Further expansion into a world-class R&D center for new drugs

Brussels, July 4 2002 – 2001 was another successful year for Janssen Pharmaceutica. At 285 million euros, the company's net earnings fully met expectations and outstripped performance the previous year by 3 million euros. The company's cash flow rose by 23% to 951 million euros.

2001 was a year of major investments for the pharmaceutical company. Investments in Research & Development are going up each year and in 2001 reached a total of 775 million euros. Janssen Pharmaceutica remains intent on building its future on the discovery and development of new drugs, which are either synthesized in its own research laboratories, or purchased from other companies and then developed further. In addition, as already announced at the end of last year, the company is going full steam ahead with important investment projects in Beerse and Geel. In 2001 the number of employees at Janssen Pharmaceutica dropped by 2% to 3,954 employees. This was primarily the consequence of the worldwide reorganization of the company's research activities. However, plenty of new personnel were hired too, and on the labor market Janssen Pharmaceutica is regarded as the most attractive employer in Belgium.

In 2001 the company posted record earnings of 2.5 billion euros. Sales amounted to 1.6 billion euros, and net earnings were 285 million euros, 3 million euros higher than in 2000. "The substantial investments in tangible and intangible fixed assets and the costs of reorganizing the research departments impacted on our operating costs, but net earnings were entirely in line with expectations", said Dr. Ajit Shetty, managing director of Janssen Pharmaceutica. Cash flow increased by 23%, rising from 772 million euros in 2000 to 951 million euros in 2001. This indicates that Janssen Pharmaceutica is - and shall continue to be - fundamentally healthy.