Emerging Business Models in the Pharmaceutical Industries ...

Introduction
Johnson & Johnson (JnJ) is a broad-based
manufacturer of health care products with
more than 200 companies under its
corporate umbrella.
The group develops products for family
planning; psychiatry, mental illness and
diseases of the nervous system;
gastroenterology; oncology;
immunotherapy; cardiovascular disease;
dermatology; pain management; allergy;
antifungals; antihistamines; anti-infectives;
and antiparasitic drugs; and biotechnologyderived
products.
JnJ has operations in 57 countries and
sells its products in more than 175
countries. It employs approximately
109,200 people worldwide. The group
recorded revenues of US$ 41.8 billion in
the year 2003.
Johnson & Johnson
Revenues
JnJ achieved strong performance in sales, earnings and cash flows in 2003
due to the introduction of the CYPHER Sirolimus-eluting stent that changed
the standard of care in coronary artery disease.
The rise in operating margin over the years is primarily due to leveraging of
selling, promotion and administrative expenses.
-
50
40
30
20
10
Johnson & Johnson Five Year Financial Records
(billion US$)
1999 2000 2001 2002 2003
Source: Company’s Annual Reports
Strategic Analysis of the Pharma Market, Future Revenue Models and Key Players 69
30%
20%
10%
0%
Revenues
Operating Profit
Profit Margin