Johnson and Johnson Pops

First-Quarter 2008 Financial Results
Johnson & Johnson Reports 2008 First-Quarter Results: Sales of $16.2 Billion Increased 7.7% Versus a Year Ago; EPS was $1.26; Excluding 2007 Special Charges, 2008 First-Quarter EPS Increased 8.6%*

New Brunswick, NJ (April 15, 2008) – Johnson & Johnson today announced record sales of $16.2 billion for the first quarter of 2008, an increase of 7.7% as compared to the first quarter of 2007. Operational growth was 2.6% and currency contributed 5.1%. Domestic sales were up 2.8%, while international sales increased 13.7%, reflecting operational growth of 2.4% and a positive currency impact of 11.3%.
Net earnings and diluted earnings per share for the first quarter of 2008 were $3.6 billion and $1.26, respectively. The first quarter of 2007 included an after-tax in-process research and development charge of $807 million associated with the acquisition of Conor Medsystems, Inc. Excluding this charge, net earnings for the current quarter and diluted earnings per share represent increases of 6.4% and 8.6%, respectively, as compared to the same period in 2007.* The Company raised its earnings guidance for full-year 2008 to $4.40 – $4.45 per share, which does not include the impact of any in-process research and development charges or other special items.
“We achieved solid earnings in the first quarter which reflects our continued focus on profitable growth for Johnson & Johnson,” said William C. Weldon, Chairman and Chief Executive Officer. “Our strategy of being broadly based remains one of the keys to our consistent long-term performance.”

Worldwide Consumer sales of $4.1 billion for the first quarter represented a 16.2% increase over the prior year with operational growth of 9.9% and a positive impact from currency of 6.3%. Domestic sales increased 11.7%, while international sales increased 20.2% (8.3% from operations and 11.9% from currency).
Sales results reflect the strong performance of the U.S. launch of ZYRTEC®, an over-the-counter allergy treatment; LISTERINE® antiseptic mouthrinse and whitening products; Baby Care products; and the skin care lines of NEUTROGENA®, CLEAN & CLEAR®, and AVEENO®.
Worldwide Pharmaceutical sales of $6.4 billion for the first quarter represented an increase over the prior year of 3.3% with an operational decline of .6% and a positive impact from currency of 3.9%. Domestic sales increased .9%, while international sales increased 7.9%, which reflected an operational decline of 3.1% and a positive currency impact of 11.0%.

Sales growth reflects the strong performance of REMICADE®, a biologic approved for the treatment of a number of immune mediated inflammatory diseases; VELCADE®, a treatment for multiple myeloma; RISPERDAL® CONSTA® outside the U.S., an antipsychotic medication; and CONCERTA®, a treatment for attention deficit hyperactivity disorder.
Growth was negatively impacted by lower sales of PROCRIT®, a product for the treatment of anemia, due to a decline in the market. Generic competition in certain markets also impacted sales results for RISPERDAL® Oral, an antipsychotic medication, and DURAGESIC®, a transdermal patch for chronic pain. In addition, ACIPHEX®/PARIET®, a proton pump inhibitor for gastrointestinal disorders, was negatively impacted by generic launches of competitive products in this market.

During the quarter, the Company announced that it received an approvable letter from the U.S. Food and Drug Administration (FDA) regarding its New Drug Application for ceftobiprole for the treatment of complicated skin and skin structure infections, including diabetic foot infections.
The Company also submitted a New Drug Application to the FDA for tapentadol hydrochloride immediate release tablets, an investigational oral analgesic for the relief of moderate to severe acute pain. In addition, the Company submitted a Marketing Authorization Application to the European Medicines Agency requesting the approval of golimumab (CNTO 148) as a monthly subcutaneous treatment for adults with rheumatoid arthritis, psoriatic arthritis and ankylosing spondylitis.

Worldwide Medical Devices and Diagnostics sales of $5.7 billion for the first quarter represented a 7.2% increase over the prior year with operational growth of 1.4% and a positive impact from currency of 5.8%. Domestic sales increased .2%, while international sales increased 13.8% (2.6% from operations and 11.2% from currency).
Primary contributors to the operational growth included Vistakon’s disposable contact lenses; Ethicon Endo-Surgery’s minimally invasive products; LifeScan’s blood glucose monitoring and Animas’s insulin delivery products. Growth was negatively impacted by lower sales of drug-eluting stents in our Cordis franchise due to new competitive entries as well as a decline in the market versus the prior year.
During the quarter, the Company submitted a Premarket Approval application to the FDA for the SEDASYS™ System, the first computer-assisted personalized sedation system.