Johnson & Johnson Reports 2020 Third-Quarter Results

- October 13th, 2020

Johnson & Johnson today announced results for third-quarter 2020.  “Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in Medical Devices, growth in Consumer Health, and continued strength in Pharmaceuticals,” said Alex Gorsky Chairman and Chief Executive Officer. “I am proud of the relentless passion and Credo-led …

– Johnson & Johnson (NYSE: JNJ) today announced results for third-quarter 2020.  “Our third-quarter results reflect solid performance and positive trends across Johnson & Johnson, powered by better-than-expected procedure recovery in Medical Devices, growth in Consumer Health, and continued strength in Pharmaceuticals,” said Alex Gorsky Chairman and Chief Executive Officer. “I am proud of the relentless passion and Credo-led commitment to patients and customers that our colleagues around the world continue to demonstrate as we boldly fight the COVID-19 pandemic. Our world-class R&D team is working tirelessly to advance the Phase 3 trials of our COVID-19 vaccine and to uphold the highest standards of transparency, safety and efficacy; while other dedicated teams provide ongoing support to hospitals and patients as they return to sites of care, and ensure patients and consumers have the medicines and products they need. This resilient mindset, combined with our strategic capabilities and execution excellence, increase our optimism for continued recovery in 2020 and strong momentum entering into 2021.”

OVERALL FINANCIAL RESULTS :

THIRD QUARTER

($ in Millions, except EPS)

2020

2019

%  Change

Reported Sales

$ 21,082

$ 20,729

1.7%

Net Earnings

3,554

1,753

102.7%

EPS (diluted)

$      1.33

$      0.66

101.5%

Non-GAAP*

THIRD QUARTER

($ in Millions, except EPS)

2020

2019

%  Change

Operational Sales 1,2

N/A

N/A

1.7%

Adjusted Operational Sales 1,3

N/A

N/A

2.0%

Adjusted Net Earnings 1,4

5,868

5,672

3.5%

Adjusted EPS (diluted) 1,4

$      2.20

$      2.12

3.8%

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

4 Excludes intangible amortization expense and special items

REGIONAL SALES RESULTS:

THIRD QUARTER

%  Change


($ in Millions) 1


2020
2


2019
2


Reported
2


Operational
1,2


Currency
2

Adjusted
Operational 1,3

U.S.

$ 11,086

$ 10,791

2.7%

2.7%

2.8

International

9,996

9,938

0.6%

0.6%

0.0

1.1

Worldwide

$ 21,082

$ 20,729

1.7%

1.7%

0.0

2.0

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

SEGMENT SALES RESULTS:

THIRD QUARTER

%  Change


($ in Millions) 1


2020
1


2019
1


Reported
2


Operational
1,2


Currency
1

Adjusted
Operational 1,3

Consumer Health

$       3,514

$       3,469

1.3%

3.0

(1.7)

3.1

Pharmaceutical

11,418

10,877

5.0%

4.6

0.4

4.7

Medical Devices

6,150

6,383

(3.6)%

(3.9)

0.3

(3.3)

Worldwide

$     21,082

$     20,729

1.7%

1.7

0.0

2.0

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

SEGMENT COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, increased by 3.1%*, inclusive of the net negative impact of COVID-19 primarily in international over-the-counter products.  Sales growth was driven by U.S. growth in over-the-counter products including TYLENOL analgesics and digestive health products; LISTERINE mouthwash in oral care products; OGX in skin health/beauty products; and wound care products, primarily BAND-AID® Brand Adhesive Bandages.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 4.7%* driven by DARZALEX (daratumumab), for the treatment of multiple myeloma, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression, UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization, and ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer. This growth was partially offset by the negative impact of COVID-19 as well as biosimilar and generic competition, with declines primarily in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, and ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer.

Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 3.3%*.  The decline was primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, and Vision businesses. Results reflect market recovery versus the second quarter. The decline was partially offset by growth in the Interventional Solutions business led by electrophysiology products.

NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:
The information contained in this section should be read in conjunction with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov , www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases available online in the Investors section of the Company’s website at news releases .

Regulatory Approvals

THERMOCOOL SMARTTOUCH – Biosense Webster Receives FDA Approval for SF Ablation Catheter for the Treatment of Persistent Atrial Fibrillation¹

(press release)

SIMPONI ARIA (golimumab) – Approved by the U.S. Food and Drug Administration for Active Polyarticular Juvenile Idiopathic Arthritis and Extension of Its Active Psoriatic Arthritis Indication in Patients 2 Years of Age and Older

(press release)

SPRAVATO (esketamine) – Janssen Announces U.S. FDA Approval of CIII Nasal Spray to Treat Depressive Symptoms in Adults with Major Depressive Disorder with Acute Suicidal Ideation or Behavior

(press release)

DARZALEX (daratumumab) – U.S. FDA Approves New DARZALEX-Based Combination Regimen for Patients with Relapsed/Refractory Multiple Myeloma

(press release)

STELARA (ustekinumab) – U.S. Food and Drug Administration Approves Treatment of Pediatric Patients with Moderate to Severe Plaque Psoriasis

(press release)

Regulatory Submissions

UPTRAVI (selexipag) – Janssen Submits New Drug Application (NDA) to U.S. FDA for Injection for Intravenous Use to Treat Pulmonary Arterial Hypertension (PAH)

(press release)

DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) – Janssen Submits Application Seeking U.S. FDA Approval for the Treatment of Patients with Light Chain (AL) Amyloidosis

(press release)

Other

Johnson & Johnson Announces European Commission Approval of Agreement to Supply 200 Million Doses of Janssen’s COVID-19 Vaccine Candidate ¹

(press release)

Johnson & Johnson Completes Acquisition of Momenta Pharmaceuticals, Inc.¹

(press release)

Johnson & Johnson Initiates Pivotal Global Phase 3 Clinical Trial of Janssen’s COVID-19 Vaccine Candidate

(press release)

CERENOVUS Launches New Suite of Technologies to Advance Stroke Treatment

(press release)

Johnson & Johnson Announces that Janssen’s COVID-19 Investigational Vaccine Candidate Prevents Severe Clinical Disease in Pre-clinical Studies

(press release)

Janssen to Discontinue Pimodivir Influenza Development Program

(press release)

Johnson & Johnson Announces Agreement with U.S. Government for 100 Million Doses of Investigational COVID-19 Vaccine

(press release)

U.S. FDA Grants Ethicon Breakthrough Device Designation for Monarch-enabled NeuWave Microwave Ablation Technology

(press release)

1 Subsequent to the quarter

FULL-YEAR 2020 GUIDANCE:
Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson’s results computed in accordance with GAAP.

The estimated impact of the COVID-19 pandemic is included in the guidance below.

October 2020

July 2020

($ in Billions, except EPS)

Adjusted Operational Sales 1,2

Change vs. Prior Year

0.5% – 1.5%

(0.8%) – 1.0%

Operational Sales 2

Change vs. Prior Year

$82.0 to $82.8

0.0% – 1.0%

$81.0 to $82.5

(1.3%) – 0.5%

Estimated Reported Sales 3

Change vs. Prior Year

$81.2 to $82.0

(1.0%) – 0.0%

$79.9 to $81.4

(2.6%) – (0.8%)

Adjusted Operational EPS (Diluted) 2,4

Change vs. Prior Year

$7.95 to $8.05

(8.4%) – (7.3%)

$7.85 to $8.05

(9.6%) – (7.3%)

Adjusted EPS (Diluted) 3,4

Change vs. Prior Year

$7.95 to $8.05

(8.4%) – (7.3%)

$7.75 to $7.95

(10.7%) – (8.4%)

1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures

2 Non-GAAP financial measure; excludes the impact of translational currency

3 Calculated using Euro Average Rate: October 2020 = $1.14 Euro Average Rate: July 2020 = $1.12 (Illustrative purposes only)

4 Non-GAAP financial measure; excludes intangible amortization expense and special items

Other modeling considerations will be provided on the webcast .

WEBCAST INFORMATION:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time . A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website . A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the Company’s website at events-and-presentations .

ABOUT JOHNSON & JOHNSON:
At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 130 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

NON-GAAP FINANCIAL MEASURES:
*Operational sales growth excluding the impact of translational currency, adjusted operational sales growth excluding the net impact of acquisitions and divestitures and translational currency, as well as adjusted net earnings, adjusted diluted earnings per share and adjusted operational diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the Company’s website at quarterly-results .

Copies of the financial schedules accompanying this earnings release are available on the Company’s website at quarterly-results . These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors section of the Company’s website at quarterly-results .

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the Company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic, 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 research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 29, 2019 , including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” in the Company’s most recently filed Quarterly Report on Form 10-Q and the Company’s subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov , www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions)

THIRD QUARTER

NINE MONTHS

Percent Change

Percent Change

2020

2019

Total

Operations

Currency

2020

2019

Total

Operations

Currency

Sales to customers by

segment of business

Consumer Health

U.S.

$   1,556

1,394

11.6

%

11.6

$   4,853

4,369

11.1

%

11.1

International

1,958

2,075

(5.6)

(2.7)

(2.9)

5,582

5,962

(6.4)

(2.2)

(4.2)

3,514

3,469

1.3

3.0

(1.7)

10,435

10,331

1.0

3.4

(2.4)

Pharmaceutical

U.S.

6,438

6,340

1.5

1.5

18,619

17,705

5.2

5.2

International

4,980

4,537

9.7

8.8

0.9

14,685

13,945

5.3

7.4

(2.1)

11,418

10,877

5.0

4.6

0.4

33,304

31,650

5.2

6.1

(0.9)

Medical Devices

U.S.

3,092

3,057

1.2

1.2

7,852

9,249

(15.1)

(15.1)

International

3,058

3,326

(8.1)

(8.5)

0.4

8,518

10,082

(15.5)

(14.1)

(1.4)

6,150

6,383

(3.6)

(3.9)

0.3

16,370

19,331

(15.3)

(14.6)

(0.7)

U.S.

11,086

10,791

2.7

2.7

31,324

31,323

0.0

0.0

International

9,996

9,938

0.6

0.6

0.0

28,785

29,989

(4.0)

(1.7)

(2.3)

Worldwide

$ 21,082

20,729

1.7

1.7

0.0

$ 60,109

61,312

(2.0)

(0.8)

(1.2)

Note : Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries

Supplementary Sales Data

(Unaudited; Dollars in Millions)

THIRD QUARTER

NINE MONTHS

Percent Change

Percent Change

2020

2019

Total

Operations

Currency

2020

2019

Total

Operations

Currency

Sales to customers by

geographic area

U.S.

$ 11,086

10,791

2.7

%

2.7

$ 31,324

31,323

0.0

%

0.0

Europe

4,819

4,461

8.0

4.6

3.4

13,709

13,803

(0.7)

0.1

(0.8)

Western Hemisphere excluding U.S.

1,296

1,488

(12.9)

(1.2)

(11.7)

3,931

4,446

(11.6)

(0.4)

(11.2)

Asia-Pacific, Africa

3,881

3,989

(2.7)

(3.2)

0.5

11,145

11,740

(5.1)

(4.3)

(0.8)

International

9,996

9,938

0.6

0.6

0.0

28,785

29,989

(4.0)

(1.7)

(2.3)

Worldwide

$ 21,082

20,729

1.7

%

1.7

0.0

$ 60,109

61,312

(2.0)

%

(0.8)

(1.2)

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)

THIRD QUARTER

2020

2019

Percent

Percent

Percent

Increase

Amount

to Sales

Amount

to Sales

(Decrease)

Sales to customers

$ 21,082

100.0

$ 20,729

100.0

1.7

Cost of products sold

6,972

33.1

6,867

33.1

1.5

Gross Profit

14,110

66.9

13,862

66.9

1.8

Selling, marketing and administrative expenses

5,431

25.8

5,374

26.0

1.1

Research and development expense

2,840

13.5

2,599

12.5

9.3

In-process research and development

138

0.6

Interest (income) expense, net

32

0.1

(41)

(0.2)

Other (income) expense, net

1,200

5.7

4,214

20.3

Restructuring

68

0.3

69

0.4

Earnings before provision for taxes on income

4,401

20.9

1,647

7.9

167.2

Provision for/(Benefit from) taxes on income

847

4.0

(106)

(0.6)

Net earnings

$   3,554

16.9

$   1,753

8.5

102.7

Net earnings per share (Diluted)

$     1.33

$     0.66

101.5

Average shares outstanding (Diluted)

2,669.3

2,669.9

Effective tax rate

19.2

%

(6.4)

%

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

Earnings before provision for taxes on income

$   7,246

34.4

$   7,116

34.3

1.8

Net earnings

$   5,868

27.8

$   5,672

27.4

3.5

Net earnings per share (Diluted)

$     2.20

$     2.12

3.8

Effective tax rate

19.0

%

20.3

%

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

Johnson & Johnson and Subsidiaries

Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)

NINE MONTHS

2020

2019

Percent

Percent

Percent

Increase

Amount

to Sales

Amount

to Sales

(Decrease)

Sales to customers

$    60,109

100.0

$    61,312

100.0

(2.0)

Cost of products sold

20,613

34.3

20,422

33.3

0.9

Gross Profit

39,496

65.7

40,890

66.7

(3.4)

Selling, marketing and administrative expenses

15,627

26.0

16,139

26.3

(3.2)

Research and development expense

8,127

13.5

8,123

13.3

0.0

In-process research and development

144

0.3

890

1.4

Interest (income) expense, net

16

0.0

(43)

(0.1)

Other (income) expense, net

545

0.9

2,509

4.1

Restructuring

187

0.3

162

0.3

Earnings before provision for taxes on income

14,850

24.7

13,110

21.4

13.3

Provision for taxes on income

1,874

3.1

2,001

3.3

(6.3)

Net earnings

$    12,976

21.6

$    11,109

18.1

16.8

Net earnings per share (Diluted)

$        4.86

$        4.13

17.7

Average shares outstanding (Diluted)

2,670.8

2,688.1

Effective tax rate

12.6

%

15.3

%

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

Earnings before provision for taxes on income

$    19,827

33.0

$    22,597

36.9

(12.3)

Net earnings

$    16,468

27.4

$    18,283

29.8

(9.9)

Net earnings per share (Diluted)

$        6.17

$        6.80

(9.3)

Effective tax rate

16.9

%

19.1

%

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

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Third Quarter

Nine Months Ended

(Dollars in Millions Except Per Share Data)

2020

2019

2020

2019

Net Earnings, after tax- as reported

$3,554

$1,753

$12,976

$11,109

Pre-tax Adjustments

Intangible Asset Amortization expense

1,181

1,138

3,426

3,386

Litigation expense, net

1,477

4,000

2,210

4,832

IPR&D

138

144

890

Restructuring related

130

128

363

360

Acquisition and Integration related ¹

(154)

107

(1,087)

229

Unrealized (gains)/losses on securities

32

89

(174)

(217)

Medical Device Regulation 2

38

89

Other

3

7

6

7

Tax Adjustments

Tax impact on special item adjustments 3

(482)

(1,159)

(1,002)

(1,922)

Tax legislation and related impacts

(49)

(391)

(483)

(391)

Adjusted Net Earnings, after tax

$5,868

$5,672

$16,468

$18,283

Average shares outstanding (Diluted)

2,669.3

2,669.9

2,670.8

2,688.1

Adjusted net earnings per share (Diluted)

$2.20

$2.12

$6.17

$6.80

Operational adjusted net earnings per share (Diluted)

$2.17

$6.18

Notes:

1

Acquisition and integration related costs for 2020 primarily includes a Contingent Consideration reversal ($165M in third quarter and $1,148M in nine months) related to the timing of certain developmental milestones associated with the Auris Health acquisition.

2

European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices are required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations.  The Company has excluded only external third-party regulatory and consulting costs from its Medical Devices operating segments’ measures of profit and loss used for making operating decisions and assessing performance.

3

The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

THIRD QUARTER 2020 ACTUAL vs. 2019 ACTUAL

Segments

Consumer Health

Pharmaceutical

Medical Devices

Total

WW As Reported

1.3%

5.0%

(3.6)%

1.7%

U.S.

11.6%

1.5%

1.2%

2.7%

International

(5.6)%

9.7%

(8.1)%

0.6%

WW Currency

(1.7)

0.4

0.3

0.0

U.S.

International

(2.9)

0.9

0.4

0.0

WW Operational

3.0%

4.6%

(3.9)%

1.7%

U.S.

11.6%

1.5%

1.2%

2.7%

International

(2.7)%

8.8%

(8.5)%

0.6%

General Surgery

Advanced Sterilization Products

0.5

0.2

U.S.

0.0

0.0

International

0.9

0.4

Baby Care

Baby Center

0.1

0.0

U.S.

0.4

0.1

International

0.0

0.0

All Other Acquisitions and Divestitures

0.0

0.1

0.0

0.1

U.S.

0.0

0.0

0.1

0.0

International

(0.1)

0.3

0.0

0.1

WW Adjusted Operational

3.1%

4.7%

(3.3)%

2.0%

U.S.

12.0%

1.5%

1.3%

2.8%

International

(2.8)%

9.2%

(7.6)%

1.1%

Note: Percentages are based on actual, non-rounded figures and may not sum

Johnson & Johnson and Subsidiaries

Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth

NINE MONTHS 2020 ACTUAL vs. 2019 ACTUAL

Segments

Consumer Health

Pharmaceutical

Medical Devices

Total

WW As Reported

1.0%

5.2%

(15.3)%

(2.0)%

U.S.

11.1%

5.2%

(15.1)%

0.0%

International

(6.4)%

5.3%

(15.5)%

(4.0)%

WW Currency

(2.4)

(0.9)

(0.7)

(1.2)

U.S.

International

(4.2)

(2.1)

(1.4)

(2.3)

WW Operational

3.4%

6.1%

(14.6)%

(0.8)%

U.S.

11.1%

5.2%

(15.1)%

0.0%

International

(2.2)%

7.4%

(14.1)%

(1.7)%

Skin Health / Beauty

Dr. Ci Labo – Japan

(0.1)

0.0

U.S.

0.0

0.0

International

(0.2)

0.0

General Surgery

Advanced Sterilization Products

0.9

0.3

U.S.

0.8

0.3

International

0.9

0.4

Baby Care

Baby Center

0.2

0.0

U.S.

0.6

0.1

International

0.0

0.0

All Other Acquisitions and Divestitures

(0.1)

0.2

0.0

0.1

U.S.

0.0

0.0

0.0

0.0

International

(0.1)

0.3

0.0

0.1

WW Adjusted Operational

3.4%

6.3%

(13.7)%

(0.4)%

U.S.

11.7%

5.2%

(14.3)%

0.4%

International

(2.6)%

7.7%

(13.1)%

(1.3)%

Note: Percentages are based on actual, non-rounded figures and may not sum

REPORTED SALES vs. PRIOR PERIOD ($MM)

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

NINE MONTHS

% Change

% Change

2020

2019

Reported

Operational (1)

Currency

2020

2019

Reported

Operational (1)

Currency

CONSUMER HEALTH SEGMENT (2,3)

OTC

US

$         601

477

26.0%

26.0%

$        1,917

1,468

30.6%

30.6%

Intl

541

621

-12.9%

-12.9%

0.0%

1,722

1,781

-3.3%

-0.6%

-2.7%

WW

1,142

1,098

4.0%

4.0%

0.0%

3,639

3,249

12.0%

13.5%

-1.5%

SKIN HEALTH / BEAUTY (4)

US

572

559

2.4%

2.4%

1,767

1,810

-2.4%

-2.4%

Intl

577

592

-2.7%

-0.5%

-2.2%

1,506

1,633

-7.8%

-4.9%

-2.9%

WW

1,149

1,151

-0.2%

0.9%

-1.1%

3,273

3,443

-5.0%

-3.6%

-1.4%

ORAL CARE

US

164

156

5.5%

5.5%

510

462

10.4%

10.4%

Intl

248

223

10.7%

14.4%

-3.7%

694

673

3.0%

7.9%

-4.9%

WW

412

379

8.5%

10.8%

-2.3%

1,204

1,135

6.0%

8.9%

-2.9%

BABY CARE

US

91

91

-1.0%

-1.0%

279

277

0.5%

0.5%

Intl

302

326

-7.2%

-0.6%

-6.6%

831

977

-14.9%

-8.6%

-6.3%

WW

393

417

-5.9%

-0.7%

-5.2%

1,110

1,254

-11.5%

-6.6%

-4.9%

WOMEN’S HEALTH

US

3

3

-6.9%

-6.9%

10

9

7.3%

7.3%

Intl

227

252

-9.6%

-4.0%

-5.6%

654

724

-9.6%

-2.8%

-6.8%

WW

230

255

-9.6%

-4.1%

-5.5%

664

733

-9.4%

-2.7%

-6.7%

WOUND CARE / OTHER

US

125

109

15.2%

15.2%

370

343

8.0%

8.0%

Intl

64

59

7.4%

10.3%

-2.9%

175

173

1.3%

5.4%

-4.1%

WW

189

168

12.5%

13.5%

-1.0%

545

516

5.8%

7.2%

-1.4%

TOTAL CONSUMER HEALTH

US

1,556

1,394

11.6%

11.6%

4,853

4,369

11.1%

11.1%

Intl

1,958

2,075

-5.6%

-2.7%

-2.9%

5,582

5,962

-6.4%

-2.2%

-4.2%

WW

$      3,514

3,469

1.3%

3.0%

-1.7%

$      10,435

10,331

1.0%

3.4%

-2.4%

See footnotes at end of schedule

REPORTED SALES vs. PRIOR PERIOD ($MM)

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

NINE MONTHS

% Change

% Change

PHARMACEUTICAL SEGMENT (2,5)

2020

2019

Reported

Operational (1)

Currency

2020

2019

Reported

Operational (1)

Currency

IMMUNOLOGY

US

$      2,558

2,582

-0.9%

-0.9%

$        7,330

7,124

2.9%

2.9%

Intl

1,230

1,129

9.0%

8.4%

0.6%

3,619

3,304

9.5%

11.9%

-2.4%

WW

3,789

3,711

2.1%

1.9%

0.2%

10,950

10,428

5.0%

5.7%

-0.7%

REMICADE

US

634

749

-15.4%

-15.4%

1,852

2,324

-20.3%

-20.3%

US Exports (6)

78

88

-11.3%

-11.3%

321

226

42.1%

42.1%

Intl

209

299

-30.1%

-28.0%

-2.1%

673

795

-15.3%

-11.6%

-3.7%

WW

921

1,136

-18.9%

-18.4%

-0.5%

2,846

3,345

-14.9%

-14.0%

-0.9%

SIMPONI / SIMPONI ARIA

US

312

313

-0.4%

-0.4%

840

857

-2.0%

-2.0%

Intl

280

273

2.4%

2.2%

0.2%

827

816

1.3%

3.9%

-2.6%

WW

592

586

0.9%

0.8%

0.1%

1,667

1,673

-0.4%

0.9%

-1.3%

STELARA

US

1,313

1,212

8.4%

8.4%

3,668

3,152

16.4%

16.4%

Intl

634

487

30.3%

28.1%

2.2%

1,795

1,509

19.0%

20.6%

-1.6%

WW

1,947

1,698

14.7%

14.0%

0.7%

5,463

4,661

17.2%

17.7%

-0.5%

TREMFYA

US

222

221

0.4%

0.4%

650

565

15.0%

15.0%

Intl

105

69

54.4%

50.4%

4.0%

316

177

78.7%

79.1%

-0.4%

WW

327

290

13.1%

12.2%

0.9%

965

742

30.2%

30.3%

-0.1%

OTHER IMMUNOLOGY

US

Intl

3

2

35.6%

44.6%

-9.0%

9

8

12.4%

19.1%

-6.7%

WW

3

2

35.6%

44.6%

-9.0%

9

8

12.4%

19.1%

-6.7%

INFECTIOUS DISEASES

US

413

418

-1.1%

-1.1%

1,265

1,162

8.9%

8.9%

Intl

451

421

7.0%

6.3%

0.7%

1,397

1,385

0.9%

3.8%

-2.9%

WW

864

839

3.0%

2.6%

0.4%

2,662

2,547

4.5%

6.1%

-1.6%

EDURANT / rilpivirine

US

11

12

-12.0%

-12.0%

33

36

-8.6%

-8.6%

Intl

226

206

9.3%

5.0%

4.3%

684

603

13.3%

13.8%

-0.5%

WW

236

218

8.1%

4.1%

4.0%

716

639

12.1%

12.6%

-0.5%

PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA

US

379

373

1.5%

1.5%

1,154

1,032

11.8%

11.8%

Intl

147

135

9.1%

12.1%

-3.0%

461

534

-13.7%

-8.8%

-4.9%

WW

526

508

3.5%

4.3%

-0.8%

1,615

1,566

3.1%

4.8%

-1.7%

OTHER INFECTIOUS DISEASES

US

24

33

-26.6%

-26.6%

79

94

-16.6%

-16.6%

Intl

78

80

-2.3%

-0.4%

-1.9%

252

248

1.8%

6.3%

-4.5%

WW

102

113

-9.4%

-8.1%

-1.3%

331

342

-3.2%

0.0%

-3.2%

REPORTED SALES vs. PRIOR PERIOD ($MM)

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

NINE MONTHS

% Change

% Change

2020

2019

Reported

Operational (1)

Currency

2020

2019

Reported

Operational (1)

Currency

NEUROSCIENCE

US

759

785

-3.5%

-3.5%

2,285

2,172

5.2%

5.2%

Intl

846

810

4.5%

4.1%

0.4%

2,565

2,590

-1.0%

0.9%

-1.9%

WW

1,605

1,595

0.6%

0.4%

0.2%

4,850

4,762

1.8%

2.9%

-1.1%

CONCERTA / Methylphenidate

US

43

84

-49.2%

-49.2%

150

196

-23.6%

-23.6%

Intl

107

109

-2.0%

-1.7%

-0.3%

319

348

-8.2%

-6.4%

-1.8%

WW

149

193

-22.6%

-22.5%

-0.1%

469

544

-13.8%

-12.6%

-1.2%

INVEGA SUSTENNA / XEPLION /
INVEGA TRINZA / TREVICTA

US

585

554

5.6%

5.6%

1,704

1,543

10.5%

10.5%

Intl

341

297

14.9%

12.6%

2.3%

983

916

7.3%

8.6%

-1.3%

WW

926

851

8.8%

8.0%

0.8%

2,688

2,459

9.3%

9.8%

-0.5%

RISPERDAL CONSTA

US

70

79

-11.0%

-11.0%

220

237

-6.9%

-6.9%

Intl

81

89

-7.8%

-8.9%

1.1%

254

292

-12.7%

-11.0%

-1.7%

WW

152

167

-9.3%

-9.9%

0.6%

475

528

-10.1%

-9.2%

-0.9%

OTHER NEUROSCIENCE

US

60

68

-11.3%

-11.3%

210

196

7.1%

7.1%

Intl

317

316

0.3%

1.7%

-1.4%

1,008

1,035

-2.6%

-0.1%

-2.5%

WW

377

384

-1.8%

-0.6%

-1.2%

1,218

1,231

-1.1%

1.1%

-2.2%

ONCOLOGY

US

1,267

1,171

8.2%

8.2%

3,623

3,146

15.2%

15.2%

Intl

1,862

1,590

17.1%

15.5%

1.6%

5,310

4,830

9.9%

11.8%

-1.9%

WW

3,129

2,761

13.3%

12.4%

0.9%

8,933

7,976

12.0%

13.1%

-1.1%

DARZALEX

US

585

402

46.0%

46.0%

1,540

1,123

37.2%

37.2%

Intl

514

363

41.5%

40.5%

1.0%

1,397

1,045

33.7%

36.7%

-3.0%

WW

1,099

765

43.8%

43.4%

0.4%

2,937

2,168

35.5%

37.0%

-1.5%

ERLEADA

US

152

74

*

*

407

194

*

*

Intl

55

12

*

*

*

112

22

*

*

*

WW

206

86

*

*

*

519

216

*

*

*

IMBRUVICA

US

450

447

0.7%

0.7%

1,329

1,163

14.2%

14.2%

Intl

581

475

22.5%

21.2%

1.3%

1,682

1,373

22.5%

25.2%

-2.7%

WW

1,031

921

11.9%

11.2%

0.7%

3,011

2,536

18.7%

20.2%

-1.5%

VELCADE

US

Intl

105

149

-30.1%

-30.8%

0.7%

311

636

-51.2%

-50.7%

-0.5%

WW

105

149

-30.1%

-30.8%

0.7%

311

636

-51.2%

-50.7%

-0.5%

ZYTIGA / abiraterone acetate

US

58

233

-75.2%

-75.2%

284

616

-53.9%

-53.9%

Intl

532

508

4.8%

2.2%

2.6%

1,564

1,502

4.1%

4.8%

-0.7%

WW

590

741

-20.4%

-22.1%

1.7%

1,848

2,118

-12.7%

-12.3%

-0.4%

OTHER ONCOLOGY

US

21

17

35.3%

35.3%

63

51

25.8%

25.8%

Intl

76

83

-8.8%

-10.1%

1.3%

244

252

-3.1%

-1.1%

-2.0%

WW

98

100

-1.7%

-2.8%

1.1%

308

303

1.7%

3.3%

-1.6%

PULMONARY HYPERTENSION

US

510

427

19.4%

19.4%

1,541

1,296

18.9%

18.9%

Intl

239

227

5.2%

3.7%

1.5%

742

704

5.3%

6.5%

-1.2%

WW

749

654

14.5%

13.9%

0.6%

2,283

2,000

14.1%

14.6%

-0.5%

OPSUMIT

US

244

206

18.1%

18.1%

729

581

25.3%

25.3%

Intl

148

140

5.5%

3.9%

1.6%

458

419

9.3%

10.7%

-1.4%

WW

392

347

13.0%

12.3%

0.7%

1,187

1,001

18.6%

19.2%

-0.6%

UPTRAVI

US

226

185

22.4%

22.4%

692

536

29.1%

29.1%

Intl

34

25

32.3%

28.9%

3.4%

100

75

33.1%

34.6%

-1.5%

WW

260

210

23.6%

23.2%

0.4%

792

611

29.6%

29.8%

-0.2%

OTHER PULMONARY HYPERTENSION

US

40

36

11.5%

11.5%

121

179

-32.3%

-32.3%

Intl

57

61

-6.7%

-7.4%

0.7%

183

210

-12.7%

-11.9%

-0.8%

WW

97

96

0.1%

-0.3%

0.4%

304

388

-21.7%

-21.3%

-0.4%

CARDIOVASCULAR / METABOLISM / OTHER

US

931

955

-2.6%

-2.6%

2,574

2,804

-8.2%

-8.2%

Intl

351

360

-2.7%

-2.4%

-0.3%

1,052

1,131

-7.1%

-4.6%

-2.5%

WW

1,281

1,316

-2.6%

-2.5%

-0.1%

3,625

3,936

-7.9%

-7.2%

-0.7%

XARELTO

US

630

613

2.9%

2.9%

1,716

1,704

0.7%

0.7%

Intl

WW

630

613

2.9%

2.9%

1,716

1,704

0.7%

0.7%

INVOKANA / INVOKAMET

US

156

125

24.7%

24.7%

405

411

-1.6%

-1.6%

Intl

68

55

24.7%

25.2%

-0.5%

173

147

18.0%

20.7%

-2.7%

WW

224

179

24.7%

24.9%

-0.2%

578

558

3.6%

4.3%

-0.7%

PROCRIT / EPREX

US

69

126

-45.4%

-45.4%

215

387

-44.5%

-44.5%

Intl

63

72

-12.2%

-13.0%

0.8%

208

220

-5.5%

-4.3%

-1.2%

WW

132

198

-33.3%

-33.6%

0.3%

423

607

-30.4%

-29.9%

-0.5%

OTHER

US

75

91

-17.9%

-17.9%

238

302

-21.4%

-21.4%

Intl

219

234

-6.2%

-5.5%

-0.7%

670

765

-12.3%

-9.5%

-2.8%

WW

294

325

-9.5%

-9.0%

-0.5%

908

1,067

-14.9%

-12.9%

-2.0%

TOTAL PHARMACEUTICAL

US

6,438

6,340

1.5%

1.5%

18,619

17,705

5.2%

5.2%

Intl

4,980

4,537

9.7%

8.8%

0.9%

14,685

13,945

5.3%

7.4%

-2.1%

WW

$    11,418

10,877

5.0%

4.6%

0.4%

$      33,304

31,650

5.2%

6.1%

-0.9%

See footnotes at end of schedule

REPORTED SALES vs. PRIOR PERIOD ($MM)

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

NINE MONTHS

% Change

% Change

MEDICAL DEVICES SEGMENT (2,5)

2020

2019

Reported

Operational (1)

Currency

2020

2019

Reported

Operational (1)

Currency

INTERVENTIONAL SOLUTIONS

US

399

357

11.8%

11.8%

1,019

1,066

-4.4%

-4.4%

Intl

437

382

14.0%

12.9%

1.1%

1,134

1,156

-2.0%

-1.0%

-1.0%

WW

836

741

12.9%

12.4%

0.5%

2,153

2,223

-3.1%

-2.7%

-0.4%

ORTHOPAEDICS

US

1,308

1,301

0.6%

0.6%

3,427

3,950

-13.2%

-13.2%

Intl

774

837

-7.5%

-9.0%

1.5%

2,145

2,616

-18.0%

-16.9%

-1.1%

WW

2,083

2,138

-2.6%

-3.1%

0.5%

5,572

6,566

-15.1%

-14.7%

-0.4%

HIPS

US

221

204

8.7%

8.7%

564

633

-10.9%

-10.9%

Intl

124

133

-7.2%

-8.4%

1.2%

344

428

-19.8%

-18.3%

-1.5%

WW

345

336

2.4%

1.9%

0.5%

908

1,061

-14.5%

-13.9%

-0.6%

KNEES

US

205

209

-1.9%

-1.9%

527

650

-19.0%

-19.0%

Intl

102

136

-24.8%

-26.4%

1.6%

298

435

-31.5%

-30.7%

-0.8%

WW

308

344

-10.9%

-11.6%

0.7%

825

1,085

-24.0%

-23.7%

-0.3%

TRAUMA

US

433

415

4.2%

4.2%

1,194

1,239

-3.6%

-3.6%

Intl

253

262

-3.4%

-4.7%

1.3%

698

795

-12.2%

-10.9%

-1.3%

WW

685

677

1.3%

0.7%

0.6%

1,892

2,034

-7.0%

-6.5%

-0.5%

SPINE, SPORTS & OTHER (7)

US

449

472

-4.9%

-4.9%

1,142

1,427

-20.0%

-20.0%

Intl

295

306

-3.4%

-5.0%

1.6%

805

957

-15.8%

-14.9%

-0.9%

WW

745

778

-4.3%

-5.0%

0.7%

1,947

2,384

-18.3%

-18.0%

-0.3%

SURGERY

US

913

940

-3.0%

-3.0%

2,247

2,867

-21.7%

-21.7%

Intl

1,239

1,371

-9.6%

-9.5%

-0.1%

3,556

4,192

-15.2%

-13.1%

-2.1%

WW

2,152

2,311

-6.9%

-6.9%

0.0%

5,803

7,059

-17.8%

-16.6%

-1.2%

ADVANCED

US

421

409

3.0%

3.0%

1,079

1,209

-10.7%

-10.7%

Intl

579

602

-3.9%

-4.1%

0.2%

1,644

1,811

-9.2%

-7.3%

-1.9%

WW

1,000

1,010

-1.1%

-1.2%

0.1%

2,723

3,019

-9.8%

-8.7%

-1.1%

GENERAL

US

492

531

-7.6%

-7.6%

1,168

1,658

-29.6%

-29.6%

Intl

660

769

-14.1%

-13.8%

-0.3%

1,912

2,381

-19.7%

-17.5%

-2.2%

WW

1,152

1,301

-11.4%

-11.3%

-0.1%

3,080

4,040

-23.8%

-22.5%

-1.3%

VISION

US

473

459

3.1%

3.1%

1,160

1,366

-15.1%

-15.1%

Intl

608

734

-17.2%

-17.4%

0.2%

1,683

2,117

-20.5%

-19.6%

-0.9%

WW

1,081

1,193

-9.4%

-9.5%

0.1%

2,843

3,483

-18.4%

-17.8%

-0.6%

CONTACT LENSES / OTHER

US

375

339

10.9%

10.9%

924

993

-6.9%

-6.9%

Intl

455

555

-18.1%

-18.2%

0.1%

1,274

1,566

-18.7%

-17.8%

-0.9%

WW

830

893

-7.1%

-7.2%

0.1%

2,198

2,559

-14.1%

-13.6%

-0.5%

SURGICAL

US

98

120

-18.9%

-18.9%

236

373

-36.8%

-36.8%

Intl

153

180

-14.6%

-14.8%

0.2%

409

551

-25.7%

-24.8%

-0.9%

WW

251

299

-16.3%

-16.4%

0.1%

645

923

-30.2%

-29.6%

-0.6%

TOTAL MEDICAL DEVICES

US

3,092

3,057

1.2%

1.2%

7,852

9,249

-15.1%

-15.1%

Intl

3,058

3,326

-8.1%

-8.5%

0.4%

8,518

10,082

-15.5%

-14.1%

-1.4%

WW

$      6,150

6,383

-3.6%

-3.9%

0.3%

$      16,370

19,331

-15.3%

-14.6%

-0.7%

Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

* Percentage greater than 100% or not meaningful

(6) Reported as U.S. sales

(1) Operational growth excludes the effect of translational currency

(7) Previously referred to as Spine & Other

(2) Unaudited

(3) Previously referred to as Consumer

(4) Previously referred to as Beauty

(5) Certain prior year amounts have been reclassified to conform to current year product disclosures

Cision View original content to download multimedia: http://www.prnewswire.com/news-releases/johnson–johnson-reports-2020-third-quarter-results-301150947.html

SOURCE Johnson & Johnson

News Provided by PR Newswire via QuoteMedia

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