sales increased 0.4%, reflecting operational growth of 3.1% and a negative currency impact of 2.7%. Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 7.9%, domestic sales increased 8.8% and international sales increased 6.9%.*  Operations in Venezuela negatively impacted worldwide operational sales growth by 30 basis points, and international sales growth by 70 basis points. 

Net earnings and diluted earnings per share for the second quarter of 2016 were $4.0 billion and $1.43, respectively.  Second quarter 2016 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a charge for after-tax special items of approximately $0.7 billion. Second quarter 2015 net earnings included after-tax intangible amortization expense of approximately $0.2 billion and a charge for after-tax special items of approximately $0.1 billion.  Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $4.9 billion and adjusted diluted earnings per share were $1.74, representing increases of 1.1% and 1.8%, respectively, as compared to the same period in 2015. * On an operational basis, adjusted diluted earnings per share also increased 1.8%.A reconciliation of non-GAAP financial measures is included as an accompanying schedule.

"We continue to see good momentum through the first half of 2016, delivering solid results in the second quarter, supported by strong underlying growth across our enterprise," said Alex Gorsky, Chairman and Chief Executive Officer.  "We saw notable strength in our Pharmaceuticals business due to the continued success of new products, and also achieved significant clinical milestones, advancing our robust pipeline. In our Consumer business, we are executing strategic portfolio decisions to expand our market leadership in key segments, and in Medical Devices, we are continuing to accelerate our growth driven by new product launches and transforming our commercial models."

Mr. Gorsky continued, "I am proud of our dedicated and talented employees whose commitment to advancing health and well-being for patients and consumers around the world is fueling our growth."

The Company increased its sales guidance for the full-year 2016 to $71.5 billion to $72.2 billion.  Additionally, the Company increased its adjusted earnings guidance for full-year 2016 to $6.63 - $6.73 per share.*

Worldwide Consumer sales of $3.4 billion for the second quarter 2016 represented a decrease of 1.8% versus the prior year, consisting of an operational increase of 1.5% and a negative impact from currency of 3.3%. Domestic sales increased 2.1%; international sales decreased 4.4%, which reflected an operational increase of 1.0% and a negative currency impact of 5.4%.  Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 3.9%, domestic sales increased 6.8% and international sales increased 2.0%*.  Operations in Venezuela negatively impacted worldwide Consumer operational sales growth by 120 basis points, and international sales growth by 200 basis points.

Primary contributors to Consumer operational sales results were  NEUTROGENA® and AVEENO® skin care products; over-the-counter products, including TYLENOL® and MOTRIN® analgesics, digestive health products and international anti-smoking aids; and LISTERINE® oral care products.

During the quarter, the acquisitions of NeoStrata Company, Inc., a global leader in dermocosmetics, and the HIPOGL?S® diaper rash cream brand in Brazil were completed. In addition, subsequent to the quarter, the acquisition of Vogue International LLC, a privately-held company focused on the marketing, development and distribution of salon-influenced and nature inspired hair care and other personal care products, was completed for $3.3 billion in cash.

Worldwide Pharmaceutical sales of $8.7 billion for the second quarter 2016 represented an increase of 8.9% versus the prior year with an operational increase of 9.7% and a negative impact from currency of 0.8%. Domestic sales increased 13.2%; international sales increased 3.1%, which reflected an operational increase of 4.9% and a negative currency impact of 1.8%.  Excluding the net impact of acquisitions, divestitures and hepatitis C sales, on an operational basis, worldwide sales increased 12.8%, domestic sales increased 13.9% and international sales increased 11.2%.* 

Worldwide operational sales growth was driven by new products and the strength of core products. Strong growth in new products include IMBRUVICA® (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer; XARELTO® (rivaroxaban), an oral anticoagulant; DARZALEX® (daratumumab), for the treatment of patients with multiple myeloma; INVOKANA®/INVOKAMET® (canagliflozin), for the treatment of adults with type 2 diabetes; and ZYTIGA® (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer. New product sales growth was negatively impacted by lower sales of OLYSIO®/SOVRIAD® (simeprevir) due to competitive entrants. 

Additional contributors to operational sales growth include STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and psoriatic arthritis; SIMPONI®/SIMPONI ARIA® (golimumab) and REMICADE® (infliximab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases; and INVEGA® SUSTENNA®/XEPLION®/TRINZA® (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults.

During the quarter, the U.S. Food and Drug Administration (FDA) approved an additional indication for INVOKAMET® (canagliflozin/metformin HCl) for first-line treatment of adults with type 2 diabetes and an expanded label for IMBRUVICA® (ibrutinib) to include overall survival and combination data in chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL). The European Commission (EC) granted conditional approval to DARZALEX® (daratumumab) for monotherapy of adult patients with relapsed and refractory multiple myeloma  and also approved IMBRUVICA® (ibrutinib) for the treatment of adult patients with previously untreated chronic lymphocytic leukemia, TREVICTA® (paliperidone palmitate a 3 monthly injection) for the maintenance treatment of schizophrenia in adult patients, and SIMPONI® (golimumab) for the treatment of polyarticular juvenile idiopathic arthritis.

In addition, the divestiture of the company's controlled substance raw material and active pharmaceutical ingredient business to SK Capital Partners, a private equity company, was completed.

Worldwide Medical Devices sales of $6.4 billion for the second quarter 2016 represented an increase of 0.8% versus the prior year consisting of an operational increase of 1.8% and a negative currency impact of 1.0%. Domestic sales increased 1.0%; international sales increased 0.6%, which reflected an operational increase of 2.6% and a negative currency impact of 2.0%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 3.9%, domestic sales increased 1.9% and international sales increased 5.8%.*   Operations in Venezuela negatively impacted worldwide operational sales growth by 30 basis points, and international sales growth by 50 basis points.  

Primary contributors to operational sales growth were endocutters, energy and biosurgical products in the Advanced Surgery business; electrophysiology products in the Cardiovascular business; joint reconstruction  and U.S. trauma products in the Orthopaedics business; and ACUVUE® contact lenses in the Vision Care business. 

During the quarter, the acquisition of privately-held BioMedical Enterprises, Inc., a leading manufacturer of Nitinol orthopaedic implants for small bone fixation, was completed.

About Johnson & Johnson

Caring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 126,500 employees at more than 250 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

Johnson & Johnson and Subsidiaries

                                     

Supplementary Sales Data

                                     
                                       

(Unaudited; Dollars in Millions)

SECOND QUARTER

 

SIX MONTHS

         

Percent Change

         

Percent Change

 

2016

 

2015

 

Total

 

Operations

Currency

 

2016

 

2015

 

Total

 

Operations

Currency

Sales to customers by

                                     

segment of business

                                     
                                       

Consumer

                                     

    U.S.

$   1,384

 

1,355

 

2.1

%

2.1

 

-

 

$   2,742

 

2,714

 

1.0

%

1.0

 

-

    International

2,035

 

2,128

 

(4.4)

 

1.0

 

(5.4)

 

3,872

 

4,159

 

(6.9)

 

0.4

 

(7.3)

 

3,419

 

3,483

 

(1.8)

 

1.5

 

(3.3)

 

6,614

 

6,873

 

(3.8)

 

0.6

 

(4.4)

                                       

Pharmaceutical

                                     

    U.S.

5,144

 

4,543

 

13.2

 

13.2

 

-

 

10,081

 

8,914

 

13.1

 

13.1

 

-

    International

3,510

 

3,403

 

3.1

 

4.9

 

(1.8)

 

6,751

 

6,758

 

(0.1)

 

3.8

 

(3.9)

 

8,654

 

7,946

 

8.9

 

9.7

 

(0.8)

 

16,832

 

15,672

 

7.4

 

9.1

 

(1.7)

                                       

Medical Devices

                                     

    U.S.

3,044

 

3,013

 

1.0

 

1.0

 

-

 

6,070

 

5,975

 

1.6

 

1.6

 

-

    International

3,365

 

3,345

 

0.6

 

2.6

 

(2.0)

 

6,448

 

6,641

 

(2.9)

 

0.8

 

(3.7)

 

6,409

 

6,358

 

0.8

 

1.8

 

(1.0)

 

12,518

 

12,616

 

(0.8)

 

1.2

 

(2.0)

                                       

U.S.

9,572

 

8,911

 

7.4

 

7.4

 

-

 

18,893

 

17,603

 

7.3

 

7.3

 

-

International

8,910

 

8,876

 

0.4

 

3.1

 

(2.7)

 

17,071

 

17,558

 

(2.8)

 

1.8

 

(4.6)

Worldwide

$ 18,482

 

17,787

 

3.9

%

5.3

 

(1.4)

 

$ 35,964

 

35,161

 

2.3

%

4.6

 

(2.3)

                                       

Johnson & Johnson and Subsidiaries

                                   

Supplementary Sales Data

                                     
                                       

(Unaudited; Dollars in Millions)

SECOND QUARTER

 

SIX MONTHS

         

Percent Change

         

Percent Change

 

2016

 

2015

 

Total

 

Operations

Currency

 

2016

 

2015

 

Total

 

Operations

Currency

Sales to customers by

                                     

geographic area

                                     
                                       

U.S.

$   9,572

 

8,911

 

7.4

%

7.4

 

-

 

$ 18,893

 

17,603

 

7.3

%

7.3

 

-

                                       

Europe

4,090

 

4,151

 

(1.5)

 

(0.6)

 

(0.9)

 

7,937

 

8,191

 

(3.1)

 

(0.6)

 

(2.5)

Western Hemisphere excluding U.S.

1,542

 

1,501

 

2.7

 

15.4

 

(12.7)

 

2,873

 

3,140

 

(8.5)

 

7.1

 

(15.6)

Asia-Pacific, Africa

3,278

 

3,224

 

1.7

 

2.1

 

(0.4)

 

6,261

 

6,227

 

0.5

 

2.5

 

(2.0)

International

8,910

 

8,876

 

0.4

 

3.1

 

(2.7)

 

17,071

 

17,558

 

(2.8)

 

1.8

 

(4.6)

                                       

Worldwide

$ 18,482

 

17,787

 

3.9

%

5.3

 

(1.4)

 

$ 35,964

 

35,161

 

2.3

%

4.6

 

(2.3)

                                       

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings 

                 
                   

(Unaudited; in Millions Except Per Share Figures)

SECOND QUARTER

                   
 

2016

 

2015

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 18,482

 

100.0

 

$ 17,787

 

100.0

 

3.9

Cost of products sold

5,336

 

28.9

 

5,357

 

30.1

 

(0.4)

Selling, marketing and administrative expenses

5,176

 

28.0

 

5,384

 

30.3

 

(3.9)

Research and development expense

2,264

 

12.2

 

2,129

 

12.0

 

6.3

In-process research and development

29

 

0.2

 

-

 

-

   

Interest (income) expense, net

102

 

0.6

 

107

 

0.6

   

Other (income) expense, net

557

 

3.0

 

(931)

 

(5.3)

   

Restructuring

114

 

0.6

 

-

 

-

   

Earnings before provision for taxes on income

4,904

 

26.5

 

5,741

 

32.3

 

(14.6)

Provision for taxes on income

907

 

4.9

 

1,225

 

6.9

 

(26.0)

Net earnings

$   3,997

 

21.6

 

$   4,516

 

25.4

 

(11.5)

                   

Net earnings per share (Diluted)

$     1.43

     

$     1.61

     

(11.2)

                   

Average shares outstanding (Diluted)

2,794.2

     

2,812.0

       
                   

Effective tax rate

18.5

%

   

21.3

%

     
                   

Adjusted earnings before provision for taxes and net earnings (1)

                 

 Earnings before provision for taxes on income

$   6,024

 

32.6

 

$   6,248

 

35.1

 

(3.6)

 Net earnings

$   4,866

 

26.3

 

$   4,812

 

27.1

 

1.1

 Net earnings per share (Diluted)

$     1.74

     

$     1.71

     

1.8

 Effective tax rate

19.2

%

   

23.0

%

     
                   

(1) See Reconciliation of Non-GAAP Financial Measures.

                 

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings 

                 
                   

(Unaudited; in Millions Except Per Share Figures)

SIX MONTHS

                   
 

2016

 

2015

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 35,964

 

100.0

 

$ 35,161

 

100.0

 

2.3

Cost of products sold

10,665

 

29.6

 

10,639

 

30.2

 

0.2

Selling, marketing and administrative expenses

9,864

 

27.4

 

10,231

 

29.1

 

(3.6)

Research and development expense

4,277

 

11.9

 

4,028

 

11.5

 

6.2

In-process research and development

29

 

0.1

 

-

 

-

   

Interest (income) expense, net

179

 

0.5

 

226

 

0.6

   

Other (income) expense, net

518

 

1.4

 

(1,279)

 

(3.6)

   

Restructuring

234

 

0.7

 

-

 

-

   

Earnings before provision for taxes on income

10,198

 

28.4

 

11,316

 

32.2

 

(9.9)

Provision for taxes on income

1,744

 

4.9

 

2,480

 

7.1

 

(29.7)

Net earnings

$   8,454

 

23.5

 

$   8,836

 

25.1

 

(4.3)

                   

Net earnings per share (Diluted)

$     3.02

     

$     3.13

     

(3.5)

                   

Average shares outstanding (Diluted)

2,800.9

     

2,821.0

       
                   

Effective tax rate

17.1

%

   

21.9

%

     
                   

Adjusted earnings before provision for taxes and net earnings (1)

                 

 Earnings before provision for taxes on income

$ 11,825

 

32.9

 

$ 11,878

 

33.8

 

(0.4)

 Net earnings

$   9,720

 

27.0

 

$   9,230

 

26.3

 

5.3

 Net earnings per share (Diluted)

$     3.47

     

$     3.27

     

6.1

 Effective tax rate

17.8

%

   

22.3

%

     
                   

(1) See Reconciliation of Non-GAAP Financial Measures.

                 

Johnson & Johnson and Subsidiaries

                           

Reconciliation of Non-GAAP Financial Measures

                           
                             
   

Second Quarter

 

% Incr. /

   

Six Months YTD

 

% Incr. /

 

(Dollars in Millions Except Per Share Data)

 

2016

 

2015

 

(Decr.)

   

2016

 

2015

 

(Decr.)

 
                             

Earnings before provision for taxes on income - as reported

 

$ 4,904

 

5,741

 

(14.6)

%

 

$ 10,198

 

11,316

 

(9.9)

%

                             

Intangible asset amortization expense

 

326

 

318

       

608

 

630

     
                             

Restructuring/Other (1)

 

141

 

-

       

278

 

-

     
                             

Litigation expense/(gain), net

 

600

 

134

       

666

 

(268)

     
                             

DePuy ASRHip program

 

-

 

9

       

-

 

148

     
                             

In-process research and development

 

29

 

-

       

29

 

-

     
                             

Other

 

24

 

46

       

46

 

52

     
                             

Earnings before provision for taxes on income - as adjusted

 

$ 6,024

 

6,248

 

(3.6)

%

 

$ 11,825

 

11,878

 

(0.4)

%

                             

Net Earnings - as reported

 

$ 3,997

 

4,516

 

(11.5)

%

 

$   8,454

 

8,836

 

(4.3)

%

                             

Intangible asset amortization expense

 

238

 

230

       

443

 

456

     
                             

Restructuring/Other

 

97

 

-

       

217

 

-

     
                             

Litigation expense/(gain), net

 

493

 

23

       

549

 

(230)

     
                             

DePuy ASRHip program

 

-

 

8

       

-

 

130

     
                             

In-process research and development

 

23

 

-

       

23

 

-

     
                             

Other

 

18

 

35

       

34

 

38

     
                             

Net Earnings - as adjusted 

 

$ 4,866

 

4,812

 

1.1

%

 

$   9,720

 

9,230

 

5.3

%

                             

Diluted Net Earnings per share - as reported

 

$   1.43

 

1.61

 

(11.2)

%

 

$     3.02

 

3.13

 

(3.5)

%

                             

Intangible asset amortization expense

 

0.08

 

0.08

       

0.16

 

0.16

     
                             

Restructuring/Other

 

0.03

 

-

       

0.08

 

-

     
                             

Litigation expense/(gain), net

 

0.18

 

0.01

       

0.19

 

(0.08)

     
                             

DePuy ASRHip program

 

-

 

-

       

-

 

0.05

     
                             

In-process research and development

 

0.01

 

-

       

0.01

 

-

     
                             

Other

 

0.01

 

0.01

       

0.01

 

0.01

     
                             

Diluted Net Earnings per share - as adjusted 

 

$   1.74

 

1.71

 

1.8

%

 

$     3.47

 

3.27

 

6.1

%

                             

Operational Diluted Net Earnings per share - as adjusted at 2014 foreign currency exchange rates

     

1.90

           

3.59

     
                             

Impact of currency at 2015 foreign currency exchange rates

 

$       -

 

(0.19)

       

$     0.04

 

(0.32)

     
                             

Operational Diluted Net Earnings per share - as adjusted at 2015 foreign currency exchange rates

 

$   1.74

 

1.71

 

1.8

%

 

$     3.51

 

3.27

 

7.3

%

                             
                             

(1) Includes $7M recorded in cost of products sold and $20M recorded in other (income) expense for the second quarter. 

               

     Includes $24M recorded in cost of products sold and $20M recorded in other (income) expense for six months YTD.

           

Johnson & Johnson and Subsidiaries

               

Reconciliation of Non-GAAP Financial Measure

               
                 

Operational Sales Growth Excluding Acquisitions, Divestitures and Hepatitis C Sales (1)

 SECOND QUARTER 2016 ACTUAL vs. 2015 ACTUAL 

                 
 

 Segments 

                 
   

 Consumer 

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

   

Operational % (2)

 WW As Reported: 

 

1.5%

 

9.7%

 

1.8%

 

5.3%

 U.S. 

 

2.1%

 

13.2%

 

1.0%

 

7.4%

 International 

 

1.0%

 

4.9%

 

2.6%

 

3.1%

                 

Wound Care/Other

               

 SPLENDA®

 

2.5

         

0.5

  U.S. 

 

4.9

         

0.7

  International 

 

1.0

         

0.2

                 

Cardiovascular

               

 Cordis

         

2.3

 

0.8

  U.S. 

         

1.1

 

0.4

  International 

         

3.5

 

1.3

                 

All Other Acquisitions and Divestitures

 

(0.1)

 

(0.1)

 

(0.2)

 

(0.1)

  U.S. 

 

(0.2)

 

(0.1)

 

(0.2)

 

(0.1)

  International 

 

0.0

 

0.0

 

(0.3)

 

(0.1)

                 

WW Ops excluding Acquisitions and Divestitures

 

3.9%

 

9.6%

 

3.9%

 

6.5%

  U.S. 

 

6.8%

 

13.1%

 

1.9%

 

8.4%

  International 

 

2.0%

 

4.9%

 

5.8%

 

4.5%

                 

Hepatitis C

     

3.2

     

1.4

  U.S. 

     

0.8

     

0.4

  International 

     

6.3

     

2.4

                 

WW Ops excluding Hepatitis C only

     

12.9%

     

6.7%

  U.S. 

     

14.0%

     

7.8%

  International 

     

11.2%

     

5.5%

                 

WW Ops excluding Acquisitions, Divestitures and Hepatitis C

 

3.9%

 

12.8%

 

3.9%

 

7.9%

  U.S. 

 

6.8%

 

13.9%

 

1.9%

 

8.8%

  International 

 

2.0%

 

11.2%

 

5.8%

 

6.9%

                 
                 

(1) Hepatitis C products include OLYSIO ®/SOVRIAD ®and INCIVO ®

               

(2) Operational growth excludes the effect of translational currency

               

Johnson & Johnson and Subsidiaries

               

Reconciliation of Non-GAAP Financial Measure

               
                 

Operational Sales Growth Excluding Acquisitions, Divestitures and Hepatitis C Sales (1)

 SIX MONTHS 2016 ACTUAL vs. 2015 ACTUAL 

                 
 

 Segments 

                 
   

 Consumer 

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

   

Operational % (2)

 WW As Reported: 

 

0.6%

 

9.1%

 

1.2%

 

4.6%

 U.S. 

 

1.0%

 

13.1%

 

1.6%

 

7.3%

 International 

 

0.4%

 

3.8%

 

0.8%

 

1.8%

                 

Wound Care/Other

               

 SPLENDA®

 

2.3

         

0.4

  U.S. 

 

4.5

         

0.7

  International 

 

0.8

         

0.2

                 

Cardiovascular

               

 Cordis

         

2.3

 

0.9

  U.S. 

         

1.1

 

0.4

  International 

         

3.5

 

1.4

                 

All Other Acquisitions and Divestitures

 

0.0

 

0.2

 

(0.1)

 

0.1

  U.S. 

 

(0.1)

 

0.4

 

(0.1)

 

0.2

  International 

 

0.1

 

0.0

 

0.0

 

0.0

                 

WW Ops excluding Acquisitions and Divestitures

 

2.9%

 

9.3%

 

3.4%

 

6.0%

  U.S. 

 

5.4%

 

13.5%

 

2.6%

 

8.6%

  International 

 

1.3%

 

3.8%

 

4.3%

 

3.4%

                 
                 

Hepatitis C

     

3.2

     

1.4

  U.S. 

     

1.5

     

0.7

  International 

     

5.4

     

2.0

                 

WW Ops excluding Hepatitis C only

     

12.3%

     

6.0%

 U.S. 

     

14.6%

     

8.0%

 International 

     

9.2%

     

3.8%

                 

WW Ops excluding Acquisitions, Divestitures, and Hepatitis C

 

2.9%

 

12.5%

 

3.4%

 

7.4%

  U.S. 

 

5.4%

 

15.0%

 

2.6%

 

9.3%

  International 

 

1.3%

 

9.2%

 

4.3%

 

5.4%

                 

(1) Hepatitis C products include OLYSIO ®/SOVRIAD ®and INCIVO ®

               

(2) Operational growth excludes the effect of translational currency

               
                 
   

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

SECOND QUARTER

 

SIX MONTHS

         

% Change

         

% Change

   

2016

 

2015

Reported

Operational (1)

Currency

   

2016

 

2015

Reported

Operational (1)

Currency

CONSUMER SEGMENT (2)

                             

BABY CARE

                             

US

 

$          102

 

104

-1.9%

-1.9%

-

   

$          197

 

215

-8.4%

-8.4%

-

Intl

 

398

 

439

-9.3%

-2.2%

-7.1%

   

754

 

839

-10.1%

-1.1%

-9.0%

WW

 

500

 

543

-7.9%

-2.1%

-5.8%

   

951

 

1,054

-9.8%

-2.6%

-7.2%

ORAL CARE

                             

US

 

159

 

147

8.2%

8.2%

-

   

329

 

305

7.9%

7.9%

-

Intl

 

244

 

244

0.0%

5.6%

-5.6%

   

459

 

489

-6.1%

1.3%

-7.4%

WW

 

403

 

391

3.1%

6.6%

-3.5%

   

788

 

794

-0.8%

3.8%

-4.6%

OTC

                             

US

 

389

 

366

6.3%

6.3%

-

   

850

 

771

10.2%

10.2%

-

Intl

 

619

 

608

1.8%

6.1%

-4.3%

   

1,177

 

1,196

-1.6%

4.5%

-6.1%

WW

 

1,008

 

974

3.5%

6.2%

-2.7%

   

2,027

 

1,967

3.1%

6.8%

-3.7%

SKIN CARE

                             

US

 

555

 

491

13.0%

13.0%

-

   

1,043

 

983

6.1%

6.1%

-

Intl

 

398

 

403

-1.2%

3.5%

-4.7%

   

772

 

814

-5.2%

1.3%

-6.5%

WW

 

953

 

894

6.6%

8.7%

-2.1%

   

1,815

 

1,797

1.0%

3.9%

-2.9%

WOMEN'S HEALTH

                             

US

 

7

 

7

0.0%

0.0%

-

   

13

 

13

0.0%

0.0%

-

Intl

 

276

 

313

-11.8%

-4.8%

-7.0%

   

521

 

594

-12.3%

-3.0%

-9.3%

WW

 

283

 

320

-11.6%

-4.8%

-6.8%

   

534

 

607

-12.0%

-2.9%

-9.1%

WOUND CARE / OTHER

                             

US

 

172

 

240

-28.3%

-28.3%

-

   

310

 

427

-27.4%

-27.4%

-

Intl

 

100

 

121

-17.4%

-14.2%

-3.2%

   

189

 

227

-16.7%

-11.4%

-5.3%

WW

 

272

 

361

-24.7%

-23.6%

-1.1%

   

499

 

654

-23.7%

-21.9%

-1.8%

                               

TOTAL CONSUMER

                             

US

 

1,384

 

1,355

2.1%

2.1%

-

   

2,742

 

2,714

1.0%

1.0%

-

Intl

 

2,035

 

2,128

-4.4%

1.0%

-5.4%

   

3,872

 

4,159

-6.9%

0.4%

-7.3%

WW

 

$       3,419

 

3,483

-1.8%

1.5%

-3.3%

   

$       6,614

 

6,873

-3.8%

0.6%

-4.4%

                               
                               
   

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

SECOND QUARTER

 

SIX MONTHS

         

% Change

         

% Change

   

2016

 

2015

Reported

Operational (1)

Currency

   

2016

 

2015

Reported

Operational (1)

Currency

PHARMACEUTICAL SEGMENT (2)

                             

IMMUNOLOGY

                             

US

 

$       2,224

 

1,876

18.6%

18.6%

-

   

$       4,395

 

3,631

21.0%

21.0%

-

Intl

 

814

 

678

20.1%

23.0%

-2.9%

   

1,553

 

1,386

12.0%

17.7%

-5.7%

WW

 

3,038

 

2,554

19.0%

19.8%

-0.8%

   

5,948

 

5,017

18.6%

20.2%

-1.6%

 REMICADE

                             

 US 

 

1,236

 

1,088

13.6%

13.6%

-

   

2,447

 

2,143

14.2%

14.2%

-

 US Exports (3)

 

185

 

241

-23.2%

-23.2%

-

   

418

 

422

-0.9%

-0.9%

-

 Intl

 

359

 

339

5.9%

11.1%

-5.2%

   

694

 

703

-1.3%

6.2%

-7.5%

 WW

 

1,780

 

1,668

6.7%

7.7%

-1.0%

   

3,559

 

3,268

8.9%

10.5%

-1.6%

 SIMPONI / SIMPONI ARIA

                             

 US

 

244

 

172

41.9%

41.9%

-

   

460

 

327

40.7%

40.7%

-

 Intl

 

204

 

136

50.0%

49.7%

0.3%

   

378

 

281

34.5%

38.3%

-3.8%

 WW

 

448

 

308

45.5%

45.4%

0.1%

   

838

 

608

37.8%

39.5%

-1.7%

 STELARA

                             

 US

 

559

 

375

49.1%

49.1%

-

   

1,070

 

739

44.8%

44.8%

-

 Intl

 

245

 

195

25.6%

26.4%

-0.8%

   

469

 

380

23.4%

26.8%

-3.4%

 WW

 

804

 

570

41.1%

41.4%

-0.3%

   

1,539

 

1,119

37.5%

38.7%

-1.2%

 OTHER IMMUNOLOGY

                             

 US

 

-

 

-

-

-

-

   

-

 

-

-

-

-

 Intl

 

6

 

8

-25.0%

-15.2%

-9.8%

   

12

 

22

-45.5%

-36.4%

-9.1%

 WW

 

6

 

8

-25.0%

-15.2%

-9.8%

   

12

 

22

-45.5%

-36.4%

-9.1%

INFECTIOUS DISEASES

                             

US

 

362

 

381

-5.0%

-5.0%

-

   

720

 

793

-9.2%

-9.2%

-

Intl

 

467

 

651

-28.3%

-27.3%

-1.0%

   

885

 

1,214

-27.1%

-24.8%

-2.3%

WW

 

829

 

1,032

-19.7%

-19.1%

-0.6%

   

1,605

 

2,007

-20.0%

-18.6%

-1.4%

 EDURANT

                             

 US

 

14

 

9

55.6%

55.6%

-

   

25

 

18

38.9%

38.9%

-

 Intl

 

126

 

92

37.0%

35.1%

1.9%

   

234

 

174

34.5%

35.2%

-0.7%

 WW

 

140

 

101

38.6%

36.9%

1.7%

   

259

 

192

34.9%

35.6%

-0.7%

 OLYSIO / SOVRIAD

                             

 US

 

21

 

50

-58.0%

-58.0%

-

   

37

 

148

-75.0%

-75.0%

-

 Intl

 

22

 

214

-89.7%

-89.4%

-0.3%

   

38

 

350

-89.1%

-88.5%

-0.6%

 WW

 

43

 

264

-83.7%

-83.5%

-0.2%

   

75

 

498

-84.9%

-84.5%

-0.4%

 PREZISTA / PREZCOBIX / REZOLSTA

                             

 US

 

273

 

258

5.8%

5.8%

-

   

550

 

492

11.8%

11.8%

-

 Intl

 

186

 

190

-2.1%

-0.6%

-1.5%

   

361

 

383

-5.7%

-2.6%

-3.1%

 WW

 

459

 

448

2.5%

3.1%

-0.6%

   

911

 

875

4.1%

5.5%

-1.4%

 OTHER INFECTIOUS DISEASES

                             

 US

 

54

 

64

-15.6%

-15.6%

-

   

108

 

135

-20.0%

-20.0%

-

 Intl

 

133

 

155

-14.2%

-11.2%

-3.0%

   

252

 

307

-17.9%

-13.9%

-4.0%

 WW

 

187

 

219

-14.6%

-12.5%

-2.1%

   

360

 

442

-18.6%

-15.8%

-2.8%

See footnotes at end of schedule

                             
   

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

SECOND QUARTER

 

SIX MONTHS

         

% Change

         

% Change

   

2016

 

2015

Reported

Operational (1)

Currency

   

2016

 

2015

Reported

Operational (1)

Currency

NEUROSCIENCE

                             

US

 

695

 

693

0.3%

0.3%

-

   

1,375

 

1,443

-4.7%

-4.7%

-

Intl

 

907

 

871

4.1%

4.7%

-0.6%

   

1,776

 

1,739

2.1%

5.1%

-3.0%

WW

 

1,602

 

1,564

2.4%

2.8%

-0.4%

   

3,151

 

3,182

-1.0%

0.6%

-1.6%

 CONCERTA / METHYLPHENIDATE

                             

 US

 

129

 

102

26.5%

26.5%

-

   

263

 

228

15.4%

15.4%

-

 Intl

 

109

 

104

4.8%

8.4%

-3.6%

   

206

 

202

2.0%

7.4%

-5.4%

 WW

 

238

 

206

15.5%

17.3%

-1.8%

   

469

 

430

9.1%

11.7%

-2.6%

 INVEGA / PALIPERIDONE

                             

 US

 

18

 

105

-82.9%

-82.9%

-

   

42

 

199

-78.9%

-78.9%

-

 Intl

 

64

 

61

4.9%

3.4%

1.5%

   

126

 

122

3.3%

4.4%

-1.1%

 WW

 

82

 

166

-50.6%

-51.2%

0.6%

   

168

 

321

-47.7%

-47.3%

-0.4%

 INVEGA SUSTENNA / XEPLION / INVEGA TRINZA

                             

 US

 

339

 

253

34.0%

34.0%

-

   

644

 

481

33.9%

33.9%

-

 Intl

 

221

 

183

20.8%

21.2%

-0.4%

   

429

 

366

17.2%

20.2%

-3.0%

 WW

 

560

 

436

28.4%

28.6%

-0.2%

   

1,073

 

847

26.7%

28.0%

-1.3%

 RISPERDAL CONSTA

                             

 US

 

100

 

99

1.0%

1.0%

-

   

195

 

203

-3.9%

-3.9%

-

 Intl

 

130

 

148

-12.2%

-11.9%

-0.3%

   

266

 

298

-10.7%

-8.4%

-2.3%

 WW

 

230

 

247

-6.9%

-6.7%

-0.2%

   

461

 

501

-8.0%

-6.6%

-1.4%

 OTHER NEUROSCIENCE

                             

 US

 

109

 

134

-18.7%

-18.7%

-

   

231

 

332

-30.4%

-30.4%

-

 Intl

 

383

 

375

2.1%

2.6%

-0.5%

   

749

 

751

-0.3%

2.6%

-2.9%

 WW

 

492

 

509

-3.3%

-3.0%

-0.3%

   

980

 

1,083

-9.5%

-7.5%

-2.0%

ONCOLOGY

                             

US

 

569

 

362

57.2%

57.2%

-

   

1,118

 

696

60.6%

60.6%

-

Intl

 

905

 

782

15.7%

17.1%

-1.4%

   

1,710

 

1,556

9.9%

13.5%

-3.6%

WW

 

1,474

 

1,144

28.8%

29.8%

-1.0%

   

2,828

 

2,252

25.6%

28.1%

-2.5%

 IMBRUVICA

                             

 US

 

144

 

89

61.8%

61.8%

-

   

276

 

155

78.1%

78.1%

-

 Intl

 

151

 

65

*

*

**

   

280

 

115

*

*

**

 WW

 

295

 

154

91.6%

93.1%

-1.5%

   

556

 

270

*

*

**

 VELCADE

                             

 US

 

-

 

-

-

-

-

   

-

 

-

-

-

-

 Intl

 

342

 

344

-0.6%

1.4%

-2.0%

   

646

 

683

-5.4%

-2.0%

-3.4%

 WW

 

342

 

344

-0.6%

1.4%

-2.0%

   

646

 

683

-5.4%

-2.0%

-3.4%

 ZYTIGA

                             

 US

 

286

 

255

12.2%

12.2%

-

   

558

 

508

9.8%

9.8%

-

 Intl

 

315

 

291

8.2%

8.4%

-0.2%

   

601

 

594

1.2%

4.1%

-2.9%

 WW

 

601

 

546

10.1%

10.2%

-0.1%

   

1,159

 

1,102

5.2%

6.8%

-1.6%

 OTHER ONCOLOGY

                             

 US

 

139

 

18

*

*

-

   

284

 

33

*

*

-

 Intl

 

97

 

82

18.3%

20.1%

-1.8%

   

183

 

164

11.6%

15.6%

-4.0%

 WW

 

236

 

100

*

*

**

   

467

 

197

*

*

**

CARDIOVASCULAR / METABOLISM / OTHER

                             

US

 

1,294

 

1,231

5.1%

5.1%

-

   

2,473

 

2,351

5.2%

5.2%

-

Intl

 

417

 

421

-1.0%

3.2%

-4.2%

   

827

 

863

-4.2%

1.4%

-5.6%

WW

 

1,711

 

1,652

3.6%

4.7%

-1.1%

   

3,300

 

3,214

2.7%

4.2%

-1.5%

 XARELTO

                             

 US

 

594

 

472

25.8%

25.8%

-

   

1,161

 

913

27.2%

27.2%

-

 Intl

 

-

 

-

-

-

-

   

-

 

-

-

-

-

 WW

 

594

 

472

25.8%

25.8%

-

   

1,161

 

913

27.2%

27.2%

-

 INVOKANA / INVOKAMET

                             

 US

 

348

 

302

15.2%

15.2%

-

   

645

 

568

13.6%

13.6%

-

 Intl

 

35

 

16

*

*

**

   

63

 

28

*

*

**

 WW

 

383

 

318

20.4%

21.0%

-0.6%

   

708

 

596

18.8%

19.5%

-0.7%

 PROCRIT / EPREX

                             

 US

 

230

 

179

28.5%

28.5%

-

   

413

 

342

20.8%

20.8%

-

 Intl

 

92

 

97

-5.2%

-2.9%

-2.3%

   

183

 

203

-9.9%

-5.9%

-4.0%

 WW

 

322

 

276

16.7%

17.5%

-0.8%

   

596

 

545

9.4%

10.9%

-1.5%

 OTHER

                             

 US

 

122

 

278

-56.1%

-56.1%

-

   

254

 

528

-51.9%

-51.9%

-

 Intl

 

290

 

308

-5.8%

-1.4%

-4.4%

   

581

 

632

-8.1%

-2.5%

-5.6%

 WW

 

412

 

586

-29.7%

-27.4%

-2.3%

   

835

 

1,160

-28.0%

-25.0%

-3.0%

                               

TOTAL PHARMACEUTICAL

                             

US

 

5,144

 

4,543

13.2%

13.2%

-

   

10,081

 

8,914

13.1%

13.1%

-

Intl

 

3,510

 

3,403

3.1%

4.9%

-1.8%

   

6,751

 

6,758

-0.1%

3.8%

-3.9%

WW

 

$       8,654

 

7,946

8.9%

9.7%

-0.8%

   

$     16,832

 

15,672

7.4%

9.1%

-1.7%

                               

See footnotes at end of schedule

                             
   

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

SECOND QUARTER

 

SIX MONTHS

         

% Change

         

% Change

   

2016

 

2015

Reported

Operational (1)

Currency

   

2016

 

2015

Reported

Operational (1)

Currency

MEDICAL DEVICES SEGMENT (2) (4)

                             

CARDIOVASCULAR

                             

US

 

$          235

 

235

0.0%

0.0%

-

   

$          466

 

463

0.6%

0.6%

-

Intl

 

235

 

309

-23.9%

-23.8%

-0.1%

   

447

 

610

-26.7%

-25.0%

-1.7%

WW

 

470

 

544

-13.6%

-13.6%

0.0%

   

913

 

1,073

-14.9%

-14.0%

-0.9%

DIABETES CARE

                             

US

 

177

 

214

-17.3%

-17.3%

-

   

357

 

426

-16.2%

-16.2%

-

Intl

 

294

 

280

5.0%

7.0%

-2.0%

   

543

 

552

-1.6%

2.2%

-3.8%

WW

 

471

 

494

-4.7%

-3.5%

-1.2%

   

900

 

978

-8.0%

-5.8%

-2.2%

DIAGNOSTICS

                             

US

 

-

 

-

-

-

-

   

-

 

-

-

-

-

Intl

 

31

 

16

93.8%

*

**

   

59

 

46

28.3%

47.8%

-19.5%

WW

 

31

 

16

93.8%

*

**

   

59

 

46

28.3%

47.8%

-19.5%

ORTHOPAEDICS

                             

US 

 

1,364

 

1,321

3.3%

3.3%

-

   

2,756

 

2,630

4.8%

4.8%

-

Intl

 

991

 

1,009

-1.8%

0.2%

-2.0%

   

1,940

 

2,028

-4.3%

-0.5%

-3.8%

WW

 

2,355

 

2,330

1.1%

2.0%

-0.9%

   

4,696

 

4,658

0.8%

2.4%

-1.6%

 HIPS

                             

 US

 

197

 

193

2.1%

2.1%

-

   

400

 

383

4.4%

4.4%

-

 Intl

 

152

 

143

6.3%

9.6%

-3.3%

   

291

 

286

1.7%

6.5%

-4.8%

 WW

 

349

 

336

3.9%

5.3%

-1.4%

   

691

 

669

3.3%

5.3%

-2.0%

 KNEES

                             

 US

 

229

 

222

3.2%

3.2%

-

   

473

 

448

5.6%

5.6%

-

 Intl

 

156

 

150

4.0%

6.7%

-2.7%

   

301

 

300

0.3%

4.4%

-4.1%

 WW

 

385

 

372

3.5%

4.6%

-1.1%

   

774

 

748

3.5%

5.1%

-1.6%

 TRAUMA

                             

 US

 

381

 

351

8.5%

8.5%

-

   

762

 

715

6.6%

6.6%

-

 Intl

 

255

 

270

-5.6%

-3.8%

-1.8%

   

516

 

562

-8.2%

-4.4%

-3.8%

 WW

 

636

 

621

2.4%

3.2%

-0.8%

   

1,278

 

1,277

0.1%

1.8%

-1.7%

 SPINE & OTHER

                             

 US

 

557

 

555

0.4%

0.4%

-

   

1,121

 

1,084

3.4%

3.4%

-

 Intl

 

428

 

446

-4.0%

-2.5%

-1.5%

   

832

 

880

-5.5%

-2.2%

-3.3%

 WW

 

985

 

1,001

-1.6%

-0.9%

-0.7%

   

1,953

 

1,964

-0.6%

0.9%

-1.5%

SURGERY

                             

US

 

1,020

 

1,000

2.0%

2.0%

-

   

2,001

 

1,960

2.1%

2.1%

-

Intl

 

1,377

 

1,328

3.7%

6.4%

-2.7%

   

2,624

 

2,624

0.0%

4.4%

-4.4%

WW

 

2,397

 

2,328

3.0%

4.6%

-1.6%

   

4,625

 

4,584

0.9%

3.4%

-2.5%

 ADVANCED

                             

 US

 

389

 

360

8.1%

8.1%

-

   

741

 

689

7.5%

7.5%

-

 Intl

 

520

 

480

8.3%

11.0%

-2.7%

   

984

 

921

6.8%

11.3%

-4.5%

 WW

 

909

 

840

8.2%

9.7%

-1.5%

   

1,725

 

1,610

7.1%

9.7%

-2.6%

 GENERAL

                             

 US

 

421

 

423

-0.5%

-0.5%

-

   

840

 

845

-0.6%

-0.6%

-

 Intl

 

706

 

696

1.4%

3.9%

-2.5%

   

1,357

 

1,407

-3.6%

0.5%

-4.1%

 WW

 

1,127

 

1,119

0.7%

2.3%

-1.6%

   

2,197

 

2,252

-2.4%

0.2%

-2.6%

 SPECIALTY

                             

 US

 

210

 

217

-3.2%

-3.2%

-

   

420

 

426

-1.4%

-1.4%

-

 Intl

 

151

 

152

-0.7%

2.8%

-3.5%

   

283

 

296

-4.4%

1.0%

-5.4%

 WW

 

361

 

369

-2.2%

-0.7%

-1.5%

   

703

 

722

-2.6%

-0.4%

-2.2%

VISION CARE

                             

US

 

248

 

243

2.1%

2.1%

-

   

490

 

496

-1.2%

-1.2%

-

Intl

 

437

 

403

8.4%

8.1%

0.3%

   

835

 

781

6.9%

8.9%

-2.0%

WW

 

685

 

646

6.0%

5.8%

0.2%

   

1,325

 

1,277

3.8%

5.0%

-1.2%

                               

TOTAL MEDICAL DEVICES

                             

US

 

3,044

 

3,013

1.0%

1.0%

-

   

6,070

 

5,975

1.6%

1.6%

-

Intl

 

3,365

 

3,345

0.6%

2.6%

-2.0%

   

6,448

 

6,641

-2.9%

0.8%

-3.7%

WW

 

$       6,409

 

6,358

0.8%

1.8%

-1.0%

   

$     12,518

 

12,616

-0.8%

1.2%

-2.0%

                               

* Percentage greater than 100%

                             

** Not meaningful

                             

(1) Operational growth excludes the effect of translational currency

                         

(2) Unaudited

                             

(3) Reported as U.S. sales

                             

(4) Prior year amounts have been reclassified to conform to current year product disclosure