<DOCUMENT>
<TYPE>EX-99.15
<SEQUENCE>3
<FILENAME>y51858kex99-15.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
<PAGE>
Exhibit 99.15
FOR IMMEDIATE RELEASE
JOHNSON & JOHNSON
EXCLUDING SPECIAL CHARGES
2001 THIRD QUARTER NET EARNINGS ROSE 17.4%
SALES INCREASED 10.8%
EPS ROSE 16.3%
New Brunswick, NJ (October 16, 2001) -- Johnson & Johnson today announced
sales of $8.2 billion and net earnings of $1.5 billion for the third quarter of
2001, increases of 10.8% and 15.6%, respectively, over third quarter 2000
results. Diluted earnings per share for the third quarter were $.49, up 14.0%
from the same period in 2000. Excluding the impact of negative currency,
worldwide sales increased 13.0%. Domestic sales were up 13.7%, while
international sales increased 11.9% on an operational basis.
Excluding special charges of $ 24 million after-tax, related to the ALZA
merger completed on June 22, 2001, earnings per share for the third quarter were
$.50, an increase of 16.3% as compared to the same period in 2000.
"I am particularly pleased with our double-digit growth in both sales and
earnings as these results reflect the strength and vitality of each of our
business segments. Double-digit operational sales growth also was achieved in
all geographic areas," said Ralph S. Larsen, Chairman and Chief Executive
Officer. In addition, Mr. Larsen said, "Of particular note is our ability to
achieve these results while intensifying our investment in research and
development."
Worldwide Pharmaceutical sales of $3.7 billion for the quarter resulted in
an operational increase of 17.4% over the same period in 2000. Domestic sales
increased 17.7%. International sales increased operationally 16.9% but were
offset by a negative currency impact of 4.1%. Worldwide reported sales growth
including a 1.3% negative currency impact was 16.1%.
Sales growth reflects the strong performance of PROCRIT/EPREX, for the
treatment of anemia; DURAGESIC, a transdermal patch for chronic pain; REMICADE,
for the treatment of rheumatoid arthritis and Crohn's disease; TOPAMAX, an
antiepileptic, and ACIPHEX/PARIET, a proton pump inhibitor for gastrointestinal
disorders.
During the quarter, the Company received U.S. Food and Drug Administration
(FDA) approval for ULTRACET (37.5 mg tramadol hydrochloride/325 mg acetaminophen
tablets), a new centrally acting prescription pain medicine for the short-term
management of acute pain. ULTRACET combines ULTRAM (tramadol hydrochloride), a
leading prescription pain reliever,
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with acetaminophen, the most commonly recommended nonprescription pain
treatment. Clinical trials demonstrate that the combination offers better pain
relief over either medication alone. The Company also received FDA approval for
TOPAMAX (topiramate) tablets and sprinkle capsules as adjunctive treatment for
seizures associated with Lennox-Gastaut Syndrome, a severe form of epilepsy.
Studies have shown that TOPAMAX, when used in conjunction with other
anti-epileptics, can significantly reduce both the severity and number of
serious seizures.
Worldwide sales for the Medical Devices and Diagnostics segment were $2.8
billion in the third quarter of 2001, which represented an increase of 11.9% in
local currency as compared to the same period in 2000. Domestic sales were up
13.7%, while international sales increased 9.8% on an operational basis.
Worldwide sales gains including the negative impact of currency were reported at
9.3%. The primary contributors to the segment's growth were the Cordis
circulatory disease management products; DePuy's orthopaedic joint
reconstruction and spinal products; LifeScan's blood glucose monitoring
products; Ethicon's wound closure, surgical sports medicine and women's health
products; and Ethicon Endo-Surgery's minimally invasive surgical products.
During the quarter, Cordis received approval in Japan for its Bx VELOCITY
coronary stent. The stent will be fully reimbursed and is expected to be
launched in the fourth quarter. In addition, Ortho-Clinical Diagnostics received
Premarket Approval (PMA) from the FDA for a diagnostic test to detect the
immunoglobulin G antibody to the hepatitis C virus. The test significantly
reduces the amount of time to obtain results versus current testing protocols.
Worldwide Consumer sales for the third quarter of 2001 were $1.8 billion,
an operational increase of 6.2% versus the same period a year ago. Domestic
sales increased by 4.8%. International sales gains in local currency of 7.8%
were largely offset by negative currency, resulting in a reported worldwide
sales increase of 1.3%. Consumer sales experienced strong growth in NEUTROGENA
and AVEENO skin care products, the JOHNSON'S line of baby skin care products, as
well as solid growth in external sanitary protection napkins and liners.
During the quarter, McNeil Nutritionals acquired the Viactiva
nutritional supplements business from Mead Johnson Nutritionals. Best known for
Viactiv Soft Calcium Chews, the business provides an established entry into the
calcium supplement category and is an excellent fit with McNeil's expanding
portfolio of nutritional brands.
Johnson & Johnson, with approximately 100,000 employees, is the world's
most comprehensive and broadly based manufacturer of health care products, as
well as a provider of
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related services, for the consumer, pharmaceutical and medical devices and
diagnostics markets. Johnson & Johnson has 195 operating companies in 51
countries around the world, selling products in more than 175 countries. For
more information on Johnson & Johnson, please visit the company's website at
http://www.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 Standard Time. A
simultaneous webcast of the call for interested investors and others may be
accessed by visiting the Johnson & Johnson website at www.jnj.com. A replay will
be available two hours after the live webcast by visiting the Johnson & Johnson
website at www.jnj.com and clicking on "Webcast Archives" in the Investor
Relations section.
(This press release contains "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. 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 Company's expectations and projections. Risks and
uncertainties include general industry conditions and competition; economic
conditions, such as interest rate and currency exchange rate fluctuations;
technological advances and patents attained by competitors; challenges inherent
in new product development, including obtaining regulatory approvals; domestic
and foreign health care reforms and governmental laws and regulations; and
trends toward health care cost containment. A further list and description of
these risks, uncertainties and other factors can be found in Exhibit 99(b) of
the Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2000. Copies of this Form 10-K are available online at www.sec.gov or on request
from the Company. The Company assumes no obligation to update any
forward-looking statements as a result of new information or future events or
developments.)
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JOHNSON & JOHNSON AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
<TABLE>
<CAPTION>
(Unaudited; in Millions Except Per Share Figures) THIRD QUARTER
------------------------------------------------- -------------
2001 2000
---- ---- Percent
PERCENT Percent Increase
AMOUNT TO SALES Amount to Sales (Decrease)
------ -------- ------ -------- ----------
<S> <C> <C> <C> <C> <C>
SALES TO CUSTOMERS $ 8,238 100.0 $ 7,438 100.0 10.8
-------- ----- -------- ----- ----
Cost of products sold 2,385 29.0 2,191 29.5 8.9
Selling, marketing and administrative expenses 2,894 35.1 2,767 37.2 4.6
Research expense 899 10.9 739 9.9 21.7
Interest (income)expense, net (67) (0.8) (79) (1.1)
Other (income)expense, net 19 0.2 (14) (0.2)
-------- ----- -------- ----- ----
6,130 74.4 5,604 75.3 9.4
-------- ----- -------- ----- ----
Earnings before provision for taxes on income 2,108 25.6 1,834 24.7 14.9
Provision for taxes on income 579 7.0 511 6.9 13.3
-------- ----- -------- ----- ----
NET EARNINGS $ 1,529 18.6 $ 1,323 17.8 15.6
======== ==== ======== ==== ====
NET EARNINGS PER SHARE (DILUTED) $0.49 $0.43 14.0
AVERAGE SHARES OUTSTANDING (DILUTED) 3,110.9 3,113.4
EFFECTIVE TAX RATE 27.5% 27.9%
EARNINGS EXCLUDING SPECIAL CHARGES:
EARNINGS BEFORE PROVISION FOR TAXES ON INCOME $ 2,146 26.1 $ 1,834 24.7 17.0
NET EARNINGS $ 1,553 18.9 $ 1,323 17.8 17.4
NET EARNINGS PER SHARE (DILUTED) $ 0.50 $ 0.43 16.3
EFFECTIVE TAX RATE 27.6% 27.9%
</TABLE>
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JOHNSON & JOHNSON AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
<TABLE>
<CAPTION>
(Unaudited; in Millions Except Per Share Figures) NINE MONTHS
------------------------------------------------- -----------
2001 2000
---- ---- Percent
PERCENT Percent Increase
AMOUNT TO SALES Amount to Sales (Decrease)
------ -------- ------ -------- ----------
<S> <C> <C> <C> <C> <C>
SALES TO CUSTOMERS $ 24,601 100.0 $ 22,548 100.0 9.1
-------- ----- -------- ----- ----
Cost of products sold 7,047 28.7 6,694 29.7 5.3
Selling, marketing and administrative expenses 8,712 35.4 8,275 36.7 5.3
Research expense 2,487 10.1 2,129 9.4 16.8
Interest (income)expense, net (229) (0.9) (136) (0.6)
Other (income)expense, net 130 0.5 (75) (0.3)
-------- ----- -------- ----- ----
18,147 73.8 16,887 74.9 7.5
-------- ----- -------- ----- ----
Earnings before provision for taxes on income 6,454 26.2 5,661 25.1 14.0
Provision for taxes on income 1,891 7.7 1,644 7.3 15.0
-------- ----- -------- ----- ----
NET EARNINGS $ 4,563 18.5 $ 4,017 17.8 13.6
======== ===== ======== ===== ====
NET EARNINGS PER SHARE (DILUTED) $ 1.48 $ 1.31 13.0
AVERAGE SHARES OUTSTANDING (DILUTED) 3,096.5 3,096.2
EFFECTIVE TAX RATE 29.3% 29.0%
EARNINGS EXCLUDING SPECIAL CHARGES:
EARNINGS BEFORE PROVISION FOR TAXES ON INCOME $ 6,601 26.8 $ 5,661 25.1 16.6
NET EARNINGS $ 4,689 19.1 $ 4,017 17.8 16.7
NET EARNINGS PER SHARE (DILUTED) $ 1.52 $ 1.31 16.0
EFFECTIVE TAX RATE 29.0% 29.0%
</TABLE>
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<TABLE>
<CAPTION>
JOHNSON & JOHNSON AND SUBSIDIARIES
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SUPPLEMENTARY SALES DATA
-----------------------------------------------------------------------------------------------------------------------------------
(Unaudited; Dollars in Millions) THIRD QUARTER NINE MONTHS
------------------------------------------------------------------------------------------------------------------------------------
Percent Change Percent Change
------------------------------------------------------------------------------------------------------------------------------------
2001 2000 Total Operations Currency 2001 2000 Total Operations Currency
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SALES TO CUSTOMERS BY
SEGMENT OF BUSINESS
Consumer
Domestic $ 984 939 4.8% 4.8 -- $ 2,851 2,784 2.4% 2.4 --
International 793 783 1.3 7.8 (6.5) 2,395 2,397 (0.1) 7.4 (7.5)
------------------------------------------------------------------------------------------------------------------------------------
1,777 1,722 3.2 6.2 (3.0) 5,246 5,181 1.3 4.7 (3.4)
====================================================================================================================================
Pharmaceutical
Domestic 2,511 2,134 17.7 17.7 -- 7,590 6,487 17.0 17.0 --
International 1,166 1,034 12.8 16.9 (4.1) 3,442 3,227 6.7 12.8 (6.1)
------------------------------------------------------------------------------------------------------------------------------------
3,677 3,168 16.1 17.4 (1.3) 11,032 9,714 13.6 15.6 (2.0)
====================================================================================================================================
Med Device & Diagnostics
Domestic 1,580 1,390 13.7 13.7 -- 4,591 4,061 13.1 13.1 --
International 1,204 1,158 4.0 9.8 (5.8) 3,732 3,592 3.9 11.9 (8.0)
------------------------------------------------------------------------------------------------------------------------------------
2,784 2,548 9.3 11.9 (2.6) 8,323 7,653 8.8 12.5 (3.7)
====================================================================================================================================
Domestic 5,075 4,463 13.7 13.7 -- 15,032 13,332 12.8 12.8 --
International 3,163 2,975 6.3 11.9 (5.6) 9,569 9,216 3.8 11.3 (7.5)
------------------------------------------------------------------------------------------------------------------------------------
Worldwide $ 8,238 7,438 10.8% 13.0 (2.2) $24,601 22,548 9.1% 12.2 (3.1)
====================================================================================================================================
</TABLE>
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<TABLE>
<CAPTION>
JOHNSON & JOHNSON AND SUBSIDIARIES
------------------------------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY SALES DATA
------------------------------------------------------------------------------------------------------------------------------------
(Unaudited; Dollars in Millions) THIRD QUARTER NINE MONTHS
------------------------------------------------------------------------------------------------------------------------------------
Percent Change Percent Change
---------------------------------------------------------------------------------------------------
2001 2000 Total Operations Currency 2001 2000 Total Operations Currency
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SALES TO CUSTOMERS BY
GEOGRAPHIC AREA
Domestic $ 5,075 4,463 13.7 % 13.7 -- $ 15,032 13,332 12.8 % 12.8 --
----------------------------------------------------------------------------------------------------------------------------------
Europe 1,654 1,496 10.6 12.2 (1.6) 5,121 4,839 5.8 11.5 (5.7)
Western Hemisphere excluding U.S. 533 530 0.6 10.7 (10.1) 1,594 1,553 2.6 10.4 (7.8)
Asia-Pacific, Africa 976 949 2.8 12.3 (9.5) 2,854 2,824 1.1 11.4 (10.3)
----------------------------------------------------------------------------------------------------------------------------------
International 3,163 2,975 6.3 11.9 (5.6) 9,569 9,216 3.8 11.3 (7.5)
----------------------------------------------------------------------------------------------------------------------------------
Worldwide $ 8,238 7,438 10.8 % 13.0 (2.2) $ 24,601 22,548 9.1 % 12.2 (3.1)
==================================================================================================================================
</TABLE>
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