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global developer and manufacturer of minimally invasive devices for hemorrhagic and ischemic stroke. In February 2011, Johnson & Johnson completed its tender offer for Crucell N.V., which develops vaccines against infectious diseases. In addition to strategic acquisitions, we collaborate and partner with other companies and academic institutions pursuing exciting discoveries that we can enhance with our global development capabilities. 

• Growth in Emerging Markets: We continued our strong progress in emerging markets, with sales growing 14  percent operationally in Brazil, Russia, India and China. We continue maximizing research and development centers in these regions to develop medical devices, pharmaceuticals and consumer products based on insights in local markets. We have a vast and growing network of medical and surgical institutes around the world to train and educate the doctors and nurses who use our products. And with rapid economic growth in emerging markets, we’re expanding our product offerings to meet the unique needs of the mass market comprising billions of people who are now gaining a greater degree of health care coverage. 

The opportunity here may reflect more affordable products or products focused on diseases that are more common in emerging markets than in developed markets. Offerings include market-appropriate sutures, consumer products, staplers, blood glucose meters, knee replacements and local or regional pharmaceuticals. The objective is superior outcomes for patients who may not have had access to such technologies or products. 

• Talented People: As we look toward the future, a top priority for Johnson & Johnson is continued development of a leadership team that is well-positioned for sustainable growth. At the end of 2010 , we announced organizational changes designed to further long-term succession plans and assure that we have talented and experienced leaders at all levels of the organization. Joining me as part of an expanded Office of the Chairman are Alex Gorsky, previously Worldwide Chairman, Medical Devices & Diagnostics, and Sheri McCoy, previously Worldwide Chairman, Pharmaceuticals. 

Other additions to our senior leadership team are a direct reflection of the strength, depth and diversity of our talent pipeline. We are committed to giving our people opportunities to work across our various business groups and geographies. And we continue to invest more than ever in our people. Our objective is simple: to develop employees with the skills, judgment and integrity to carry on the Johnson & Johnson legacy. 

We have the people, products, pipelines and footprints in global markets to sustain long-term growth. And with a continuous focus on addressing unmet needs, we invest in technologies with the potential to significantly improve health care. 

## PHARMACEUTICALS 

Our Pharmaceuticals segment focuses on meeting important patient needs. With sales of $ 22 . 4  billion, we saw rapid growth of recently launched products. For the year, the segment 

## The source of our enduring strength is a fundamental commitment to Our Credo and an operating model that has served us well for decades. 

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experienced an operational sales decline of 1  percent. Excluding the impact of generic competition and health care reform, pharmaceutical sales would have increased by nearly 4  percent operationally. 

We continued to make significant investments to expand our presence in emerging markets which grew at double- digit rates, as well as in new therapeutic areas like vaccines and Alzheimer’s disease. We are the leader in the U.S. immunology market, with three significant brands. Our flagship product REMICADE ®  (infliximab), for the treatment of a number of immune-mediated inflammatory diseases, grew 7  percent operationally. Newer products STELARA ® (ustekinumab) and SIMPONI ®  (golimumab) continued increasing market share and generated more than a combined $ 600  million in sales for the year. REMICADE ®, STELARA ® and SIMPONI ® contributed to 17  percent operational growth for the Immunology franchise. 

In long-acting antipsychotics, we grew 14  percent operationally. RISPERDAL ® CONSTA ®  (risperidone) Long- Acting Injection, an atypical antipsychotic administered every two weeks for the treatment of schizophrenia or the maintenance of bipolar 1  disorder, grew 6  percent operationally. INVEGA ® SUSTENNA ®  (paliperidone palmitate), for the treatment of schizophrenia, continued to increase U.S. market share, contributing to our expanding market leadership. 

In the HIV area, PREZISTA ®  (darunavir) and INTELENCE ® (etravirine) grew sales operationally by 46  percent and 41  percent, respectively, achieving together more than $ 1  billion in sales for the first time while providing access to markets with 

