Johnson & Johnson Reports Q2 2021 Results - PRNewswire

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NEW BRUNSWICK, N.J., July 21, 2021 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced results for second-quarter. "Our second-quarter results showcase Johnson & Johnson's diversified portfolio, driven by strong sales and earnings growth across our Medical Device, Consumer Health and Pharmaceutical businesses," said Alex Gorsky, Chairman and Chief Executive Officer. "I'm so proud of our 136,000 colleagues who remain focused on delivering our medicines and products to patients and consumers around the world, in addition to advancing our pipeline with new product launches and regulatory submissions. These accomplishments exemplify our commitment to advancing transformational innovations that improve the health of people and communities everywhere while continuing to deliver long-term value to all of our stakeholders."

OVERALL FINANCIAL RESULTS

Q2
($ in Millions, except EPS)	2021	2020	% Change
Reported Sales	$ 23,312	$ 18,336	27.1%
Net Earnings	6,278	3,626	73.1
EPS (diluted)	$ 2.35	$ 1.36	72.8%

Q2
*Non-GAAP($ in Millions, except EPS)**	2021	2020	% Change
Operational Sales^1,2			23.0%
Adjusted Operational Sales^1,3			23.8
Adjusted Net Earnings^1,4	6,625	4,446	49.0
Adjusted EPS (diluted)^1,4	$ 2.48	$ 1.67	48.5%


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

Q2			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
U.S.	$ 11,919	$ 9,539	24.9%	24.9	-	25.1
International	11,393	8,797	29.5	20.9	8.6	22.4
Worldwide	$ 23,312	$ 18,336	27.1%	23.0	4.1	23.8


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

Q2			% Change
($ in Millions)	2021	2020	Reported	Operational^1,2	Currency	Adjusted Operational^1,3
Consumer Health	$ 3,735	$ 3,296	13.3%	9.2	4.1	10.0
Pharmaceutical	12,599	10,752	17.2	13.6	3.6	14.1
Medical Devices	6,978	4,288	62.7	57.2	5.5	58.7
Worldwide	$ 23,312	$ 18,336	27.1%	23.0	4.1	23.8


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

Second Quarter 2021 SEGMENT COMMENTARY:

Consumer Health
Consumer Health worldwide operational sales, excluding the net impact of acquisitions and divestitures, increased 10.0%* inclusive of the market recovery from COVID-19 impacts, primarily in skin health/beauty. Sales growth was driven by skin health/beauty products including NEUTROGENA, AVEENO, and OGX; over-the-counter products including ZYRTEC in upper respiratory products, international analgesics, and digestive health products; and BAND-AID^® Brand Adhesive Bandages in wound care products.

Pharmaceutical
Pharmaceutical worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 14.1%* 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, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, IMBRUVICA (ibrutinib), an oral, once-daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer, and INVEGA SUSTENNA/XEPLION/INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. This growth was partially offset by biosimilar and generic competition, with declines primarily in REMICADE (infliximab), a biologic approved for the treatment of a number of immune-mediated inflammatory diseases.

Medical Devices
Medical Devices worldwide operational sales, excluding the net impact of acquisitions and divestitures, grew 58.7%*, primarily driven by the benefit of market recovery from COVID-19 impacts and the associated deferral of medical procedures in the prior year across all of our businesses including Surgery, Orthopaedics, Vision and Interventional Solutions.

NOTABLE NEW ANNOUCEMENTS 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 Decisions	TECNIS SYNERGY and TECNIS SYNERGY TORIC II IOLS a Next Generation Treatment for Cataract Patients Received Regulatory Approval and Launched in the U.S. and Canada	(press release)
		(press release)
	RYBREVANT (amivantamab-vmjw) Receives U.S. FDA Approval as the First Targeted Treatment for Patients with Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations	(press release)
	PONVORY (ponesimod) receives European Commission approval for the Treatment of Adults with Relapsing Forms of Multiple Sclerosis with Active Disease Defined by Clinical or Imaging Features	(press release)
	DARZALEX (daratumumab) Subcutaneous (SC) Formulation Becomes the First Approved Treatment for Newly Diagnosed Systemic Light Chain Amyloidosis in Europe and Gains an Additional Approval in Pre-Treated Multiple Myeloma	(press release)
	DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) Receives U.S. FDA Approval for Combination with Pomalidomide and Dexamethasone for Patients with Multiple Myeloma After First or Subsequent Relapse¹	(press release)
Regulatory Submissions	Janssen granted Breakthrough Therapy Designation from the U.S. FDA for Teclistamab for the Treatment of Relapsed or Refractory Multiple Myeloma	(press release)
	Janssen Submits Marketing Authorisation Application to the European Medicines Agency for BCMA CAR-T Therapy Ciltacabtagene Autoleucel (cilta-cel) for the Treatment of Relapsed and/or Refractory Multiple Myeloma	(press release)
	Janssen Submits New Drug Application to U.S. FDA for XARELTO (rivaroxaban) to Help Prevent and Treat Blood Clots in Pediatric Patients	(press release)
Other	Johnson & Johnson Joins World Health Organization in Efforts to Prevent Spread of Ebola in West Africa	(press release)
	Janssen Discontinues Collaboration and License Agreement with argenx for Cusatuzumab	(press release)
	ETHICON expands Advanced Bipolar Energy Portfolio with Launch of ENSEAL X1 Curved Jaw Tissue Sealer	(press release)
	Johnson & Johnson Announces Positive New Data for the Single-Shot COVID-19 Vaccine on Activity Against Delta Variant and Long-lasting Durability of Response	(press release)
	Johnson & Johnson Consumer Inc. Issues Voluntary Recall of Specific NEUTROGENA and AVEENO Aerosol Sunscreen Products Due to the Presence of Benzene¹	(press release)
¹Subsequent 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.

($ in Billions, except EPS)

April 2021

July 2021 (Base Business)

July 2021 (incl. COVID Vx)

Adjusted Operational Sales^1,2

Change vs. Prior Year

8.7% - 9.9%

9.5% - 10.5%

12.5% - 13.5%

Operational Sales²

Change vs. Prior Year

$89.3B - $90.3B

8.2% – 9.4%

$90.0B - $90.8B

9.0% – 10.0%

$92.5B - $93.3B

12.0% – 13.0%

Estimated Reported Sales³

Change vs. Prior Year

$90.6B - $91.6B

9.7% – 10.9%

$91.3B - $92.1B

10.5% – 11.5%

$93.8B - $94.6B

13.5% – 14.5%

Adjusted Operational EPS
(Diluted)^2,4

Change vs. Prior Year

$9.30 - $9.45

15.8% - 17.7%

$9.50 - $9.60

18.4% - 19.6%

Adjusted EPS (Diluted)^3,4

Change vs. Prior Year

$9.42 - $9.57

17.3% - 19.2%

$9.60 - $9.70

19.6% - 20.8%


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: April 2021 = $1.19 and July 2021 = $1.19 (Illustrative purposes only)
⁴	Non-GAAP financial measure; excludes intangible amortization expense and special items
	Note: % may have been rounded

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:
Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company's website at events-and-presentations.

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.

NON-GAAP FINANCIAL MEASURES:
*Operational sales growth excluding the impact of translational currency, adjusted operational sales growth excluding the net impact of acquisitions and divestitures and translational currency, as well as adjusted net earnings, adjusted diluted earnings per share and adjusted operational diluted earnings per share excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the company's website at quarterly-results.

Copies of the financial schedules accompanying this earnings release are available on the company's website at quarterly-results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today's earnings call presentation can also be found in the Investors section of the company's website at quarterly-results.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the Company's ability to execute business continuity plans, as a result of the COVID-19 pandemic, economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended January 3, 2021 including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," in the Company's most recently filed Quarterly Report on Form 10-Q and the Company's subsequent filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	SECOND QUARTER						SIX MONTHS
			Percent Change						Percent Change
	2021	2020	Total		Operations	Currency	2021	2020	Total		Operations	Currency
Sales to customers by
segment of business

Consumer Health
U.S.	$ 1,751	1,557	12.4	%	12.4	-	$ 3,362	3,297	2.0	%	2.0	-
International	1,984	1,739	14.1		6.3	7.8	3,916	3,624	8.1		3.3	4.8
	3,735	3,296	13.3		9.2	4.1	7,278	6,921	5.2		2.7	2.5

Pharmaceutical
U.S.	6,869	6,120	12.2		12.2	-	13,315	12,181	9.3		9.3	-
International	5,730	4,632	23.7		15.4	8.3	11,483	9,705	18.3		11.4	6.9
	12,599	10,752	17.2		13.6	3.6	24,798	21,886	13.3		10.3	3.0

Medical Devices
U.S.	3,299	1,862	77.2		77.2	-	6,353	4,760	33.5		33.5	-
International	3,679	2,426	51.6		41.9	9.7	7,204	5,460	31.9		24.5	7.4
	6,978	4,288	62.7		57.2	5.5	13,557	10,220	32.7		28.7	4.0

U.S.	11,919	9,539	24.9		24.9	-	23,030	20,238	13.8		13.8	-
International	11,393	8,797	29.5		20.9	8.6	22,603	18,789	20.3		13.7	6.6
Worldwide	$ 23,312	18,336	27.1	%	23.0	4.1	$ 45,633	39,027	16.9	%	13.7	3.2

Note:Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)	SECOND QUARTER						SIX MONTHS
			Percent Change						Percent Change
	2021	2020	Total		Operations	Currency	2021	2020	Total		Operations	Currency
Sales to customers by
geographic area

U.S.	$ 11,919	9,539	24.9	%	24.9	-	$ 23,030	20,238	13.8	%	13.8	-

Europe	5,668	4,063	39.5		28.6	10.9	11,082	8,890	24.7		15.6	9.1
Western Hemisphere excluding U.S.	1,367	1,133	20.6		12.7	7.9	2,791	2,635	5.9		5.4	0.5
Asia-Pacific, Africa	4,358	3,601	21.0		14.8	6.2	8,730	7,264	20.2		14.2	6.0
International	11,393	8,797	29.5		20.9	8.6	22,603	18,789	20.3		13.7	6.6

Worldwide	$ 23,312	18,336	27.1	%	23.0	4.1	$ 45,633	39,027	16.9	%	13.7	3.2

Note:Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	SECOND QUARTER

	2021			2020			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 23,312		100.0	$ 18,336		100.0	27.1
Cost of products sold	7,587		32.5	6,579		35.9	15.3
Gross Profit	15,725		67.5	11,757		64.1	33.8
Selling, marketing and administrative expenses	6,073		26.1	4,993		27.2	21.6
Research and development expense	3,394		14.6	2,707		14.8	25.4
In-process research and development	0		0.0	6		0.0
Interest (income) expense, net	28		0.1	26		0.2
Other (income) expense, net	(488)		(2.1)	24		0.1
Restructuring	56		0.2	61		0.3
Earnings before provision for taxes on income	6,662		28.6	3,940		21.5	69.1
Provision for taxes on income	384		1.7	314		1.7	22.3
Net earnings	$ 6,278		26.9	$ 3,626		19.8	73.1

Net earnings per share (Diluted)	$ 2.35			$ 1.36			72.8

Average shares outstanding (Diluted)	2,671.6			2,665.5

Effective tax rate	5.8	%		8.0	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 7,776		33.4	$ 5,337		29.1	45.7
Net earnings	$ 6,625		28.4	$ 4,446		24.2	49.0
Net earnings per share (Diluted)	$ 2.48			$ 1.67			48.5
Effective tax rate	14.8	%		16.7	%

⁽¹⁾See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

(Unaudited; in Millions Except Per Share Figures)	SIX MONTHS

	2021			2020			Percent
			Percent			Percent	Increase
	Amount		to Sales	Amount		to Sales	(Decrease)
Sales to customers	$ 45,633		100.0	$ 39,027		100.0	16.9
Cost of products sold	14,650		32.1	13,641		35.0	7.4
Gross Profit	30,983		67.9	25,386		65.0	22.0
Selling, marketing and administrative expenses	11,505		25.2	10,196		26.1	12.8
Research and development expense	6,572		14.4	5,287		13.5	24.3
In-process research and development	0		0.0	6		0.0
Interest (income) expense, net	76		0.2	(16)		0.0
Other (income) expense, net	(1,370)		(3.0)	(655)		(1.7)
Restructuring	109		0.2	119		0.3
Earnings before provision for taxes on income	14,091		30.9	10,449		26.8	34.9
Provision for taxes on income	1,616		3.6	1,027		2.7	57.4
Net earnings	$ 12,475		27.3	$ 9,422		24.1	32.4

Net earnings per share (Diluted)	$ 4.67			$ 3.53			32.3

Average shares outstanding (Diluted)	2,674.0			2,671.0

Effective tax rate	11.5	%		9.8	%

Adjusted earnings before provision for taxes and net earnings ⁽¹⁾
Earnings before provision for taxes on income	$ 16,067		35.2	$ 12,581		32.2	27.7
Net earnings	$ 13,549		29.7	$ 10,600		27.2	27.8
Net earnings per share (Diluted)	$ 5.07			$ 3.97			27.7
Effective tax rate	15.7	%		15.7	%

⁽¹⁾See Reconciliation of Non-GAAP Financial Measures.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures

		Second Quarter		Six Months Ended
	(Dollars in Millions Except Per Share Data)	2021	2020	2021	2020
	Net Earnings, after tax- as reported	$6,278	$3,626	$12,475	$9,422

	Pre-tax Adjustments
	Intangible Asset Amortization expense	1,202	1,127	2,417	2,245
	Litigation related	(23)	613	(23)	733
	IPR&D	-	6	-	6
	Restructuring related	108	115	212	233
	Acquisition, integration and divestiture related ¹	14	29	(524)	(933)
	Unrealized (gains)/losses on securities	(243)	(533)	(208)	(206)
	Medical Device Regulation	56	37	102	51
	Other	-	3	-	3

	Tax Adjustments
	Tax impact on special item adjustments ²	(135)	(253)	(248)	(520)
	Tax legislation and other tax related	(632)	(324)	(654)	(434)
	Adjusted Net Earnings, after tax	$6,625	$4,446	$13,549	$10,600
	Average shares outstanding (Diluted)	2,671.6	2,665.5	2,674.0	2,671.0
	Adjusted net earnings per share (Diluted)	$2.48	$1.67	$5.07	$3.97
	Operational adjusted net earnings per share (Diluted)	$2.42		$4.91

	Notes:
¹	Acquisition, integration and divestiture related for the six months of 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S. The six months of 2020 primarily includes a $983M Contingent Consideration reversal related to the timing of certain developmental milestones associated with the Auris Health acquisition.

^²	The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth
SECOND QUARTER 2021 ACTUAL vs. 2020 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	13.3%	17.2%	62.7%	27.1%
U.S.	12.4%	12.2%	77.2%	24.9%
International	14.1%	23.7%	51.6%	29.5%

WW Currency	4.1	3.6	5.5	4.1
U.S.	-	-	-	-
International	7.8	8.3	9.7	8.6

WW Operational	9.2%	13.6%	57.2%	23.0%
U.S.	12.4%	12.2%	77.2%	24.9%
International	6.3%	15.4%	41.9%	20.9%

General Surgery
*Advanced Sterilization Products*			1.2	0.2
U.S.			0.0	0.0
International			1.9	0.4

All Other Acquisitions and Divestitures	0.8	0.6	0.3	0.6
U.S.	0.6	(0.1)	0.7	0.1
International	1.1	1.5	0.0	1.0

WW Adjusted Operational	10.0%	14.1%	58.7%	23.8%
U.S.	13.0%	12.1%	77.9%	25.1%
International	7.4%	16.8%	43.8%	22.4%

Note: Percentages are based on actual, non-rounded figures and may not sum

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure

Adjusted Operational Sales Growth
SIX MONTHS 2021 ACTUAL vs. 2020 ACTUAL

Segments

	Consumer Health	Pharmaceutical	Medical Devices	Total

WW As Reported	5.2%	13.3%	32.7%	16.9%
U.S.	2.0%	9.3%	33.5%	13.8%
International	8.1%	18.3%	31.9%	20.3%

WW Currency	2.5	3.0	4.0	3.2
U.S.	-	-	-	-
International	4.8	6.9	7.4	6.6

WW Operational	2.7%	10.3%	28.7%	13.7%
U.S.	2.0%	9.3%	33.5%	13.8%
International	3.3%	11.4%	24.5%	13.7%

General Surgery
*Advanced Sterilization Products*			0.8	0.2
U.S.			0.0	0.0
International			1.5	0.4

All Other Acquisitions and Divestitures	0.6	0.5	0.2	0.4
U.S.	0.5	(0.1)	0.5	0.1
International	0.7	1.2	0.0	0.8

WW Adjusted Operational	3.3%	10.7%	29.7%	14.4%
U.S.	2.5%	9.2%	33.9%	13.9%
International	4.0%	12.6%	26.0%	14.8%

Note: Percentages are based on actual, non-rounded figures and may not sum

		REPORTED SALES vs. PRIOR PERIOD ($MM)					REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change					% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency	2021	2020	Reported	Operational ⁽¹⁾	Currency
CONSUMER HEALTH SEGMENT ⁽²⁾
OTC
US		$ 675	627	7.7%	7.7%	-	$ 1,274	1,316	-3.2%	-3.2%	-
Intl		633	522	21.2%	10.4%	10.8%	1,208	1,181	2.3%	-4.7%	7.0%
WW		1,307	1,149	13.8%	8.9%	4.9%	2,482	2,497	-0.6%	-3.9%	3.3%
SKIN HEALTH / BEAUTY
US		659	536	23.0%	23.0%	-	1,293	1,195	8.2%	8.2%	-
Intl		511	471	8.4%	1.4%	7.0%	1,040	929	12.0%	6.8%	5.2%
WW		1,170	1,007	16.2%	12.9%	3.3%	2,333	2,124	9.8%	7.6%	2.2%
ORAL CARE
US		165	170	-3.1%	-3.1%	-	328	346	-5.2%	-5.2%	-
Intl		260	227	14.6%	6.7%	7.9%	514	446	15.3%	10.2%	5.1%
WW		426	397	7.0%	2.5%	4.5%	843	792	6.3%	3.5%	2.8%
BABY CARE
US		97	96	0.8%	0.8%	-	193	188	2.4%	2.4%	-
Intl		290	260	11.5%	6.6%	4.9%	583	529	10.2%	9.0%	1.2%
WW		387	356	8.6%	5.0%	3.6%	776	717	8.1%	7.3%	0.8%
WOMEN'S HEALTH
US		3	3	-3.1%	-3.1%	-	6	7	-16.0%	-16.0%	-
Intl		227	199	14.2%	9.2%	5.0%	446	427	4.5%	3.1%	1.4%
WW		230	202	13.9%	9.0%	4.9%	452	434	4.2%	2.8%	1.4%
WOUND CARE / OTHER
US		153	126	20.9%	20.9%	-	268	245	9.3%	9.3%	-
Intl		64	59	7.3%	-2.8%	10.1%	125	111	12.1%	5.2%	6.9%
WW		216	185	16.6%	13.4%	3.2%	393	356	10.2%	8.0%	2.2%

TOTAL CONSUMER HEALTH
US		1,751	1,557	12.4%	12.4%	-	3,362	3,297	2.0%	2.0%	-
Intl		1,984	1,739	14.1%	6.3%	7.8%	3,916	3,624	8.1%	3.3%	4.8%
WW		$ 3,735	3,296	13.3%	9.2%	4.1%	$ 7,278	6,921	5.2%	2.7%	2.5%


See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)							REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
PHARMACEUTICAL SEGMENT ^(2,3)		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency

IMMUNOLOGY
US		$ 2,748	2,362	16.4%	16.4%	-		$ 5,161	4,772	8.2%	8.2%	-
Intl		1,483	1,161	27.7%	18.2%	9.5%		2,984	2,389	24.9%	17.0%	7.9%
WW		4,231	3,523	20.1%	17.0%	3.1%		8,145	7,161	13.7%	11.1%	2.6%
REMICADE
US		540	593	-9.1%	-9.1%	-		1,029	1,218	-15.6%	-15.6%	-
US Exports ⁽⁴⁾		93	133	-30.0%	-30.0%	-		150	243	-38.2%	-38.2%	-
Intl		255	208	22.4%	11.1%	11.3%		487	464	4.9%	-1.7%	6.6%
WW		888	935	-5.1%	-7.6%	2.5%		1,665	1,925	-13.5%	-15.1%	1.6%
SIMPONI / SIMPONI ARIA
US		290	256	12.8%	12.8%	-		545	528	3.2%	3.2%	-
Intl		294	289	1.7%	-3.8%	5.5%		601	547	9.8%	4.5%	5.3%
WW		584	546	6.9%	4.0%	2.9%		1,146	1,075	6.6%	3.8%	2.8%
STELARA
US		1,496	1,138	31.4%	31.4%	-		2,827	2,355	20.0%	20.0%	-
Intl		778	558	39.2%	28.6%	10.6%		1,595	1,161	37.3%	28.1%	9.2%
WW		2,274	1,697	34.0%	30.5%	3.5%		4,422	3,516	25.8%	22.7%	3.1%
TREMFYA
US		325	241	35.0%	35.0%	-		599	428	40.0%	40.0%	-
Intl		155	101	52.3%	41.1%	11.2%		298	210	41.8%	31.8%	10.0%
WW		479	342	40.2%	36.8%	3.4%		897	638	40.6%	37.3%	3.3%
OTHER IMMUNOLOGY
US		5	-	*	*	-		12	-	*	*	-
Intl		1	3	-61.3%	-67.9%	6.6%		3	6	-51.2%	-53.9%	2.7%
WW		7	3	*	*	*		15	6	*	*	*
INFECTIOUS DISEASES
US		444	416	6.8%	6.8%	-		956	852	12.2%	12.2%	-
Intl		585	463	26.3%	18.2%	8.1%		1,079	946	14.1%	7.8%	6.3%
WW		1,028	878	17.1%	12.8%	4.3%		2,035	1,798	13.2%	9.9%	3.3%
COVID-19 VACCINE
US		51	-	*	*	-		151	-	*	*	-
Intl		113	-	*	*	-		113	-	*	*	-
WW		164	-	*	*	-		264	-	*	*	-
EDURANT / rilpivirine
US		9	10	-9.3%	-9.3%	-		19	22	-10.9%	-10.9%	-
Intl		253	246	2.8%	-4.0%	6.8%		486	458	6.0%	-1.7%	7.7%
WW		262	256	2.3%	-4.2%	6.5%		505	480	5.2%	-2.1%	7.3%
PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US		368	379	-3.2%	-3.2%	-		748	775	-3.5%	-3.5%	-
Intl		137	130	5.5%	-5.9%	11.4%		303	314	-3.5%	-8.5%	5.0%
WW		505	510	-1.0%	-3.9%	2.9%		1,051	1,089	-3.5%	-5.0%	1.5%
OTHER INFECTIOUS DISEASES
US		16	25	-36.2%	-36.2%	-		37	54	-31.3%	-31.3%	-
Intl		81	87	-6.2%	-13.4%	7.2%		177	174	1.8%	-3.0%	4.8%
WW		98	113	-13.0%	-18.5%	5.5%		215	229	-6.1%	-9.7%	3.6%


		REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
NEUROSCIENCE
US		842	778	8.0%	8.0%	-		1,613	1,526	5.6%	5.6%	-
Intl		967	809	19.6%	13.1%	6.5%		1,916	1,719	11.5%	6.3%	5.2%
WW		1,808	1,587	13.9%	10.6%	3.3%		3,529	3,245	8.7%	6.0%	2.7%
CONCERTA / Methylphenidate
US		35	55	-36.0%	-36.0%	-		82	107	-23.1%	-23.1%	-
Intl		127	94	33.7%	25.6%	8.1%		250	212	17.5%	11.1%	6.4%
WW		161	149	8.1%	3.0%	5.1%		332	320	3.9%	-0.3%	4.2%
INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA
US		645	576	11.9%	11.9%	-		1,234	1,120	10.2%	10.2%	-
Intl		380	303	25.1%	15.9%	9.2%		756	642	17.7%	9.9%	7.8%
WW		1,024	879	16.4%	13.3%	3.1%		1,989	1,762	12.9%	10.1%	2.8%
RISPERDAL CONSTA
US		72	74	-3.0%	-3.0%	-		139	150	-7.5%	-7.5%	-
Intl		84	79	6.4%	0.2%	6.2%		173	173	0.4%	-4.6%	5.0%
WW		155	153	1.9%	-1.3%	3.2%		312	323	-3.3%	-6.0%	2.7%
OTHER NEUROSCIENCE
US		91	75	20.9%	20.9%	-		158	150	5.6%	5.6%	-
Intl		377	331	13.8%	10.0%	3.8%		738	691	6.7%	4.3%	2.4%
WW		468	406	15.1%	12.0%	3.1%		896	841	6.5%	4.5%	2.0%
ONCOLOGY
US		1,462	1,181	23.7%	23.7%	-		2,839	2,356	20.5%	20.5%	-
Intl		2,073	1,609	28.8%	19.8%	9.0%		4,266	3,448	23.7%	16.2%	7.5%
WW		3,535	2,791	26.7%	21.5%	5.2%		7,105	5,804	22.4%	17.9%	4.5%
DARZALEX
US		770	492	56.7%	56.7%	-		1,461	955	53.1%	53.1%	-
Intl		663	409	62.1%	50.3%	11.8%		1,337	883	51.4%	42.3%	9.1%
WW		1,433	901	59.2%	53.8%	5.4%		2,798	1,838	52.2%	47.9%	4.3%
ERLEADA
US		193	136	41.5%	41.5%	-		364	255	42.7%	42.7%	-
Intl		109	33	*	*	*		199	57	*	*	*
WW		302	170	77.6%	73.7%	3.9%		563	313	80.0%	76.4%	3.6%
IMBRUVICA
US		454	447	1.7%	1.7%	-		898	879	2.2%	2.2%	-
Intl		662	502	31.9%	22.1%	9.8%		1,342	1,101	21.9%	14.2%	7.7%
WW		1,116	949	17.7%	12.5%	5.2%		2,241	1,980	13.2%	8.9%	4.3%
ZYTIGA / abiraterone acetate
US		21	87	-75.3%	-75.3%	-		71	226	-68.5%	-68.5%	-
Intl		542	480	12.8%	5.4%	7.4%		1,130	1,032	9.5%	2.5%	7.0%
WW		563	568	-0.8%	-7.1%	6.3%		1,201	1,258	-4.5%	-10.3%	5.8%
OTHER ONCOLOGY
US		23	20	18.8%	18.8%	-		44	42	6.3%	6.3%	-
Intl		97	185	-47.2%	-49.6%	2.4%		258	375	-31.0%	-34.3%	3.3%
WW		120	204	-40.9%	-43.0%	2.1%		302	416	-27.3%	-30.2%	2.9%

		REPORTED SALES vs. PRIOR PERIOD ($MM)						REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency
PULMONARY HYPERTENSION
US		595	545	9.0%	9.0%	-		1,168	1,031	13.2%	13.2%	-
Intl		275	243	13.5%	7.9%	5.6%		563	503	12.1%	6.7%	5.4%
WW		870	789	10.4%	8.7%	1.7%		1,731	1,534	12.9%	11.1%	1.8%
OPSUMIT
US		290	256	13.6%	13.6%	-		562	485	15.9%	15.9%	-
Intl		172	150	14.9%	9.0%	5.9%		351	310	13.1%	7.6%	5.5%
WW		463	406	14.1%	11.9%	2.2%		913	795	14.8%	12.7%	2.1%
UPTRAVI
US		268	254	6.0%	6.0%	-		527	466	13.3%	13.3%	-
Intl		45	28	54.9%	42.9%	12.0%		91	66	36.8%	27.4%	9.4%
WW		313	282	11.0%	9.8%	1.2%		618	532	16.2%	15.0%	1.2%
OTHER PULMONARY HYPERTENSION
US		36	37	-2.4%	-2.4%	-		78	81	-3.0%	-3.0%	-
Intl		59	64	-8.2%	-10.3%	2.1%		122	126	-3.5%	-6.3%	2.8%
WW		95	101	-6.1%	-7.5%	1.4%		200	207	-3.3%	-5.0%	1.7%
CARDIOVASCULAR / METABOLISM / OTHER
US		780	837	-6.9%	-6.9%	-		1,579	1,643	-3.9%	-3.9%	-
Intl		346	347	-0.3%	-8.4%	8.1%		674	701	-3.8%	-9.9%	6.1%
WW		1,126	1,184	-5.0%	-7.3%	2.3%		2,253	2,344	-3.9%	-5.7%	1.8%
XARELTO
US		569	559	1.8%	1.8%	-		1,158	1,086	6.6%	6.6%	-
Intl		-	-	-	-	-		-	-	-	-	-
WW		569	559	1.8%	1.8%	-		1,158	1,086	6.6%	6.6%	-
INVOKANA / INVOKAMET
US		96	132	-27.0%	-27.0%	-		183	249	-26.6%	-26.6%	-
Intl		64	47	33.8%	22.1%	11.7%		127	105	20.3%	12.2%	8.1%
WW		160	179	-10.9%	-14.0%	3.1%		310	354	-12.6%	-15.0%	2.4%
PROCRIT / EPREX
US		59	70	-16.3%	-16.3%	-		121	146	-17.3%	-17.3%	-
Intl		69	66	3.7%	-4.5%	8.2%		133	145	-8.2%	-14.1%	5.9%
WW		127	136	-6.6%	-10.6%	4.0%		254	291	-12.8%	-15.7%	2.9%
OTHER
US		57	78	-26.7%	-26.7%	-		117	163	-27.8%	-27.8%	-
Intl		214	234	-8.4%	-15.7%	7.3%		415	451	-8.1%	-13.7%	5.6%
WW		271	312	-13.0%	-18.4%	5.4%		532	614	-13.3%	-17.4%	4.1%
TOTAL PHARMACEUTICAL
US		6,869	6,120	12.2%	12.2%	-		13,315	12,181	9.3%	9.3%	-
Intl		5,730	4,632	23.7%	15.4%	8.3%		11,483	9,705	18.3%	11.4%	6.9%
WW		$ 12,599	10,752	17.2%	13.6%	3.6%		$ 24,798	21,886	13.3%	10.3%	3.0%

See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)							REPORTED SALES vs. PRIOR PERIOD ($MM)
	SECOND QUARTER						SIX MONTHS
				% Change						% Change
MEDICAL DEVICES SEGMENT ⁽²⁾		2021	2020	Reported	Operational ⁽¹⁾	Currency		2021	2020	Reported	Operational ⁽¹⁾	Currency

INTERVENTIONAL SOLUTIONS
US		$ 475	255	86.5%	86.5%	-		909	620	46.7%	46.7%	-
Intl		572	335	70.5%	59.8%	10.7%		1,086	697	55.7%	46.4%	9.3%
WW		1,046	590	77.4%	71.3%	6.1%		1,995	1,317	51.5%	46.5%	5.0%
ORTHOPAEDICS
US		1,323	869	52.3%	52.3%	-		2,572	2,119	21.4%	21.4%	-
Intl		904	583	55.1%	43.2%	11.9%		1,768	1,371	29.0%	20.2%	8.8%
WW		2,227	1,451	53.4%	48.6%	4.8%		4,340	3,489	24.4%	20.9%	3.5%
HIPS
US		234	137	70.5%	70.5%	-		444	343	29.6%	29.6%	-
Intl		159	88	78.6%	64.3%	14.3%		305	220	38.3%	28.6%	9.7%
WW		392	226	73.7%	68.1%	5.6%		749	563	33.0%	29.2%	3.8%
KNEES
US		210	108	94.3%	94.3%	-		395	322	22.7%	22.7%	-
Intl		140	66	*	95.1%	16.8%		272	196	39.2%	29.5%	9.7%
WW		350	174	*	94.6%	6.4%		667	517	28.9%	25.2%	3.7%
TRAUMA
US		447	354	26.0%	26.0%	-		897	761	17.8%	17.8%	-
Intl		263	198	32.7%	22.7%	10.0%		545	445	22.5%	14.4%	8.1%
WW		710	553	28.4%	24.8%	3.6%		1,443	1,207	19.6%	16.5%	3.1%
SPINE, SPORTS & OTHER
US		433	270	60.6%	60.6%	-		836	693	20.7%	20.7%	-
Intl		343	230	49.0%	37.9%	11.1%		646	510	26.7%	18.0%	8.7%
WW		776	499	55.3%	50.2%	5.1%		1,482	1,202	23.2%	19.6%	3.6%

REPORTED SALES vs. PRIOR PERIOD ($MM)

SECOND QUARTER

SIX MONTHS

% Change

2021

2020

Reported

Operational ⁽¹⁾

Currency

2021

2020

Reported

Operational ⁽¹⁾

Currency

SURGERY

1,035

490

1,933

1,334

44.9%

Intl

1,487

1,060

40.2%

30.6%

9.6%

2,961

2,317

27.8%

20.4%

7.4%

2,522

1,551

62.6%

56.0%

6.6%

4,894

3,651

34.0%

29.3%

4.7%

ADVANCED

459

277

65.4%

864

658

31.3%

Intl

708

498

42.2%

32.5%

9.7%

1,421

1,065

33.4%

25.6%

7.8%

1,168

775

50.5%

44.3%

6.2%

2,286

1,723

32.6%

27.8%

4.8%

GENERAL

576

213

1,069

676

58.1%

Intl

779

562

38.5%

28.9%

9.6%

1,540

1,252

23.0%

15.9%

7.1%

1,354

775

74.7%

67.8%

6.9%

2,608

1,928

35.3%

30.7%

4.6%

VISION

467

248

88.3%

939

687

36.6%

Intl

716

447

60.0%

53.7%

6.3%

1,389

1,075

29.2%

24.6%

4.6%

1,183

695

70.1%

66.0%

4.1%

2,328

1,762

32.1%

29.3%

2.8%

CONTACT LENSES / OTHER

352

203

73.3%

723

549

31.6%

Intl

517

352

47.0%

41.9%

5.1%

1,003

819

22.5%

18.5%

4.0%

868

554

56.7%

53.4%

3.3%

1,725

1,368

26.1%

23.7%

2.4%

SURGICAL

115

216

138

56.3%

Intl

199

97.1%

10.6%

386

256

50.9%

44.4%

6.5%

314

141

602

394

52.8%

48.6%

4.2%

TOTAL MEDICAL DEVICES

3,299

1,862

77.2%

6,353

4,760

33.5%

Intl

3,679

2,426

51.6%

41.9%

9.7%

7,204

5,460

31.9%

24.5%

7.4%

$ 6,978

4,288

62.7%

57.2%

5.5%

$ 13,557

10,220

32.7%

28.7%

4.0%

Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and,
therefore, may not recalculate precisely.