Sunday, June 12, 2011

JOHNSON & JOHNSON UNVEILS REVITALI ZED PIPELINE


Johnson & Johnson says it plan to seek approval for 11 new products and more than 30 important product line extensions between 2011 and 2015 as it emphasizes internal R&D investments, leverages strategic licensing, partnerships, and select acquisition deal to bolster its long-term outlook.


The company announced its plans at its first public pharmaceutical business review since 2009, giving investors a detailed overview of its pipeline and plans for growth.

The company's pharmaceutical business lagged last year as patents expired on its antipsychotic Risperdal, and its seizure drug Topamax, opening those blockbusters to competition from generics and weighing on earnings. Now the company is showcasing what it calls a "revitalized portfolio" and highlighting its plans to build the business in five therapeutic areas: neuroscience, cardiovascular and metabolic disease; immunology, oncology, and infectious diseases and vaccines.

Although Johnson & Johnson's revenue base is more diversified than many of its competitors, massive recalls for some of the company's most well-known consumer products, including nonprescription drugs such as Motrin and Children's Tylenol, have hurt growth. Nonetheless, the company anticipates that a revamped product portfolio and robust pipeline of prescription products will help it bring new drugs to market for Alzheimer's disease, stroke prevention, and HIV.

Johnson & Johnson's pharmaceuticals business generated $22.4 billion in 2010 sales, 36 percent of the company's total revenue. It ranks as the world's eighth largest pharmaceutical company and fifth largest biotech company. In 2010, it invested $4.4 billion on pharmaceuticals research and development focused on five therapeutic areas.

The planned expansions and product launches will help position the company where it needs to be, says Sheri McCoy, vice chairman of the company's executive committee.

"The healthcare industry is undergoing dramatic change," says McCoy, "and with science evolving rapidly, we are well-positioned for the new demands, requirements, demographics and trends shaping the healthcare market."

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