0000200406 2008-06-29 0000200406 2007-12-30 0000200406 2009-03-30 2009-06-28 0000200406 2008-03-31 2008-06-29 0000200406 2007-12-31 2008-06-29 0000200406 2008-12-28 0000200406 2009-06-28 0000200406 2009-07-26 0000200406 2008-12-29 2009-06-28 iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left"> </div>  <div align="left" style="font-size: 10pt; margin-top: 0pt"> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">NOTE 1 — The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of Johnson & Johnson and its Subsidiaries (the “Company”) and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2008. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">During the fiscal second quarter of 2009, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 165, <i>Subsequent Events</i>. This statement establishes standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. See Note 13 for additional information. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">During the fiscal first quarter of 2009, the Company adopted SFAS No. 141(R), <i>Business Combinations</i>, and No. 160, <i>Noncontrolling Interests in Consolidated Financial Statements</i>. These statements aim to improve, simplify, and converge internationally, the accounting for business combinations and the reporting of noncontrolling interests in consolidated financial statements. These statements have a significant impact on the manner in which the Company accounts for acquisitions beginning in the fiscal year 2009. Significant changes include the capitalization of in process research and development (IPR&D), expensing of acquisition related restructuring actions and transaction related costs and the recognition of contingent purchase price consideration at fair value at the acquisition date. In addition, changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period will be recognized in earnings rather than as an adjustment to the cost of acquisition. This accounting treatment for taxes is applicable to acquisitions that occurred both prior and subsequent to the adoption of SFAS No. 141(R). Noncontrolling interests as related to Johnson & Johnson’s financial statements are insignificant. The adoption of SFAS No. 141(R) and SFAS No. 160 did not have a material impact on the Company’s results of operations, cash flows or financial position. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">During the fiscal first quarter of 2009, the Company adopted SFAS Statement No. 161, <i>Disclosures About Derivative Instruments and Hedging Activities, </i>to enhance the disclosure regarding the Company’s derivative and hedging activities to improve the transparency of financial reporting. The adoption of SFAS No. 161 did not have a significant impact on the Company’s results of operations, cash flows or financial position. See Note 2 for enhanced disclosures. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt">EITF Issue 07-1: <i>Accounting for Collaborative Arrangements Related to the Development and Commercialization of Intellectual Property. </i>This issue is effective for financial statements issued for fiscal years beginning after December 15, 2008 and was adopted by the Company in the fiscal first quarter of 2009. This issue addresses the income statement classification of payments made between parties in a collaborative arrangement. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company enters into collaborative arrangements, typically with other pharmaceutical or biotechnology companies, to develop and commercialize drug candidates or intellectual property. These arrangements typically involve two (or more) parties who are active participants in the collaboration and are exposed to significant risks and rewards dependent on the commercial success of the activities. These collaborations usually involve various activities by one or more parties, including research and development, marketing and selling and distribution. Often, these collaborations require upfront, milestone and royalty or profit share payments, contingent upon the occurrence of certain future events linked to the success of the asset in development. Amounts due from collaborative partners related to development activities are generally reflected as a reduction of research and development expense because the performance of contract development services is not central to the Company’s operations. In general, the income statement presentation for these collaborations is as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="45%"> </td> <td width="10%"> </td> <td width="45%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Nature / Type of Collaboration</b></td> <td> </td> <td nowrap="nowrap" align="right"><b>Statement of Earnings Presentation</b></td> </tr>   <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Third party sale of product </div></td> <td> </td> <td align="right" valign="top">Sales to customers</td> </tr> <tr valign="bottom"> <td valign="top" nowrap="nowrap"> <div style="margin-left:0px; text-indent:-0px">Royalties / milestones paid to collaborative partner (post-regulatory approval)* </div></td> <td> </td> <td align="right" valign="top">Cost of goods sold</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Royalties received from collaborative partner </div></td> <td> </td> <td align="right" valign="top">Other income (expense), net</td> </tr> <tr valign="bottom"> <td valign="top" nowrap="nowrap"> <div style="margin-left:0px; text-indent:-0px">Upfront payments & milestones paid to collaborative partner (pre-regulatory approval) </div></td> <td> </td> <td align="right" valign="top">Research expense</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Research and development payments to collaborative partner </div></td> <td> </td> <td align="right" valign="top">Research expense</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Research and development payments received from collaborative partner </div></td> <td> </td> <td align="right" valign="top">Reduction of Research expense</td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">*</td> <td> </td> <td>Milestones are capitalized as intangible assets and amortized to cost of goods sold over the useful life.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 6pt">The impact of the adoption of EITF Issue 07-1 related to all collaboration agreements that existed as of June 28, 2009 and December 28, 2008 was immaterial to the Company’s results of operations, cash flows or financial position. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">EITF Issue 08-7: <i>Accounting for Defensive Intangible Assets</i>. This issue is effective for financial statements issued for fiscal years beginning after December 15, 2008 and was adopted by the Company in the fiscal first quarter of 2009. This issue applies to acquired intangible assets in situations in which an entity does not intend to actively use the asset but intends to hold the asset to prevent others from obtaining access to the asset, except for intangible assets that are used in research and development activities. The adoption of EITF 08-7 did not have a significant impact on the Company’s results of operations, cash flows or financial position. </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt">NOTE 10 — PENSIONS AND OTHER POSTRETIREMENT BENEFITS </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Components of Net Periodic Benefit Cost <br /> <br style="font-size: 6pt" />Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the fiscal second quarters of 2009 and 2008 include the following components: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #ffffff">Retirement Plans</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #ffffff">Other Benefit Plans</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #ffffff">Fiscal Quarters Ended</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">June 28,</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">June 29,</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">June 28,</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">June 29,</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #ffffff">(Dollars in Millions)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost </div></td> <td> </td> <td align="right">$</td> <td align="right">116</td> <td> </td> <td> </td> <td> </td> <td align="right">126</td> <td> </td> <td> </td> <td> </td> <td align="right">36</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">182</td> <td> </td> <td> </td> <td> </td> <td align="right">178</td> <td> </td> <td> </td> <td> </td> <td align="right">42</td> <td> </td> <td> </td> <td> </td> <td align="right">42</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected return on plan assets </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(227</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(222</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of prior service cost </div></td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of net transition asset </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Recognized actuarial losses </div></td> <td> </td> <td> </td> <td align="right">41</td> <td> </td> <td> </td> <td> </td> <td align="right">16</td> <td> </td> <td> </td> <td> </td> <td align="right">14</td> <td> </td> <td> </td> <td> </td> <td align="right">17</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net periodic benefit cost </div></td> <td> </td> <td align="right">$</td> <td align="right">116</td> <td> </td> <td> </td> <td> </td> <td align="right">102</td> <td> </td> <td> </td> <td> </td> <td align="right">91</td> <td> </td> <td> </td> <td> </td> <td align="right">92</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">Net periodic benefit cost for the Company’s defined benefit retirement plans and other benefit plans for the first fiscal six months of 2009 and 2008 include the following components: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #ffffff">Retirement Plans</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #ffffff">Other Benefit Plans</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #ffffff">Fiscal Six Months Ended</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">June 28,</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">June 29,</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">June 28,</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">June 29,</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #ffffff">(Dollars in Millions)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">2008</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">2009</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3">2008</td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost </div></td> <td> </td> <td align="right">$</td> <td align="right">234</td> <td> </td> <td> </td> <td> </td> <td align="right">255</td> <td> </td> <td> </td> <td> </td> <td align="right">70</td> <td> </td> <td> </td> <td> </td> <td align="right">71</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">367</td> <td> </td> <td> </td> <td> </td> <td align="right">357</td> <td> </td> <td> </td> <td> </td> <td align="right">85</td> <td> </td> <td> </td> <td> </td> <td align="right">83</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected return on plan assets </div></td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(455</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(446</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of prior service cost </div></td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">6</td> <td> </td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="right"> </td> <td align="right">(3</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of net transition asset </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Recognized actuarial losses </div></td> <td> </td> <td> </td> <td align="right">82</td> <td> </td> <td> </td> <td> </td> <td align="right">35</td> <td> </td> <td> </td> <td> </td> <td align="right">28</td> <td> </td> <td> </td> <td> </td> <td align="right">33</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net periodic benefit cost </div></td> <td> </td> <td align="right">$</td> <td align="right">234</td> <td> </td> <td> </td> <td> </td> <td align="right">208</td> <td> </td> <td> </td> <td> </td> <td align="right">180</td> <td> </td> <td> </td> <td> </td> <td align="right">183</td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">Company Contributions </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">For the fiscal six months ended June 28, 2009, the Company contributed $568 million and $13 million to its U.S. and international retirement plans, respectively. In 2006, Congress passed the Pension Protection Act of 2006. The Act amended the Employee Retirement Income Security Act (ERISA) for plan years beginning after 2007 and established new minimum funding standards for U.S. employer defined benefit plans. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. International plans are funded in accordance with local regulations. </div> </div> </body> </html>

<html> <head></head> <body>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt">NOTE 12 — LEGAL PROCEEDINGS PRODUCT LIABILITY </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s subsidiaries are involved in numerous product liability cases in the United States, many of which concern alleged adverse reactions to drugs and medical devices. The damages claimed are substantial, and while the Company is confident of the adequacy of the warnings and instructions for use that accompany such products, it is not feasible to predict the ultimate outcome of litigation. However, the Company believes that if any product liability results from such cases, it will be substantially covered by existing amounts accrued in the Company’s balance sheet and, where available, by third-party product liability insurance. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Multiple products of Johnson & Johnson subsidiaries are subject to numerous product liability claims and lawsuits, including ORTHO EVRA<sup style="font-size: 85%; vertical-align: text-top">®</sup>, RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup>, DURAGESIC<sup style="font-size: 85%; vertical-align: text-top">®</sup>, LEVAQUIN<sup style="font-size: 85%; vertical-align: text-top">®</sup>, the CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup> Stent and the CHARITÉ™ Artificial Disc. There are approximately 565 claimants who have pending lawsuits or claims regarding injuries allegedly due to ORTHO EVRA<sup style="font-size: 85%; vertical-align: text-top">®</sup>, 452 with respect to RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup>, 279 with respect to CHARITÉ™, 152 with respect to LEVAQUIN<sup style="font-size: 85%; vertical-align: text-top">®</sup> 101 with respect to DURAGESIC<sup style="font-size: 85%; vertical-align: text-top">®</sup> and 56 with respect to CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup>. These claimants seek substantial compensatory and, where available, punitive damages. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">With respect to RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup>, the Attorneys General of eight states and the Office of General Counsel of the Commonwealth of Pennsylvania have filed actions seeking reimbursement of Medicaid or other public funds for RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup> prescriptions written for off-label use, compensation for treating their citizens for alleged adverse reactions to RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup>, civil fines or penalties, punitive damages, or other relief. The Attorney General of Texas has joined a qui tam action in that state seeking similar relief. Certain of these actions also seek injunctive relief relating to the promotion of RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup>. The Attorneys General of more than 40 other states have indicated a potential interest in pursuing similar litigation against the Company’s Janssen subsidiary (now Ortho-McNeil-Janssen Pharmaceuticals Inc.) (OMJPI), and have obtained a tolling agreement staying the running of the statute of limitations while they inquire into the issues. In addition, there are six cases filed by union health plans seeking damages for alleged overpayments for RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup>, several of which seek certification as class actions. In the case brought by the Attorney General of West Virginia, based on claims for alleged consumer fraud as to DURAGESIC<sup style="font-size: 85%; vertical-align: text-top">®</sup> as well as RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup>, Janssen (now OMJPI) was found liable and damages were assessed at $4.5 million. OMJPI intends to appeal. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Numerous claims and lawsuits in the United States relating to the drug PROPULSID<sup style="font-size: 85%; vertical-align: text-top">®</sup>, withdrawn from general sale by the Company’s Janssen (now OMJPI) subsidiary in 2000, have been resolved or are currently enrolled in settlement programs with an aggregate cap below $100 million. Litigation concerning PROPULSID<sup style="font-size: 85%; vertical-align: text-top">®</sup> is pending in Canada, where a class action of persons alleging adverse reactions to the drug has been certified. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">AFFIRMATIVE STENT PATENT LITIGATION </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In patent infringement actions tried in Delaware Federal District Court in late 2000, Cordis Corporation (Cordis), a subsidiary of Johnson & Johnson, obtained verdicts of infringement and patent validity, and damage awards against Boston Scientific Corporation (Boston Scientific) and Medtronic AVE, Inc. (Medtronic) based on a number of Cordis vascular stent patents. In December 2000, the jury in the damage action against Boston Scientific returned a verdict of $324 million and the jury in the Medtronic action returned a verdict of $271 million. The Court of Appeals for the Federal Circuit has upheld liability in these cases, and on September 30, 2008, the district court entered judgments, including interest, in the amounts of $702 million and $521 million against Boston Scientific and Medtronic, respectively. Medtronic paid $472 million in October 2008, representing the judgment, net of amounts exchanged in settlement of a number of other litigations between the companies. The net settlement of $472 million was recorded as a credit to other (income) expense, net in the 2008 consolidated statement of earnings. The $702 million judgment against Boston Scientific is not reflected in the Company’s financial statements as Boston Scientific has appealed the judgments, and no amounts have been received to date. In May 2009, Medtronic paid $270 million to settle additional patent infringement claims asserted by Cordis based on its vascular stent patents. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In January 2003, Cordis filed a patent infringement action against Boston Scientific in Delaware Federal District Court accusing its Express2™, Taxus<sup style="font-size: 85%; vertical-align: text-top">®</sup> and Liberte<sup style="font-size: 85%; vertical-align: text-top">®</sup> stents of infringing the Palmaz patent that expired in November 2005. The Liberte<sup style="font-size: 85%; vertical-align: text-top">®</sup> stent was also accused of infringing Cordis’ Gray patent that expires in 2016. In June 2005, a jury found that the Express2™, Taxus<sup style="font-size: 85%; vertical-align: text-top">®</sup> and Liberte<sup style="font-size: 85%; vertical-align: text-top">®</sup> stents infringed the Palmaz patent and that the Liberte<sup style="font-size: 85%; vertical-align: text-top">®</sup> stent also infringed the Gray patent. On March 31, 2009, the U.S. Court of Appeals for the Federal Circuit affirmed this judgment. The case has been remanded to the district court for a trial on damages and willfulness. Cordis also filed a lawsuit in Delaware Federal District Court in October of 2008 alleging that Boston Scientific’s sale of Taxus<sup style="font-size: 85%; vertical-align: text-top">®</sup> Liberte<sup style="font-size: 85%; vertical-align: text-top">®</sup> since June of 2005 infringes Cordis’ Gray patent. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Cordis has filed several lawsuits in New Jersey Federal District Court against Guidant Corporation (Guidant), Abbott Laboratories, Inc. (Abbott), Boston Scientific and Medtronic alleging that the Xience V™ (Abbott), Promus™ (Boston Scientific) and Endeavor<sup style="font-size: 85%; vertical-align: text-top">®</sup> (Medtronic) drug eluting stents infringe several patents owned by or licensed to Cordis. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">PATENT LITIGATION AGAINST VARIOUS JOHNSON & JOHNSON SUBSIDIARIES </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The products of various Johnson & Johnson subsidiaries are the subject of various patent lawsuits, the outcomes of which could potentially adversely affect the ability of those subsidiaries to sell those products, or require the payment of past damages and future royalties. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In July 2005, a jury in Federal District Court in Delaware found that the Cordis CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup> Stent infringed Boston Scientific’s Ding ‘536 patent and that the Cordis CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup> and BX VELOCITY<sup style="font-size: 85%; vertical-align: text-top">®</sup> Stents also infringed Boston Scientific’s Jang ‘021 patent. The jury also found both of those patents valid. Boston Scientific seeks substantial damages and an injunction in those actions. Cordis appealed. On January 15, 2009, the Court of Appeals for the Federal Circuit held the Ding patent invalid. In March of 2009, the Court of Appeals for the Federal Circuit denied Boston Scientific’s motion for reconsideration. On March 31, 2009, the Court of Appeals for the Federal Circuit upheld the judgment that Cordis’ CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup> stent infringed Boston Scientific’s Jang patent. The Court of Appeals denied Cordis’ application for reconsideration. The case has been remanded for a trial on the issues of damages and willfulness. Boston Scientific is not seeking injunctive relief. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In Germany, Boston Scientific has several actions based on its Ding patents pending against the Cordis CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup> Stent. Cordis was successful in these actions at the trial level, but Boston Scientific has appealed. Boston Scientific has brought actions in Belgium, the Netherlands, Germany, France and Italy under its Kastenhofer patent, which purports to cover two-layer catheters such as those used to deliver the CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup> Stent, to enjoin the manufacture and sale of allegedly infringing catheters in those countries, and to recover damages. A decision by the lower court in the Netherlands in Boston Scientific’s favor was reversed on appeal in April 2007. Boston Scientific has filed an appeal to the Dutch Supreme Court. In October 2007, Boston Scientific prevailed in the nullity action challenging the validity of the Kastenhofer patent filed by Cordis in Germany. Cordis has appealed. No substantive hearings have been scheduled in the French or Italian actions. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Trial in Boston Scientific’s U.S. case based on the Kastenhofer patent in Federal District Court in California concluded in October 2007 with a jury finding that the patent was invalid. The jury also found for Cordis on its counterclaim that sale by Boston Scientific of its balloon catheters and stent delivery systems infringe Cordis’ Fontirroche patent. The Court has denied Boston Scientific’s post trial motions. On April 9, 2009, the Court ruled that Boston Scientific will be required to pay Cordis a royalty of 5.1% of all infringing sales of catheters and stent delivery systems from October 2007 as long as they practice the patented invention. The Court entered judgment against Boston Scientific in the amount of $26 million. Boston Scientific has filed an appeal. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In May 2008, Centocor, Inc. (now Centocor Ortho Biotech Inc. (COBI)) filed a lawsuit against Genentech, Inc. (Genentech) in U.S. District Court for the Central District of California seeking to invalidate the Cabilly II patent. Prior to filing suit, Centocor had a sublicense under this patent from Celltech (who was licensed by Genentech) for REMICADE<sup style="font-size: 85%; vertical-align: text-top">®</sup> and had been paying royalties to Celltech. Centocor has terminated that sublicense and stopped paying royalties. Genentech has filed a counterclaim alleging that REMICADE<sup style="font-size: 85%; vertical-align: text-top">®</sup> infringes its Cabilly II patents and that the manufacture of REMICADE<sup style="font-size: 85%; vertical-align: text-top">®</sup>, ustekinumab, golimumab and ReoPro infringe various of its patents relating to the purification of antibodies made through recombinant DNA techniques. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2009, a trial was held before the Federal District Court for the Middle District of Florida on the liability phase of Ciba’s patent infringement lawsuit alleging that Johnson & Johnson Vision Care’s ACUVUE<sup style="font-size: 85%; vertical-align: text-top">®</sup> OASYS™ lenses infringe three of their Nicholson patents. The key issues were infringement and the validity of the patents in suit. Post trial briefs were filed in May 2009 and closing arguments were held in June 2009. If the court finds the patents valid and infringed there will be another trial to determine damages and Ciba’s request for injunctive relief. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">On May 1, 2009 Abbott Laboratories filed a patent infringement lawsuit against Centocor (now COBI) in the United States District Court for the District of Massachusetts. The suit alleges that Centocor’s SIMPONI<sup style="font-size: 85%; vertical-align: text-top">®</sup> product, a human anti TNF alpha antibody, which was recently approved by the FDA, infringes Abbott’s ’394 patent (the Salfeld patent). The case has been stayed pending the resolution of an arbitration filed by Centocor directed to its claim that it is licensed under the ‘394 patent. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In June of 2009, Centocor’s (COBI) lawsuit alleging that Abbott’s HUMIRA anti TNF alpha product infringes Centocor’s ‘775 patent went to trial in Federal District Court in the Eastern District of Texas. On June 28, 2009 a jury returned a verdict finding the patent valid and willfully infringed, and awarded Centocor damages of approximately $1.7 billion. A bench trial on Abbott’s defenses, of inequitable conduct and prosecution laches, will be held on August 4, 2009. Post trial motions and an appeal are likely to follow. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The following chart summarizes various patent lawsuits concerning products of Johnson & Johnson subsidiaries that have yet to proceed to trial: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="25%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="8%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">Plaintiff/</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">Trial</td> <td> </td> <td nowrap="nowrap" align="left">Date</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">J&J Product</td> <td> </td> <td nowrap="nowrap" align="left">Company</td> <td> </td> <td nowrap="nowrap" align="left">Patents</td> <td> </td> <td nowrap="nowrap" align="left">Patent Holder</td> <td> </td> <td nowrap="nowrap" align="left">Court</td> <td> </td> <td nowrap="nowrap" align="left">Date</td> <td> </td> <td nowrap="nowrap" align="left">Filed</td> </tr>   <tr style="font-size: 1px"> <td colspan="13" valign="top" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">Two-layer Catheters </div></td> <td> </td> <td align="left" valign="top">Cordis </td> <td> </td> <td align="left" valign="top">Kastenhofer </td> <td> </td> <td align="left" valign="top" nowrap="nowrap">Boston Scientific Corp. </td> <td> </td> <td align="left" valign="top" nowrap="nowrap">Multiple European </td> <td> </td> <td align="left" valign="top">* </td> <td> </td> <td align="left" valign="top">09/07</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup> Stent </div></td> <td> </td> <td align="left" valign="top">Cordis </td> <td> </td> <td align="left" valign="top">Wall </td> <td> </td> <td align="left" valign="top">Wall </td> <td> </td> <td align="left" valign="top">E.D. TX </td> <td> </td> <td align="left" valign="top">04/11 </td> <td> </td> <td align="left" valign="top">11/07</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">CYPHER<sup style="font-size: 85%; vertical-align: text-top">®</sup> Stent </div></td> <td> </td> <td align="left" valign="top">Cordis </td> <td> </td> <td align="left" valign="top">Saffran </td> <td> </td> <td align="left" valign="top">Saffran </td> <td> </td> <td align="left" valign="top">E.D. TX </td> <td> </td> <td align="left" valign="top">06/11 </td> <td> </td> <td align="left" valign="top">10/07</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top" nowrap="nowrap"> <div style="margin-left:0px; text-indent:-0px">Blood Glucose Meters and Strips </div></td> <td> </td> <td align="left" valign="top">Lifescan </td> <td> </td> <td align="left" valign="top">Wilsey </td> <td> </td> <td align="left" valign="top">Roche Diagnostics </td> <td> </td> <td align="left" valign="top">D. DE </td> <td> </td> <td align="left" valign="top">* </td> <td> </td> <td align="left" valign="top">11/07</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">REMICADE<sup style="font-size: 85%; vertical-align: text-top">®</sup>, ustekinumab, <br /> golimumab, ReoPro </div></td> <td> </td> <td align="left" valign="top">Centocor/ COBI </td> <td> </td> <td align="left" valign="top">Cabilly II </td> <td> </td> <td align="left" valign="top">Genentech </td> <td> </td> <td align="left" valign="top">C.D. CA </td> <td> </td> <td align="left" valign="top">* </td> <td> </td> <td align="left" valign="top">05/08</td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom"> <td valign="top"> <div style="margin-left:0px; text-indent:-0px">SIMPONI<font style="font-family: Symbol">â</font> </div></td> <td> </td> <td align="left" valign="top">Centocor/ COBI </td> <td> </td> <td align="left" valign="top">Salfeld </td> <td> </td> <td align="left" valign="top">Abbott Laboratories </td> <td> </td> <td align="left" valign="top">MA </td> <td> </td> <td align="left" valign="top">* </td> <td> </td> <td align="left" valign="top">05/09</td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">*</td> <td> </td> <td>Trial date to be scheduled.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 12pt">LITIGATION AGAINST FILERS OF ABBREVIATED NEW DRUG APPLICATIONS (ANDAs)<br /><br style="font-size: 6pt" /> The following chart indicates lawsuits pending against generic firms that filed Abbreviated New Drug Applications (ANDAs) seeking to market generic forms of products sold by various subsidiaries of the Company prior to expiration of the applicable patents covering those products. These ANDAs typically include allegations of non-infringement, invalidity and unenforceability of these patents. In the event the subsidiary of the Company involved is not successful in these actions, or the statutory 30-month stay expires before a ruling from the district court is obtained, the firms involved will have the ability, upon FDA approval, to introduce generic versions of the product at issue resulting in very substantial market share and revenue losses for the product of the Company’s subsidiary. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">As noted in the following chart, 30-month stays expired during 2006, 2007 and 2008, and will expire in 2009, 2010 and 2011 with respect to ANDA challenges regarding various products: </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="30%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="10%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">Brand Name</td> <td> </td> <td nowrap="nowrap" align="left">Patent/NDA</td> <td> </td> <td nowrap="nowrap" align="left">Generic</td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">Trial</td> <td> </td> <td nowrap="nowrap" align="left">Date</td> <td> </td> <td nowrap="nowrap" align="left">30-Month</td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">Product</td> <td> </td> <td nowrap="nowrap" align="left">Holder</td> <td> </td> <td nowrap="nowrap" align="left">Challenger</td> <td> </td> <td nowrap="nowrap" align="left">Court</td> <td> </td> <td nowrap="nowrap" align="left">Date</td> <td> </td> <td nowrap="nowrap" align="left">Filed</td> <td> </td> <td nowrap="nowrap" align="left">Stay Expiration</td> </tr>   <tr style="font-size: 1px; background: #cceeff"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:0px; text-indent:-0px">CONCERTA<sup style="font-size: 85%; vertical-align: text-top">®</sup> </div></td> <td> </td> <td align="left" valign="top">McNeil-PPC</td> <td> </td> <td align="left" valign="top">Andrx</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">12/07</td> <td> </td> <td align="left" valign="top">09/05</td> <td> </td> <td align="left" valign="top">None</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td nowrap="nowrap"> <div style="margin-left:0px; text-indent:-0px">18, 27, 36 and 54 mg controlled release </div></td> <td> </td> <td align="left" valign="top">ALZA</td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:0px; text-indent:-0px">tablet </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="padding-top: 0em"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">LEVAQUIN<sup style="font-size: 85%; vertical-align: text-top">®</sup> 250, 500, 750 mg tablet </div></td> <td> </td> <td align="left" valign="top">Ortho-McNeil</td> <td> </td> <td align="left" valign="top">Lupin</td> <td> </td> <td align="left" valign="top">D. NJ</td> <td> </td> <td align="left" valign="top">   *</td> <td> </td> <td align="left" valign="top">10/06</td> <td> </td> <td align="left" valign="top">03/09</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="padding-top: 0em; background: #cceeff"> <td> <div style="margin-left:0px; text-indent:-0px">ORTHO TRI-CYCLEN<sup style="font-size: 85%; vertical-align: text-top">®</sup> LO </div></td> <td> </td> <td align="left" valign="top">Ortho-McNeil</td> <td> </td> <td align="left" valign="top">Barr</td> <td> </td> <td align="left" valign="top">D. NJ</td> <td> </td> <td align="left" valign="top">   *</td> <td> </td> <td align="left" valign="top">10/03</td> <td> </td> <td align="left" valign="top">02/06</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:0px; text-indent:-0px">0.18 mg/0.025 mg, 0.215 mg/ </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">Watson</td> <td> </td> <td align="left" valign="top">D. NJ</td> <td> </td> <td align="left" valign="top">   *</td> <td> </td> <td align="left" valign="top">10/08</td> <td> </td> <td align="left" valign="top">03/11</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:0px; text-indent:-0px">0.025 mg and 0.25 mg/0.025 mg </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">Sandoz</td> <td> </td> <td align="left" valign="top">D. NJ</td> <td> </td> <td align="left" valign="top">   *</td> <td> </td> <td align="left" valign="top">06/09</td> <td> </td> <td align="left" valign="top">10/11</td> </tr> <tr valign="bottom" style="padding-top: 0em"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">RAZADYNE<sup style="font-size: 85%; vertical-align: text-top">®</sup> </div></td> <td> </td> <td align="left" valign="top">Janssen</td> <td> </td> <td align="left" valign="top">Teva</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">05/07</td> <td> </td> <td align="left" valign="top">07/05</td> <td> </td> <td align="left" valign="top">08/08</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">Mylan</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">05/07</td> <td> </td> <td align="left" valign="top">07/05</td> <td> </td> <td align="left" valign="top">08/08</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">Dr. Reddy’s</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">05/07</td> <td> </td> <td align="left" valign="top">07/05</td> <td> </td> <td align="left" valign="top">08/08</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">Purepac</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">05/07</td> <td> </td> <td align="left" valign="top">07/05</td> <td> </td> <td align="left" valign="top">08/08</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">Barr</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">05/07</td> <td> </td> <td align="left" valign="top">07/05</td> <td> </td> <td align="left" valign="top">08/08</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">AlphaPharm</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">05/07</td> <td> </td> <td align="left" valign="top">07/05</td> <td> </td> <td align="left" valign="top">08/08</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="padding-top: 0em; background: #cceeff"> <td nowrap="nowrap"> <div style="margin-left:0px; text-indent:-0px">ULTRAM<sup style="font-size: 85%; vertical-align: text-top">®</sup> ER 100, 200, 300 mg tablet </div></td> <td> </td> <td align="left" valign="top">Ortho-</td> <td> </td> <td align="left" valign="top">Par</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">01/09</td> <td> </td> <td align="left" valign="top">05/07</td> <td> </td> <td align="left" valign="top">09/09</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top">McNeil/Biovail</td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">06/07</td> <td> </td> <td align="left" valign="top">11/09</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">10/07</td> <td> </td> <td align="left" valign="top">03/10</td> </tr> <tr valign="bottom" style="padding-top: 0em"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom"> <td nowrap="nowrap"> <div style="margin-left:0px; text-indent:-0px">ULTRAM<sup style="font-size: 85%; vertical-align: text-top">®</sup> ER 100, 200, 300 mg tablet </div></td> <td> </td> <td align="left" valign="top">Ortho-</td> <td> </td> <td align="left" valign="top">Impax</td> <td> </td> <td align="left" valign="top">D. DE</td> <td> </td> <td align="left" valign="top">06/10</td> <td> </td> <td align="left" valign="top">08/08</td> <td> </td> <td align="left" valign="top">01/11</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:0px; text-indent:-0px">  </div></td> <td> </td> <td align="left" valign="top">McNeil/Biovail</td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left" valign="top">11/08</td> <td> </td> <td align="left" valign="top">03/11</td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">*</td> <td> </td> <td>Trial date to be scheduled.</td> </tr> </table> <div align="left" style="font-size: 10pt; margin-top: 6pt">In the action against Barr Pharmaceuticals, Inc. (Barr)(now a wholly-owned subsidiary of Teva Pharmaceutical Industries LTD.) regarding ORTHO TRI-CYCLEN<sup style="font-size: 85%; vertical-align: text-top">®</sup> LO, on January 22, 2008, the Company’s subsidiary Ortho Women’s Health & Urology, a Division of Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Barr agreed to a non-binding term sheet to settle the litigation, which settlement discussions are still underway. The trial court postponed the January 22, 2008 trial without setting a new trial date. On June 30, 2009, Barr launched its generic product “at risk” before trial. OMJPI sought a preliminary injunction and recall of Barr product which the Court granted on July 21, 2009. On July 23, 2009, the parties entered into a definitive agreement to settle the lawsuit. Under the terms of the settlement, Barr obtained a release for its sales of its generic product in exchange for an undisclosed royalty payment. Barr also obtained a non-exclusive, royalty-bearing license to re-enter the market on December 31, 2015, or earlier in certain limited circumstances. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">On October 16, 2008, the Company’s subsidiary Ortho-McNeil-Janssen Pharmaceuticals, Inc. (OMJPI) filed suit in Federal District Court in New Jersey against Watson Laboratories, Inc. (Watson) in response to Watson’s ANDA regarding ORTHO TRI-CYCLEN<sup style="font-size: 85%; vertical-align: text-top">®</sup> LO. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">In the action against Barr and AlphaPharm with respect to their ANDA challenges to the RAZADYNE<sup style="font-size: 85%; vertical-align: text-top">®</sup> patent that Janssen (now OMJPI)licenses from Synaptech, Inc. (Synaptech), a four-day non-jury trial was held in the Federal District Court in Delaware in May 2007. On August 27, 2008, the court held that the patent was invalid because it was not enabled. Janssen (OMJPI) and Synaptech have appealed the decision. Since the court’s decision, three generic companies have received final approvals for their products and have launched “at risk” pending appeal. Additional generic approvals and launches could occur at any time. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In the action by McNEIL-PPC, Inc. (McNeil-PPC) and ALZA Corporation (ALZA) against Andrx Corporation (Andrx) with respect to its ANDA challenge to the CONCERTA<sup style="font-size: 85%; vertical-align: text-top">®</sup> patents, a five-day non-jury trial was held in the Federal District Court in Delaware in December 2007. On March 30, 2009, the court ruled that one CONCERTA<sup style="font-size: 85%; vertical-align: text-top">®</sup> patent would not be infringed by Andrx’s proposed generic product and that the patent was invalid because it was not enabled. The court dismissed without prejudice Andrx’s declaratory judgment suit on a second patent for lack of jurisdiction. McNeil-PPC and ALZA filed an appeal on May 7, 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In the RAZADYNE<sup style="font-size: 85%; vertical-align: text-top">®</sup>ER cases, a lawsuit was filed against Barr on the RAZADYNE<sup style="font-size: 85%; vertical-align: text-top">®</sup> use patent that Janssen (now OMJPI) licenses from Synaptech in June 2006. In September 2008, the above-discussed Delaware decision invalidating the RAZADYNE<sup style="font-size: 85%; vertical-align: text-top">®</sup> use patent resulted in entry of judgment for Barr on that patent, but the case will be reopened if Janssen (now OMJPI) and Synaptech win on appeal. Barr has received FDA approval of its product and has launched “at risk.” </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In the action against Lupin Pharmaceuticals, Inc. (Lupin) regarding its ANDA concerning LEVAQUIN<sup style="font-size: 85%; vertical-align: text-top">®</sup>, Lupin contends that the United States Patent and Trademark Office improperly granted a patent term extension to the patent that Ortho-McNeil (now Ortho-McNeil-Janssen Pharmaceuticals, Inc. (OMJPI)) licenses from Daiichi Pharmaceuticals, Inc. (Daiichi). Lupin alleges that the active ingredient in LEVAQUIN<sup style="font-size: 85%; vertical-align: text-top">®</sup> was the subject of prior marketing, and therefore was not eligible for the patent term extension. Lupin concedes validity and that its product would violate the patent if marketed prior to the expiration of the original patent term. Summary judgment against Lupin was granted in May 2009, and Lupin appealed. The matter has been fully briefed to the appellate court and the parties are awaiting oral argument. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In the ULTRAM<sup style="font-size: 85%; vertical-align: text-top">®</sup>ER actions, Ortho-McNeil (now OMJPI), filed lawsuits (each for different dosages) against Par Pharmaceuticals, Inc. and Par Pharmaceuticals Companies, Inc. (Par) in May, June and October 2007 on two Tramadol ER formulation patents owned by Purdue Pharma Products L.P. (Purdue) and Napp Pharmaceutical Group Ltd. (Napp). OMJPI also filed lawsuits (each for different dosages) against Impax Laboratories, Inc. (Impax) on a Tramadol ER formulation patent owned by Purdue and Napp in August and November 2008. Purdue, Napp and Biovail Laboratories International SRL (Biovail)(the NDA holder) joined as co-plaintiffs in the lawsuits against Par and Impax, but Biovail and OMJPI were subsequently dismissed for lack of standing. The trial against Par took place on April 16-22, 2009 and Purdue is awaiting a decision from the Court. The trial against Impax is scheduled for June 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">AVERAGE WHOLESALE PRICE (AWP) LITIGATION </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Johnson & Johnson and several of its pharmaceutical subsidiaries, along with numerous other pharmaceutical companies, are defendants in a series of lawsuits in state and federal courts involving allegations that the pricing and marketing of certain pharmaceutical products amounted to fraudulent and otherwise actionable conduct because, among other things, the companies allegedly reported an inflated Average Wholesale Price (AWP) for the drugs at issue. Many of these cases, both federal actions and state actions removed to federal court, have been consolidated for pre-trial purposes in a Multi-District Litigation (MDL) in Federal District Court in Boston, Massachusetts. The plaintiffs in these cases include classes of private persons or entities that paid for any portion of the purchase of the drugs at issue based on AWP, and state government entities that made Medicaid payments for the drugs at issue based on AWP. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The MDL Court identified classes of Massachusetts-only private insurers providing “Medi-gap” insurance coverage and private payers for physician-administered drugs where payments were based on AWP (“Class 2” and “Class 3”), and a national class of individuals who made co-payments for physician-administered drugs covered by Medicare (“Class 1”). A trial of the two Massachusetts-only class actions concluded before the MDL Court in December 2006. In June 2007, the MDL Court issued post-trial rulings, dismissing the Johnson & Johnson defendants from the case regarding all claims of Classes 2 and 3, and subsequently of Class 1 as well. The ruling is the subject of a pending appeal. AWP cases brought by various Attorneys General have proceeded to trial against other manufacturers. Cases including Johnson & Johnson subsidiaries are expected to be set for trial in 2010 and thereafter. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt">OTHER </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In July 2003, Centocor (now COBI), a Johnson & Johnson subsidiary, received a request that it voluntarily provide documents and information to the criminal division of the U.S. Attorney’s Office, District of New Jersey, in connection with its investigation into various Centocor marketing practices. Subsequent requests for documents have been received from the U.S. Attorney’s Office. Both the Company and Centocor have responded to these requests for documents and information. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2003, Ortho-McNeil (now OMJPI) received a subpoena from the U.S. Attorney’s Office in Boston, Massachusetts seeking documents relating to the marketing, including alleged off-label marketing, of the drug TOPAMAX<sup style="font-size: 85%; vertical-align: text-top">®</sup> (topiramate). Additional subpoenas for documents have been received, and current and former employees have testified before a grand jury. Discussions are underway in an effort to resolve this matter, but whether agreement can be reached and on what terms are uncertain. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">In January 2004, Janssen (now OMJPI) received a subpoena from the Office of the Inspector General of the U.S. Office of Personnel Management seeking documents concerning sales and marketing of, any and all payments to physicians in connection with sales and marketing of, and clinical trials for, RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup> (risperidone) from 1997 to 2002. Documents subsequent to 2002 have also been requested. An additional subpoena seeking information about marketing of and adverse reactions to RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup> was received from the U.S. Attorney’s Office for the Eastern District of Pennsylvania in November 2005. Subpoenas seeking testimony from various witnesses before a grand jury have also been received. Janssen is cooperating in responding to ongoing requests for documents and witnesses. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In September 2004, Ortho Biotech Inc. (now COBI), received a subpoena from the U.S. Office of Inspector General’s Denver, Colorado field office seeking documents directed to the sales and marketing of PROCRIT<sup style="font-size: 85%; vertical-align: text-top">®</sup> (Epoetin alfa) from 1997 to the present, as well as to dealings with U.S. Oncology Inc., a healthcare services network for oncologists. Ortho Biotech (now COBI) has responded to the subpoena. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In September 2004, plaintiffs in an employment discrimination litigation initiated against the Company in 2001 in Federal District Court in New Jersey moved to certify a class of all African American and Hispanic salaried employees of the Company and its affiliates in the U.S., who were employed at any time from November 1997 to the present. Plaintiffs seek monetary damages for the period 1997 through the present (including punitive damages) and equitable relief. The Court denied plaintiffs’ class certification motion in December 2006 and their motion for reconsideration in April 2007. Plaintiffs sought to appeal these decisions and, in April 2008, the Court of Appeals ruled that plaintiffs’ appeal of the denial of class certification was untimely. Plaintiffs are now engaged in further discovery of individual plaintiffs’ claims. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In March 2005, DePuy Orthopaedics, Inc. (DePuy), a Johnson & Johnson subsidiary, received a subpoena from the U.S. Attorney’s Office, District of New Jersey, seeking records concerning contractual relationships between DePuy and surgeons or surgeons-in-training involved in hip and knee replacement and reconstructive surgery. This investigation was resolved by DePuy and the four other leading suppliers of hip and knee implants in late September 2007 by agreements with the U.S. Attorney’s Office for the District of New Jersey. The settlements included an 18-month Deferred Prosecution Agreement (DPA), acceptance by each company of a monitor to assure compliance with the DPA and, with respect to four of the five companies, payment of settlement monies and entry into five year Corporate Integrity Agreements. DePuy paid $85 million as its settlement. The term of the Monitorship under the Deferred Prosecution Agreement concluded on March 27, 2009, and an order dismissing all charges was entered on March 30, 2009. In November 2007, the Attorney General of the Commonwealth of Massachusetts issued a civil investigative demand to DePuy seeking information regarding financial relationships between a number of Massachusetts-based orthopedic surgeons and providers and DePuy, which relationships had been publicly disclosed by DePuy pursuant to the DPA. In February 2008, DePuy received a written request for information from the U.S. Senate Special Committee on Aging, as a follow-up to earlier inquiries, concerning a number of aspects of the DPA. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In July 2005, Scios Inc. (Scios), a Johnson & Johnson subsidiary, received a subpoena from the U.S. Attorney’s Office, District of Massachusetts, seeking documents related to the sales and marketing of NATRECOR<sup style="font-size: 85%; vertical-align: text-top">®</sup>. Scios is responding to the subpoena. In early August 2005, Scios was advised that the investigation would be handled by the U.S. Attorney’s Office for the Northern District of California in San Francisco. Additional requests for documents have been received and responded to and former Scios employees have testified before a grand jury in San Francisco. The qui tam complaints were unsealed on February 19, 2009. The U.S. government has intervened in one of the qui tam actions, and filed a complaint against Scios and Johnson & Johnson in June 2009. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In September 2005, Johnson & Johnson received a subpoena from the U.S. Attorney’s Office, District of Massachusetts, seeking documents related to sales and marketing of eight drugs to Omnicare, Inc., a manager of pharmaceutical benefits for long-term care facilities. The Johnson & Johnson subsidiaries involved responded to the subpoena. Several employees of the Company’s pharmaceutical subsidiaries have been subpoenaed to testify before a grand jury in connection with this investigation. In April 2009, Johnson & Johnson was served with the complaints in two civil qui tam cases relating to marketing of prescription drugs to Omnicare, Inc. The complaints assert claims under the federal False Claims Act and related state statutes in connection with the marketing of several drugs to Omnicare. The government has not yet announced whether it will intervene in these cases. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In November 2005, Amgen filed suit against Hoffmann-LaRoche, Inc. (Roche) in the U.S. District Court for the District of Massachusetts seeking a declaration that the Roche product CERA, which Roche has indicated it would seek to introduce into the United States, infringes a number of Amgen patents concerning EPO. Amgen licenses EPO for sale in the United States to Ortho Biotech (now COBI) for non-dialysis indications. Trial in this action concluded in October 2007 with a verdict in Amgen’s favor, finding the patents valid and infringed. The judge issued a preliminary injunction blocking the CERA launch, and subsequently made the injunction permanent. Roche has appealed to the Federal Circuit, and the Company is awaiting scheduling of the oral argument date. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In February 2006, Johnson & Johnson received a subpoena from the U.S. Securities & Exchange Commission (SEC) requesting documents relating to the participation by several Johnson & Johnson subsidiaries in the United Nations Iraq Oil for Food Program. The subsidiaries are cooperating with the SEC and U.S. Department of Justice (DOJ) in producing responsive documents. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">In February 2007, Johnson & Johnson voluntarily disclosed to the DOJ and the SEC that subsidiaries outside the United States are believed to have made improper payments in connection with the sale of medical devices in two small-market countries, which payments may fall within the jurisdiction of the Foreign Corrupt Practices Act (FCPA). In the course of continuing dialogues with the agencies, other issues potentially rising to the level of FCPA violations in additional markets have been brought to the attention of the agencies by the Company. The Company has provided and will continue to provide additional information to the DOJ and SEC, and will cooperate with the agencies’ reviews of these matters. Law enforcement agencies of a number of other countries are also pursuing investigations of matters voluntarily disclosed by the Company to the DOJ and SEC. Discussions are underway in an effort to resolve these matters, and the Iraq Oil for Food matter referenced above, but whether agreement can be reached and on what terms is uncertain. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In March 2007, the Company received separate subpoenas from the U.S. Attorney’s Office in Philadelphia, the U.S. Attorney’s Office in Boston and the U.S. Attorney’s Office in San Francisco. The subpoenas relate to investigations by these three offices referenced above concerning, respectively, sales and marketing of RISPERDAL<sup style="font-size: 85%; vertical-align: text-top">®</sup> by Janssen (now OMJPI), TOPAMAX<sup style="font-size: 85%; vertical-align: text-top">®</sup> by Ortho-McNeil (now OMJPI) and NATRECOR<sup style="font-size: 85%; vertical-align: text-top">®</sup> by Scios. The subpoenas request information regarding the Company’s corporate supervision and oversight of these three subsidiaries, including their sales and marketing of these drugs. The Company responded to these requests. In addition, the U.S. Attorney’s office in Boston has issued subpoenas for grand jury testimony to several employees of Johnson & Johnson. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In May 2007, the New York State Attorney General issued a subpoena seeking information relating to the marketing and safety of PROCRIT<sup style="font-size: 85%; vertical-align: text-top">®</sup>. The Company is responding to these requests. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2007, the Company received two subpoenas from the Office of the Attorney General of the State of Delaware. The subpoenas seek documents and information relating to nominal pricing agreements. For purposes of the subpoenas, nominal pricing agreements are defined as agreements under which the Company agreed to provide a pharmaceutical product for less than ten percent of the Average Manufacturer Price for the product. The Company responded to these requests. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In January 2008, the European Commission (“EC”) began an industry-wide antitrust inquiry concerning competitive conditions within the pharmaceutical sector. Because this is a sector inquiry, it is not based on any specific allegation that the Company has violated EC competition law. The inquiry began with unannounced raids of a substantial number of pharmaceutical companies throughout Europe, including Johnson & Johnson affiliates. In March 2008, the EC issued detailed questionnaires to approximately 100 companies, including Johnson & Johnson affiliates. In November 2008, the EC issued a preliminary report summarizing its findings. The final report was issued on July 8, 2009. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">In March 2008, the Company received a letter request from the Attorney General of the State of Michigan. The request seeks documents and information relating to nominal price transactions. The Company is responding to the request and will cooperate with the inquiry. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In June 2008, Johnson & Johnson received a subpoena from the United States Attorneys Office for the District of Massachusetts relating to the marketing of biliary stents by the Company’s Cordis subsidiary. Cordis is cooperating in responding to the subpoena. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In September 2008, Multilan AG, an indirect subsidiary of Schering-Plough Corporation, commenced arbitration against Janssen Pharmaceutica NV for an alleged wrongful termination of an agreement relating to payments in connection with termination of certain marketing rights. Multilan seeks declaratory relief, specific performance and damages. Multilan alleges that damages exceed <font face="'Times New Roman',times,serif">€</font>700 million. A hearing on the matter is scheduled for January 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In February 2009, Basilea Pharmaceutica AG brought an arbitration against Johnson & Johnson and various affiliates alleging that the Company breached the 2005 License Agreement for ceftobiprole by, among other things, failing to secure FDA approval of the cSSSI (skin) indication and allegedly failing to properly develop the pneumonia indication. Basilea is seeking to recover damages and specific performance. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2009, Johnson & Johnson received a HIPPA subpoena from the U.S. Attorney’s Office for the District of Massachusetts (Boston) seeking information regarding the Company’s financial relationship with several doctors. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In April 2009, Ortho-Clinical Diagnostics, Inc. (OCD) received a grand jury subpoena from the U.S. Department of Justice, Antitrust Division, requesting documents and information for the period beginning September 1, 2000 through the present, pertaining to an investigation of alleged violations of the antitrust laws in the blood reagents industry. The company is in the process of complying with the subpoena. In the weeks following the public announcement that OCD had received a subpoena from the Antitrust Division of the Department of Justice as part of an investigation of possible antitrust violations in the blood banking industry, several plaintiffs have filed antitrust class action complaints in multiple courts around the country. We believe that all of the cases will be consolidated in one federal court for pretrial proceedings. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In May 2009, the New Jersey Attorney General issued a subpoena to DePuy Orthopaedics, Inc., seeking information regarding financial interests of clinical investigators who performed clinical studies for DePuy Orthopaedics, Inc. and DePuy Spine, Inc. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In May 2009, Centocor Ortho Biotech Inc. (COBI) commenced an arbitration proceeding before the American Arbitration Association against Schering-Plough Corporation and its subsidiary Schering- Plough (Ireland) Company (collectively, Schering-Plough). COBI and Schering-Plough are parties to a series of agreements (the Distribution Agreements) that grant Schering-Plough the exclusive right to distribute the drugs REMICADE<sup style="font-size: 85%; vertical-align: text-top">®</sup> and SIMPONI™ worldwide, except within the United States, Japan, Taiwan, Indonesia, and the People’s Republic of China (including Hong Kong) (the “Territory”). COBI distributes REMICADE<sup style="font-size: 85%; vertical-align: text-top">®</sup> within the United States and also plans to distribute SIMPONI™, the next-generation treatment, domestically. In the arbitration, COBI seeks a declaration that the agreement and plan of merger between Merck & Co., Inc. (Merck) and Schering-Plough constitutes a change of control under the terms of the Distribution Agreements that permits COBI to terminate the Agreements. The termination of the Distribution Agreements would return to COBI the right to distribute REMICADE<sup style="font-size: 85%; vertical-align: text-top">®</sup> and SIMPONI™ within the Territory. Schering-Plough has filed a response to COBI’s arbitration demand that denies both that it has undergone a change of control and that it will undergo a change of control upon the completion of the merger with Merck. The parties are in the process of selecting the arbitrator who will preside over the arbitration proceeding. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In recent years the Company has received numerous requests from a variety of United States Congressional Committees to produce information relevant to ongoing congressional inquiries. It is the Company’s policy to cooperate with these inquiries by producing the requested information. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">With respect to all the above matters, the Company and its subsidiaries are vigorously contesting the allegations asserted against them and otherwise pursuing defenses to maximize the prospect of success. The Company and its subsidiaries involved in these matters continually evaluate their strategies in managing these matters and, where appropriate, pursue settlements and other resolutions where those are in the best interest of the Company. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company is also involved in a number of other patent, trademark and other lawsuits incidental to its business. The ultimate legal and financial liability of the Company in respect to all claims, lawsuits and proceedings referred to above cannot be estimated with any certainty. However, in the Company’s opinion, based on its examination of these matters, its experience to date and discussions with counsel, the ultimate outcome of legal proceedings, net of liabilities accrued in the Company’s balance sheet, is not expected to have a material adverse effect on the Company’s financial condition, although the resolution in any reporting period of one or more of these matters could have a significant impact on the Company’s results of operations and cash flows for that period. </div> </div> </body> </html>

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