Beerse, September 18, 2007 – Janssen Pharmaceutica NV announced today to the  Works Council and to the employees its plan to reorganize the company’s activities around its core competencies and its intention to reduce costs by 15%, including a reduction of 521 fixed contracts and the non-prolongation of 167 temporary jobs.

The company emphasized its intention to enter into consultation with the works council as soon as possible in order to come to a social plan that is acceptable to all.

The context
The pharmaceutical industry is confronted with a rapidly changing and increasingly complex external environment.  In 2006/2007, major drugs from leading pharmaceutical companies with estimated annual sales of $US 39 billion will lose their patent protection. At the same time regulatory hurdles are becoming higher, R&D costs are increasing and the development time also gets longer due to the challenges of the unmet medical needs. Like many of its competitors, the pharmaceutical segment of Johnson & Johnson, which includes Janssen Pharmaceutica NV, is facing significant patent expiration in the next two years for two of its leading medicines, with current sales of about 5 billion US$. In July, for this reason and others, Johnson & Johnson announced plans to improve its cost structure, primarily through actions in its Pharmaceuticals segment, while continuing to invest in opportunities for sustained profitable growth.

The current intention
To ensure its competitiveness in the global pharmaceutical environment, Janssen Pharmaceutica NV will redesign its business model by building on its core competencies in research and development, manufacturing, marketing and sales. It is the intention to concentrate resources on high added value activities and to reduce the support services, including the outsourcing of some of them to external partners.  The objective is to increase the focus of the organization and to reduce the overall operational costs.

The future
Janssen Pharmaceutica NV will focus its resources on the development of a strong pipeline and will continue its R&D investments into innovative medicines in the fields of psychiatry, neurology, internal medicine, pain, infectious diseases and oncology. Beerse will remain a strong competence center for global development organizations (eg. toxicology, chemical development, clinical supplies).

The company will continue its investments in  Beerse and Geel as  core pharmaceutical and chemical production sites for its global business. The announced investment in a new pilot plant in Geel will go ahead as planned.

Ajit Shetty, Chairman and CEO of Janssen Pharmaceutica comments: “We understand that these are difficult times for all those involved, but we have to take action now in order to safeguard our future and continue providing new and novel medicines that address human disease. The external environment has changed dramatically, and we have to adapt and redesign our organization if we want to keep our major international position in the industry and bring new medicines to patients. The intention to reduce positions is not an easy one, but we will do our utmost to treat those affected in all fairness. In the interest of everyone, we hope we can come to a quick and open discussion in the works council”.

Janssen Pharmaceutica NV is, within Johnson & Johnson, a global center of excellence of integrated R&D, supply chain and general services. In 2006, the company invested over 1 billion euro in R&D. The company currently employs  4,700 people. The company has a leading global position in medicines in diverse disease areas such as the central nervous system, neurology, pain, internal medicine and oncology. Janssen Pharmaceutica has sites in Beerse, Geel and Olen.

For more information
Stefan Gijssels – 014/ 60 3030