Johnson & Johnson — 2009

Sharynn Tomlin, Matt Milhauser, Bernard Gierke, Thibault Lefebvre, and Mario Martinez

Angelo University

Group Members: Jireh Morgan

Aiden Williams

Sienna Walker

Teonna Weeks

Allianne Thomas

Course: Strategic Management (BUS 207) Johnsons & Johnson Case Analysis

Lecturer:Ms. Valery Williams

Case Abstract
Johnson & Johnson is a complete strategic management case that contains the company's
financial statements for the fiscal year ending December 31, 2008, competition information, and
more. The year 2009 is the case time setting. There is enough internal and external data available
for students to analyze existing tactics and create a three-year strategic plan for the organization.
Johnson & Johnson is headquartered in New Brunswick, New Jersey, and is listed on the New
York Stock Exchange under the ticker code JNJ.

Vision Statement (Actual)

“To maximize the global power of diversity and inclusion to drive superior business results and
sustainable competitive advantage.”
Mission Statement (Actual)
“We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers
and all others who use our products and services. In meeting their needs, everything we do must
be of high quality. (1, 2) We must constantly strive to reduce our costs in order to maintain
reasonable prices. Customers’ orders must be serviced promptly and accurately. Our suppliers
and distributors must have an opportunity to make a fair profit. (6)
We are responsible to our employees, the men and women who work with us throughout the
world. Everyone must be considered as an individual. We must respect their dignity and
recognize their merit. They must have a sense of security in their jobs. Compensation must be
fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways
to help our employees fulfill their family responsibilities. Employees must feel free to make
suggestions and complaints. There must be equal opportunity for employment, development and
advancement for those qualified. We must provide competent management, and their actions
must be just and ethical. (9)
We are responsible to the communities in which we live and work and to the world community
as well. We must be good citizens – support good works and charities and bear our fair share of
taxes. We must encourage civic improvements and better health and education. We must
maintain in good order the property we are privileged to use, protecting the environment and
natural resources. (3, 7, 8)
Our final responsibility is to our stockholders. Business must make a sound profit. We must
experiment with new ideas. Research must be carried on, innovative programs developed and
mistakes paid for. New equipment must be purchased, new facilities provided and new products
launched. Reserves must be created to provide for adverse times. When we operate according to
these principles, the stockholders should realize a fair return. (4, 5)”
1. Customer
2. Products or services
3. Markets
4. Technology
5. Concern for survival, profitability, growth
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees
External Audit
Opportunities
1. New and inventive medications are being developed by smaller companies. Due to this,
bigger pharmaceutical corporations now have the chance to buy or collaborate with
smaller businesses.
2. Bigger businesses can purchase raw materials with greater purchasing power
3. As the baby boomer generation ages, they will require more health and medical services.
4. More customers are taking more vitamins and using better-quality health-related products
as a sign of their increased health consciousness.
5. As a result of the economic crisis, many people may experience increased stress and
depression, necessitating the use of prescription drugs.
6. Despite years of research, pharmaceutical companies continue to invest in the creation of
new drugs to treat diseases like Alzheimer's, HIV, cancer, and heart problems.
7. Drug companies have discovered a more cost-efficient and effective way to advertise,
educate, and promote their products through the Internet.

Threats
1. The price of R&D has been rising at an astonishing rate, currently increasing by eightfold
annually.
2. As a result of the economic downturn, consumers of healthcare goods and services have
undergone significant behavioral and financial changes.
3. Ahead of the expiration of the relevant patents for the majority of the major
pharmaceutical products, generic drug companies have submitted Abbreviated New Drug
Applications (ANDAs) in an effort to market generic versions of those products.
4. Many significant patents, sometimes known as "Patent Cliffs," will expire by 2012,
paving the path for generic medicine manufacturers to start producing the most potent
and lucrative medications now available.
5. It can take 10 to 15 years to introduce a new drug to the market, and it costs a lot of
money to have it tested and approved by the FDA.
6. Drugs frequently have side effects that can result in bad press and/or force the
manufacturer to recall the product or take it off the market.

CPM- Competitive Profile Matrix

J&J Procter and Pfizer
Gambler
Critical Success Weighted Weighted Weighted
Weight Rating Rating Rating
Factors Score Score Score
Product Quality 0.10 4 0.40 3 0.30 2 0.20
Price
0.11 4 0.44 2 0.22 3 0.33
Competitiveness
Organizational
0.04 3 0.12 2 0.08 4 0.16
structure
Global Expansion 0.10 4 0.40 3 0.30 2 0.20

Employee Morale 0.05 4 0.20 3 0.15 2 0.10

Product safety 0.11 4 0.44 3 0.33 2 0.22

Technology 0.10 4 0.40 3 0.30 2 0.20

Customer Loyalty 0.10 4 0.40 3 0.30 2 0.20

Market share 0.06 4 0.24 3 0.18 2 0.12

Advertising 0.08 3 0.24 4 0.32 2 0.16

Product Image 0.08 4 0.32 3 0.24 2 0.16

Financial Position 0.07 4 0.28 3 0.21 2 0.14
Total 1.00 3.88 2.93 2.19

External Factors Evaluation (EFE) Matrix

Key External Factors Weight Rating Weighted
score
Opportunities
1. New and inventive medications are being 0.1 4 0.4
developed by smaller companies. Due to this,
bigger pharmaceutical corporations now have the
chance to buy or collaborate with smaller
businesses.
2. Bigger businesses can purchase raw materials with 0.09 3 0.27
greater purchasing power
3. As the baby boomer generation ages, they will 0.1 4 0.4
require more health and medical services.
4. More customers are taking more vitamins and 0.1 4 0.4
using better-quality health-related products as a
sign of their increased health consciousness.
 5. As a result of the economic crisis, many people 0.06 3 0.18
may experience increased stress and depression,
necessitating the use of prescription drugs.

0.06 3 0.18
6. Despite years of research, pharmaceutical
companies continue to invest in the creation of
new drugs to treat diseases like Alzheimer's, HIV,
cancer, and heart problems.
7. Drug companies have discovered a more 0.07 4 0.28
cost-efficient and effective way to advertise,
educate, and promote their products through the
Internet.
Threats
0.09 2 0.18
1) The price of R&D has been rising at an
astonishing rate, currently increasing by eightfold
annually.
2) As a result of the economic downturn, consumers 0.08 3 0.24
of healthcare goods and services have undergone
significant behavioral and financial changes.
0.07 2 0.14
3) Ahead of the expiration of the relevant patents for
the majority of the major pharmaceutical products,
generic drug companies have submitted
Abbreviated New Drug Applications (ANDAs) in
an effort to market generic versions of those
products.

4) Many significant patents, sometimes known as 0.06 2 0.12

"Patent Cliffs," will expire by 2012, paving the
path for generic medicine manufacturers to start
producing the most potent and lucrative
medications now available.
0.05 1 0.05
5) It can take 10 to 15 years to introduce a new drug
to the market, and it costs a lot of money to have it
tested and approved by the FDA.
0.07 2 0.14
 6) Drugs frequently have side effects that can result
in bad press and/or force the manufacturer to recall
the product or take it off the market.

Total 1.00 2.98

Internal Audit
Strengths
1.J&J provides a wide range of goods and services to healthcare facilities, businesses, and
households.
2. The company operates in the pharmaceutical, medical, and
gadgets and consumer goods.
3. J&J acquired an 18.4% stake in the Irish biotech firm Elan Corp. in July 2009 to gain access to
the US market for Alzheimer's disease treatments, which is worth $3 billion. The drug's efficacy
might increase the company's sales by US$25 billion.
4. For about US$894 million in cash, J&J purchased the small cancer drug-development
company Cougar Biotechnology in 2009. For advanced prostate cancer, Cougar makes a
fantastic medication.
5. J&J reported US$7.6 billion in research and development costs at the end of 2008, a small
drop from 2007.
6.Sales of medical devices and diagnostics as well as consumer health items increased from 2007
to 2008 by 10.8% and 6.4%, respectively.
7.Operating profit rose 17.4% for the consumer products category.
8. Operating profit for the pharmaceutical segment increased by 16.3% percent from 2007 to a
total of US$7,605 million in 2008, a 31.0 percent increase.
9. The medical devices segment's operating profit reached US$7,223 million in 2008, up 49.1%
from 2007.

Weaknesses
1. The pharmaceutical segment's sales decreased by 1.2 percent from 2007 to 2008.
2. The patent on a number of their well-liked and widely used medications is about to expire.
3. The total liabilities rose by about US$4.8 billion between 2007 and 2008.
4. Aside from acquisitions of other businesses, we have not introduced any new innovative
products in recent years.
5. According to data from 2009, the company's quarterly sales decreased by 5.3% from the same
period the year before.
6. The ratio of selling, general, and administrative costs to sales increased from 2007 to 2008 by
0.30 percent.

Financial Ratio Analysis (December 2009)

Growth Rates % J&J Industry S&P 500

Sales (Qtr vs year ago qtr) -5.30 3.20 -4.80

Net Income (YTD vs YTD) -1.70 5.10 -6.00

Net Income (Qtr vs year ago qtr) 1.10 38.80 26.80

Sales ( 5-Year Annual Avg.) 8.77 8.49 12.99

Net Income ( 5-Year Annual Avg.) 12.46 15.83 12.69

Dividends (5-Year Annual Avg.) 14.18 14.40 11.83

Price Ratios J&J Industry S&P 500

Current P/E Ration 14.1 15.3 26.7

P/E Ration 5-Year High 25.3 18.2 16.6

P/E Ration 5-Year Low 10.5 5.0 2.6

Price/ Sales Ratio 2.94 3.08 2.25

Price/ Book Value 3.53 8.10 3.48

Price/ Cash Flow Ratio 11.50 12.20 13.70

Profit Margins % J&J Industry S&P 500

Gross Margin 71.1 72.9 38.9

Pre-Tax Margin 27.5 24.0 10.3

Net Profit Margin 21.1 18.7 7.1

5Yr Gross Margin ( 5-Year Avg.) 71.5 72.1 38.6

5Yr PreTax Margin (5-Year Avg.) 25.4 21.3 16.6

5Yr Net Profit Margin (5-Year Avg.) 19.1 15.9 11.5

Financial Condition J&J Industry S&P

Debt/ Equity Ratio 0.23 2.30 1.09

Current Ratio 1.8 1.9 1.5

Quick Ratio 1.6 1.6 1.3

Interest Coverage 57.1 20.6 23.7

Leverage Ratio 1.8 4.7 3.4

Book Value/ Share 18.27 11.51 21.63

Avg P/E Price/Sales Price/Book Net Profit

Margin ( %)

12/08 14.20 2.60 3.81 20.3

12/07 17.60 3.21 4.42 17.3

12/06 16.70 3.67 4.86 20.7

01/06 19.30 3.57 4.62 19.9

01/05 20.40 4.01 5.92 18.3

12/03 22.00 3.64 5.59 17.2

12/02 26.60 4.47 6.95 18.2

12/01 28.30 5.67 7.43 17.5

12/00 27.60 5.58 7.76 17.0

12/08 14.20 2.60 3.81 20.3

Book Debt/Equity Return on Equity Return on Interest

Value/Shares (%) Assets ( %) Coverage

12/08 $15.35 0.28 30.5 15.2 38.9

12/07 $15.25 0.22 24.5 13.1 44.9

12/06 $13.59 0.17 28.1 15.7 231.5

01/06 $13.01 0.07 26.0 17.1 242.9

01/05 $10.71 0.09 25.7 15.3 65.9

12/03 $9.05 0.15 26.8 14.9 49.8

12/02 $7.65 0.18 29.1 16.3 58.1

12/01 $7.95 0.11 23.4 14.7 51.6

12/00 $6.77 0.23 24.3 14.5 33.7

12/08 $15.35 0.28 30.5 15.2 38.9

Internal Factor Evaluation (IFE) Matrix

Key Internal Factors Weight Rating Weighted

Score

Strengths

1. J&J provides several products and 0.08 4 0.32

services to hospitals, merchants, and
families.

2. The company operates in the 0.08 4 0.32

pharmaceutical, medical, and gadgets
and consumer goods.
 3. J&J acquired an 18.4% stake in the Irish 0.07 4 0.28
biotech firm Elan Corp. in July 2009 to
gain access to the US market for
Alzheimer's disease treatments, which is
worth $3 billion. The drug's efficacy
might increase the company's sales by
US$25 billion.

4. For about US$894 million in cash, J&J 0.07 4 0.28

purchased the small cancer
drug-development company Cougar
Biotechnology in 2009. For advanced
prostate cancer, Cougar makes a
fantastic medication.

5. J&J reported US$7.6 billion in research 0.08 3 0.24

and development costs at the end of
2008, a small drop from 2007

6. Sales of medical devices and diagnostics 0.06 3 0.18

as well as consumer health items
increased from 2007 to 2008 by 10.8%
and 6.4%, respectively.

7. Operating profit rose 17.4% for the 0.06 3 0.18

consumer products category

8. Operating profit for the pharmaceutical 0.06 3 0.18

segment increased by 16.3% percent
from 2007 to a total of US$7,605
million in 2008, a 31.0 percent increase.

9.The medical devices segment's operating 0.06 3 0.18

profit reached US$7,223 million in
2008, up 49.1% from 2007.

Weaknesses
 1. The pharmaceutical segment's sales 0.06 1 0.06
decreased by 1.2 percent from 2007 to
2008.

2. The patent on a number of their 0.09 1 0.09

well-liked and widely used medications
is about to expire.

3. The total liabilities rose by about 0.05 2 0.1

US$4.8 billion between 2007 and 2008.

4. Aside from acquisitions of other 0.07 1 0.07

businesses, we have not introduced any
new innovative products in recent years.

5. According to data from 2009, the 0.04 2 0.08

company's quarterly sales decreased by
5.3% from the same period the year
before.

6. The ratio of selling, general, and 0.07 2 0.14

administrative costs to sales increased
from 2007 to 2008 by 0.30 percent.

TOTAL 1.00 2.7

SWOT Strategies

Strengths Weaknesses
1.J&J provides a wide range 1. The pharmaceutical
of goods and services to segment's sales decreased by
healthcare facilities, 1.2 percent from 2007 to
businesses, and households. 2008.
2. The company operates in 2. The patent on a number of
the pharmaceutical, medical, their well-liked and widely
and used medications is about to
expire.
gadgets and consumer goods.
3. The total liabilities rose by
3. J&J acquired an 18.4%
about US$4.8 billion between
stake in the Irish biotech firm
2007 and 2008.
Elan Corp. in July 2009 to
gain access to the US market 4. Aside from acquisitions of
for Alzheimer's disease other businesses, we have not
treatments, which is worth $3 introduced any new
billion. The drug's efficacy innovative products in recent
might increase the company's years.
sales by US$25 billion.
5. According to data from
4. For about US$894 million 2009, the company's quarterly
in cash, J&J purchased the sales decreased by 5.3% from
small cancer the same period the year
drug-development company before.
Cougar Biotechnology in
6. The ratio of selling,
2009. For advanced prostate
general, and administrative
cancer, Cougar makes a
costs to sales increased from
fantastic medication.
2007 to 2008 by 0.30 percent.
5. J&J reported US$7.6
billion in research and
development costs at the end
of 2008, a small drop from
2007.
6.Sales of medical devices
and diagnostics as well as
consumer health items
increased from 2007 to 2008
by 10.8% and 6.4%,
respectively.
 7.Operating profit rose 17.4%
for the consumer products
category.
8. Operating profit for the
pharmaceutical segment
increased by 16.3% percent
from 2007 to a total of
US$7,605 million in 2008, a
31.0 percent increase.
9. The medical devices
segment's operating profit
reached US$7,223 million in
2008, up 49.1% from 2007.

Opportunities S-O Strategies W-O Strategies

1. New and inventive Boost R&D on Alzheimer's, 1. Enhance marketing

medications are being cardiovascular, and efforts using social media
developed by smaller cancer-related goods (S2, and the internet.
companies. Due to S3, S4, S8, O3, O6).
this, bigger Purchase other creative Online research on
pharmaceutical firms with pending patents consumer, OTC, and
on popular health-related medicinal items aimed
corporations now have
items (S2, S8, O1, O3, O4, towards the younger age
the chance to buy or
O6). (W1, O4, O7)
collaborate with 2. Create new health-related
smaller businesses. items for health-conscious
2. Bigger businesses can customers, such as vitamins
purchase raw and nutritional pills/drinks
materials with greater (W4, O3, O4).
purchasing power
3. As the baby boomer
generation ages, they
will require more
health and medical
services.
4. More customers are
taking more vitamins
and using
better-quality
health-related
 products as a sign of
their increased health
consciousness.
5. As a result of the
economic crisis, many
people may
experience increased
stress and depression,
necessitating the use
of prescription drugs.
6. Despite years of
research,
pharmaceutical
companies continue to
invest in the creation
of new drugs to treat
diseases like
Alzheimer's, HIV,
cancer, and heart
problems.
7. Drug companies have
discovered a more
cost-efficient and
effective way to
advertise, educate, and
promote their products
through the Internet.

Threats S-T Strategies W-T Strategies

1. The price of R&D has 1. Establish a 1. Boost advertising and

been rising at an partnership/joint venture marketing by teaching
astonishing rate, (minority stake) with customers about the
currently increasing generic medicine makers to advantages of using
by eightfold annually. promote and educate the brand-name vs generic
2. As a result of the public about the health pharmaceuticals (W1, W5,
advantages of certain goods T3, T4)
economic downturn,
(S1, S2, S8, T1, T3, T4).
consumers of
2. Build a social network
healthcare goods and 2. Outsourcing some R&D space for consumers to
services have procedures and processes to communicate their
undergone significant decrease R&D costs while complaints and drug side
ensuring intellectual effects so that the
 behavioral and property remains secure corporation can keep better
financial changes. and private (S2, S7, S8, S9, track of issues and enhance
3. Ahead of the T1, T5). public image before the
expiration of the issues develop legally (W1,
relevant patents for T6)
the majority of the
major pharmaceutical
products, generic drug
companies have
submitted
Abbreviated New
Drug Applications
(ANDAs) in an effort
to market generic
versions of those
products.
4. Many significant
patents, sometimes
known as "Patent
Cliffs," will expire by
2012, paving the path
for generic medicine
manufacturers to start
producing the most
potent and lucrative
medications now
available.
5. It can take 10 to 15
years to introduce a
new drug to the
market, and it costs a
lot of money to have it
tested and approved
by the FDA.
6. Drugs frequently have
side effects that can
result in bad press
and/or force the
manufacturer to recall
the product or take it
off the market.
G. SPACE Matrix

Financial Stability (FS)

Return on Investment 5
Leverage 3
Liquidity 5
Working Capital 5
Cash Flow 5
Financial Stability (FS) Coverage 4.6

Environmental Stability (ES)

Unemployment -4
Technological Changes -3
Price Elasticity of Demand -2
Competitive Pressure -4
Barriers to Entry -4
Environmental Stability (ES) Average -3.4

Competitive Stability (CS)

Market Share -1
Product Quality -2
Customer Loyalty -2
Competition’s Capacity Utilization -2
Technological Know-How -2
Competitive Stability (CS) Average -1.8

Industry Stability (IS)

Growth Potential 5
Financial Stability 5
Ease of Market Entry 4
Resource Utilization 3
Profit Potential 4
Industry Stability (IS) Average 4.2

Y-axis: FS + ES = 4.6 + (-3.4) = 1.2

X-axis: CS + IS = (-1.8) + (4.2) = 2.4

H. Grand Strategy Matrix

1. Market development
2. Market penetration
3. Product development
4. Forward integration
5. Backward integration
6. Horizontal integration
7. Related diversification

I. The Internal-External (IE) Matrix

The IFE Total Weighted Score

QSPM
 Acquire other Create innovative
inventive firms with health-related items
pending patents on for
popular health-conscious
health-related customers, such as
goods. vitamins and
nutritional
pills/drinks.

Key Factors Weight AS TAS AS TAS

Opportunities

1. New and inventive 0.1 4 0.4 2 0.2

medications are
being developed by
smaller companies.
Due to this, bigger
pharmaceutical
corporations now
have the chance to
buy or collaborate
with smaller
businesses.

2. Bigger businesses 0.09 --- --- --- ---

can purchase raw
materials with
greater purchasing
power

3. As the baby boomer 0.1 --- --- --- ---

generation ages, they
will require more
health and medical
services.

4. More customers are 0.01 --- --- --- ---

taking more vitamins
and using
better-quality
health-related
products as a sign of
their increased
 health
consciousness.

5. As a result of the 0.06 2 0.12 3 0.18

economic crisis,
many people may
experience increased
stress and
depression,
necessitating the use
of prescription
drugs.

6. Despite years of 0.06 4 0.24 3 0.18

research,
pharmaceutical
companies continue
to invest in the
creation of new
drugs to treat
diseases like
Alzheimer's, HIV,
cancer, and heart
problems.

7. Drug companies 0.07 --- --- --- ---

have discovered a
more cost-efficient
and effective way to
advertise, educate,
and promote their
products through the
Internet.

Threats

1. The price of R&D has been 0.09 2 0.18 4 0.36

rising at an astonishing rate,
currently increasing by
eightfold annually.
 2. As a result of the economic 0.08 2 0.16 1 0.08
downturn, consumers of
healthcare goods and
services have undergone
significant behavioral and
financial changes.

3. Ahead of the expiration of 0.07 3 0.21 4 0.28

the relevant patents for the
majority of the major
pharmaceutical products,
generic drug companies
have submitted Abbreviated
New Drug Applications
(ANDAs) in an effort to
market generic versions of
those products.

4. Many significant patents, 0.06 3 0.18 4 0.24

sometimes known as "Patent
Cliffs," will expire by 2012,
paving the path for generic
medicine manufacturers to
start producing the most
potent and lucrative
medications now available.

5. It can take 10 to 15 years to 0.05 4 0.20 2 0.1

introduce a new drug to the
market, and it costs a lot of
money to have it tested and
approved by the FDA.

6. Drugs frequently have side 0.07 ---- --- --- ---

effects that can result in bad
press and/or force the
manufacturer to recall the
product or take it off the
market.

TOTAL 1.00 1.69 1.62

Strengths
1. J&J provides several 0.08 ---- --- --- ---
products and services to
hospitals, merchants, and
families.

2. The company operates in 0.08 4 0.32 3 0.24

the pharmaceutical, medical,
and gadgets and consumer
goods.

3. J&J acquired an 18.4% 0.07 --- --- --- ---

stake in the Irish biotech
firm Elan Corp. in July 2009
to gain access to the US
market for Alzheimer's
disease treatments, which is
worth $3 billion. The drug's
efficacy might increase the
company's sales by US$25
billion.

4. For about US$894 million 0.07 --- --- --- ----

in cash, J&J purchased the
small cancer
drug-development company
Cougar Biotechnology in
2009. For advanced prostate
cancer, Cougar makes a
fantastic medication.

5. J&J reported US$7.6 billion 0.08 --- --- --- ---

in research and development
costs at the end of 2008, a
small drop from 2007

6. Sales of medical devices 0.06 3 0.18 4 0.24

and diagnostics as well as
consumer health items
increased from 2007 to 2008
by 10.8% and 6.4%,
respectively.
 7. Operating profit rose 17.4% 0.06 --- --- --- ---
for the consumer products
category.

8. Operating profit for the 0.06 4 0.24 2 0.12

pharmaceutical segment
increased by 16.3% percent
from 2007 to a total of
US$7,605 million in 2008, a
31.0 percent increase.

9. The medical devices 0.06 --- --- --- ---

segment's operating profit
reached US$7,223 million
in 2008, up 49.1% from
2007.

Weaknesses

1. The pharmaceutical 0.06 4 0.24 2 0.12

segment's sales decreased
by 1.2 percent from 2007 to
2008.

2. The patent on a number of 0.09 4 0.36 2 0.18

their well-liked and widely
used medications is about to
expire.

3. The total liabilities rose by 0.05 --- --- --- ---

about US$4.8 billion
between 2007 and 2008.

4. Aside from acquisitions of 0.07 --- --- --- ---

other businesses, we have
not introduced any new
innovative products in
recent years.
 5. According to data from 0.04 --- --- --- ---
2009, the company's
quarterly sales decreased by
5.3% from the same period
the year before.

6. The ratio of selling, general, 0.07 --- --- --- ---

and administrative costs to
sales increased from 2007 to
2008 by 0.30 percent.

SUBTOTAL 1.00 0.9

SUM TOTAL 3.03 2.52

ATTRACTIVENESS SCORE

Recommendations
They should get firms that make items that aren't currently offered through the Johnson &
Johnson product line but might come into one of the company's key segments / product lines.

Epilogue

The United States Congress has been debating ideas to enact a national healthcare program,
which might have an influence on pharma firms and how they conduct business in the United
States. If healthcare reform is implemented, more people will be able to afford health insurance
and, as a result, use items or services advised by their doctor. On the other side, drug producers
may be required to reduce the pricing of their products or services.
In progressive months, Johnson & Johnson has announced several victories, including the
unveiling of "Cytomimic Technology," which is related to how the body's electrical field affects
skin regression; reaching an agreement between Cordis Corporation which is owned by Johnson
& Johnson and Boston Scientific resolving two litigations; receiving FDA approval for a labeling
update for Prezista tablets; and a 9.0 percent increase in sales in the fourth quarter.