Johnson & Johnson Reports 2013 Third-Quarter Results:

Sales of $17.6 Billion increased 3.1% Versus 2012 Third Quarter;

Third-Quarter EPS was $1.04

Excluding Special Items, 2013 Third-Quarter EPS of $1.36 increased 8.8%*

News provided by

Oct 15, 2013, 07:45 ET

NEW BRUNSWICK, N.J., Oct. 15, 2013 /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced sales of $17.6 billion for the third quarter of 2013, an increase of 3.1% as compared to the third quarter of 2012. Operational results increased 4.7% and the negative impact of currency was 1.6%. Domestic sales increased 1.7%. International sales increased 4.2%, reflecting operational growth of 7.1% and a negative currency impact of 2.9%.

Net earnings ** and diluted earnings per share for the third quarter of 2013 were $3.0 billion and $1.04, respectively. The third quarter results included after-tax special items of approximately $0.9 billion, primarily related to an increase in the accrual for litigation expenses, in-process research and development expense, and integration and transaction costs related to the acquisition of Synthes, Inc. Third quarter 2012 net earnings included after-tax special items of approximately $0.6 billion as shown in the accompanying reconciliation of non-GAAP financial measures. Excluding these special items, net earnings for the current quarter were $3.9 billion and diluted earnings per share were $1.36, representing increases of 11.3% and 8.8%, respectively, as compared to the same period in 2012.*

"Our third-quarter results reflect the solid, demonstrable results in achieving our near-term priorities while also advancing our longer term strategic growth drivers," said Alex Gorsky, Chairman and Chief Executive Officer. "Our key products and successful new product launches delivered strong growth. We continue to progress our pipelines with a number of regulatory approvals, the submission of new drug applications, and execution of strategic collaborations. Our investments further strengthen our ability to deliver sustainable growth and bring meaningful innovations to patients and consumers."

The Company increased its earnings guidance for full-year 2013 to $5.44 - $5.49 per share. The Company's guidance excludes the impact of special items.

Worldwide Consumer sales of $3.6 billion for the third quarter represented an increase of 0.8% versus the prior year consisting of an operational increase of 2.0% and a negative impact from currency of 1.2%. Domestic sales increased 0.9%. International sales increased 0.8%, which reflected an operational increase of 2.6% and a negative currency impact of 1.8%.

Positive contributors to operational results were U.S. sales of TYLENOL^®and MOTRIN^®analgesics; upper respiratory over the counter medicines; AVEENO^®skin care products and international baby care products.

Worldwide Pharmaceutical sales of $7.0 billion for the third quarter represented an increase of 9.9% versus the prior year with operational growth of 10.9% and a negative impact from currency of 1.0%. Domestic sales increased 7.9%. International sales increased 12.0% which reflected an operational increase of 14.0% and a negative currency impact of 2.0%.

Primary contributors to operational sales growth were INVEGA^®SUSTENNA^®/XEPLION^® (paliperidone palmitate), a once-monthly, long-acting, injectable atypical antipsychotic for the treatment of schizophrenia in adults; REMICADE^® (infliximab) and SIMPONI^®(golimumab), biologics approved for the treatment of a number of immune-mediated inflammatory diseases; STELARA^® (ustekinumab), a biologic approved for the treatment of moderate to severe plaque psoriasis and psoriatic arthritis; VELCADE^® (bortezomib), a treatment for multiple myeloma; PREZISTA^®(darunavir), a treatment for HIV; and sales of new products.

The strong sales results of new products include ZYTIGA^®(abiraterone acetate), an oral, once-daily medication for use in combination with prednisone for the treatment of metastatic, castration-resistant prostate cancer; XARELTO^®(rivaroxaban), an oral anticoagulant; and INVOKANA^®(canagliflozin) for the treatment of adults with type 2 diabetes.

During the quarter, the European Commission approved SIMPONI^®(golimumab) for the treatment of moderately to severely active ulcerative colitis in adult patients who had an inadequate response to conventional therapy. In addition, the European Commission approved the use of VELCADE^® (bortezomib) as induction therapy in combination with dexamethasone or thalidomide and dexamethasone and applies to adult patients with previously-untreated multiple myeloma who are eligible for high-dose chemotherapy with hematological stem cell transplantation.

Also, during the quarter, the European Commission approved STELARA^®(ustekinumab), alone or in combination with methotrexate, for the treatment of active psoriatic arthritis in adult patients when the response to previous non-biological disease-modifying anti-rheumatic drug therapy has been inadequate, and the U.S. Food and Drug Administration (FDA) approved STELARA^®alone or in combination with methotrexate for the treatment of adult patients (18 years or older) with active psoriatic arthritis. Additionally, the FDA approved SIMPONI^®ARIA™ (golimumab) for infusion for the treatment of adults with moderately to severely active rheumatoid arthritis in combination with methotrexate.

In September, the Committee for Medical Products for Human Use of The European Medicines Agency granted a positive opinion recommending approval of INVOKANA^® (canagliflozin) in the European Union for the treatment of adults with type 2 diabetes mellitus, to improve glycemic control.

In October, we announced the acquisition of the investigational compound GSK2336805, an NS5a replication complex inhibitor in Phase 2 development for the treatment of chronic hepatitis C, from an affiliate of GlaxoSmithKline plc. We acquired all rights to develop and commercialize GSK2336805, including in combination with other drugs.

Worldwide Medical Devices and Diagnostics sales of $6.9 billion for the third quarter represented a decrease of 2.0% versus the prior year consisting of an operational increase of 0.3% and a negative currency impact of 2.3%. Domestic sales decreased 4.2%. International sales decreased 0.1%, which reflected an operational increase of 4.2% and a negative currency impact of 4.3%.

Primary contributors to operational growth were sales from Biosense Webster's electrophysiology products in the Cardiovascular Care business; joint reconstruction products in the Orthopaedics business; international sales in the Surgical Care business; and biosurgical and international sales of energy products in the Specialty Surgery business.

About Johnson & Johnson
Caring for the world, one person at a time, inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our approximately 128,700 employees at more than 275 Johnson & Johnson operating companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

* Net earnings ** and diluted earnings per share excluding 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. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is included in the financial schedules accompanying this press release and can be found in the Investor Relations section of the Company's website at www.investor.jnj.com.

** Net earnings attributable to Johnson & Johnson.

Johnson & Johnson will conduct a conference call with investors to discuss this news 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 at www.investor.jnj.com. A replay and podcast will be available approximately two hours after the live webcast by visiting www.investor.jnj.com.

Copies of the financial schedules accompanying this press release are available at www.investor.jnj.com/historical-sales.cfm. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliation of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including a pharmaceutical pipeline of selected compounds in late stage development can be found on the Company's website at www.investor.jnj.com.

NOTE TO INVESTORS
(This release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. 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 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, general industry conditions and competition; economic factors, such as interest rate and currency exchange rate fluctuations; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approvals; challenges to patents; significant adverse litigation or government action; impact of business combinations; financial distress and bankruptcies experienced by significant customers and suppliers; changes to governmental laws and regulations and domestic and foreign health care reforms; trends toward health care cost containment; increased scrutiny of the health care industry by government agencies; the effects of a continued federal government shutdown including the FDA's ability to take new regulatory submissions and continue review of our existing submissions without delays; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and sovereign risk; disruptions due to natural disasters; manufacturing difficulties or delays; complex global supply chains with increasing regulatory requirements; and product efficacy or safety concerns resulting in product recalls or regulatory action. A further list and description of these risks, uncertainties and other factors can be found in Exhibit 99 of Johnson & Johnson's Annual Report on Form 10-K for the fiscal year ended December 30, 2012. Copies of this Form 10-K, as well as subsequent filings, are available online at www.sec.gov, www.investor.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statements as a result of new information or future events or developments.)

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)				THIRD QUARTER								NINE MONTHS
					Percent Change							Percent Change
		2013	2012		Total		Operations	Currency		2013	2012	Total		Operations	Currency
Sales to customers by segment of business


Consumer
U.S.	$	1,225	1,214		0.9	%	0.9	-	$	3,899	3,843	1.5	%	1.5	-
International		2,386	2,367		0.8		2.6	(1.8)		7,045	6,952	1.3		2.7	(1.4)
		3,611	3,581		0.8		2.0	(1.2)		10,944	10,795	1.4		2.3	(0.9)

Pharmaceutical
U.S.		3,549	3,288		7.9		7.9	-		10,397	9,408	10.5		10.5	-
International		3,487	3,114		12.0		14.0	(2.0)		10,432	9,418	10.8		12.9	(2.1)
		7,036	6,402		9.9		10.9	(1.0)		20,829	18,826	10.6		11.7	(1.1)

Med Devices & Diagnostics
U.S.		3,151	3,289		(4.2)		(4.2)	-		9,600	9,119	5.3		5.3	-
International		3,777	3,780		(0.1)		4.2	(4.3)		11,584	10,926	6.0		10.0	(4.0)
		6,928	7,069		(2.0)		0.3	(2.3)		21,184	20,045	5.7		7.9	(2.2)

U.S.		7,925	7,791		1.7		1.7	-		23,896	22,370	6.8		6.8	-
International		9,650	9,261		4.2		7.1	(2.9)		29,061	27,296	6.5		9.2	(2.7)
Worldwide	$	17,575	17,052		3.1	%	4.7	(1.6)	$	52,957	49,666	6.6	%	8.1	(1.5)

Johnson & Johnson and Subsidiaries
Supplementary Sales Data

(Unaudited; Dollars in Millions)				THIRD QUARTER							NINE MONTHS
				Percent Change							Percent Change
		2013	2012	Total		Operations	Currency		2013	2012	Total		Operations	Currency
Sales to customers by geographic area


U.S.	$	7,925	7,791	1.7	%	1.7	-	$	23,896	22,370	6.8	%	6.8	-

Europe		4,478	3,983	12.4		8.4	4.0		13,631	12,342	10.4		8.6	1.8
Western Hemisphere excluding U.S.		1,842	1,824	1.0		8.0	(7.0)		5,530	5,266	5.0		10.3	(5.3)
Asia-Pacific, Africa		3,330	3,454	(3.6)		5.1	(8.7)		9,900	9,688	2.2		9.2	(7.0)
International		9,650	9,261	4.2		7.1	(2.9)		29,061	27,296	6.5		9.2	(2.7)

Worldwide	$	17,575	$17,052	3.1	%	4.7	(1.6)	$	52,957	$49,666	6.6	%	8.1	(1.5)

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

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

		2013				2012			Percent
				Percent				Percent	Increase
		Amount		to Sales		Amount		to Sales	(Decrease)
Sales to customers	$	17,575		100.0	$	17,052		100.0	3.1
Cost of products sold		5,344		30.4		5,597		32.8	(4.5)
Selling, marketing and administrative expenses		5,314		30.2		5,228		30.6	1.6
Research and development expense		2,042		11.6		1,923		11.3	6.2
In-process research and development		178		1.0		679		4.0
Interest (income) expense, net		87		0.5		120		0.7
Other (income) expense, net		943		5.4		(90)		(0.5)
Earnings before provision for taxes on income		3,667		20.9		3,595		21.1	2.0
Provision for taxes on income		685		3.9		966		5.7	(29.1)
Net earnings		2,982		17.0		2,629		15.4	13.4
Add: Net loss attributable to noncontrolling interest		-		-		339		2.0
Net earnings attributable to Johnson & Johnson	$	2,982		17.0	$	2,968		17.4	0.5

Net earnings per share attributable to Johnson & Johnson (Diluted)	$	1.04				1.05			(1.0)

Average shares outstanding (Diluted)		2,881.2				2,818.1

Effective tax rate		18.7	%			26.9	%

Adjusted earnings before provision for taxes and net earnings attributable to Johnson & Johnson (1)
Earnings before provision for taxes on income	$	4,831		27.5	$	4,525		26.5	6.8
Net earnings attributable to Johnson & Johnson	$	3,919		22.3	$	3,521		20.6	11.3
Net earnings per share attributable to Johnson & Johnson (Diluted)	$	1.36			$	1.25			8.8
Effective tax rate		18.9	%			22.2	%

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

Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings

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

		2013				2012			Percent
				Percent to				Percent to	Increase
		Amount		Sales		Amount		Sales	(Decrease)
Sales to customers	$	52,957		100.0	$	49,666		100.0	6.6
Cost of products sold		16,387		30.9		15,655		31.5	4.7
Selling, marketing and administrative expenses		15,913		30.0		15,208		30.6	4.6
Research and development expense		5,772		10.9		5,334		10.7	8.2
In-process research and development		242		0.5		1,108		2.2
Interest (income) expense, net		292		0.6		379		0.8
Other (income) expense, net		1,630		3.1		1,307		2.7
Earnings before provision for taxes on income		12,721		24.0		10,675		21.5	19.2
Provision for taxes on income		2,409		4.5		2,728		5.5	(11.7)
Net earnings		10,312		19.5		7,947		16.0	29.8
Add: Net loss attributable to noncontrolling interest		-		-		339		0.7
Net earnings attributable to Johnson & Johnson	$	10,312		19.5	$	8,286		16.7	24.5

Net earnings per share attributable to Johnson & Johnson (Diluted)	$	3.58			$	2.96			20.9

Average shares outstanding (Diluted)		2,879.0				2,805.0

Effective tax rate		18.9	%			25.6	%

Adjusted earnings before provision for taxes and net earnings attributable to Johnson & Johnson (1)
Earnings before provision for taxes on income	$	15,260		28.8	$	14,099		28.4	8.2
Net earnings attributable to Johnson & Johnson	$	12,315		23.3	$	10,969		22.1	12.3
Net earnings per share attributable to Johnson & Johnson (Diluted)	$	4.28			$	3.91			9.5
Effective tax rate		19.3	%			22.2	%

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

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

		Third Quarter			% Incr. /			Nine Months YTD			% Incr. /
(Dollars in Millions Except Per Share Data)		2013	2012		(Decr.)			2013		2012	(Decr.)

Earnings before provision for taxes on income - as reported	$	3,667	3,595		2.0	%	$	12,721	$	10,675	19.2	%

Litigation expenses		872	89					1,776		758

In-process research and development		178	679					242		1,108

Synthes integration/transaction costs and currency related		122	165	(1)				502		622

DePuy ASR™Hip program		35	27					117		27

Intangible asset write-downs		-	-					-		939

Other		(43)	(30)					(98)		(30)

Earnings before provision for taxes on income - as adjusted	$	4,831	4,525		6.8	%	$	15,260		14,099	8.2	%

Net Earnings attributable to Johnson & Johnson - as reported	$	2,982	2,968		0.5	%	$	10,312		8,286	24.5	%

Litigation expenses		720	70					1,419		681

In-process research and development		126	340	(2)				168		684

Synthes integration/transaction costs and currency related		103	135					373		593

DePuy ASR™ Hip program		31	24					122		24

Intangible asset write-downs		-	-					-		717

Other		(43)	(16)					(79)		(16)

Net Earnings attributable to Johnson & Johnson - as adjusted	$	3,919	3,521		11.3	%	$	12,315		10,969	12.3	%

Diluted Net Earnings per share attributable to Johnson & Johnson - as reported	$	1.04	1.05		(1.0)	%	$	3.58		2.96	20.9	%

Litigation expenses		0.25	0.02					0.49		0.24

In-process research and development		0.04	0.13					0.06		0.24

Synthes integration/transaction costs and currency related		0.04	0.05					0.13		0.21

DePuy ASR™ Hip program		0.01	0.01					0.04		0.01

Intangible asset write-downs		-	-					-		0.26

Other		(0.02)	(0.01)					(0.02)		(0.01)

Diluted Net Earnings per share attributable to Johnson & Johnson - as adjusted	$	1.36	1.25		8.8	%	$	4.28		3.91	9.5	%


(1) Represents inventory step-up recorded in cost of products sold

(2) In-process research and development of $679M offset by $339M reported as net loss attributable to noncontrolling interest

The Company believes investors gain additional perspective of underlying business trends and results by providing a measure of earnings before provision for taxes on income, net earnings and diluted net earnings per share that excludes special items in order to evaluate ongoing business operations.

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency		2013	2012	Reported	Operational⁽¹⁾	Currency
CONSUMER SEGMENT ^{(2) (4)}
BABY CARE
US	$	99	104	-4.8%	-4.8%	-	$	308	309	-0.3%	-0.3%	-
Intl		461	460	0.2%	4.3%	-4.1%		1,402	1,373	2.1%	5.2%	-3.1%
WW		560	564	-0.7%	2.6%	-3.3%		1,710	1,682	1.7%	4.2%	-2.5%
ORAL CARE
US		142	162	-12.3%	-12.3%	-		449	476	-5.7%	-5.7%	-
Intl		253	251	0.8%	3.2%	-2.4%		755	732	3.1%	4.8%	-1.7%
WW		395	413	-4.4%	-3.0%	-1.4%		1,204	1,208	-0.3%	0.8%	-1.1%
OTC ⁽³⁾
US		310	263	17.9%	17.9%	-		954	801	19.1%	19.1%	-
Intl		665	653	1.8%	2.0%	-0.2%		1,995	1,949	2.4%	2.7%	-0.3%
WW		975	916	6.4%	6.5%	-0.1%		2,949	2,750	7.2%	7.4%	-0.2%
SKIN CARE
US		404	390	3.6%	3.6%	-		1,320	1,314	0.5%	0.5%	-
Intl		520	514	1.2%	2.1%	-0.9%		1,414	1,410	0.3%	0.9%	-0.6%
WW		924	904	2.2%	2.7%	-0.5%		2,734	2,724	0.4%	0.7%	-0.3%
WOMEN'S HEALTH
US		77	81	-4.9%	-4.9%	-		242	254	-4.7%	-4.7%	-
Intl		331	326	1.5%	4.3%	-2.8%		978	964	1.5%	4.2%	-2.7%
WW		408	407	0.2%	2.5%	-2.3%		1,220	1,218	0.2%	2.4%	-2.2%
WOUND CARE/OTHER ⁽³⁾
US		193	214	-9.8%	-9.8%	-		626	689	-9.1%	-9.1%	-
Intl		156	163	-4.3%	-3.0%	-1.3%		501	524	-4.4%	-3.8%	-0.6%
WW		349	377	-7.4%	-6.9%	-0.5%		1,127	1,213	-7.1%	-6.8%	-0.3%

TOTAL CONSUMER
US		1,225	1,214	0.9%	0.9%	-		3,899	3,843	1.5%	1.5%	-
Intl		2,386	2,367	0.8%	2.6%	-1.8%		7,045	6,952	1.3%	2.7%	-1.4%
WW	$	3,611	3,581	0.8%	2.0%	-1.2%	$	10,944	10,795	1.4%	2.3%	-0.9%

See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency		2013	2012	Reported	Operational ⁽¹⁾	Currency
PHARMACEUTICAL SEGMENT ^{(2) (4)}
IMMUNOLOGY
US	$	1,648	1,600	3.0%	3.0%	-	$	4,865	4,524	7.5%	7.5%	-
Intl		695	484	43.6%	47.7%	-4.1%		1,923	1,374	40.0%	43.3%	-3.3%
WW		2,343	2,084	12.4%	13.4%	-1.0%		6,788	5,898	15.1%	15.9%	-0.8%
REMICADE
US		1,013	940	7.8%	7.8%	-		2,909	2,712	7.3%	7.3%	-
US Exports ⁽⁵⁾		291	379	-23.2%	-23.2%	-		972	1,123	-13.4%	-13.4%	-
Intl		385	272	41.5%	46.1%	-4.6%		1,080	800	35.0%	38.2%	-3.2%
WW		1,689	1,591	6.2%	7.0%	-0.8%		4,961	4,635	7.0%	7.5%	-0.5%
SIMPONI
US		111	93	19.4%	19.4%	-		292	220	32.7%	32.7%	-
Intl		155	92	68.5%	74.9%	-6.4%		386	206	87.4%	95.3%	-7.9%
WW		266	185	43.8%	47.0%	-3.2%		678	426	59.2%	63.0%	-3.8%
STELARA
US		233	188	23.9%	23.9%	-		692	469	47.5%	47.5%	-
Intl		137	99	38.4%	38.6%	-0.2%		395	287	37.6%	38.5%	-0.9%
WW		370	287	28.9%	29.0%	-0.1%		1,087	756	43.8%	44.1%	-0.3%
OTHER IMMUNOLOGY
US		-	-	-	-	-		-	-	-	-	-
Intl		18	21	-14.3%	-8.1%	-6.2%		62	81	-23.5%	-21.4%	-2.1%
WW		18	21	-14.3%	-8.1%	-6.2%		62	81	-23.5%	-21.4%	-2.1%
INFECTIOUS DISEASES
US		278	259	7.3%	7.3%	-		775	738	5.0%	5.0%	-
Intl		543	536	1.3%	-0.1%	1.4%		1,831	1,600	14.4%	14.7%	-0.3%
WW		821	795	3.3%	2.4%	0.9%		2,606	2,338	11.5%	11.7%	-0.2%
INCIVO
US		-	-	-	-	-		-	-	-	-	-
Intl		76	71	7.0%	5.3%	1.7%		410	305	34.4%	36.1%	-1.7%
WW		76	71	7.0%	5.3%	1.7%		410	305	34.4%	36.1%	-1.7%
INTELENCE
US		47	45	4.4%	4.4%	-		138	130	6.2%	6.2%	-
Intl		45	49	-8.2%	-9.2%	1.0%		146	135	8.1%	8.1%	0.0%
WW		92	94	-2.1%	-2.6%	0.5%		284	265	7.2%	7.2%	0.0%
PREZISTA
US		215	181	18.8%	18.8%	-		578	507	14.0%	14.0%	-
Intl		195	183	6.6%	4.4%	2.2%		634	554	14.4%	14.0%	0.4%
WW		410	364	12.6%	11.5%	1.1%		1,212	1,061	14.2%	14.0%	0.2%
OTHER INFECTIOUS DISEASES
US		16	33	-51.5%	-51.5%	-		59	101	-41.6%	-41.6%	-
Intl		227	233	-2.6%	-3.4%	0.8%		641	606	5.8%	6.0%	-0.2%
WW		243	266	-8.6%	-9.3%	0.7%		700	707	-1.0%	-0.8%	-0.2%

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency		2013	2012	Reported	Operational ⁽¹⁾	Currency

NEUROSCIENCE
US		601	678	-11.4%	-11.4%	-		1,973	2,010	-1.8%	-1.8%	-
Intl		991	990	0.1%	4.6%	-4.5%		3,043	3,019	0.8%	4.6%	-3.8%
WW		1,592	1,668	-4.6%	-1.9%	-2.7%		5,016	5,029	-0.3%	2.0%	-2.3%
CONCERTA/METHYLPHENIDATE
US		38	150	-74.7%	-74.7%	-		262	493	-46.9%	-46.9%	-
Intl		104	104	0.0%	3.5%	-3.5%		351	337	4.2%	6.6%	-2.4%
WW		142	254	-44.1%	-42.7%	-1.4%		613	830	-26.1%	-25.1%	-1.0%
INVEGA
US		82	78	5.1%	5.1%	-		229	223	2.7%	2.7%	-
Intl		65	62	4.8%	11.0%	-6.2%		200	180	11.1%	16.9%	-5.8%
WW		147	140	5.0%	7.8%	-2.8%		429	403	6.5%	9.1%	-2.6%
INVEGA SUSTENNA/ XEPLION
US		180	130	38.5%	38.5%	-		502	350	43.4%	43.4%	-
Intl		144	82	75.6%	72.9%	2.7%		396	218	81.7%	80.1%	1.6%
WW		324	212	52.8%	51.7%	1.1%		898	568	58.1%	57.5%	0.6%
RISPERDAL CONSTA
US		114	113	0.9%	0.9%	-		327	336	-2.7%	-2.7%	-
Intl		212	238	-10.9%	-8.7%	-2.2%		670	731	-8.3%	-6.1%	-2.2%
WW		326	351	-7.1%	-5.6%	-1.5%		997	1,067	-6.6%	-5.1%	-1.5%
OTHER NEUROSCIENCE
US		187	207	-9.7%	-9.7%	-		653	608	7.4%	7.4%	-
Intl		466	504	-7.5%	-0.7%	-6.8%		1,426	1,553	-8.2%	-2.8%	-5.4%
WW		653	711	-8.2%	-3.4%	-4.8%		2,079	2,161	-3.8%	0.1%	-3.9%
ONCOLOGY
US		227	145	56.6%	56.6%	-		632	371	70.4%	70.4%	-
Intl		754	483	56.1%	57.1%	-1.0%		2,028	1,439	40.9%	42.9%	-2.0%
WW		981	628	56.2%	57.0%	-0.8%		2,660	1,810	47.0%	48.6%	-1.6%
VELCADE
US		-	-	-	-	-		-	-	-	-	-
Intl		404	327	23.5%	26.3%	-2.8%		1,136	998	13.8%	16.7%	-2.9%
WW		404	327	23.5%	26.3%	-2.8%		1,136	998	13.8%	16.7%	-2.9%
ZYTIGA
US		204	136	50.0%	50.0%	-		539	349	54.4%	54.4%	-
Intl		260	129	*	97.1%	4.5%		664	348	90.8%	89.1%	1.7%
WW		464	265	75.1%	72.9%	2.2%		1,203	697	72.6%	71.7%	0.9%
OTHER ONCOLOGY
US		23	9	*	*	-		93	22	*	*	-
Intl		90	27	*	*	-5.2%		228	93	*	*	-5.7%
WW		113	36	*	*	-3.8%		321	115	*	*	-4.6%

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency		2013	2012	Reported	Operational ⁽¹⁾	Currency
TOTAL OTHER
US		795	606	31.2%	31.2%	-		2,152	1,765	21.9%	21.9%	-
Intl		504	621	-18.8%	-18.8%	0.0%		1,607	1,986	-19.1%	-18.7%	-0.4%
WW		1,299	1,227	5.9%	5.9%	0.0%		3,759	3,751	0.2%	0.4%	-0.2%
ACIPHEX/PARIET
US		89	80	11.3%	11.3%	-		289	280	3.2%	3.2%	-
Intl		44	115	-61.7%	-62.0%	0.3%		152	369	-58.8%	-58.7%	-0.1%
WW		133	195	-31.8%	-32.0%	0.2%		441	649	-32.0%	-32.0%	0.0%
PROCRIT/EPREX
US		204	198	3.0%	3.0%	-		627	634	-1.1%	-1.1%	-
Intl		140	161	-13.0%	-14.4%	1.4%		430	502	-14.3%	-14.9%	0.6%
WW		344	359	-4.2%	-4.8%	0.6%		1,057	1,136	-7.0%	-7.3%	0.3%
XARELTO
US		246	68	*	*	-		593	144	*	*	-
Intl		-	-	-	-	-		-	-	-	-	-
WW		246	68	*	*	-		593	144	*	*	-
OTHER
US		256	260	-1.5%	-1.5%	-		643	707	-9.1%	-9.1%	-
Intl		320	345	-7.2%	-6.4%	-0.8%		1,025	1,115	-8.1%	-7.2%	-0.9%
WW		576	605	-4.8%	-4.4%	-0.4%		1,668	1,822	-8.5%	-7.9%	-0.6%

TOTAL PHARMACEUTICAL
US		3,549	3,288	7.9%	7.9%	-		10,397	9,408	10.5%	10.5%	-
Intl		3,487	3,114	12.0%	14.0%	-2.0%		10,432	9,418	10.8%	12.9%	-2.1%
WW	$	7,036	6,402	9.9%	10.9%	-1.0%	$	20,829	18,826	10.6%	11.7%	-1.1%



See footnotes at end of schedule

	REPORTED SALES vs. PRIOR PERIOD ($MM)
	THIRD QUARTER						NINE MONTHS
				% Change						% Change
		2013	2012	Reported	Operational ⁽¹⁾	Currency		2013	2012	Reported	Operational ⁽¹⁾	Currency
MEDICAL DEVICES AND DIAGNOSTICS ⁽²⁾
CARDIOVASCULAR CARE
US	$	196	195	0.5%	0.5%	-	$	598	566	5.7%	5.7%	-
Intl		305	298	2.3%	6.6%	-4.3%		945	913	3.5%	7.5%	-4.0%
WW		501	493	1.6%	4.2%	-2.6%		1,543	1,479	4.3%	6.8%	-2.5%
DIABETES CARE
US		237	328	-27.7%	-27.7%	-		779	1,017	-23.4%	-23.4%	-
Intl		320	301	6.3%	6.5%	-0.2%		967	955	1.3%	2.2%	-0.9%
WW		557	629	-11.4%	-11.3%	-0.1%		1,746	1,972	-11.5%	-11.0%	-0.5%
DIAGNOSTICS
US		222	256	-13.3%	-13.3%	-		711	767	-7.3%	-7.3%	-
Intl		237	257	-7.8%	-2.8%	-5.0%		708	772	-8.3%	-4.1%	-4.2%
WW		459	513	-10.5%	-8.0%	-2.5%		1,419	1,539	-7.8%	-5.7%	-2.1%
INFECTION PREVENTION/OTHER
US		91	98	-7.1%	-7.1%	-		271	313	-13.4%	-13.4%	-
Intl		129	134	-3.7%	4.3%	-8.0%		395	393	0.5%	6.9%	-6.4%
WW		220	232	-5.2%	-0.5%	-4.7%		666	706	-5.7%	-2.1%	-3.6%
ORTHOPAEDICS
US		1,232	1,242	-0.8%	-0.8%	-		3,767	2,898	30.0%	30.0%	-
Intl		1,051	1,048	0.3%	3.4%	-3.1%		3,286	2,513	30.8%	34.3%	-3.5%
WW		2,283	2,290	-0.3%	1.1%	-1.4%		7,053	5,411	30.3%	31.9%	-1.6%
SPECIALTY SURGERY
US		321	308	4.2%	4.2%	-		971	971	0.0%	0.0%	-
Intl		305	289	5.5%	9.2%	-3.7%		938	900	4.2%	7.2%	-3.0%
WW		626	597	4.9%	6.7%	-1.8%		1,909	1,871	2.0%	3.4%	-1.4%
SURGICAL CARE
US		587	602	-2.5%	-2.5%	-		1,695	1,797	-5.7%	-5.7%	-
Intl		947	949	-0.2%	3.9%	-4.1%		2,935	3,019	-2.8%	0.6%	-3.4%
WW		1,534	1,551	-1.1%	1.4%	-2.5%		4,630	4,816	-3.9%	-1.8%	-2.1%
VISION CARE
US		265	260	1.9%	1.9%	-		808	790	2.3%	2.3%	-
Intl		483	504	-4.2%	4.9%	-9.1%		1,410	1,461	-3.5%	4.3%	-7.8%
WW		748	764	-2.1%	3.9%	-6.0%		2,218	2,251	-1.5%	3.6%	-5.1%

TOTAL MEDICAL DEVICES AND DIAGNOSTICS
US		3,151	3,289	-4.2%	-4.2%	-		9,600	9,119	5.3%	5.3%	-
Intl		3,777	3,780	-0.1%	4.2%	-4.3%		11,584	10,926	6.0%	10.0%	-4.0%
WW	$	6,928	7,069	-2.0%	0.3%	-2.3%	$	21,184	20,045	5.7%	7.9%	-2.2%

* Percentage greater than 100%
(1) Operational growth excludes the effect of currency
(2) Select areas (unaudited)
(3) Nutritionals now reflected in Wound Care/Other, previously reported in OTC/Nutritionals
(4) Prior year amounts have been reclassified to conform to current year product disclosure
(5) Reported as U.S. sales