Company Snapshot: Johnson & Johnson

Johnson & Johnson
Revenues	2010: 61.6 billion USD
	2009: 61.9 billion USD
	2008: 63.7 billion USD
Revenue CAGR (2008 - 2010)	-1.70%
Net profit (2010)	13.3 billion USD
Net profit CAGR (2008 - 2010)	1.50%
R&D expenses	2010: 6.8 billion USD (11.1% of revenues)
	2009: 7.0 billion USD (11.3% of revenues)
	2008: 7.6 billion USD (11.9% of revenues)
Number of employees	115,500
Location of headquarters	US
Principal areas of business	Skin and hair care products, acetaminophen products, pharmaceuticals, surgical and diagnostic equipment
Segmental revenue breakdown (2010)	Medical Devices and Diagnostics: 39.9%; Pharmaceutical: 36.4%; Consumer: 23.7%
Geographical revenue breakdown (2010)	US: 47.8%; Europe: 25.2%; Asia Pacific & Africa: 18.0%; Western Hemisphere excluding US: 9.0%
Top 3 biopharmaceutical drugs (2010 Sales)	Remicade: 4.6 billion USD; Procrit/Eprex: 1.9 billion USD; Risperdal Consta: 1.5 billion USD
Recent Acquisition Summary	Acquired partial stake in 23andMe Inc.
	Acquired Micrus Endovascular Corporation, a manufacturer of medical devices for treatment of cerebral
	Acquired RespiVert Ltd, a small molecule drug discovery company for treatment of chronic obstructive pulmonary disease, cystic fibrosis and severe asthma.
	Acquired partial stake in Astute Medical Inc for 26.5 million USD.
	Acquired Acclarent Inc, a medical technology company in the field of ENT, for 785.0 million USD.
Recent License Deals Summary	Agreement with Ostial Solutions for the worldwide distribution of the OSTIAL PRO Stent Positioning System 2010.
	Agreement with Watson Laboratories Inc to distribute an authorized generic version of CONCERTA.
	Agreement with Merck & Co Inc for marketing rights for CAEYLX outside the US
	Agreement with Diamyd Medical AB to develop and commercialize GAD65 antigen-based therapy.
	Expansion of licensing agreement with the Grünenthal Group to register, manufacture and commercialize
	Tapentadol in additional regions, including selected Asia Pacific, Latin American, African, and New European
	countries including Turkey and Greece.

Company Snapshot:Pfizer

With the Wyeth acquisition in 2009 for $68 billion USD, Pfizer is back into action in M&A , and set a new benchmark in the pharmaceutical industry and allows the company to retain and enhance its leadership of the market. Big-size acquisitions have shaped the company’s sales growth performance over the past decade, with the integration of Wyeth preceded by the purchases of Warner-Lambert (2000) and Pharmacia (2003).
Strategically, however, Pfizer has begun to undergo fundamental change. The loss of patent protection of Lipitor in many developed countries in 2011 already now has a painful impact on the company. This pressure also changed the underlying motive for acquiring Wyeth versus its previous large-scale acquisitions. While Warner-Lambert and Pharmacia were integral in shaping Pfizer’s industry-leading blockbuster growth strategy, Wyeth drives significant diversification at Pfizer as the industry-leading player seeks to navigate its way across a rapidly changing market landscape. Given the historical precedent set by Pfizer over the last
decade, it is worth considering that the company may enter into further large-scale M&A activity before 2015. Considered to have a too meager pipeline, the company will find it increasingly hard to expand via organic means.