Innovation at the forefront

Food & Drug Packaging, July, 2005 by Joanna Cosgrove

Last year Johnson & Johnson rode a wave of ups and downs with alliances, acquisitions and new products,

For starters, J&J announced plans to purchase Guidant Corp. for $25.4 billion--a transaction defined as the largest acquisition in company history--then found itself on the defensive when Guidant disclosed the possibility of defects in 50,000 of its implantable defibrillators last month. At press time J&J had issued a statement indicating a continued willingness to work toward the planned deal completion, scheduled for the third quarter of 2005, no doubt because so much is riding on the union.

In his annual address to shareholders, J&J Board Chairman and Chief Executive Officer William Weldon looked forward to Guidant's anticipated merger with J&J's Cordis unit, noting that the union will create an "unparalleled" cardiovascular device business, boosting and balancing J&J's product portfolio to roughly 42% pharmaceuticals; 41% medical devices and diagnostics; and 17% consumer products.

Cordis was also subjected to tough criticism regarding its Cypher[R] sirolimus-eluting stent--the most studied drug-eluting stent to date. In April and July the Food and Drug Administration (FDA) issued warning letters regarding Good Manufacturing Practice and Good Clinical Practice regulations. Cordis has since made several improvements to its quality system and is being reinspected by the FDA.

Other key acquisitions included the $12 million merger with Alza, a drug and drug-delivery system maker, and the acquisition of Peninsula Pharmaceuticals by J&J's Ortho-McNeil arm. The company also finalized the acquisition of Closure Medical--a partner that J&J has worked with since 1996 to develop topical adhesives.

J&J's Ethicon Endo-Surgery's various subdivisions unveiled a plethora of device solutions in 2004. A few of the highlights were: Embrace[TM] heart stabilizer (CardioVations Div.); and Pillcam ESO[TM], a miniature color video camera in a pill that helps doctors diagnose and evaluate diseases of the esophagus (InScope Div.).

In other new product developments, the DePuy Orthopaedics segment delivered the first artificial lumbar disc available in the U.S. when the FDA approved the Charite[TM] Artificial Disc in October.

Alza received an approvable letter from the FDA for Ionsys[TM] (Patient Controlled Transdermal System), the novel system that uses the company's proprietary E-Trans[R] technology. Ionsys is a needle-free, credit card-sized system containing the active drug fentanyl HC1. Designed to adhere to the upper arm or chest, Ionsys is activated by the patient as needed, to deliver a preprogrammed dose through the skin, which is absorbed into the blood stream.

As evidenced by the snapshot of new devices and products mentioned above, J&J's leadership is rooted in innovation. And as Wedon aptly summarized, this industry leader has had a great year and is looking ahead with enthusiasm.