Johnson & Johnson Reports 2015 Second-Quarter Results

Sales of $17.8 Billion Decreased 8.8% Versus 2014 Second Quarter
Second-Quarter EPS was $1.61
Adjusted 2015 Second-Quarter EPS of $1.71 Decreased 3.9%*
Solid Underlying Growth Offset by Currency and Divestitures

 

NEW BRUNSWICK, N.J., July 14, 2015 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $17.8 billion for the second quarter of 2015, a decrease of 8.8% as compared to the second quarter of 2014.  Operational results decreased 0.9% and the negative impact of currency was 7.9%. Domestic sales decreased 2.4%. International sales decreased 14.3%, reflecting operational growth of 0.5% and a negative currency impact of 14.8%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.7%, domestic sales increased 0.6% and international sales increased 2.7%.* Additionally excluding hepatitis C sales, underlying operational growth worldwide was 5%.*

Net earnings and diluted earnings per share for the second quarter of 2015 were $4.5 billion and $1.61, respectively.  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. Second quarter 2014 net earnings included after-tax intangible amortization expense of approximately $0.4 billion and a charge for after-tax special items of approximately $0.4 billion.  A reconciliation of non-GAAP financial measures is included as an accompanying schedule.  Excluding after-tax intangible amortization expense and special items, adjusted net earnings for the current quarter were $4.8 billion and adjusted diluted earnings per share were $1.71, representing decreases of 6.3% and 3.9%, respectively, as compared to the same period in 2014.*  On an operational basis, adjusted diluted earnings per share increased 6.7%.*

"Our solid sales and earnings results in the quarter reflect the strong underlying growth we're seeing across the enterprise," said Alex Gorsky, Chairman and Chief Executive Officer.  "Our diverse portfolio and scale are enabling this performance, and we've continued to invest in building a robust enterprise pipeline that will drive our growth over the long term.  Our passion to deliver transformational new medicines and products reflects the ongoing commitment of our dedicated employees to improve health and well-being."

The Company increased its adjusted earnings guidance for full-year 2015 to $6.10 - $6.20 per share.  The Company's guidance excludes the impact of after-tax intangible amortization expense and special items.

Worldwide Consumer sales of $3.5 billion for the second quarter represented a decrease of 7.0% versus the prior year, consisting of an operational increase of 2.3% and a negative impact from currency of 9.3%. Domestic sales increased 2.7%; international sales decreased 12.2%, which reflected an operational increase of 2.1% and a negative currency impact of 14.3%.  Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 3.1%, domestic sales increased 2.9% and international sales increased 3.2%.*  

Positive contributors to Consumer operational results were sales of over-the-counter products including ZYRTEC® allergy medications and TYLENOL® analgesics; international feminine protection products; and LISTERINE® oral care products.

Worldwide Pharmaceutical sales of $7.9 billion for the second quarter represented a decrease of 6.6% versus the prior year with operational growth of 1.0% and a negative impact from currency of 7.6%. Domestic sales decreased 1.5%; international sales decreased 12.7%, which reflected an operational increase of 3.8% and a negative currency impact of 16.5%.  Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.5%, domestic sales decreased 0.6% and international sales increased 3.9%.*  Additionally excluding hepatitis C sales, underlying operational growth worldwide was 9.7%.*

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

Additional contributors to operational sales growth were STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and psoriatic arthritis; INVEGA® SUSTENNA®/XEPLION® (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the treatment of schizophrenia in adults; domestic sales of CONCERTA® (methylphenidate HCI), for the treatment of attention deficit hyperactivity disorder; and SIMPONI®/SIMPONI ARIA® (golimumab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases. 

During the quarter, the U.S. Food and Drug Administration (FDA) granted approval of INVEGA TRINZA™ (paliperidone palmitate), an atypical antipsychotic injection administered four times a year for the treatment of schizophrenia.  In July, a rolling submission was completed with the FDA for the Biologic License Application for daratumumab for the treatment of multiple myeloma.  The European Commission approved STELARA® (ustekinumab) for the treatment of adolescents with moderate-to-severe psoriasis, SIMPONI® (golimumab) for treatment of non-radiographic axial spondyloarthritis and IMBRUVICA® (ibrutinib) for the treatment of Waldenström's Macroglobulinemia. 

Also in the quarter, an exclusive worldwide license and collaboration arrangement was entered into with Achillion Pharmaceuticals, Inc. to develop and commercialize one or more of Achillion's lead hepatitis C virus assets.

Worldwide Medical Devices sales of $6.4 billion for the second quarter represented a decrease of 12.2% versus the prior year consisting of an operational decrease of 4.7% and a negative currency impact of 7.5%. Domestic sales decreased 5.8%; international sales decreased 17.3%, which reflected an operational decrease of 3.9% and a negative currency impact of 13.4%. Excluding the net impact of acquisitions and divestitures, on an operational basis, worldwide sales increased 1.4%, domestic sales increased 1.6% and international sales increased 1.4%.*

Primary contributors to operational growth were sales of endocutters in the Surgical Care business; electrophysiology products in the Cardiovascular Care business; joint reconstruction products in the Orthopaedics business; international sales of contact lenses in the Vision Care business; and sales of biosurgicals and energy products in the Specialty Surgery business. 

During the quarter, the Company announced the acceptance of the March 1, 2015 binding offer from Cardinal Health to acquire its Cordis business for an approximate value of $2 billion.

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 127,300 employees at more than 265 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* Operational sales growth excluding the net impact of acquisitions, divestitures and hepatitis C sales, as well as adjusted net earnings, adjusted diluted earnings per share and operational adjusted 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.  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 Investor Relations section of the Company's website at www.investor.jnj.com.

Johnson & Johnson will conduct a conference call with investors to discuss this news 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 at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com

Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm.  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 a pharmaceutical pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can be found on the Company's website at www.investor.jnj.com.

NOTE TO INVESTORS

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, economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges and uncertainties inherent in new product development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; the ability of the company to successfully execute strategic plans; impact of business combinations and divestitures; challenges to patents; the impact of patent expirations; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns or financial distress of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; increased scrutiny of the health care industry by government agencies; and the potential failure to meet obligations in compliance agreements with government bodies. A further list and description 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 28, 2014, including Exhibit 99 thereto, and the company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.govwww.investor.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 statements as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries

                                   

Supplementary Sales Data

                                   
                                       

(Unaudited; Dollars in Millions)

SECOND QUARTER

 

SIX MONTHS

         

Percent Change

         

Percent Change

 

2015

 

2014

 

Total

 

Operations

 

Currency

 

2015

 

2014

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

segment of business

                                     
                                       

Consumer

                                     

    U.S.

$   1,355

 

1,320

 

2.7

%

2.7

 

-

 

$   2,714

 

2,629

 

3.2

%

3.2

 

-

    International

2,128

 

2,424

 

(12.2)

 

2.1

 

(14.3)

 

4,159

 

4,672

 

(11.0)

 

2.6

 

(13.6)

 

3,483

 

3,744

 

(7.0)

 

2.3

 

(9.3)

 

6,873

 

7,301

 

(5.9)

 

2.8

 

(8.7)

                                       

Pharmaceutical

                                     

    U.S.

4,543

 

4,613

 

(1.5)

 

(1.5)

 

-

 

8,914

 

8,353

 

6.7

 

6.7

 

-

    International

3,403

 

3,896

 

(12.7)

 

3.8

 

(16.5)

 

6,758

 

7,654

 

(11.7)

 

3.8

 

(15.5)

 

7,946

 

8,509

 

(6.6)

 

1.0

 

(7.6)

 

15,672

 

16,007

 

(2.1)

 

5.3

 

(7.4)

                                       

Medical Devices

                                     

    U.S.

3,013

 

3,199

 

(5.8)

 

(5.8)

 

-

 

5,975

 

6,354

 

(6.0)

 

(6.0)

 

-

    International

3,345

 

4,043

 

(17.3)

 

(3.9)

 

(13.4)

 

6,641

 

7,948

 

(16.4)

 

(3.5)

 

(12.9)

 

6,358

 

7,242

 

(12.2)

 

(4.7)

 

(7.5)

 

12,616

 

14,302

 

(11.8)

 

(4.6)

 

(7.2)

                                       

U.S.

8,911

 

9,132

 

(2.4)

 

(2.4)

 

-

 

17,603

 

17,336

 

1.5

 

1.5

 

-

International

8,876

 

10,363

 

(14.3)

 

0.5

 

(14.8)

 

17,558

 

20,274

 

(13.4)

 

0.6

 

(14.0)

Worldwide

$ 17,787

 

19,495

 

(8.8)

%

(0.9)

 

(7.9)

 

$ 35,161

 

37,610

 

(6.5)

%

1.1

 

(7.6)

 

Johnson & Johnson and Subsidiaries

                                   

Supplementary Sales Data

                                     
                                       

(Unaudited; Dollars in Millions)

SECOND QUARTER

 

SIX MONTHS

         

Percent Change

         

Percent Change

 

2015

 

2014

 

Total

 

Operations

 

Currency

 

2015

 

2014

 

Total

 

Operations

 

Currency

Sales to customers by

                                     

geographic area

                                     
                                       

U.S.

$   8,911

 

9,132

 

(2.4)

%

(2.4)

 

-

 

$ 17,603

 

17,336

 

1.5

%

1.5

 

-

                                       

Europe

4,151

 

5,056

 

(17.9)

 

1.0

 

(18.9)

 

8,191

 

9,941

 

(17.6)

 

0.7

 

(18.3)

Western Hemisphere excluding U.S.

1,501

 

1,863

 

(19.4)

 

(4.0)

 

(15.4)

 

3,140

 

3,558

 

(11.7)

 

2.6

 

(14.3)

Asia-Pacific, Africa

3,224

 

3,444

 

(6.4)

 

2.2

 

(8.6)

 

6,227

 

6,775

 

(8.1)

 

(0.4)

 

(7.7)

International

8,876

 

10,363

 

(14.3)

 

0.5

 

(14.8)

 

17,558

 

20,274

 

(13.4)

 

0.6

 

(14.0)

                                       

Worldwide

$ 17,787

 

19,495

 

(8.8)

%

(0.9)

 

(7.9)

 

$ 35,161

 

37,610

 

(6.5)

%

1.1

 

(7.6)

 

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings 

                 
                   

(Unaudited; in Millions Except Per Share Figures)

SECOND QUARTER

                   
 

2015

 

2014

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 17,787

 

100.0

 

$ 19,495

 

100.0

 

(8.8)

Cost of products sold

5,357

 

30.1

 

6,039

 

31.0

 

(11.3)

Selling, marketing and administrative expenses

5,384

 

30.3

 

5,481

 

28.1

 

(1.8)

Research and development expense

2,129

 

12.0

 

2,005

 

10.3

 

6.2

In-process research and development

-

 

-

 

4

 

0.0

   

Interest (income) expense, net

107

 

0.6

 

114

 

0.6

   

Other (income) expense, net

(931)

 

(5.3)

 

226

 

1.1

   

Earnings before provision for taxes on income

5,741

 

32.3

 

5,626

 

28.9

 

2.0

Provision for taxes on income

1,225

 

6.9

 

1,300

 

6.7

 

(5.8)

Net earnings

$   4,516

 

25.4

 

$   4,326

 

22.2

 

4.4

                   

Net earnings per share (Diluted)

$     1.61

     

$     1.51

     

6.6

                   

Average shares outstanding (Diluted)

2,812.0

     

2,874.2

       
                   

Effective tax rate

21.3

%

   

23.1

%

     
                   

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

                 

Earnings before provision for taxes on income

$   6,248

 

35.1

 

$   6,524

 

33.5

 

(4.2)

Net earnings

$   4,812

 

27.1

 

$   5,133

 

26.3

 

(6.3)

Net earnings per share (Diluted)

$     1.71

     

$     1.78

     

(3.9)

Effective tax rate

23.0

%

   

21.3

%

     
                   

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

                 

 

Johnson & Johnson and Subsidiaries

                 

Condensed Consolidated Statement of Earnings 

                 
                   

(Unaudited; in Millions Except Per Share Figures)

SIX MONTHS

                   
 

2015

 

2014

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$ 35,161

 

100.0

 

$ 37,610

 

100.0

 

(6.5)

Cost of products sold

10,639

 

30.2

 

11,494

 

30.6

 

(7.4)

Selling, marketing and administrative expenses

10,231

 

29.1

 

10,664

 

28.3

 

(4.1)

Research and development expense

4,028

 

11.5

 

3,836

 

10.2

 

5.0

In-process research and development

-

 

-

 

22

 

0.1

   

Interest (income) expense, net

226

 

0.6

 

232

 

0.6

   

Other (income) expense, net

(1,279)

 

(3.6)

 

312

 

0.8

   

Earnings before provision for taxes on income

11,316

 

32.2

 

11,050

 

29.4

 

2.4

Provision for taxes on income

2,480

 

7.1

 

1,997

 

5.3

 

24.2

Net earnings

$   8,836

 

25.1

 

$   9,053

 

24.1

 

(2.4)

                   

Net earnings per share (Diluted)

$     3.13

     

$     3.15

     

(0.6)

                   

Average shares outstanding (Diluted)

2,821.0

     

2,875.5

       
                   

Effective tax rate

21.9

%

   

18.1

%

     
                   

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

                 

  Earnings before provision for taxes on income

$ 11,878

 

33.8

 

$ 12,452

 

33.1

 

(4.6)

  Net earnings

$   9,230

 

26.3

 

$   9,826

 

26.1

 

(6.1)

  Net earnings per share (Diluted)

$     3.27

     

$     3.41

     

(4.1)

  Effective tax rate

22.3

%

   

21.1

%

     
                   

(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)

2015

 

2014

 

(Decr.)

   

2015

 

2014

 

(Decr.)

 
                           

Earnings before provision for taxes on income - as reported

$ 5,741

 

5,626

 

2.0

%

 

$ 11,316

 

11,050

 

2.4

%

                           

Intangible asset amortization expense

318

 

474

       

630

 

842

     
                           

Litigation expense/(gain), net

134

 

276

       

(268)

 

276

     
                           

Synthes integration costs 

49

 

144

       

81

 

262

     
                           

DePuy ASR™Hip program

9

 

-

       

148

 

-

     
                           

In-process research and development

-

 

4

       

-

 

22

     
                           

Ortho-Clinical Diagnostics divestiture net gain

(3)

 

-

       

(29)

 

-

     
                           

Earnings before provision for taxes on income - as adjusted

$ 6,248

 

6,524

 

(4.2)

%

 

$ 11,878

 

12,452

 

(4.6)

%

                           

Net Earnings - as reported

$ 4,516

 

4,326

 

4.4

%

 

$   8,836

 

9,053

 

(2.4)

%

                           

Intangible asset amortization expense

230

 

358

       

456

 

625

     
                           

Litigation expense/(gain), net

23

 

342

(1)

     

(230)

 

342

     
                           

Synthes integration costs 

37

 

104

       

62

 

188

     
                           

DePuy ASR™Hip program

8

 

-

       

130

 

-

     
                           

In-process research and development

-

 

3

       

-

 

16

     
                           

Tax benefit associated with Conor Medsystems

-

 

-

       

-

 

(398)

     
                           

Ortho-Clinical Diagnostics divestiture net gain

(2)

 

-

       

(24)

 

-

     
                           

Net Earnings - as adjusted 

$ 4,812

 

5,133

 

(6.3)

%

 

$   9,230

 

9,826

 

(6.1)

%

                           

Diluted Net Earnings per share - as reported

$   1.61

 

1.51

 

6.6

%

 

$     3.13

 

3.15

 

(0.6)

%

                           

Intangible asset amortization expense

0.08

 

0.12

       

0.16

 

0.21

     
                           

Litigation expense/(gain), net

0.01

 

0.12

       

(0.08)

 

0.12

     
                           

Synthes integration costs 

0.01

 

0.03

       

0.02

 

0.06

     
                           

DePuy ASR™Hip program

-

 

-

       

0.05

 

-

     
                           

In-process research and development

-

 

-

       

-

 

0.01

     
                           

Tax benefit associated with Conor Medsystems

-

 

-

       

-

 

(0.14)

     
                           

Ortho-Clinical Diagnostics divestiture net gain

-

 

-

       

(0.01)

 

-

     
                           

Diluted Net Earnings per share - as adjusted 

$   1.71

 

1.78

 

(3.9)

%

 

$     3.27

 

3.41

 

(4.1)

%

                           

Operational Diluted Net Earnings per share - as adjusted* 

$   1.90

 

1.78

 

6.7

%

 

$     3.59

 

3.41

 

5.3

%

                           

*Excludes the effect of translational currency

                         
                           

(1) Includes adjustment to deferred tax asset related to deductibility by tax jurisdiction

               

 

Johnson & Johnson and Subsidiaries

               

Reconciliation of Non-GAAP Financial Measure

               
                 

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

 SECOND QUARTER 2015 ACTUAL vs. 2014 ACTUAL 

                 
 

 Segments 

                 
   

 Consumer 

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

   

Operational % (2)

 WW As Reported: 

 

2.3%

 

1.0%

 

(4.7)%

 

(0.9)%

 U.S. 

 

2.7%

 

(1.5)%

 

(5.8)%

 

(2.4)%

 International 

 

2.1%

 

3.8%

 

(3.9)%

 

0.5%

                 

Wound Care / Other

               

BENECOL ®

 

0.8

         

0.1

 U.S. 

 

0.0

         

0.0

 International 

 

1.1

         

0.2

                 

Diagnostics

               

Ortho-Clinical Diagnostics

         

6.1

 

2.3

 U.S. 

         

7.4

 

2.5

 International 

         

5.3

 

2.0

                 

Other Neuroscience

               

NUCYNTA ®

     

0.5

     

0.2

 U.S. 

     

0.9

     

0.5

 International 

     

0.1

     

0.0

                 

All Other Acquisitions and Divestitures

 

0.0

         

0.0

 U.S. 

 

0.2

         

0.0

 International 

 

0.0

         

0.0

                 

WW Ops excluding Acquisitions and Divestitures

 

3.1%

 

1.5%

 

1.4%

 

1.7%

 U.S. 

 

2.9%

 

(0.6)%

 

1.6%

 

0.6%

 International 

 

3.2%

 

3.9%

 

1.4%

 

2.7%

                 

 Hepatitis C  

     

8.2

     

3.3

 U.S. 

     

17.1

     

7.8

 International 

     

(1.4)

     

(0.6)

                 

WW Ops excluding Acquisitions, Divestitures and Hepatitis C

 

3.1%

 

9.7%

 

1.4%

 

5.0%

 U.S. 

 

2.9%

 

16.5%

 

1.6%

 

8.4%

 International 

 

3.2%

 

2.5%

 

1.4%

 

2.1%

                 
                 

(1)Hepatitis C includes 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 (1)

 SIX MONTHS 2015 ACTUAL vs. 2014 ACTUAL 

                 
 

 Segments 

                 
   

 Consumer 

 

 Pharmaceutical 

 

 Medical Devices 

 

 Total 

   

Operational % (2)

 WW As Reported: 

 

2.8%

 

5.3%

 

(4.6)%

 

1.1%

 U.S. 

 

3.2%

 

6.7%

 

(6.0)%

 

1.5%

 International 

 

2.6%

 

3.8%

 

(3.5)%

 

0.6%

                 

Women's Health

               

K-Y ®

 

0.5

         

0.1

 U.S. 

 

0.8

         

0.1

 International 

 

0.3

         

0.1

                 

Wound Care / Other

               

BENECOL ®

 

0.7

         

0.1

 U.S. 

 

0.0

         

0.0

 International 

 

1.1

         

0.3

                 

Diagnostics

               

Ortho-Clinical Diagnostics

         

6.0

 

2.3

 U.S. 

         

7.3

 

2.8

 International 

         

4.9

 

2.0

                 

Other Neuroscience

               

NUCYNTA ®

     

0.3

     

0.1

 U.S. 

     

0.6

     

0.2

 International 

     

0.0

     

0.0

                 

All Other Acquisitions and Divestitures

 

(0.1)

         

0.0

 U.S. 

 

0.0

         

0.0

 International 

 

(0.2)

         

(0.1)

                 

WW Ops excluding Acquisitions and Divestitures

 

3.9%

 

5.6%

 

1.4%

 

3.7%

 U.S. 

 

4.0%

 

7.3%

 

1.3%

 

4.6%

 International 

 

3.8%

 

3.8%

 

1.4%

 

2.9%

                 

 Hepatitis C  

     

5.7

     

2.2

 U.S. 

     

12.8

     

5.4

 International 

     

(1.2)

     

(0.5)

                 

WW Ops excluding Acquisitions, Divestitures and Hepatitis C

 

3.9%

 

11.3%

 

1.4%

 

5.9%

 U.S. 

 

4.0%

 

20.1%

 

1.3%

 

10.0%

 International 

 

3.8%

 

2.6%

 

1.4%

 

2.4%

                 
                 

(1)Hepatitis C includes 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

   

2015

 

2014

Reported

Operational (1)

Currency

     

2015

 

2014

Reported

Operational (1)

Currency

CONSUMER SEGMENT (2)

                               

BABY CARE

                               

US

 

$          104

 

107

-2.8%

-2.8%

-

     

$             215

 

209

2.9%

2.9%

-

Intl

 

439

 

500

-12.2%

-1.0%

-11.2%

     

839

 

943

-11.0%

-0.9%

-10.1%

WW

 

543

 

607

-10.5%

-1.2%

-9.3%

     

1,054

 

1,152

-8.5%

-0.2%

-8.3%

ORAL CARE

                               

US

 

147

 

142

3.5%

3.5%

-

     

305

 

302

1.0%

1.0%

-

Intl

 

244

 

271

-10.0%

5.0%

-15.0%

     

489

 

522

-6.3%

6.9%

-13.2%

WW

 

391

 

413

-5.3%

4.5%

-9.8%

     

794

 

824

-3.6%

4.7%

-8.3%

OTC

                               

US

 

366

 

316

15.8%

15.8%

-

     

771

 

682

13.0%

13.0%

-

Intl

 

608

 

687

-11.5%

4.7%

-16.2%

     

1,196

 

1,332

-10.2%

6.8%

-17.0%

WW

 

974

 

1,003

-2.9%

8.2%

-11.1%

     

1,967

 

2,014

-2.3%

9.0%

-11.3%

SKIN CARE

                               

US

 

491

 

506

-3.0%

-3.0%

-

     

983

 

963

2.1%

2.1%

-

Intl

 

403

 

462

-12.8%

1.2%

-14.0%

     

814

 

919

-11.4%

1.4%

-12.8%

WW

 

894

 

968

-7.6%

-0.9%

-6.7%

     

1,797

 

1,882

-4.5%

1.8%

-6.3%

WOMEN'S HEALTH

                               

US

 

7

 

11

-36.4%

-36.4%

-

     

13

 

35

-62.9%

-62.9%

-

Intl

 

313

 

331

-5.4%

11.4%

-16.8%

     

594

 

634

-6.3%

8.6%

-14.9%

WW

 

320

 

342

-6.4%

9.9%

-16.3%

     

607

 

669

-9.3%

4.8%

-14.1%

WOUND CARE / OTHER

                               

US

 

240

 

238

0.8%

0.8%

-

     

427

 

438

-2.5%

-2.5%

-

Intl

 

121

 

173

-30.1%

-19.2%

-10.9%

     

227

 

322

-29.5%

-19.4%

-10.1%

WW

 

361

 

411

-12.2%

-7.6%

-4.6%

     

654

 

760

-13.9%

-9.6%

-4.3%

                                 

TOTAL CONSUMER

                               

US

 

1,355

 

1,320

2.7%

2.7%

-

     

2,714

 

2,629

3.2%

3.2%

-

Intl

 

2,128

 

2,424

-12.2%

2.1%

-14.3%

     

4,159

 

4,672

-11.0%

2.6%

-13.6%

WW

 

$       3,483

 

3,744

-7.0%

2.3%

-9.3%

     

$          6,873

 

7,301

-5.9%

2.8%

-8.7%

                                 
                                 

See footnotes at end of schedule

                       

 

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

SECOND QUARTER

   

SIX MONTHS

         

% Change

           

% Change

   

2015

 

2014

Reported

Operational (1)

Currency

     

2015

 

2014

Reported

Operational (1)

Currency

PHARMACEUTICAL SEGMENT (2) (3)

                               

IMMUNOLOGY

                               

US

 

$       1,876

 

1,853

1.2%

1.2%

-

     

$          3,631

 

3,400

6.8%

6.8%

-

Intl

 

678

 

778

-12.9%

3.4%

-16.3%

     

1,386

 

1,574

-11.9%

3.4%

-15.3%

WW

 

2,554

 

2,631

-2.9%

1.9%

-4.8%

     

5,017

 

4,974

0.9%

5.7%

-4.8%

    REMICADE

                               

    US 

 

1,088

 

1,021

6.6%

6.6%

-

     

2,143

 

2,018

6.2%

6.2%

-

    US Exports (4)

 

241

 

357

-32.5%

-32.5%

-

     

422

 

524

-19.5%

-19.5%

-

    Intl

 

339

 

426

-20.4%

-6.6%

-13.8%

     

703

 

872

-19.4%

-6.4%

-13.0%

    WW

 

1,668

 

1,804

-7.5%

-4.2%

-3.3%

     

3,268

 

3,414

-4.3%

-1.0%

-3.3%

    SIMPONI / SIMPONI ARIA

                               

    US

 

172

 

132

30.3%

30.3%

-

     

327

 

236

38.6%

38.6%

-

    Intl

 

136

 

150

-9.3%

9.2%

-18.5%

     

281

 

305

-7.9%

9.5%

-17.4%

    WW

 

308

 

282

9.2%

19.1%

-9.9%

     

608

 

541

12.4%

22.2%

-9.8%

    STELARA

                               

    US

 

375

 

343

9.3%

9.3%

-

     

739

 

622

18.8%

18.8%

-

    Intl

 

195

 

185

5.4%

26.5%

-21.1%

     

380

 

362

5.0%

24.6%

-19.6%

    WW

 

570

 

528

8.0%

15.4%

-7.4%

     

1,119

 

984

13.7%

20.9%

-7.2%

    OTHER IMMUNOLOGY

                               

    US

 

-

 

-

-

-

-

     

-

 

-

-

-

-

    Intl

 

8

 

17

-52.9%

-44.7%

-8.2%

     

22

 

35

-37.1%

-28.7%

-8.4%

    WW

 

8

 

17

-52.9%

-44.7%

-8.2%

     

22

 

35

-37.1%

-28.7%

-8.4%

INFECTIOUS DISEASES

                               

US

 

381

 

1,020

-62.6%

-62.6%

-

     

793

 

1,581

-49.8%

-49.8%

-

Intl

 

651

 

742

-12.3%

7.2%

-19.5%

     

1,214

 

1,381

-12.1%

5.9%

-18.0%

WW

 

1,032

 

1,762

-41.4%

-33.2%

-8.2%

     

2,007

 

2,962

-32.2%

-23.8%

-8.4%

    EDURANT

                               

    US

 

9

 

6

50.0%

50.0%

-

     

18

 

11

63.6%

63.6%

-

    Intl

 

92

 

86

7.0%

32.1%

-25.1%

     

174

 

162

7.4%

31.4%

-24.0%

    WW

 

101

 

92

9.8%

33.2%

-23.4%

     

192

 

173

11.0%

33.4%

-22.4%

    OLYSIO / SOVRIAD

                               

    US

 

50

 

725

-93.1%

-93.1%

-

     

148

 

1,016

-85.4%

-85.4%

-

    Intl

 

214

 

106

*

*

**

     

350

 

169

*

*

**

    WW

 

264

 

831

-68.2%

-62.5%

-5.7%

     

498

 

1,185

-58.0%

-51.7%

-6.3%

    PREZISTA / PREZCOBIX

                               

    US

 

258

 

239

7.9%

7.9%

-

     

492

 

453

8.6%

8.6%

-

    Intl

 

190

 

253

-24.9%

-7.7%

-17.2%

     

383

 

484

-20.9%

-4.8%

-16.1%

    WW

 

448

 

492

-8.9%

-0.1%

-8.8%

     

875

 

937

-6.6%

1.7%

-8.3%

    OTHER INFECTIOUS DISEASES

                               

    US

 

64

 

50

28.0%

28.0%

-

     

135

 

101

33.7%

33.7%

-

    Intl

 

155

 

297

-47.8%

-36.9%

-10.9%

     

307

 

566

-45.8%

-35.8%

-10.0%

    WW

 

219

 

347

-36.9%

-27.5%

-9.4%

     

442

 

667

-33.7%

-25.2%

-8.5%

                                 

 

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

SECOND QUARTER

   

SIX MONTHS

         

% Change

           

% Change

   

2015

 

2014

Reported

Operational (1)

Currency

     

2015

 

2014

Reported

Operational (1)

Currency

                                 

NEUROSCIENCE

                               

US

 

693

 

600

15.5%

15.5%

-

     

1,443

 

1,201

20.1%

20.1%

-

Intl

 

871

 

1,027

-15.2%

-0.2%

-15.0%

     

1,739

 

2,064

-15.7%

-1.7%

-14.0%

WW

 

1,564

 

1,627

-3.9%

5.6%

-9.5%

     

3,182

 

3,265

-2.5%

6.4%

-8.9%

    CONCERTA / METHYLPHENIDATE

                               

    US

 

102

 

28

*

*

-

     

228

 

63

*

*

-

    Intl

 

104

 

117

-11.1%

2.7%

-13.8%

     

202

 

232

-12.9%

-0.3%

-12.6%

    WW

 

206

 

145

42.1%

53.3%

-11.2%

     

430

 

295

45.8%

55.7%

-9.9%

    INVEGA

                               

    US

 

105

 

89

18.0%

18.0%

-

     

199

 

175

13.7%

13.7%

-

    Intl

 

61

 

69

-11.6%

3.7%

-15.3%

     

122

 

148

-17.6%

-2.9%

-14.7%

    WW

 

166

 

158

5.1%

11.8%

-6.7%

     

321

 

323

-0.6%

6.1%

-6.7%

    INVEGA SUSTENNA / XEPLION

                               

    US

 

253

 

202

25.2%

25.2%

-

     

481

 

384

25.3%

25.3%

-

    Intl

 

183

 

192

-4.7%

14.6%

-19.3%

     

366

 

383

-4.4%

13.6%

-18.0%

    WW

 

436

 

394

10.7%

20.1%

-9.4%

     

847

 

767

10.4%

19.4%

-9.0%

    RISPERDAL CONSTA

                               

    US

 

99

 

110

-10.0%

-10.0%

-

     

203

 

216

-6.0%

-6.0%

-

    Intl

 

148

 

192

-22.9%

-6.5%

-16.4%

     

298

 

396

-24.7%

-9.8%

-14.9%

    WW

 

247

 

302

-18.2%

-7.8%

-10.4%

     

501

 

612

-18.1%

-8.5%

-9.6%

    OTHER NEUROSCIENCE

                               

    US

 

134

 

171

-21.6%

-21.6%

-

     

332

 

363

-8.5%

-8.5%

-

    Intl

 

375

 

457

-17.9%

-5.1%

-12.8%

     

751

 

905

-17.0%

-4.8%

-12.2%

   WW

 

509

 

628

-18.9%

-9.6%

-9.3%

     

1,083

 

1,268

-14.6%

-5.9%

-8.7%

ONCOLOGY

                               

US

 

362

 

278

30.2%

30.2%

-

     

696

 

518

34.4%

34.4%

-

Intl

 

782

 

833

-6.1%

12.8%

-18.9%

     

1,556

 

1,615

-3.7%

14.1%

-17.8%

WW

 

1,144

 

1,111

3.0%

17.2%

-14.2%

     

2,252

 

2,133

5.6%

19.1%

-13.5%

    IMBRUVICA

                               

    US

 

89

 

33

*

*

-

     

155

 

39

*

*

-

    Intl

 

65

 

9

*

*

**

     

115

 

13

*

*

**

    WW

 

154

 

42

*

*

**

     

270

 

52

*

*

**

    VELCADE

                               

    US

 

-

 

-

-

-

-

     

-

 

-

-

-

-

    Intl

 

344

 

403

-14.6%

1.1%

-15.7%

     

683

 

811

-15.8%

-1.5%

-14.3%

    WW

 

344

 

403

-14.6%

1.1%

-15.7%

     

683

 

811

-15.8%

-1.5%

-14.3%

    ZYTIGA

                               

    US

 

255

 

235

8.5%

8.5%

-

     

508

 

464

9.5%

9.5%

-

    Intl

 

291

 

327

-11.0%

8.6%

-19.6%

     

594

 

610

-2.6%

16.8%

-19.4%

    WW

 

546

 

562

-2.8%

8.6%

-11.4%

     

1,102

 

1,074

2.6%

13.6%

-11.0%

    OTHER ONCOLOGY

                               

    US

 

18

 

10

80.0%

80.0%

-

     

33

 

15

*

*

-

    Intl

 

82

 

94

-12.8%

5.3%

-18.1%

     

164

 

181

-9.4%

7.6%

-17.0%

    WW

 

100

 

104

-3.8%

12.5%

-16.3%

     

197

 

196

0.5%

16.1%

-15.6%

                                 

 

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

SECOND QUARTER

   

SIX MONTHS

         

% Change

           

% Change

   

2015

 

2014

Reported

Operational (1)

Currency

     

2015

 

2014

Reported

Operational (1)

Currency

CARDIOVASCULAR / METABOLISM / OTHER (5)

                               

US

 

1,231

 

862

42.8%

42.8%

-

     

2,351

 

1,653

42.2%

42.2%

-

Intl

 

421

 

516

-18.4%

-6.6%

-11.8%

     

863

 

1,020

-15.4%

-3.7%

-11.7%

WW

 

1,652

 

1,378

19.9%

24.3%

-4.4%

     

3,214

 

2,673

20.2%

24.6%

-4.4%

    XARELTO

                               

    US

 

472

 

361

30.7%

30.7%

-

     

913

 

680

34.3%

34.3%

-

    Intl

 

-

 

-

-

-

-

     

-

 

-

-

-

-

    WW

 

472

 

361

30.7%

30.7%

-

     

913

 

680

34.3%

34.3%

-

    INVOKANA / INVOKAMET

                               

    US

 

302

 

114

*

*

-

     

568

 

207

*

*

-

    Intl

 

16

 

3

*

*

**

     

28

 

4

*

*

**

    WW

 

318

 

117

*

*

**

     

596

 

211

*

*

**

    PROCRIT / EPREX

                               

    US

 

179

 

178

0.6%

0.6%

-

     

342

 

354

-3.4%

-3.4%

-

    Intl

 

97

 

141

-31.2%

-18.7%

-12.5%

     

203

 

275

-26.2%

-13.3%

-12.9%

    WW

 

276

 

319

-13.5%

-8.0%

-5.5%

     

545

 

629

-13.4%

-7.7%

-5.7%

    OTHER

                               

    US

 

278

 

209

33.0%

33.0%

-

     

528

 

412

28.2%

28.2%

-

    Intl

 

308

 

372

-17.2%

-6.3%

-10.9%

     

632

 

741

-14.7%

-4.0%

-10.7%

    WW

 

586

 

581

0.9%

7.9%

-7.0%

     

1,160

 

1,153

0.6%

7.5%

-6.9%

                                 

TOTAL PHARMACEUTICAL

                               

US

 

4,543

 

4,613

-1.5%

-1.5%

-

     

8,914

 

8,353

6.7%

6.7%

-

Intl

 

3,403

 

3,896

-12.7%

3.8%

-16.5%

     

6,758

 

7,654

-11.7%

3.8%

-15.5%

WW

 

$       7,946

 

8,509

-6.6%

1.0%

-7.6%

     

$        15,672

 

16,007

-2.1%

5.3%

-7.4%

                                 
                                 
                                 

See footnotes at end of schedule

                               

 


 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

SECOND QUARTER

   

SIX MONTHS

         

% Change

           

% Change

   

2015

 

2014

Reported

Operational (1)

Currency

     

2015

 

2014

Reported

Operational (1)

Currency

MEDICAL DEVICES (2)

                               

CARDIOVASCULAR CARE

                               

US

 

$          235

 

214

9.8%

9.8%

-

     

$             463

 

419

10.5%

10.5%

-

Intl

 

309

 

353

-12.5%

1.7%

-14.2%

     

610

 

689

-11.5%

2.5%

-14.0%

WW

 

544

 

567

-4.1%

4.7%

-8.8%

     

1,073

 

1,108

-3.2%

5.5%

-8.7%

DIABETES CARE

                               

US

 

214

 

222

-3.6%

-3.6%

-

     

426

 

414

2.9%

2.9%

-

Intl

 

280

 

336

-16.7%

-1.2%

-15.5%

     

552

 

656

-15.9%

-0.3%

-15.6%

WW

 

494

 

558

-11.5%

-2.1%

-9.4%

     

978

 

1,070

-8.6%

0.9%

-9.5%

DIAGNOSTICS (6)

                               

US

 

-

 

232

**

**

-

     

-

 

456

**

**

-

Intl

 

16

 

229

-93.0%

-90.1%

-2.9%

     

46

 

448

-89.7%

-86.8%

-2.9%

WW

 

16

 

461

-96.5%

-95.0%

-1.5%

     

46

 

904

-94.9%

-93.5%

-1.4%

ORTHOPAEDICS

                               

US 

 

1,321

 

1,294

2.1%

2.1%

-

     

2,630

 

2,586

1.7%

1.7%

-

Intl

 

1,009

 

1,175

-14.1%

-0.4%

-13.7%

     

2,028

 

2,304

-12.0%

1.2%

-13.2%

WW

 

2,330

 

2,469

-5.6%

0.9%

-6.5%

     

4,658

 

4,890

-4.7%

1.5%

-6.2%

SPECIALTY SURGERY / OTHER

                               

US

 

438

 

424

3.3%

3.3%

-

     

855

 

841

1.7%

1.7%

-

Intl

 

441

 

481

-8.3%

5.6%

-13.9%

     

857

 

938

-8.6%

4.6%

-13.2%

WW

 

879

 

905

-2.9%

4.5%

-7.4%

     

1,712

 

1,779

-3.8%

3.2%

-7.0%

SURGICAL CARE 

                               

US

 

562

 

551

2.0%

2.0%

-

     

1,105

 

1,090

1.4%

1.4%

-

Intl

 

887

 

1,024

-13.4%

0.0%

-13.4%

     

1,767

 

1,993

-11.3%

1.5%

-12.8%

WW

 

1,449

 

1,575

-8.0%

0.7%

-8.7%

     

2,872

 

3,083

-6.8%

1.5%

-8.3%

VISION CARE

                               

US

 

243

 

262

-7.3%

-7.3%

-

     

496

 

548

-9.5%

-9.5%

-

Intl

 

403

 

445

-9.4%

6.0%

-15.4%

     

781

 

920

-15.1%

-1.0%

-14.1%

WW

 

646

 

707

-8.6%

1.1%

-9.7%

     

1,277

 

1,468

-13.0%

-4.1%

-8.9%

                                 

TOTAL MEDICAL DEVICES

                               

US

 

3,013

 

3,199

-5.8%

-5.8%

-

     

5,975

 

6,354

-6.0%

-6.0%

-

Intl

 

3,345

 

4,043

-17.3%

-3.9%

-13.4%

     

6,641

 

7,948

-16.4%

-3.5%

-12.9%

WW

 

$       6,358

 

7,242

-12.2%

-4.7%

-7.5%

     

$        12,616

 

14,302

-11.8%

-4.6%

-7.2%

                                 

* Percentage greater than 100%

                             

** Not meaningful

                               

(1) Operational growth excludes the effect of translational currency

                     

(2) Unaudited

                               

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

                 

(4) Reported as U.S. sales

                               

(5) Previously referred to as Other

                           

(6) Reflects Diagnostics divestiture June 30, 2014

       

 

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