J&J(JNJ) - 2022 Q4 - Annual Report

Business Segments - The company is organized into three business segments: Consumer Health, Pharmaceutical, and Medical Devices[12] - The Consumer Health segment includes major brands such as AVEENO, NEUTROGENA, and TYLENOL, with a planned separation to create a new publicly traded company targeted for completion in 18 to 24 months[13] - The Pharmaceutical segment focuses on six therapeutic areas, including Immunology and Oncology, with key products like REMICADE and STELARA[14] - The Medical Devices segment, referred to as the MedTech segment, includes a broad range of products across various fields such as Interventional Solutions and Orthopaedics[16] - The Medical Devices segment will be referred to as the MedTech segment starting in the fiscal first quarter of 2022[16] Financial Performance - Sales of the Company's largest product, STELARA, accounted for approximately 9.7% of total revenues for fiscal 2021[21] - Sales of the second largest product, DARZALEX and DARZALEX FASPRO, accounted for approximately 6.4% of total revenues for fiscal 2021[21] - The company anticipates challenges in product development and market success due to competition and regulatory approvals[9] - Pricing pressures are expected from healthcare cost containment trends and consolidation among healthcare providers[10] - Economic conditions and global operations may affect the company's financial performance and market position[10] - The Company faces patent challenges from third parties regarding key pharmaceutical products, which may impact financial results[19] Regulatory and Compliance - The company emphasizes the importance of compliance with regulatory requirements and potential changes in laws affecting operations[10] - The Company is subject to increasing regulatory scrutiny, which may impact its financial condition and business operations[26] - The Company is subject to increasingly stringent governmental regulations, which may adversely affect financial condition and business operations[26] - The company is subject to increased scrutiny from government agencies regarding business practices, which may lead to significant civil and criminal penalties[29] Supply Chain and Risks - The company faces risks related to supply chain disruptions and manufacturing delays that could impact product availability[10] - The Company is addressing risks associated with patent expirations and competition from generic products[9] Human Capital Management - The Company employs approximately 141,700 full-time equivalent positions as of 2021, an increase from 134,500 in 2020[30] - In 2021, 91% of global employees participated in the Our Voice Survey, providing feedback on the Company's culture and engagement[31] - The Company focuses on attracting, developing, and retaining talent as part of its human capital management strategy[30] - In 2021, 45.8% of employees in Manager and above job categories utilized career opportunities through lateral transfers or promotions[33] - The Company's voluntary turnover rate was 8%[33] - The Company is focused on attracting and retaining top talent through professional development programs[33] Employee Health and Well-being - The Company has expanded health and well-being programs globally, incorporating new technologies to support employee health goals[36] - The Company is committed to competitive compensation and benefits, exceeding legal minimum wage provisions[35] - The Company’s total rewards offerings include performance incentives, retirement savings programs, and mental health support[35] - The Company emphasizes the importance of employee health and safety, especially during the COVID-19 pandemic[37] - The company has adopted policies requiring proof of COVID-19 vaccination for employees and contingent workers in the U.S. and Puerto Rico, effective October 4, 2021[37] Diversity, Equity, and Inclusion - The Company’s DEI strategy focuses on building a diverse workforce and enhancing business results[34] - The company focuses on diversity, equity, and inclusion (DEI) with a strategy that includes building a diverse workforce and enhancing business results[34] Growth Strategies - Forward-looking statements indicate potential growth strategies, including acquisitions and product development initiatives[7] - The Company is evaluating flexible work strategies for its on-site workforce to support work-life balance[37] - The company has implemented a hybrid work model, J&J Flex, which began rolling out globally in Q4 2021, allowing for a balance of in-person and remote work[37]