Johnson & Johnson (NYSE: JNJ) today announced results for fourth-quarter and full year 2020. "Our notable full year performance reflects the continued confidence from patients, physicians, customers and consumers in our life-enhancing products and medicines, particularly throughout the COVID-19 pandemic," said Alex Gorsky, Chairman and Chief Executive Officer. "I'm incredibly proud of our Johnson & Johnson teams around the world for going above and beyond to meet stakeholder needs. These efforts, and our commitment to families around the world as the largest broad-based healthcare company, enabled us to lead in the fight against COVID-19. We continue to progress our COVID-19 vaccine candidate and look forward to sharing details from our Phase 3 study soon. Johnson & Johnson was built for times like these, and I am extremely confident in our ability to deliver lasting value and continued innovation in 2021 and for years to come."
OVERALL FINANCIAL RESULTS:
|
FOURTH QUARTER |
TWELVE MONTHS |
||||||
|
($ in Millions, except EPS) |
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|
|
Reported Sales |
$ 22,475 |
$ 20,747 |
8.3% |
$ 82,584 |
$ 82,059 |
0.6% |
|
|
Net Earnings |
1,738 |
4,010 |
(56.7)% |
14,714 |
15,119 |
(2.7)% |
|
|
EPS (diluted) |
$ 0.65 |
$ 1.50 |
(56.7)% |
$ 5.51 |
$ 5.63 |
(2.1)% |
|
|
Non-GAAP* |
FOURTH QUARTER |
TWELVE MONTHS |
|||||
|
($ in Millions, except EPS) |
2020 |
2019 |
% Change |
2020 |
2019 |
% Change |
|
|
Operational Sales1,2 |
N/A |
N/A |
7.1% |
N/A |
N/A |
1.2% |
|
|
Adjusted Operational Sales1,3 |
N/A |
N/A |
7.3% |
N/A |
N/A |
1.5% |
|
|
Adjusted Net Earnings1,4 |
4,965 |
5,027 |
(1.2)% |
21,433 |
23,310 |
(8.1)% |
|
|
Adjusted EPS (diluted)1,4 |
$ 1.86 |
$ 1.88 |
(1.1)% |
$ 8.03 |
$ 8.68 |
(7.5)% |
|
|
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:
|
FOURTH QUARTER |
% Change |
|||||
|
($ in Millions) 1 |
20202 |
20192 |
Reported2 |
Operational1,2 |
Currency2 |
Adjusted |
|
U.S. |
$ 11,809 |
$ 10,774 |
9.6% |
9.6% |
- |
9.6 |
|
International |
10,666 |
9,973 |
7.0% |
4.3% |
2.7 |
4.8 |
|
Worldwide |
$ 22,475 |
$ 20,747 |
8.3% |
7.1% |
1.2 |
7.3 |
|
TWELVE MONTHS |
% Change |
|||||
|
($ in Millions) 1 |
20202 |
20192 |
Reported2 |
Operational1,2 |
Currency2 |
Adjusted |
|
U.S. |
$ 43,133 |
$ 42,097 |
2.5% |
2.5 |
- |
2.8 |
|
International |
39,451 |
39,962 |
(1.3)% |
(0.2) |
(1.1) |
0.2 |
|
Worldwide |
$ 82,584 |
$ 82,059 |
0.6% |
1.2 |
(0.6) |
1.5 |
|
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:
|
FOURTH QUARTER |
% Change |
|||||
|
($ in Millions) 1 |
20201 |
20191 |
Reported2 |
Operational1,2 |
Currency1 |
Adjusted |
|
Consumer Health |
$ 3,618 |
$ 3,567 |
1.4% |
2.0 |
(0.6) |
2.1 |
|
Pharmaceutical |
12,268 |
10,548 |
16.3% |
14.6 |
1.7 |
14.6 |
|
Medical Devices |
6,589 |
6,632 |
(0.7)% |
(2.2) |
1.5 |
(1.5) |
|
Worldwide |
$ 22,475 |
$ 20,747 |
8.3% |
7.1 |
1.2 |
7.3 |
|
TWELVE MONTHS |
% Change |
|||||
|
($ in Millions) 1 |
20201 |
20191 |
Reported2 |
Operational1,2 |
Currency1 |
Adjusted |
|
Consumer Health |
$ 14,053 |
$ 13,898 |
1.1% |
3.0 |
(1.9) |
3.1 |
|
Pharmaceutical |
45,572 |
42,198 |
8.0% |
8.2 |
(0.2) |
8.4 |
|
Medical Devices |
22,959 |
25,963 |
(11.6)% |
(11.4) |
(0.2) |
(10.5) |
|
Worldwide |
$ 82,584 |
$ 82,059 |
0.6% |
1.2 |
(0.6) |
1.5 |
|
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 |
FULL-YEAR 2020 SEGMENT COMMENTARY:
Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 3.1%* driven by U.S. growth in over-the-counter products including TYLENOL analgesics, PEPCID and ZYRTEC; LISTERINE mouthwash in oral care products; OGX in skin health/beauty products and wound care products. Growth was negatively impacted by COVID-19 primarily in skin health/beauty and international baby care partially offset by increased COVID-19 demand in oral care products.
Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 8.4%* driven by STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, DARZALEX (daratumumab), for the treatment of multiple myeloma, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults, OPSUMIT (macitentan), an oral endothelin receptor antagonist indicated for the treatment of pulmonary arterial hypertension to delay disease progression and UPTRAVI (selexipag), an oral prostacyclin receptor agonist used to treat pulmonary arterial hypertension and reduce hospitalization. This growth was partially offset by the negative impact of COVID-19 as well as biosimilar and generic competition, with declines primarily in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases, U.S. ZYTIGA (abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic castration-resistant prostate cancer, and international VELCADE (bortezomib), a proteasome inhibitor for the treatment of multiple myeloma.
Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, declined by 10.5%*. The decline was primarily driven by the negative impact of the COVID-19 pandemic and the associated deferral of medical procedures to our Surgery, Orthopaedics, and Vision businesses. The decline was partially offset by growth in the Interventional Solutions business led by electrophysiology products. Results reflect market recovery in the second half of 2020.
NOTABLE NEW ANNOUNCEMENTS 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 Approvals |
VELYS Robotic-Assisted Solution- Receives 510(k) FDA Clearance Designed for Use with the ATTUNE Total Knee System ¹ |
|
|
DARZALEX FASPRO (daratumumab and hyaluronidase-fihj)- Becomes the First FDA-Approved Treatment for Patients with Newly Diagnosed Light Chain (AL) Amyloidosis ¹ |
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|
CABENUVA (rilpivirine/cabotegravir)- U.S. FDA Approval and European Commission Authorization of the first complete long acting injectable HIV treatment ¹ |
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|
TREMFYA (guselkumab)- European Commission Approves First-in-Class treatment for Active Psoriatic Arthritis (PsA) |
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|
Regulatory Submissions |
Amivantamab- Submission of U.S. FDA and European Marketing Authorization Application for Treatment of Patients with Metastatic Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations |
|
|
BCMA CAR-T Therapy (ciltacabtagene autoleucel)- Rolling Submission of a Biologics License Application to U.S. FDA for the Treatment of Relapsed and/or Refractory Multiple Myeloma |
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|
DARZALEX (daratumumab and hyaluronidase-fihj)- Janssen Submits Applications in U.S. and EU Seeking Approval of DARZALEX FASPRO (daratumumab and hyaluronidase-fihj)/DARZALEX (daratumumab) Subcutaneous (SC) Formulation in Combination With Pomalidomide and Dexamethasone for Patients With Relapsed or Refractory Multiple Myeloma |
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|
Paliperidone Palmitate 6-Month- Submission of Supplemental New Drug Application to U.S. FDA and European Marketing Authorization for Treatment of Schizophrenia in Adults |
||
|
XARELTO (rivaroxaban)- Submission of Application to U.S. FDA for New Indication to Expand Use in Patients with Peripheral Artery Disease |
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|
Other |
Janssen Receives Positive CHMP Opinion for SPRAVATO (esketamine Nasal Spray) for the Rapid Reduction of Depressive Symptoms in a Psychiatric Emergency for Patients with Major Depressive Disorder |
|
|
Janssen Acquires Rights to Novel Gene Therapy, Pioneering Treatment Solutions for Late-Stage Age-Related Macular Degeneration |
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|
Johnson & Johnson Initiates Second Global Phase 3 Clinical Trial of its Janssen COVID-19 Vaccine Candidate |
|
1 Subsequent 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.
|
January 2021 |
|
|
($ in Billions, except EPS) |
|
|
Adjusted Operational Sales1,2 Change vs. Prior Year |
8.0% - 9.5% |
|
Operational Sales2 Change vs. Prior Year |
$88.8B - $90.0B 7.5% – 9.0% |
|
Estimated Reported Sales3 Change vs. Prior Year |
$90.5B - $91.7B 9.5% – 11.0% |
|
Adjusted Operational EPS (Diluted)2,4 Change vs. Prior Year |
$9.25 - $9.45 15.2% - 17.7% |
|
Adjusted EPS (Diluted)3,4 Change vs. Prior Year |
$9.40 - $9.60 17.1% - 19.6% |
|
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: January 2021 = $1.21 (Illustrative purposes only) |
|
4 Non-GAAP financial measure; excludes intangible amortization expense and special items |
Other modeling considerations will be provided on the webcast.
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.
