A LETTER FROM OUR LEADERS

At the Janssen Pharmaceutical Companies of Johnson & Johnson, we’re conquering sickness with science and hopelessness with heart. We’re committed to discovering and developing transformational medicines that make a difference for patients facing some of the world’s most challenging diseases.

In order for society, communities, and individuals to benefit from breakthrough medicines, we must ensure that the people who need medicines can get them. We know that in today’s complex health care system patients and families are increasingly concerned about their ability to access and afford health care, including prescription medicines. These concerns have rightfully led to calls for greater transparency into the business of health care.

At Janssen, we are proud of our leadership in transparency and responsible business practices. With the release of the second annual Janssen U.S. Transparency Report, we continue to hold ourselves accountable to those we serve by providing more information about how we operate. This includes expanding on last year’s report to include new information and disclosures related to our research and development process, the value of medicines, and the advantages of moving to a more results-based health care system. As you read the report, here is what you will learn:

  • Taubert, Jennifer Photo 2015 Square.jpg
    Jennifer Taubert
    Company Group Chairman,
    The Americas, Pharmaceuticals,
    Johnson & Johnson
  • Anastasia-headshot.jpg
    Anastasia G. Daifotis, M.D.
    Chief Scientific Officer,
    Janssen North America Pharmaceuticals

  • Our Investments:

    How we invest our resources in the development of new medicines and how this investment compares with what we spend to market and sell our medicines.

  • Value:

    Our principles for determining the value of our medicines and the role value assessments should play in shaping decisions about health care.

  • Pricing & Patient Access:

    Our approach to pricing, the monetary value of rebates and discounts we paid, and the net impact of price on our business; how we work with health insurers and other payers to make our medicines available to patients; and what we are doing to implement results-based health care solutions that deliver better care at a lower cost.

  • Resources for Patients:

    What we do to help patients access our medicines and the resources that are available to them.

We want this information to be useful to all our stakeholders: patients, families, caregivers, and advocates, who are asking questions about out-of-pocket costs for medicines and what resources are available to help them; health care professionals, who are increasingly being asked to consider the overall value of the medicines they prescribe; policymakers, who are working to make policy changes to help their constituents get the care they need; and others in the health care system, like payers, who consider value and price information when they make decisions about coverage and access.

Addressing the challenges in our health care system will require more than just greater transparency. Our current system rewards the quantity or volume of care delivered, regardless of the results of that care. Consequently, sometimes we spend money on treatments, diagnostic procedures, and interventions that provide limited value or may not even be needed, driving up health care costs without actually improving patient health. And when we waste money on what doesn’t work, we have less money to spend on what does work — meaning that patients increasingly struggle to access the care and treatments they need.

As part of the world’s most broadly based health care company, we apply our expertise and resources to find solutions that reward results rather than quantity of care. If every stakeholder in the health care system, including pharmaceutical companies like ours, were held accountable for results, we could improve the quality of and access to care — and deliver it at a more manageable cost.

At Janssen, we stand as a committed partner in advancing a more results based health care system. We are working with payers to pilot new ways to pay for medicines based on the results they deliver. We are partnering with government and provider organizations to explore outcomes-based care models. We are conducting population health research to address quality, such as reducing hospital readmission rates. And, most importantly, we continue to research and develop medicines that have a meaningful impact on the lives of patients and improve the value of health care overall.

Spurring this kind of change is not easy and will take time, but we are heartened by the progress of these initiatives and partnerships. We hope that by providing even more transparency into how we operate, we can continue to make progress toward a more results-based health care system that meets the needs of patients today and patients tomorrow.

Sincerely,

  • jennifer-sig.png
    Jennifer Taubert
    Company Group Chairman,
    The Americas, Pharmaceuticals,
    Johnson & Johnson
  • anastasia-sig.png
    Anastasia G. Daifotis, M.D.
    Chief Scientific Officer,
    Janssen North America Pharmaceuticals

About.png

The 2017 Janssen U.S. Transparency Report is our second annual report providing greater transparency into our business operations.

The report provides an inside look at how we at the Janssen Pharmaceutical Companies of Johnson & Johnson put our values into practice across our U.S. business, from how we choose to invest our resources in the development of new treatments, to how we value and price our medicines, to how we work to support access to our medicines.

By the Numbers: Janssen in 2017
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The information provided in this report pertains to Janssen’s U.S. operations, except where indicated otherwise. In June 2017, Johnson & Johnson completed the acquisition of Actelion Ltd, a leader in pulmonary arterial hypertension. The data and disclosures in this report do not include information about Actelion, as integration was underway throughout 2017. U.S. Actelion information will be incorporated into the 2018 Janssen U.S. Transparency Report, which will reflect Actelion’s first full year as part of the Janssen Pharmaceutical Companies of Johnson & Johnson.

All financial data in this report follow the concept of a fiscal year, which normally consists of 52 weeks. Other disclosures in this report cover the period between January 1, 2017 and December 31, 2017; any exceptions are noted. Analyses conducted for the purposes of this report may be different from the methodologies used by other companies. The data have not been audited and should not be read in conjunction with our filings with the Securities and Exchange Commission.

This report is not intended to address all our corporate disclosures, though throughout this report we refer to additional resources where readers can find more information about specific Janssen and Johnson & Johnson programs and disclosures. Financial performance information of our parent company, Johnson & Johnson, and its subsidiaries can be found in Johnson & Johnson Annual Reports, available at jnj.com/about-jnj/annual-reports. Information on Johnson & Johnson environmental, social, and governance measures can be found in the Johnson & Johnson Health for Humanity Report, available at healthforhumanityreport.jnj.com. This report and a one-page executive summary are also available to read and download at janssen.com/2017ustransparencyreport.

2017
JANSSEN U.S. TRANSPARENCY REPORT