The Sponsor (Company)

Johnson & Johnson's commitment to innovative health care products has resulted in consistent financial performance. The Company has 27 consecutive years of adjusted earnings increases and 49 consecutive years of dividend increases. Johnson & Johnson, employing approximately 115,000 people worldwide, is engaged in the manufacture and sale of a broad range of products in the health care field in many countries of the world. Johnson & Johnson's primary interest, both historically and currently, has been in products related to health and well-being. Johnson & Johnson was organized in the State of New Jersey in 1886. 

Johnson & Johnson is organized on the principles of decentralized management. The Executive Committee of Johnson & Johnson is the principal management group responsible for the operations of Johnson & Johnson. In addition, certain Executive Committee members serve as Worldwide Chairmen of Group Operating Committees, which are comprised of managers who represent key operations within the group, as well as management expertise in other specialized functions. These Committees oversee and coordinate the activities of domestic and international companies related to each of the Consumer, Pharmaceutical and Professional segments of business.

Operating management of each company is headed by a Chairman, President, General Manager or Managing Director who reports directly to, or through a line executive to, a Group Operating Committee. In line with this policy of decentralization, each international subsidiary is, with some exceptions, managed by citizens of the country where it is located.

3.2 Business Description

Johnson & Johnson, incorporated in 1887, is a holding company. The Company and its subsidiaries are engaged in the research and development, manufacture and sale of a range of products in the health care field. It has more than 250 operating companies conducting business worldwide. The Company’s operating companies are organized into three business segments: Consumer, Pharmaceutical and Medical Devices and Diagnostics. The Company and its subsidiaries operate 139 manufacturing facilities occupying approximately 21.8 million square feet of floor space. Within the United States, 7 facilities are used by the Consumer segment, 11 by the Pharmaceutical segment and 36 by the Medical Devices and Diagnostics segment.

Consumer

The Consumer segment includes a range of products used in the baby care, skin care, oral care, wound care and women’s health care fields, as well as nutritional and over-the-counter pharmaceutical products, and wellness and prevention platforms. The baby care franchise includes the JOHNSON’S Baby line of products. The brands in the skin care franchise include the AVEENO; CLEAN & CLEAR; JOHNSON’S Adult; NEUTROGENA; RoC; LUBRIDERM; DABAOtm; and Vendome product lines. The oral care franchise includes the LISTERINE and REACH oral care lines of products. The wound care franchise includes BAND-AID brand adhesive bandages and Neosporin First Aid products. The brands in the women’s health franchise are the CAREFREE Pantiliners; o.b. tampons and STAYFREE sanitary protection products. The nutritional and over-the-counter lines include SPLENDA, No Calorie Sweetener; the broad family of TYLENOL acetaminophen products; SUDAFED cold, flu and allergy products; ZYRTEC allergy products; MOTRIN IB ibuprofen products, and PEPCID AC Acid Controller from Johnson & Johnson Merck Consumer Pharmaceuticals Co. These products are marketed to the general public and sold both to retail outlets and distributors worldwide.

Pharmaceutical

The Pharmaceutical segment includes products in therapeutic areas, which include anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, neurology, oncology, pain management and virology. These products are distributed directly to retailers, wholesalers and health care professionals for prescription use. The products in the pharmaceutical segment include REMICADE (infliximab), a treatment for a number of immune mediated inflammatory diseases; STELARA (ustekinumab), a treatment for moderate to severe plaque psoriasis; SIMPONI (golimumab), a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE (bortezomib), a treatment for multiple myeloma; PREZISTA (darunavir) and INTELENCE (etravirine), treatments for HIV/AIDS; NUCYNTA (tapentadol), a treatment for moderate to severe acute pain; INVEGA SUSTENNAtm (paliperidone palmitate), for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA (risperidone), a treatment for the management of Bipolar I Disorder and schizophrenia; PROCRIT (Epoetin alfa, sold outside the United States as EPREX), to stimulate red blood cell production; LEVAQUIN (levofloxacin) for the treatment of bacterial infections; CONCERTA (methylphenidate HCl), a treatment for attention deficit hyperactivity disorder; ACIPHEX/PARIET, a proton pump inhibitor co-marketed with Eisai Inc., and DURAGESIC/Fentanyl Transdermal (fentanyl transdermal system, sold outside the United States as DUROGESIC), a treatment for chronic pain that offers a delivery system.

Medical Devices and Diagnostics

The Medical Devices and Diagnostics segment includes a range of products distributed to wholesalers, hospitals and retailers, used principally in the professional fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. These products include Biosense Webster’s electrophysiology products; Cordis’ circulatory disease management products; DePuy’s orthopaedic joint reconstruction, spinal care, neurological and sports medicine products; Ethicon’s surgical care, aesthetics and women’s health products; Ethicon Endo-Surgery’s minimally invasive surgical products and advanced sterilization products; LifeScan’s blood glucose monitoring and insulin delivery products; Ortho-Clinical Diagnostics’ professional diagnostic products, and Vistakon’s disposable contact lenses. Distribution to these health care professional markets is done both directly and through surgical supply and other dealers.