Beerse, 27 May 2008 – Janssen Pharmaceutica NV achieved sales of EUR 1.787 billion (– 10.6%) in 2007 and increased its R&D expenditure to EUR 1.137 billion (+ 7%), which led operating profits to decline to EUR 24 million. Employment in Belgium fell as a consequence of the reorganisation from 4598 staff in 2006 to 4490 at the end of 2007.

The fall in sales of 10.6% in relation to the previous year can be mainly attributed to the patent expiry and fall in sales of the DUROGESIC® pain plaster. The following two years the patent expiry of a number of other products will remain a challenge for us. The management does, however, have great confidence in the pipeline in the medium term.

The final net profit was EUR 674 million. This result was influenced by an exceptional profit of EUR 650 million through on the one hand the sale of Janssen-Cilag General Services shares to Johnson & Johnson and on the other hand by taking up reserves for restructuring.

Growing investments
Investments increased in 2007: the company invested a record amount of EUR 1.137 billion in Research & Development and EUR 152 million in buildings, infrastructure and new technologies. In 2007 Janssen Pharmaceutica started construction of the new pilot plant at the chemical production branch in Geel, the group’s largest investment project ever in Belgium.

Situation following reorganisation
Pressure on the pharmaceutical sector will continue and the company will concentrate further on its core activities. The restructuring announced last year is still under way. At the time the board announced its intention to cut 688 positions, of which 167 were temporary. During negotiations agreement was reached to retain 83 positions, which reduced the number of those affected to 438. At this time, that is in mid-May, there are still around hundred employees looking for work. The re-employment unit we set up will continue to give them support.

Strong international position of Janssen Pharmaceutica
Janssen Pharmaceutica in Beerse, Geel and Olen constitutes the largest Johnson & Johnson “campus” outside the United States. This campus continues to play its important role within the Johnson & Johnson pharmaceutical group:

• worldwide centre for discovery research in the areas of psychiatry, neurology and oncology (small molecules);
• world knowledge centre for pre-clinical research for the entire Pharmaceutical Group;
• worldwide coordination centre for clinical development by performing clinical research and data management for the entire Pharmaceutical Group;
• worldwide expertise centre for chemical-pharmaceutical development;
• largest factory for active pharmaceutical ingredients in the world for the group;
• advanced specialisation regarding pharmaceutical production, for liquids, parenteral delivery systems and sterile products;
• international centre for a large range of services.

The high concentration of knowledge on one campus and the close cooperation between all these departments constitute a unique advantage for the future.

Investing in research: promising pipeline
The J&J international pipeline includes promising new medicines, mainly in the areas of antibiotics (multiresistant bacteria), pain control, psoriasis and heart failure/strokes. In Beerse/Europe the group concentrates on promising molecules that will help patients with unfulfilled medical needs in the areas of the central nervous system/neurology (schizophrenia, anxiety, depression, dementia, Alzheimer’s disease) and oncology (small molecules).

Sustainable enterprise
Janssen Pharmaceutica NV has also published a sustainability report at Belgian level for the fifth year in a row. This offers an overview in the areas of business results, the environment and social affairs. 

• At the start of 2007 the CHMP, the committee that is responsible for assessing new human medicines in the European Union, issued a provisional positive assessment of PREZISTAÒ, the new medication against HIV/AIDS from Tibotec.
• Janssen Pharmaceutica received the Randstad Award for “most attractive employer” in Belgium for the second year in a row in 2007.
• Johnson & Johnson and the Task Force for Child Survival and Development launched a partnership to combat the problem of worm infections in children in numerous developing countries. Cameroon received the first donation consisting of four million doses of mebendazole. In total 22 million doses were distributed in various countries. The objective is to be able to treat the majority of the 400 million infected children in the world within a few years.
• At the end of October, Janssen Pharmaceutica and the Mechelen biotechnology company, Galapagos, concluded a worldwide agreement regarding the discovery and development of various medicines, including against rheumatoid arthritis.

Results at Johnson & Johnson
Johnson & Johnson achieved sales of 61.1 billion dollars in 2007.

Within the Johnson & Johnson group, Janssen Pharmaceutica in Belgium is a worldwide centre of excellence for integrated R&D, production and general services. The company has three sites in Belgium (Beerse, Geel and Olen), which together employ some 4500 people. In addition more than 200 staff work at Janssen-Cilag Belgium in Berchem, which is responsible for the Belgian and Luxembourg markets. Janssen Pharmaceutica is one of the world’s most innovative companies. The more than eighty registered medicines of the company are used worldwide for human medicine, animal medicine and materials protection. The company is active in very diverse areas, such as internal medicine, disorders of the central nervous system, pain control and oncology.

Johnson & Johnson Pharmaceutical Research & Development (J&JPRD) forms part of Johnson & Johnson, the most diversified supplier of healthcare products in the world. The head office of J&JPRD is located in Raritan, New Jersey (US). The company has branches all over Europe and the United States. J&JPRD is a leading enterprise in the field of discovering and developing new drugs across a wide range of therapeutic fields and attempts to find solutions for unfulfilled medical needs all over the world. Some 1500 people work at the Belgian branch of the research division.

(This press release includes statements aimed at the future, in accordance with the meaning attached thereto in the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations of future events. If the underlying assumptions turn out not to be accurate or unknown risks or uncertainties manifest themselves, the actual results could significantly deviate from the company’s future expectations and projections. Risks and uncertainties include general industrial circumstances and mutual competition; economic circumstances, such as interest rates and currency fluctuations; technological progress and patents gained by the competition; challenges that are inherent to new product development, including obtaining approval of an application for registration; healthcare reforms at home and abroad and statutory and other official measures; and cost-saving trends in healthcare. For a more detailed explanation of these risks, uncertainties and other factors please refer to Exhibit 99 in the Annual Report of Johnson & Johnson on Form 10-K for the tax year ending on 31 December 2006. A copy of this Form 10‑K and subsequent submissions are available on-line at www.sec.gov or on request from the company. Johnson & Johnson does not intend to modify future statements when new information appears or if new events or developments occur.)

For more information:
Stefan Gijssels 014/60 30 30