Johnson & Johnson Reports Q3 2021 Results

- Total sales growth of 10.7% to $23.3 Billion with operational growth of 9.9%* and adjusted operational growth of 10.6%*

- Earnings per share of $1.37 increasing 3.0% and adjusted earnings per share of $2.60 increasing 18.2%*

- Company increasing 2021 Full-Year Guidance

News provided by

Johnson & Johnson

Oct 19, 2021, 06:25 ET

NEW BRUNSWICK, N.J., Oct. 19, 2021 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for third-quarter 2021. "Our third-quarter results demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health," said Alex Gorsky, Chairman and Chief Executive Officer. "In the face of evolving marketplace dynamics resulting from the effects of COVID-19 and other global trends, we have continued to demonstrate the responsiveness and agility required to meet the needs of our stakeholders, while also successfully investing in a pipeline of innovation and key commercial platforms to drive our future growth. I am incredibly proud of our Company's transformative growth over the last decade. As I prepare to transition the role of CEO to Joaquin Duato in January, I want to extend my deepest gratitude to our colleagues around the globe who work tirelessly to deliver solutions to address the world's most urgent and unmet healthcare challenges."

OVERALL FINANCIAL RESULTS

Q3
($ in Millions, except EPS)	2021	2020	% Change
Reported Sales	$ 23,338	$ 21,082	10.7%
Net Earnings	3,667	3,554	3.2%
EPS (diluted)	$ 1.37	$ 1.33	3.0%

Q3
Non-GAAP*($ in Millions, except EPS)	2021	2020	% Change
Operational Sales^1,2			9.9%
Adjusted Operational Sales^1,3			10.6%
Adjusted Net Earnings^1,4	6,968	5,868	18.7%
Adjusted EPS (diluted)^1,4	$ 2.60	$ 2.20	18.2%


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

Q3			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
U.S.	$ 11,963	$ 11,086	7.9%	7.9	-	8.0
International	11,375	9,996	13.8%	12.1	1.7	13.5
Worldwide	$ 23,338	$ 21,082	10.7%	9.9	0.8	10.6


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

Q3			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
Consumer Health	$ 3,700	$ 3,514	5.3%	4.1	1.2	5.7
Pharmaceutical	12,994	11,418	13.8%	13.2	0.6	13.8
Medical Devices	6,644	6,150	8.0%	7.0	1.0	7.6
Worldwide	$ 23,338	$ 21,082	10.7%	9.9	0.8	10.6


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

THIRD QUARTER 2021 SEGMENT COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, increased 5.7%* primarily driven by over-the-counter (OTC) products. Major contributors to growth were TYLENOL and MOTRIN analgesics, upper respiratory products, and digestive health in OTC, and AVEENO in Skin Health / Beauty.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 13.8%* 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, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, and OPSUMIT (macitentan) an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression. Also contributing to growth was sales of the not-for-profit COVID-19 Vaccine (Ad26.COV2.S) for the treatment of the SARS-CoV-2 virus. This growth was partially offset by declines in U.S. sales of REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, and INVOKANA (canagliflozin) for the treatment of adults with type 2 diabetes.

Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 7.6%*, driven by electrophysiology products in Interventional Solutions, wound closure products in General Surgery, surgical vision products and contact lenses in Vision, trauma, hips, and knees in Orthopaedics, and energy, endocutters, and biosurgicals in Advanced Surgery. Growth was partially offset by Spine, Sports & Other.

NOTABLE NEW ANNOUCEMENTS 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 Decisions	INVEGA HAFYERA (paliperidone palmitate) Receives FDA Approval For First and Only Twice-Yearly Treatment for Adults with Schizophrenia	(press release)
	XARELTO (rivaroxaban) Plus Aspirin Receives FDA Approval For Expanded Peripheral Artery Disease (PAD) Indication to Include Patients After Lower-Extremity Revascularization (LER)	(press release)
	UPTRAVI (selexipag) Receives FDA Approval For Intravenous Use in Adult Patients with Pulmonary Arterial Hypertension (PAH)	(press release)
Regulatory Submissions	Johnson & Johnson Announces Submission of Emergency Use Authorization Amendment to the U.S. FDA to Support Booster of its Single-Shot COVID-19 Vaccine ¹	(press release)
Regulatory Submissions	Janssen Submits Application Seeking U.S. FDA Approval of STELARA (ustekinumab) for the Treatment of Pediatric Patients With Juvenile Psoriatic Arthritis ¹	(press release)
Other	Alex Gorsky to Transition Role of Chief Executive Officer of Johnson & Johnson to Joaquin Duato, Effective January 3, 2022	(press release)
	Dr. Paul Stoffels, Vice Chairman of the Executive Committee and Chief Scientific Officer of Johnson & Johnson to Retire, Effective December 31, 2021 ¹	(press release)
	Johnson & Johnson Announces Real-World Evidence and Phase 3 Data Confirming Strong and Long-Lasting Protection of Single-Shot COVID-19 Vaccine in the U.S.	(press release)
	Johnson & Johnson Issues Statement on Nationwide Opioid Settlement Agreement	(press release)
	DePuy Synthes Announces Introduction of the INHANCE Shoulder System, a First-to-Market, Fully Integrated Shoulder Arthroplasty System	(press release)
	Janssen Announces Start of Phase 3 Trial for Investigational Respiratory Syncytial Virus (RSV) Vaccine in Older Adults	(press release)
	Janssen Receives Positive CHMP Opinion for BYANNLI (six-monthly paliperidone palmitate) for the Maintenance Treatment of Schizophrenia in Adults	(press release)
	Ethicon Announces ECHELON CIRCULAR Powered Stapler Associated with Major Reduction in Serious Complications Following Colorectal Surgery	(press release)
	Johnson & Johnson Takes Steps to Equitably Resolve All Current and Future Talc Claims ¹	(press release)
	Janssen Receives Positive CHMP Opinion for RYBREVANT (amivantamab) for the Treatment of Patients with Advanced Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations After Failure of Platinum-Based Therapy ¹	(press release)
	Johnson & Johnson COVID-19 Vaccine Booster Shot Unanimously Recommended for Emergency Use Authorization by U.S. FDA Advisory Committee ¹	(press release)

¹Subsequent to the quarter

FULL-YEAR 2021 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.

($ in Billions, except EPS)

October 2021
(Base Business)

October 2021

(incl. COVID Vx)

July 2021

(Base Business)

July 2021

(incl. COVID Vx)

Adjusted Operational
Sales^1,2

Change vs. Prior Year

9.9% - 10.5%

12.9% - 13.5%

9.5% - 10.5%

12.5% - 13.5%

Operational Sales²

Change vs. Prior Year

$90.3B – 90.8B

9.4% – 10.0%

$92.8 - $93.3B

12.4% – 13.0%

$90.0B - $90.8B

9.0% – 10.0%

$92.5B - $93.3B

12.0% – 13.0%

Estimated Reported
Sales³

Change vs. Prior Year

$91.6B - $92.1B

10.9% – 11.5%

$94.1B - $94.6B

13.9% – 14.5%

$91.3B - $92.1B

10.5% – 11.5%

$93.8B - $94.6B

13.5% – 14.5%

Adjusted Operational EPS
(Diluted)^2,4

Change vs. Prior Year

$9.65 - $9.70

20.2% - 20.8%

$9.50 - $9.60

18.4% - 19.6%

Adjusted EPS (Diluted)^3,4

Change vs. Prior Year

$9.77 - $9.82

21.7% - 22.3%

$9.60 - $9.70

19.6% - 20.8%


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: July 2021 = $1.19 and October = $1.19 (Illustrative purposes only)
⁴	Non-GAAP financial measure; excludes intangible amortization expense and special items
	Note: % may have been rounded

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 January 3, 2021 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
	2021	2020	Total		Operations	Currency	2021	2020	Total		Operations	Currency
Sales to customers by
segment of business

Consumer Health
U.S.	$ 1,625	1,556	4.5	%	4.5	-	$ 4,987	4,853	2.8	%	2.8	-
International	2,075	1,958	5.9		3.7	2.2	5,991	5,582	7.3		3.5	3.8
	3,700	3,514	5.3		4.1	1.2	10,978	10,435	5.2		3.1	2.1

Pharmaceutical
U.S.	7,221	6,438	12.2		12.2	-	20,536	18,619	10.3		10.3	-
International	5,773	4,980	15.9		14.6	1.3	17,256	14,685	17.5		12.5	5.0
	12,994	11,418	13.8		13.2	0.6	37,792	33,304	13.5		11.3	2.2

Medical Devices
U.S.	3,117	3,092	0.8		0.8	-	9,470	7,852	20.6		20.6	-
International	3,527	3,058	15.4		13.3	2.1	10,731	8,518	26.0		20.5	5.5
	6,644	6,150	8.0		7.0	1.0	20,201	16,370	23.4		20.5	2.9

U.S.	11,963	11,086	7.9		7.9	-	34,993	31,324	11.7		11.7	-
International	11,375	9,996	13.8		12.1	1.7	33,978	28,785	18.0		13.1	4.9
Worldwide	$ 23,338	21,082	10.7	%	9.9	0.8	$ 68,971	60,109	14.7	%	12.4	2.3

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
	2021	2020	Total		Operations	Currency	2021	2020	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 11,963	11,086	7.9	%	7.9	-	$ 34,993	31,324	11.7	%	11.7	-

Europe	5,587	4,819	15.9		14.6	1.3	16,669	13,709	21.6		15.3	6.3
Western Hemisphere excluding U.S.	1,500	1,296	15.7		13.4	2.3	4,291	3,931	9.2		8.1	1.1
Asia-Pacific, Africa	4,288	3,881	10.5		8.5	2.0	13,018	11,145	16.8		12.3	4.5
International	11,375	9,996	13.8		12.1	1.7	33,978	28,785	18.0		13.1	4.9

Worldwide	$ 23,338	21,082	10.7	%	9.9	0.8	$ 68,971	60,109	14.7	%	12.4	2.3


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

	2021			2020			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 23,338		100.0	$ 21,082		100.0	10.7
Cost of products sold	7,250		31.1	6,972		33.1	4.0
Gross Profit	16,088		68.9	14,110		66.9	14.0
Selling, marketing and administrative expenses	6,000		25.7	5,431		25.8	10.5
Research and development expense	3,422		14.7	2,840		13.5	20.5
In-process research and development	900		3.9	138		0.6
Interest (income) expense, net	7		0.0	32		0.1
Other (income) expense, net	1,850		7.9	1,200		5.7
Restructuring	60		0.2	68		0.3
Earnings before provision for taxes on income	3,849		16.5	4,401		20.9	(12.5)
Provision for taxes on income	182		0.8	847		4.0	(78.5)
Net earnings	$ 3,667		15.7	$ 3,554		16.9	3.2

Net earnings per share (Diluted)	$ 1.37			$ 1.33			3.0

Average shares outstanding (Diluted)	2,674.9			2,669.3

Effective tax rate	4.7	%		19.2	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 8,058		34.5	$ 7,246		34.4	11.2
Net earnings	$ 6,968		29.9	$ 5,868		27.8	18.7
Net earnings per share (Diluted)	$ 2.60			$ 2.20			18.2
Effective tax rate	13.5	%		19.0	%

⁽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

	2021			2020			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 68,971		100.0	$ 60,109		100.0	14.7
Cost of products sold	21,900		31.8	20,613		34.3	6.2
Gross Profit	47,071		68.2	39,496		65.7	19.2
Selling, marketing and administrative expenses	17,505		25.4	15,627		26.0	12.0
Research and development expense	9,994		14.5	8,127		13.5	23.0
In-process research and development	900		1.3	144		0.3
Interest (income) expense, net	83		0.1	16		0.0
Other (income) expense, net	480		0.7	545		0.9
Restructuring	169		0.2	187		0.3
Earnings before provision for taxes on income	17,940		26.0	14,850		24.7	20.8
Provision for taxes on income	1,798		2.6	1,874		3.1	(4.1)
Net earnings	$ 16,142		23.4	$ 12,976		21.6	24.4

Net earnings per share (Diluted)	$ 6.04			$ 4.86			24.3

Average shares outstanding (Diluted)	2,674.6			2,670.8

Effective tax rate	10.0	%		12.6	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 24,125		35.0	$ 19,827		33.0	21.7
Net earnings	$ 20,517		29.7	$ 16,468		27.4	24.6
Net earnings per share (Diluted)	$ 7.67			$ 6.17			24.3
Effective tax rate	15.0	%		16.9	%

⁽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)	2021	2020	2021	2020
	Net Earnings, after tax- as reported	$3,667	$3,554	$16,142	$12,976

	Pre-tax Adjustments
	Intangible Asset Amortization expense	1,159	1,181	3,576	3,426
	Litigation expense, net	2,077	1,477	2,054	2,210
	IPR&D	900	138	900	144
	Restructuring related	121	130	333	363
	Acquisition, integration and divestiture related ¹	20	(154)	(504)	(1,087)
	(Gains)/losses on securities	(127)	32	(335)	(174)
	Medical Device Regulation	59	38	161	89
	Other	-	3	-	6

	Tax Adjustments
	Tax impact on special item adjustments ²	(849)	(482)	(1,097)	(1,002)
	Tax legislation and related impacts	(59)	(49)	(713)	(483)
	Adjusted Net Earnings, after tax	$6,968	$5,868	$20,517	$16,468
	Average shares outstanding (Diluted)	2,674.9	2,669.3	2,674.6	2,670.8
	Adjusted net earnings per share (Diluted)	$2.60	$2.20	$7.67	$6.17
	Operational adjusted net earnings per share (Diluted)	$2.56		$7.47

	Notes:
¹	Acquisition, integration and divestiture related for the nine months of 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S. Acquisition, integration and divestiture related 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	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 2021 ACTUAL vs. 2020 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	5.3%	13.8%	8.0%	10.7%
U.S.	4.5%	12.2%	0.8%	7.9%
International	5.9%	15.9%	15.4%	13.8%

WW Currency	1.2	0.6	1.0	0.8
U.S.	-	-	-	-
International	2.2	1.3	2.1	1.7

WW Operational	4.1%	13.2%	7.0%	9.9%
U.S.	4.5%	12.2%	0.8%	7.9%
International	3.7%	14.6%	13.3%	12.1%

General Surgery
*Advanced Sterilization Products*			0.4	0.1
U.S.			0.0	0.0
International			0.8	0.2

Skin Health / Beauty
*Dr. Ci Labo - Sedona*	1.1			0.2
U.S.	0.0			0.0
International	2.0			0.4

All Other Acquisitions and Divestitures	0.5	0.6	0.2	0.4
U.S.	0.6	0.0	0.3	0.1
International	0.3	1.4	0.0	0.8

WW Adjusted Operational	5.7%	13.8%	7.6%	10.6%
U.S.	5.1%	12.2%	1.1%	8.0%
International	6.1%	16.0%	14.1%	13.5%

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 2021 ACTUAL vs. 2020 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	5.2%	13.5%	23.4%	14.7%
U.S.	2.8%	10.3%	20.6%	11.7%
International	7.3%	17.5%	26.0%	18.0%

WW Currency	2.1	2.2	2.9	2.3
U.S.	-	-	-	-
International	3.8	5.0	5.5	4.9

WW Operational	3.1%	11.3%	20.5%	12.4%
U.S.	2.8%	10.3%	20.6%	11.7%
International	3.5%	12.5%	20.5%	13.1%

General Surgery
*Advanced Sterilization Products*			0.6	0.2
U.S.			0.0	0.0
International			1.2	0.3

Skin Health / Beauty
*Dr. Ci Labo - Sedona*	0.5			0.1
U.S.	0.0			0.0
International	0.9			0.2

All Other Acquisitions and Divestitures	0.5	0.5	0.2	0.4
U.S.	0.5	(0.1)	0.4	0.1
International	0.3	1.3	0.0	0.7

WW Adjusted Operational	4.1%	11.8%	21.4%	13.1%
U.S.	3.3%	10.2%	21.0%	11.8%
International	4.7%	13.8%	21.7%	14.4%

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
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
CONSUMER HEALTH SEGMENT ⁽²⁾
OTC
US		$ 686	601	14.0%	14.0%	-		$ 1,960	1,917	2.2%	2.2%	-
Intl		686	541	26.9%	22.8%	4.1%		1,894	1,722	10.0%	3.9%	6.1%
WW		1,372	1,142	20.1%	18.2%	1.9%		3,854	3,639	5.9%	3.0%	2.9%
SKIN HEALTH / BEAUTY
US		569	572	-0.5%	-0.5%	-		1,862	1,767	5.4%	5.4%	-
Intl		555	577	-3.8%	-5.5%	1.7%		1,595	1,506	5.9%	2.1%	3.8%
WW		1,124	1,149	-2.2%	-3.0%	0.8%		3,457	3,273	5.6%	3.9%	1.7%
ORAL CARE
US		150	164	-8.4%	-8.4%	-		478	510	-6.2%	-6.2%	-
Intl		248	248	0.1%	-1.8%	1.9%		762	694	9.9%	5.9%	4.0%
WW		398	412	-3.3%	-4.5%	1.2%		1,240	1,204	3.0%	0.8%	2.2%
BABY CARE
US		95	91	5.2%	5.2%	-		288	279	3.3%	3.3%	-
Intl		296	302	-2.0%	-3.1%	1.1%		879	831	5.8%	4.6%	1.2%
WW		391	393	-0.3%	-1.2%	0.9%		1,167	1,110	5.2%	4.3%	0.9%
WOMEN'S HEALTH
US		3	3	20.1%	20.1%	-		9	10	-5.7%	-5.7%	-
Intl		229	227	0.5%	0.6%	-0.1%		675	654	3.1%	2.3%	0.8%
WW		232	230	0.8%	0.8%	0.0%		684	664	3.0%	2.1%	0.9%
WOUND CARE / OTHER
US		122	125	-2.6%	-2.6%	-		390	370	5.3%	5.3%	-
Intl		61	64	-5.2%	-9.0%	3.8%		186	175	5.8%	0.0%	5.8%
WW		182	189	-3.5%	-4.8%	1.3%		575	545	5.4%	3.6%	1.8%

TOTAL CONSUMER HEALTH
US		1,625	1,556	4.5%	4.5%	-		4,987	4,853	2.8%	2.8%	-
Intl		2,075	1,958	5.9%	3.7%	2.2%		5,991	5,582	7.3%	3.5%	3.8%
WW		$ 3,700	3,514	5.3%	4.1%	1.2%		$ 10,978	10,435	5.2%	3.1%	2.1%


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 ^(2,3)		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency

IMMUNOLOGY
US		$ 2,771	2,558	8.3%	8.3%	-		$ 7,932	7,330	8.2%	8.2%	-
Intl		1,480	1,230	20.3%	18.8%	1.5%		4,464	3,619	23.3%	17.6%	5.7%
WW		4,250	3,789	12.2%	11.7%	0.5%		12,395	10,950	13.2%	11.3%	1.9%
REMICADE
US		480	634	-24.3%	-24.3%	-		1,508	1,852	-18.6%	-18.6%	-
US Exports ⁽⁴⁾		47	78	-40.2%	-40.2%	-		197	321	-38.7%	-38.7%	-
Intl		234	209	12.2%	8.1%	4.1%		721	673	7.1%	1.4%	5.7%
WW		761	921	-17.4%	-18.3%	0.9%		2,426	2,846	-14.8%	-16.1%	1.3%
SIMPONI / SIMPONI ARIA
US		295	312	-5.3%	-5.3%	-		840	840	0.0%	0.0%	-
Intl		276	280	-1.1%	-0.7%	-0.4%		877	827	6.1%	2.8%	3.3%
WW		571	592	-3.3%	-3.1%	-0.2%		1,717	1,667	3.0%	1.4%	1.6%
STELARA
US		1,569	1,313	19.5%	19.5%	-		4,396	3,668	19.9%	19.9%	-
Intl		809	634	27.7%	26.3%	1.4%		2,404	1,795	33.9%	27.5%	6.4%
WW		2,378	1,947	22.2%	21.7%	0.5%		6,800	5,463	24.5%	22.4%	2.1%
TREMFYA
US		376	222	69.7%	69.7%	-		975	650	50.1%	50.1%	-
Intl		161	105	52.5%	50.5%	2.0%		459	316	45.4%	38.0%	7.4%
WW		537	327	64.1%	63.5%	0.6%		1,434	965	48.5%	46.1%	2.4%
OTHER IMMUNOLOGY
US		3	-	*	*	-		15	-	*	*	-
Intl		0	3	*	*	*		3	9	-68.6%	-70.8%	2.2%
WW		3	3	-26.4%	-27.5%	1.1%		18	9	91.6%	89.5%	2.1%
INFECTIOUS DISEASES
US		679	413	64.3%	64.3%	-		1,635	1,265	29.2%	29.2%	-
Intl		709	451	57.2%	55.6%	1.6%		1,788	1,397	28.0%	23.2%	4.8%
WW		1,389	864	60.6%	59.8%	0.8%		3,424	2,662	28.6%	26.1%	2.5%
COVID-19 VACCINE
US		270	-	*	*	-		421	-	*	*	-
Intl		233	-	*	*	-		346	-	*	*	-
WW		502	-	*	*	-		766	-	*	*	-
EDURANT / rilpivirine
US		12	11	8.4%	8.4%	-		31	33	-4.8%	-4.8%	-
Intl		247	226	9.7%	8.7%	1.0%		733	684	7.2%	1.7%	5.5%
WW		259	236	9.6%	8.6%	1.0%		764	716	6.7%	1.4%	5.3%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		380	379	0.4%	0.4%	-		1,128	1,154	-2.2%	-2.2%	-
Intl		137	147	-7.1%	-8.8%	1.7%		440	461	-4.6%	-8.6%	4.0%
WW		517	526	-1.7%	-2.2%	0.5%		1,568	1,615	-2.9%	-4.1%	1.2%
OTHER INFECTIOUS DISEASES
US		18	24	-26.0%	-26.0%	-		55	79	-29.6%	-29.6%	-
Intl		93	78	18.3%	15.2%	3.1%		270	252	6.9%	2.6%	4.3%
WW		110	102	7.8%	5.4%	2.4%		325	331	-1.8%	-5.0%	3.2%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
NEUROSCIENCE
US		835	759	10.2%	10.2%	-		2,448	2,285	7.2%	7.2%	-
Intl		854	846	0.8%	-0.5%	1.3%		2,770	2,565	8.0%	4.1%	3.9%
WW		1,689	1,605	5.3%	4.6%	0.7%		5,218	4,850	7.6%	5.5%	2.1%
CONCERTA / Methylphenidate
US		35	43	-19.5%	-19.5%	-		117	150	-22.1%	-22.1%	-
Intl		122	107	14.2%	12.5%	1.7%		372	319	16.4%	11.6%	4.8%
WW		157	149	4.5%	3.3%	1.2%		489	469	4.1%	0.8%	3.3%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		648	585	11.0%	11.0%	-		1,882	1,704	10.4%	10.4%	-
Intl		355	341	4.3%	3.2%	1.1%		1,111	983	13.0%	7.6%	5.4%
WW		1,004	926	8.5%	8.1%	0.4%		2,994	2,688	11.4%	9.4%	2.0%
RISPERDAL CONSTA
US		71	70	1.3%	1.3%	-		210	220	-4.7%	-4.7%	-
Intl		69	81	-16.7%	-16.0%	-0.7%		242	254	-5.1%	-8.3%	3.2%
WW		140	152	-8.4%	-8.0%	-0.4%		452	475	-4.9%	-6.6%	1.7%
OTHER NEUROSCIENCE
US		81	60	34.7%	34.7%	-		239	210	13.9%	13.9%	-
Intl		307	317	-2.9%	-4.8%	1.9%		1,045	1,008	3.7%	1.5%	2.2%
WW		388	377	3.1%	1.5%	1.6%		1,284	1,218	5.5%	3.6%	1.9%
ONCOLOGY
US		1,525	1,267	20.3%	20.3%	-		4,364	3,623	20.4%	20.4%	-
Intl		2,140	1,862	14.9%	13.8%	1.1%		6,406	5,310	20.6%	15.3%	5.3%
WW		3,665	3,129	17.1%	16.5%	0.6%		10,770	8,933	20.6%	17.4%	3.2%
DARZALEX
US		841	585	43.7%	43.7%	-		2,302	1,540	49.5%	49.5%	-
Intl		739	514	43.7%	42.0%	1.7%		2,076	1,397	48.6%	42.2%	6.4%
WW		1,580	1,099	43.7%	42.9%	0.8%		4,378	2,937	49.1%	46.0%	3.1%
ERLEADA
US		214	152	40.5%	40.5%	-		578	407	41.8%	41.8%	-
Intl		130	55	*	*	*		329	112	*	*	*
WW		344	206	66.7%	65.8%	0.9%		907	519	74.7%	72.2%	2.5%
IMBRUVICA
US		413	450	-8.3%	-8.3%	-		1,311	1,329	-1.3%	-1.3%	-
Intl		654	581	12.6%	10.9%	1.7%		1,996	1,682	18.7%	13.1%	5.6%
WW		1,066	1,031	3.5%	2.5%	1.0%		3,307	3,011	9.9%	6.7%	3.2%
ZYTIGA / abiraterone acetate
US		25	58	-57.0%	-57.0%	-		96	284	-66.2%	-66.2%	-
Intl		523	532	-1.8%	-2.1%	0.3%		1,653	1,564	5.7%	0.9%	4.8%
WW		548	590	-7.2%	-7.5%	0.3%		1,749	1,848	-5.4%	-9.4%	4.0%
OTHER ONCOLOGY
US		32	21	49.6%	49.6%	-		76	63	21.0%	21.0%	-
Intl		94	181	-48.0%	-47.2%	-0.8%		352	556	-36.6%	-38.5%	1.9%
WW		126	203	-37.6%	-36.9%	-0.7%		428	619	-30.7%	-32.4%	1.7%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
PULMONARY HYPERTENSION
US		610	510	19.7%	19.7%	-		1,778	1,541	15.4%	15.4%	-
Intl		258	239	7.9%	8.4%	-0.5%		821	742	10.7%	7.3%	3.4%
WW		868	749	15.9%	16.1%	-0.2%		2,599	2,283	13.9%	12.7%	1.2%
OPSUMIT
US		299	244	22.8%	22.8%	-		861	729	18.2%	18.2%	-
Intl		159	148	7.4%	7.8%	-0.4%		510	458	11.3%	7.7%	3.6%
WW		458	392	17.0%	17.1%	-0.1%		1,371	1,187	15.5%	14.1%	1.4%
UPTRAVI
US		265	226	17.3%	17.3%	-		792	692	14.6%	14.6%	-
Intl		44	34	30.4%	28.8%	1.6%		135	100	34.6%	27.9%	6.7%
WW		309	260	19.0%	18.8%	0.2%		927	792	17.1%	16.2%	0.9%
OTHER PULMONARY HYPERTENSION
US		47	40	14.4%	14.4%	-		125	121	2.8%	2.8%	-
Intl		54	57	-4.4%	-2.1%	-2.3%		176	183	-3.7%	-5.0%	1.3%
WW		101	97	3.4%	4.8%	-1.4%		301	304	-1.1%	-1.9%	0.8%
CARDIOVASCULAR / METABOLISM / OTHER
US		800	931	-14.0%	-14.0%	-		2,379	2,574	-7.6%	-7.6%	-
Intl		333	351	-5.1%	-8.2%	3.1%		1,007	1,052	-4.2%	-9.3%	5.1%
WW		1,133	1,281	-11.5%	-12.4%	0.9%		3,386	3,625	-6.6%	-8.1%	1.5%
XARELTO
US		636	630	0.8%	0.8%	-		1,794	1,716	4.5%	4.5%	-
Intl		-	-	-	-	-		-	-	-	-	-
WW		636	630	0.8%	0.8%	-		1,794	1,716	4.5%	4.5%	-
INVOKANA / INVOKAMET
US		66	156	-57.4%	-57.4%	-		249	405	-38.4%	-38.4%	-
Intl		67	68	-1.0%	-4.3%	3.3%		194	173	11.9%	5.8%	6.1%
WW		133	224	-40.3%	-41.3%	1.0%		443	578	-23.4%	-25.2%	1.8%
PROCRIT / EPREX
US		47	69	-30.9%	-30.9%	-		168	215	-21.7%	-21.7%	-
Intl		65	63	3.1%	0.5%	2.6%		198	208	-4.7%	-9.7%	5.0%
WW		112	132	-14.6%	-15.8%	1.2%		366	423	-13.4%	-15.8%	2.4%
OTHER
US		51	75	-32.6%	-32.6%	-		168	238	-29.3%	-29.3%	-
Intl		200	219	-8.7%	-11.9%	3.2%		615	670	-8.3%	-13.1%	4.8%
WW		251	294	-14.8%	-17.2%	2.4%		783	908	-13.8%	-17.3%	3.5%
TOTAL PHARMACEUTICAL
US		7,221	6,438	12.2%	12.2%	-		20,536	18,619	10.3%	10.3%	-
Intl		5,773	4,980	15.9%	14.6%	1.3%		17,256	14,685	17.5%	12.5%	5.0%
WW		$ 12,994	11,418	13.8%	13.2%	0.6%		$ 37,792	33,304	13.5%	11.3%	2.2%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
MEDICAL DEVICES SEGMENT ⁽²⁾		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency

INTERVENTIONAL SOLUTIONS
US		$ 444	399	11.1%	11.1%	-		1,353	1,019	32.7%	32.7%	-
Intl		513	437	17.7%	15.1%	2.6%		1,599	1,134	41.1%	34.3%	6.8%
WW		957	836	14.5%	13.2%	1.3%		2,952	2,153	37.1%	33.6%	3.5%
ORTHOPAEDICS
US		1,249	1,308	-4.5%	-4.5%	-		3,821	3,427	11.5%	11.5%	-
Intl		843	774	8.8%	6.8%	2.0%		2,611	2,145	21.7%	15.4%	6.3%
WW		2,093	2,083	0.5%	-0.3%	0.8%		6,433	5,572	15.4%	13.0%	2.4%
HIPS
US		210	221	-5.3%	-5.3%	-		654	564	15.9%	15.9%	-
Intl		146	124	18.8%	16.0%	2.8%		451	344	31.3%	24.1%	7.2%
WW		356	345	3.3%	2.3%	1.0%		1,105	908	21.8%	19.0%	2.8%
KNEES
US		184	205	-9.8%	-9.8%	-		579	527	10.0%	10.0%	-
Intl		131	102	28.1%	25.9%	2.2%		403	298	35.4%	28.2%	7.2%
WW		316	308	2.8%	2.1%	0.7%		983	825	19.2%	16.6%	2.6%
TRAUMA
US		455	433	5.3%	5.3%	-		1,352	1,194	13.3%	13.3%	-
Intl		260	253	2.4%	0.9%	1.5%		805	698	15.2%	9.5%	5.7%
WW		715	685	4.2%	3.7%	0.5%		2,157	1,892	14.0%	11.9%	2.1%
SPINE, SPORTS & OTHER
US		400	449	-11.1%	-11.1%	-		1,236	1,142	8.2%	8.2%	-
Intl		306	295	3.5%	1.5%	2.0%		952	805	18.2%	12.0%	6.2%
WW		705	745	-5.3%	-6.1%	0.8%		2,187	1,947	12.3%	9.7%	2.6%

	REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
SURGERY
US		948	913	3.9%	3.9%	-		2,881	2,247	28.2%	28.2%	-
Intl		1,457	1,239	17.6%	14.8%	2.8%		4,418	3,556	24.2%	18.4%	5.8%
WW		2,405	2,152	11.8%	10.2%	1.6%		7,299	5,803	25.8%	22.2%	3.6%
ADVANCED
US		440	421	4.6%	4.6%	-		1,304	1,079	20.9%	20.9%	-
Intl		705	579	21.8%	18.4%	3.4%		2,126	1,644	29.3%	23.1%	6.2%
WW		1,144	1,000	14.6%	12.6%	2.0%		3,430	2,723	26.0%	22.2%	3.8%
GENERAL
US		508	492	3.3%	3.3%	-		1,577	1,168	35.0%	35.0%	-
Intl		752	660	13.9%	11.7%	2.2%		2,292	1,912	19.9%	14.5%	5.4%
WW		1,261	1,152	9.4%	8.1%	1.3%		3,869	3,080	25.6%	22.3%	3.3%
VISION
US		475	473	0.6%	0.6%	-		1,414	1,160	21.9%	21.9%	-
Intl		714	608	17.4%	17.4%	0.0%		2,103	1,683	25.0%	22.0%	3.0%
WW		1,189	1,081	10.1%	10.0%	0.1%		3,517	2,843	23.7%	22.0%	1.7%
CONTACT LENSES / OTHER
US		359	375	-4.3%	-4.3%	-		1,082	924	17.0%	17.0%	-
Intl		522	455	14.9%	15.2%	-0.3%		1,525	1,274	19.8%	17.3%	2.5%
WW		882	830	6.2%	6.4%	-0.2%		2,607	2,198	18.6%	17.2%	1.4%
SURGICAL
US		117	98	19.6%	19.6%	-		333	236	41.1%	41.1%	-
Intl		191	153	24.7%	23.7%	1.0%		577	409	41.1%	36.7%	4.4%
WW		308	251	22.7%	22.1%	0.6%		910	645	41.1%	38.3%	2.8%

TOTAL MEDICAL DEVICES
US		3,117	3,092	0.8%	0.8%	-		9,470	7,852	20.6%	20.6%	-
Intl		3,527	3,058	15.4%	13.3%	2.1%		10,731	8,518	26.0%	20.5%	5.5%
WW		$ 6,644	6,150	8.0%	7.0%	1.0%		$ 20,201	16,370	23.4%	20.5%	2.9%


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
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Certain prior year amounts have been reclassified to conform to current year product disclosures
(4) Reported as U.S. sales