Johnson & Johnson Reports 2012 Second-Quarter Results: Sales of $16.5 Billion decreased 0.7% Versus 2011 Second Quarter; Second-Quarter EPS was $0.50 Excluding Special Items, 2012 Second-Quarter EPS of $1.30 increased 1.6%*

News provided by

Jul 17, 2012, 07:45 ET

NEW BRUNSWICK, N.J., July 17, 2012 /PRNewswire/ -- Johnson & Johnson today announced sales of $16.5 billion for the second quarter of 2012, a decrease of 0.7% as compared to the second quarter of 2011. Operational results increased 3.5% and the negative impact of currency was 4.2%. Domestic sales decreased 1.2%. International sales decreased 0.4%, reflecting operational growth of 7.1% and a negative currency impact of 7.5%. Sales included the impact of the recently completed acquisition of Synthes, Inc., which contributed 1.2% to worldwide operational sales growth.

Net earnings and diluted earnings per share for the second quarter of 2012 were $1.4 billion and $0.50, respectively. Second-quarter 2012 net earnings include after-tax special items of $2.2 billion, consisting of non-cash charges primarily attributed to a partial write-down of in-process research and development and intangible assets related to the Crucell vaccines business, an increase in the accrual for the potential settlement of previously disclosed civil litigation matters, and transaction and integration costs related to the acquisition of Synthes, Inc. Second-quarter 2011 net earnings included after-tax special items of $772 million, consisting of net charges related to the restructuring by Cordis Corporation, the net impact of expenses related to litigation, DePuy ASR™ Hip recall costs, and a currency adjustment related to the acquisition of Synthes, Inc. Excluding these special items, net earnings for the current quarter were $3.6 billion and diluted earnings per share were $1.30, representing increases of 2.7% and 1.6%, respectively, as compared to the same period in 2011.*

"Our talented associates around the world are building a strong foundation for sustainable growth through meaningful innovations and an expanding global footprint. Our pharmaceutical pipeline continued its strong momentum this quarter with the submission of several new drug applications, as well as strong growth from several recently launched products that meet critical patient needs," said Alex Gorsky, Chief Executive Officer. "The completion of the Synthes acquisition also marks an important milestone in strengthening our leadership in key health care markets, creating a powerful portfolio of orthopaedic and neurological solutions to advance patient health and well-being," said Gorsky.

The Company adjusted its earnings guidance for full-year 2012 to $5.00 - $5.07 per share. The Company's guidance excludes the impact of special items and reflects the negative impact of recent currency movements, partially offset by the positive contribution from the Synthes acquisition.

Worldwide Consumer sales of $3.6 billion for the second quarter represented a decrease of 4.6% versus the prior year consisting of an operational increase of 0.6% and a negative impact from currency of 5.2%. Domestic sales decreased 1.9%. International sales decreased 6.0%, which reflected an operational increase of 2.0% and a negative currency impact of 8.0%.

Positive contributors to operational results were international sales of oral care products; NEUTROGENA® skin care products; and international baby care products.

Worldwide Pharmaceutical sales of $6.3 billion for the second quarter represented an increase of 0.9% versus the prior year with operational growth of 5.1% and a negative impact from currency of 4.2%. Domestic sales decreased 4.5%. International sales increased 6.8%, which reflected an operational increase of 15.5% and a negative currency impact of 8.7%.

Positive contributors to international sales were strong results for REMICADE® (infliximab), a biologic approved for the treatment of a number of immune-mediated, inflammatory diseases, primarily related to incremental sales from international territories included in the amended distribution agreement with Merck; PREZISTA® (darunavir), a treatment for HIV; and sales of recently launched products.

The strong sales results of recently launched products include ZYTIGA® (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone, for the treatment of metastatic, castration-resistant prostate cancer; INVEGA® SUSTENNA®/XEPLION® (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the acute and maintenance treatment of schizophrenia in adults; international sales of INCIVO® (telaprevir), a direct acting antiviral protease inhibitor, for the treatment of genotype-1 chronic hepatitis C virus, in combination with peginterferon alfa and ribavirin, in adults; STELARA® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis; and XARELTO® (rivaroxaban), an oral anticoagulant.

Sales results in the U.S. were negatively impacted by generic competition for LEVAQUIN® (levofloxacin), a treatment for bacterial infections, and the manufacturing suspension at a third party supplier for DOXIL® (doxorubicin HCl liposome injection)/CAELYX® (pegylated liposomal doxorubicin hydrochloride), a medication to treat ovarian and other cancers.

During the quarter, several drug marketing applications were submitted in the U.S. and European Union. These included a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) and a Marketing Authorization Application (MAA) to the European Medicines Agency (EMA) seeking approval for the use of canagliflozin, an oral, once-daily, selective sodium glucose co-transporter 2 (SGLT2) inhibitor, for the treatment of adult patients with type 2 diabetes. A supplemental NDA was submitted to the FDA and a type II variation to the EMA to extend the use of ZYTIGA® (abiraterone acetate) administered with prednisone to include the treatment of patients with metastatic castration resistant prostate cancer who have not received chemotherapy. Supplemental NDAs were also submitted to the FDA seeking approval for the use of XARELTO® (rivaroxaban) to treat patients with deep vein thrombosis or pulmonary embolism and prevention of recurrent venous thromboembolism. In addition, an NDA was submitted to the FDA seeking accelerated approval for the use of bedaquiline (TMC207) as an oral treatment, to be used as part of combination therapy for pulmonary, multi-drug resistant tuberculosis in adults.

Also during the quarter, Janssen-Cilag GmbH completed the acquisition of CorImmun GmbH, a privately held drug development company in Germany, whose lead compound, COR-1, is a small cyclic peptide currently in early clinical development for the treatment of heart failure.

Worldwide Medical Devices and Diagnostics sales of $6.6 billion for the second quarter represented a decrease of 0.1% versus the prior year consisting of an operational increase of 3.4% and a negative currency impact of 3.5%. Domestic sales increased 2.9%. International sales decreased 2.4%, which reflected an operational increase of 3.8% and a negative currency impact of 6.2%. Sales included the impact of the recently completed acquisition of Synthes, Inc., which contributed 2.9%, 3.7%, and 2.3% to worldwide, domestic and international operational sales growth, respectively.

Primary contributors to operational growth were orthopaedic sales from the recently completed acquisition of Synthes; Biosense Webster's electrophysiology products in our Cardiovascular Care business; Ethicon's wound care products in our General Surgery business; LifeScan's blood glucose monitoring products in our Diabetes Care business; and international sales of energy products in our Specialty Surgery business. The growth was impacted by lower sales in the Cardiovascular Care business, reflecting the decision to exit the drug eluting stent market at the end of the second quarter of 2011.

During the quarter, the Company announced the completion of the acquisition of Synthes for $19.7 billion in cash and stock, creating the world's most innovative and comprehensive orthopaedics business. In connection with the Synthes acquisition, DePuy Orthopaedics, Inc. agreed to divest its trauma business to Biomet, Inc. and completed the initial closing for this transaction, including those countries that represented the majority of sales.

In addition, Johnson & Johnson (China) Investment Ltd. completed its first medical device acquisition in China - the purchase of Guangzhou Bioseal Biotech Co., Ltd., a privately held biopharmaceutical company specializing in the design, development and commercialization of a porcine plasma-derived biologic product for controlling bleeding during surgery.

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 128,000 employees at more than 250 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* Net earnings and diluted earnings per share excluding 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. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the financial schedules accompanying this press release and can be found in the Investor Relations section of the Company's website at www.investor.jnj.com.

NOTE TO INVESTORS

Johnson & Johnson will conduct a conference call with financial analysts to discuss this news release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the meeting 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, condensed consolidated statements of earnings, and sales of key products/franchises. Additional information on Johnson & Johnson, including a pharmaceutical pipeline of selected compounds in late stage development and medical devices and diagnostics pipeline of selected products, can be found on the Company's website at www.jnj.com

(This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. 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 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, general industry conditions and competition; economic factors, such as interest rate and currency exchange rate fluctuations; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; challenges to patents; significant adverse litigation; impact of business combinations; financial distress and bankruptcies experienced by significant customers and suppliers; changes to governmental laws and regulations and domestic and foreign health care reforms; trends toward health care cost containment; increased scrutiny of the health care industry by government agencies; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and sovereign risk; disruptions due to natural disasters; manufacturing difficulties or delays; and product efficacy or safety concerns resulting in product recalls or regulatory action. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 1, 2012. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.investor.jnj.com or on request from Johnson & Johnson. 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
	2012	2011	Total		Operations	Currency	2012	2011	Total		Operations	Currency
Sales to customers by
segment of business

Consumer
U.S.	$ 1,313	1,339	(1.9)	%	(1.9)	-	$ 2,629	2,684	(2.0)	%	(2.0)	-
International	2,306	2,454	(6.0)		2.0	(8.0)	4,585	4,791	(4.3)		1.2	(5.5)
	3,619	3,793	(4.6)		0.6	(5.2)	7,214	7,475	(3.5)		-	(3.5)

Pharmaceutical
U.S.	3,094	3,239	(4.5)		(4.5)	-	6,120	6,630	(7.7)		(7.7)	-
International	3,197	2,994	6.8		15.5	(8.7)	6,304	5,662	11.3		17.3	(6.0)
	6,291	6,233	0.9		5.1	(4.2)	12,424	12,292	1.1		3.9	(2.8)

Med Devices & Diagnostics
U.S.	2,953	2,869	2.9		2.9	-	5,830	5,741	1.6		1.6	-
International	3,612	3,702	(2.4)		3.8	(6.2)	7,146	7,262	(1.6)		2.2	(3.8)
	6,565	6,571	(0.1)		3.4	(3.5)	12,976	13,003	(0.2)		1.9	(2.1)

U.S.	7,360	7,447	(1.2)		(1.2)	-	14,579	15,055	(3.2)		(3.2)	-
International	9,115	9,150	(0.4)		7.1	(7.5)	18,035	17,715	1.8		6.8	(5.0)
Worldwide	$ 16,475	16,597	(0.7)	%	3.5	(4.2)	$ 32,614	32,770	(0.5)	%	2.2	(2.7)


Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	SECOND QUARTER						SIX MONTHS
				Percent Change						Percent Change
	2012	2011	Total		Operations	Currency	2012	2011	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 7,360	7,447	(1.2)	%	(1.2)	-	$ 14,579	15,055	(3.2)	%	(3.2)	-

Europe	4,165	4,543	(8.3)		1.6	(9.9)	8,359	8,726	(4.2)		2.9	(7.1)
Western Hemisphere excluding U.S.	1,728	1,543	12.0		22.4	(10.4)	3,442	2,979	15.5		22.7	(7.2)
Asia-Pacific, Africa	3,222	3,064	5.2		7.7	(2.5)	6,234	6,010	3.7		4.5	(0.8)
International	9,115	9,150	(0.4)		7.1	(7.5)	18,035	17,715	1.8		6.8	(5.0)

Worldwide	$ 16,475	16,597	(0.7)	%	3.5	(4.2)	$ 32,614	32,770	(0.5)	%	2.2	(2.7)


Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	SECOND QUARTER

	2012			2011			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 16,475		100.0	$ 16,597		100.0	(0.7)
Cost of products sold	5,143		31.2	5,172		31.2	(0.6)
Selling, marketing and administrative expenses	4,965		30.1	5,215		31.4	(4.8)
Research and development expense	1,766		10.7	1,882		11.3	(6.2)
In-process research and development	429		2.6	-		-
Interest (income) expense, net	129		0.8	111		0.7
Other (income) expense, net	2,008		12.2	206		1.3
Restructuring expense	-		-	589		3.5
Earnings before provision for taxes on income	2,035		12.4	3,422		20.6	(40.5)
Provision for taxes on income	627		3.9	646		3.9	(2.9)
Net earnings	$ 1,408		8.5	$ 2,776		16.7	(49.3)

Net earnings per share (Diluted)	$ 0.50			$ 1.00			(50.0)

Average shares outstanding (Diluted)	2,798.2			2,781.3

Effective tax rate	30.8	%		18.9	%

Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$ 4,646		28.2	$ 4,413		26.6	5.3
Net earnings	$ 3,644		22.1	$ 3,548		21.4	2.7
Net earnings per share (Diluted)	$ 1.30			$ 1.28			1.6
Effective tax rate	21.6	%		19.6	%

(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

	2012			2011			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 32,614		100.0	$ 32,770		100.0	(0.5)
Cost of products sold	10,058		30.8	9,950		30.4	1.1
Selling, marketing and administrative expenses	9,980		30.6	10,271		31.3	(2.8)
Research and development expense	3,411		10.5	3,620		11.0	(5.8)
In-process research and development	429		1.3	-		-
Interest (income) expense, net	259		0.8	215		0.7
Other (income) expense, net	1,397		4.3	193		0.6
Restructuring expense	-		-	589		1.8
Earnings before provision for taxes on income	7,080		21.7	7,932		24.2	(10.7)
Provision for taxes on income	1,762		5.4	1,680		5.1	4.9
Net earnings	$ 5,318		16.3	$ 6,252		19.1	(14.9)

Net earnings per share (Diluted)	$ 1.91			$ 2.25			(15.1)

Average shares outstanding (Diluted)	2,792.4			2,778.1

Effective tax rate	24.9	%		21.2	%

Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income	$ 9,574		29.4	$ 9,269		28.3	3.3
Net earnings	$ 7,448		22.8	$ 7,295		22.3	2.1
Net earnings per share (Diluted)	$ 2.67			$ 2.63			1.5
Effective tax rate	22.2	%		21.3	%

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


Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures

	Second Quarter				Six Months YTD
(Dollars in Millions Except Per Share Data)	2012	2011	%Incr. /(Decr.)		2012	2011	%Incr. /(Decr.)

Earnings before provision for taxes on income - as reported	$ 2,035	3,422	(40.5)	%	$ 7,080	$ 7,932	(10.7)	%

Intangible asset write-downs	939	-			939	-

Net litigation	669	315			669	576

Synthes integration/transaction costs and currency related	574	(102)			457	(102)

In-process research and development	429	-			429	-

Restructuring - Cordis	-	676			-	676

DePuy ASR™Hip related costs	-	102			-	187

Earnings before provision for taxes on income - as adjusted	$ 4,646	4,413	5.3	%	$ 9,574	9,269	3.3	%

Net Earnings - as reported	$ 1,408	2,776	(49.3)	%	$ 5,318	6,252	(14.9)	%

Intangible asset write-downs	717	-			717	-

Net litigation	611	242			611	444

Synthes integration/transaction costs and currency related	564	(102)			458	(102)

In-process research and development	344	-			344	-

Restructuring - Cordis	-	549			-	549

DePuy ASR™Hip related costs	-	83			-	152

Net Earnings - as adjusted	$ 3,644	3,548	2.7	%	$ 7,448	7,295	2.1	%

Diluted Net Earnings per share - as reported	$ 0.50	1.00	(50.0)	%	$ 1.91	2.25	(15.1)	%

Intangible asset write-downs	0.26	-			0.26	-

Net litigation	0.22	0.09			0.22	0.16

Synthes integration/transaction costs and currency related	0.20	(0.04)			0.16	(0.04)

In-process research and development	0.12	-			0.12	-

Restructuring - Cordis	-	0.20			-	0.20

DePuy ASR™Hip related costs	-	0.03			-	0.06

Diluted Net Earnings per share - as adjusted	$ 1.30	1.28	1.6	%	$ 2.67	2.63	1.5	%

The Company believes investors gain additional perspective of underlying business trends and results by providing a measure of earnings before provision for taxes on income, net earnings and diluted net earnings per share that excludes special items in order to evaluate ongoing business operations.





	REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER					SIX MONTHS
			% Change					% Change
	2012	2011	Reported	Operational ⁽¹⁾	Currency	2012	2011	Reported	Operational ⁽¹⁾	Currency
CONSUMER SEGMENT ⁽²⁾
BABY CARE
US	$ 106	105	1.0%	1.0%	-	$ 205	210	-2.4%	-2.4%	-
Intl	472	493	-4.3%	3.5%	-7.8%	913	949	-3.8%	1.7%	-5.5%
WW	578	598	-3.3%	3.2%	-6.5%	1,118	1,159	-3.5%	1.0%	-4.5%
ORAL CARE
US	159	158	0.6%	0.6%	-	314	321	-2.2%	-2.2%	-
Intl	249	241	3.3%	11.9%	-8.6%	481	469	2.6%	8.5%	-5.9%
WW	408	399	2.3%	7.5%	-5.2%	795	790	0.6%	4.1%	-3.5%
OTC/NUTRITIONALS
US	336	330	1.8%	1.8%	-	717	727	-1.4%	-1.4%	-
Intl	696	753	-7.6%	0.1%	-7.7%	1,419	1,485	-4.4%	0.9%	-5.3%
WW	1,032	1,083	-4.7%	0.6%	-5.3%	2,136	2,212	-3.4%	0.2%	-3.6%
SKIN CARE
US	471	449	4.9%	4.9%	-	924	875	5.6%	5.6%	-
Intl	442	480	-7.9%	-0.3%	-7.6%	896	953	-6.0%	-1.0%	-5.0%
WW	913	929	-1.7%	2.2%	-3.9%	1,820	1,828	-0.4%	2.2%	-2.6%
WOMEN'S HEALTH
US	80	121	-33.9%	-33.9%	-	173	246	-29.7%	-29.7%	-
Intl	322	356	-9.6%	-0.2%	-9.4%	638	690	-7.5%	-0.8%	-6.7%
WW	402	477	-15.7%	-8.7%	-7.0%	811	936	-13.4%	-8.5%	-4.9%
WOUND CARE/OTHER
US	161	176	-8.5%	-8.5%	-	296	305	-3.0%	-3.0%	-
Intl	125	131	-4.6%	2.8%	-7.4%	238	245	-2.9%	2.3%	-5.2%
WW	286	307	-6.8%	-3.7%	-3.1%	534	550	-2.9%	-0.6%	-2.3%
TOTAL CONSUMER
US	1,313	1,339	-1.9%	-1.9%	-	2,629	2,684	-2.0%	-2.0%	-
Intl	2,306	2,454	-6.0%	2.0%	-8.0%	4,585	4,791	-4.3%	1.2%	-5.5%
WW	$ 3,619	3,793	-4.6%	0.6%	-5.2%	$ 7,214	7,475	-3.5%	0.0%	-3.5%


See footnotes at end of schedule


		SECOND QUARTER					SIX MONTHS
				% Change					% Change
		2012	2011	Reported	Operational ⁽¹⁾	Currency	2012	2011	Reported	Operational ⁽¹⁾	Currency
PHARMACEUTICAL SEGMENT ^{(2) (4)}
IMMUNOLOGY
US		$ 1,471	1,524	-3.5%	-3.5%	-	$ 2,924	2,960	-1.2%	-1.2%	-
Intl		448	131	*	*	-8.1%	890	275	*	*	-5.2%
WW		1,919	1,655	16.0%	18.2%	-2.2%	3,814	3,235	17.9%	19.1%	-1.2%
	REMICADE
US		890	836	6.5%	6.5%	-	1,772	1,624	9.1%	9.1%	-
US Exports ⁽³⁾		366	527	-30.6%	-30.6%	-	744	1,017	-26.8%	-26.8%	-
Intl		267	8	*	*	-8.3%	528	15	*	*	-5.3%
WW		1,523	1,371	11.1%	12.7%	-1.6%	3,044	2,656	14.6%	15.6%	-1.0%
SIMPONI
US		63	61	3.3%	3.3%	-	127	114	11.4%	11.4%	-
Intl		62	6	*	*	-5.8%	114	48	*	*	-8.6%
WW		125	67	86.6%	89.5%	-2.9%	241	162	48.8%	51.3%	-2.5%
STELARA
US		152	100	52.0%	52.0%	-	281	205	37.1%	37.1%	-
Intl		96	76	26.3%	35.1%	-8.8%	188	137	37.2%	45.5%	-8.3%
WW		248	176	40.9%	45.7%	-4.8%	469	342	37.1%	40.4%	-3.3%
OTHER IMMUNOLOGY
US		-	-	-	-	-	-	-	-	-	-
Intl		23	41	-43.9%	-39.2%	-4.7%	60	75	-20.0%	-16.6%	-3.4%
WW		23	41	-43.9%	-39.2%	-4.7%	60	75	-20.0%	-16.6%	-3.4%
INFECTIOUS DISEASES
US		237	351	-32.5%	-32.5%	-	479	975	-50.9%	-50.9%	-
Intl		551	477	15.5%	26.0%	-10.5%	1,064	784	35.7%	44.3%	-8.6%
WW		788	828	-4.8%	1.3%	-6.1%	1,543	1,759	-12.3%	-8.5%	-3.8%
INTELENCE
US		42	38	10.5%	10.5%	-	85	76	11.8%	11.8%	-
Intl		49	41	19.5%	30.4%	-10.9%	86	72	19.4%	27.4%	-8.0%
WW		91	79	15.2%	20.8%	-5.6%	171	148	15.5%	19.4%	-3.9%
LEVAQUIN/FLOXIN
US		7	149	-95.3%	-95.3%	-	25	571	-95.6%	-95.6%	-
Intl		9	10	-10.0%	-2.7%	-7.3%	20	22	-9.1%	-3.9%	-5.2%
WW		16	159	-89.9%	-89.4%	-0.5%	45	593	-92.4%	-92.2%	-0.2%
PREZISTA
US		166	128	29.7%	29.7%	-	326	254	28.3%	28.3%	-
Intl		207	185	11.9%	22.6%	-10.7%	371	325	14.2%	22.2%	-8.0%
WW		373	313	19.2%	25.5%	-6.3%	697	579	20.4%	24.9%	-4.5%
OTHER INFECTIOUS DISEASES
US		22	36	-38.9%	-38.9%	-	43	74	-41.9%	-41.9%	-
Intl		286	241	18.7%	29.1%	-10.4%	587	365	60.8%	70.3%	-9.5%
WW		308	277	11.2%	20.2%	-9.0%	630	439	43.5%	51.4%	-7.9%


	REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER					SIX MONTHS
			% Change					% Change
	2012	2011	Reported	Operational ⁽¹⁾	Currency	2012	2011	Reported	Operational ⁽¹⁾	Currency
NEUROSCIENCE
US	658	684	-3.8%	-3.8%	-	1,332	1,372	-2.9%	-2.9%	-
Intl	1,056	1,096	-3.6%	3.2%	-6.8%	2,029	2,153	-5.8%	-1.3%	-4.5%
WW	1,714	1,780	-3.7%	0.5%	-4.2%	3,361	3,525	-4.7%	-1.9%	-2.8%
CONCERTA/METHYLPHENIDATE
US	146	234	-37.6%	-37.6%	-	343	488	-29.7%	-29.7%	-
Intl	122	115	6.1%	14.0%	-7.9%	233	223	4.5%	10.1%	-5.6%
WW	268	349	-23.2%	-20.6%	-2.6%	576	711	-19.0%	-17.2%	-1.8%
INVEGA
US	76	76	0.0%	0.0%	-	145	145	0.0%	0.0%	-
Intl	66	52	26.9%	33.6%	-6.7%	118	103	14.6%	18.8%	-4.2%
WW	142	128	10.9%	13.6%	-2.7%	263	248	6.0%	7.8%	-1.8%
INVEGA SUSTENNA/ XEPLION
US	120	70	71.4%	71.4%	-	220	135	63.0%	63.0%	-
Intl	75	7	*	*	-8.8%	136	7	*	*	-6.2%
WW	195	77	*	*	-3.4%	356	142	*	*	-2.4%
RISPERDAL CONSTA
US	110	110	0.0%	0.0%	-	223	224	-0.4%	-0.4%	-
Intl	245	294	-16.7%	-9.3%	-7.4%	493	584	-15.6%	-10.5%	-5.1%
WW	355	404	-12.1%	-6.7%	-5.4%	716	808	-11.4%	-7.7%	-3.7%
OTHER NEUROSCIENCE
US	206	194	6.2%	6.2%	-	401	380	5.5%	5.5%	-
Intl	548	628	-12.7%	-7.3%	-5.4%	1,049	1,236	-15.1%	-11.7%	-3.4%
WW	754	822	-8.3%	-4.2%	-4.1%	1,450	1,616	-10.3%	-7.7%	-2.6%
ONCOLOGY
US	119	93	28.0%	28.0%	-	226	157	43.9%	43.9%	-
Intl	467	459	1.7%	11.2%	-9.5%	956	834	14.6%	21.8%	-7.2%
WW	586	552	6.2%	14.1%	-7.9%	1,182	991	19.3%	25.3%	-6.0%
DOXIL/CAELYX
US	6	56	-89.3%	-89.3%	-	13	120	-89.2%	-89.2%	-
Intl	7	82	-91.5%	-89.9%	-1.6%	24	157	-84.7%	-83.4%	-1.3%
WW	13	138	-90.6%	-89.7%	-0.9%	37	277	-86.6%	-85.9%	-0.7%
VELCADE
US	-	-	-	-	-	-	-	-	-	-
Intl	318	347	-8.4%	-0.1%	-8.3%	671	627	7.0%	13.4%	-6.4%
WW	318	347	-8.4%	-0.1%	-8.3%	671	627	7.0%	13.4%	-6.4%
ZYTIGA
US	113	37	*	*	-	213	37	*	*	-
Intl	119	12	*	*	-10.0%	219	17	*	*	-7.1%
WW	232	49	*	*	-5.1%	432	54	*	*	-3.6%
OTHER ONCOLOGY
US	-	-	-	-	-	-	-	-	-	-
Intl	23	18	27.8%	36.4%	-8.6%	42	33	27.3%	33.2%	-5.9%
WW	23	18	27.8%	36.4%	-8.6%	42	33	27.3%	33.2%	-5.9%

REPORTED SALES vs. PRIOR PERIOD ($MM)

SECOND QUARTER

SIX MONTHS

% Change

2012

2011

Reported

Operational ⁽¹⁾

Currency

2012

2011

Reported

Operational ⁽¹⁾

Currency

TOTAL OTHER

609

587

3.7%

1,159

1,166

-0.6%

Intl

675

831

-18.8%

-11.8%

-7.0%

1,365

1,616

-15.5%

-10.9%

-4.6%

1,284

1,418

-9.4%

-5.3%

-4.1%

2,524

2,782

-9.3%

-6.6%

-2.7%

ACIPHEX/PARIET

104

101

3.0%

200

210

-4.8%

Intl

128

146

-12.3%

-2.8%

-9.5%

254

276

-8.0%

-1.5%

-6.5%

232

247

-6.1%

-0.5%

-5.6%

454

486

-6.6%

-2.9%

-3.7%

PROCRIT/EPREX

232

257

-9.7%

436

447

-2.5%

Intl

169

218

-22.5%

-14.9%

-7.6%

341

425

-19.8%

-14.5%

-5.3%

401

475

-15.6%

-12.1%

-3.5%

777

872

-10.9%

-8.3%

-2.6%

OTHER

273

229

19.2%

523

509

2.8%

Intl

378

467

-19.1%

-13.2%

-5.9%

770

915

-15.8%

-12.1%

-3.7%

651

696

-6.5%

-2.6%

-3.9%

1,293

1,424

-9.2%

-6.8%

-2.4%

TOTAL PHARMACEUTICAL

3,094

3,239

-4.5%

6,120

6,630

-7.7%

Intl

3,197

2,994

6.8%

15.5%

-8.7%

6,304

5,662

11.3%

17.3%

-6.0%

$ 6,291

6,233

0.9%

5.1%

-4.2%

$ 12,424

12,292

1.1%

3.9%

-2.8%

See footnotes at end of schedule


	REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER					SIX MONTHS
			% Change					% Change
	2012	2011	Reported	Operational ⁽¹⁾	Currency	2012	2011	Reported	Operational ⁽¹⁾	Currency
MEDICAL DEVICES AND DIAGNOSTICS ⁽²⁾⁽⁴⁾
CARDIOVASCULAR CARE
US	$ 195	210	-7.1%	-7.1%	-	$ 371	452	-17.9%	-17.9%	-
Intl	309	377	-18.0%	-13.1%	-4.9%	615	770	-20.1%	-17.2%	-2.9%
WW	504	587	-14.1%	-10.9%	-3.2%	986	1,222	-19.3%	-17.5%	-1.8%
DIABETES CARE
US	337	333	1.2%	1.2%	-	689	644	7.0%	7.0%	-
Intl	336	348	-3.4%	4.6%	-8.0%	654	674	-3.0%	2.5%	-5.5%
WW	673	681	-1.2%	2.9%	-4.1%	1,343	1,318	1.9%	4.7%	-2.8%
DIAGNOSTICS
US	258	281	-8.2%	-8.2%	-	511	546	-6.4%	-6.4%	-
Intl	256	269	-4.8%	0.8%	-5.6%	515	525	-1.9%	1.6%	-3.5%
WW	514	550	-6.5%	-3.8%	-2.7%	1,026	1,071	-4.2%	-2.5%	-1.7%
GENERAL SURGERY
US	602	621	-3.1%	-3.1%	-	1,195	1,217	-1.8%	-1.8%	-
Intl	1,038	1,079	-3.8%	3.1%	-6.9%	2,070	2,104	-1.6%	2.8%	-4.4%
WW	1,640	1,700	-3.5%	0.9%	-4.4%	3,265	3,321	-1.7%	1.1%	-2.8%
INFECTION PREVENTION/OTHER
US	99	98	1.0%	1.0%	-	215	193	11.4%	11.4%	-
Intl	131	134	-2.2%	3.3%	-5.5%	259	255	1.6%	4.8%	-3.2%
WW	230	232	-0.9%	2.3%	-3.2%	474	448	5.8%	7.6%	-1.8%
ORTHOPAEDICS
US	873	770	13.4%	13.4%	-	1,656	1,581	4.7%	4.7%	-
Intl	755	699	8.0%	14.8%	-6.8%	1,465	1,391	5.3%	9.5%	-4.2%
WW	1,628	1,469	10.8%	14.0%	-3.2%	3,121	2,972	5.0%	6.9%	-1.9%
SPECIALTY SURGERY
US	336	311	8.0%	8.0%	-	663	607	9.2%	9.2%	-
Intl	310	309	0.3%	7.6%	-7.3%	611	590	3.6%	8.4%	-4.8%
WW	646	620	4.2%	7.8%	-3.6%	1,274	1,197	6.4%	8.8%	-2.4%
VISION CARE
US	253	245	3.3%	3.3%	-	530	501	5.8%	5.8%	-
Intl	477	487	-2.1%	1.2%	-3.3%	957	953	0.4%	1.9%	-1.5%
WW	730	732	-0.3%	1.9%	-2.2%	1,487	1,454	2.3%	3.3%	-1.0%

TOTAL MEDICAL DEVICES AND DIAGNOSTICS
US	2,953	2,869	2.9%	2.9%	-	5,830	5,741	1.6%	1.6%	-
Intl	3,612	3,702	-2.4%	3.8%	-6.2%	7,146	7,262	-1.6%	2.2%	-3.8%
WW	$ 6,565	6,571	-0.1%	3.4%	-3.5%	$ 12,976	13,003	-0.2%	1.9%	-2.1%

* Percentage greater than 100%
(1) Operational growth excludes the effect of currency
(2) Select areas (unaudited)
(3) Reported as U.S. sales
(4) Prior year amounts have been reclassified to conform to current year product disclosure