R&D budget: $6.66B (€4.86B)
Change over 08: -7.8%
Income spent on R&D: 11.3%
At the beginning of 2009, J&J ($JNJ) research chief Paul Stoffels was outlining his vision for an "open innovation" framework for drug development. Future winners in the development game, he noted, would know how to partner with biotech companies and academic groups.
"All simple diseases have been solved," Stoffels declared to the Wall Street Journal. "The next-generation drugs, therapies, are much more complex. You need much more information and science than what you can get out of your own internal labs."
That open innovation strategy, of course, has become a refrain in the pharma industry, which has been trying to do more with less these days. In J&J's case, the new approach to development work would also lead it to strike a deal with WuXi PharmaTech to boost the amount of R&D work being done in China--another new strategy sweeping the industry.
J&J also took a page from the competition's play book when it went the buyout route this year. The pharma giant paid $2.4 billion to nab Crucell ($CRXL), a partner which helped lead the company to strike out with an ambitious new plan to get into the vaccine industry in a big way. That could cause J&J to rise in the ranks when the EU reassesses the playing field in 2011.