Sustainability Report 2010

Janssen Pharmaceutica NV

Foreword

The pharmaceutical sector in 2010 was again con- The above information is also clearly reflected in our fronted with very significant cuts in the budgets set annual figures. The turnover increased by 196 million aside for medication, both at home and abroad. euro compared to 2009, while the other operating TThese cuts were mainly a consequence of the eco- income increased by 95 million euro in 2010. Profit nomic crisis and the credit problems in a number of amounted to 22 million euro, which is 26 million euro countries during 2008 and 2009, and they also have more than in 2009. The investment figures for both an impact on Janssen. The price reductions imposed the campus in and the campus in de- in the past years, and the taxation on prescription monstrate that we still firmly believe in as medicine turnover continue to negatively impact our our place of business. In 2010, we spent more than 1 profitability. billion euro on Research & Development, in addition to substantial sums on infrastructure and new tech- Despite the loss in income due to the expiry of major nologies. In Beerse, for example, major investments patents in recent years, Janssen has continued to were made in a production line for the production of invest in Research & Development, and this has McNeil products and in the necessary adjustments to resulted in even more pressure on the company’s the building in order to prepare it for the move of our profitability. The pharmaceutical industry is currently sister company -Virco’s employees from characterized by a decline in the efficiency and pro- to Beerse. The major investment project in ductivity of efforts with regard to Research & Geel was the further completion of the new Pilot Development. Janssen has not escaped from this Plant and the associated utilities. general trend. In order to address this negative evo- lution, Janssen has created the Office for Campus In addition, industrial land was purchased in La Strategy & Growth (OCS) in 2010. This team has Louvière with the aim of building a European already taken a number of initiatives in the context of Distribution Center for the J&J Pharmaceuticals Open Innovation in the meantime. For example, the Group, which is currently under construction. In active search for different forms of cooperation with Diegem, an office building was purchased and reno- interesting third parties, and offering some of these vated and will be made available to the Belgian com- parties the possibility of establishing themselves on panies of the J&J MD&D Group; the MD&D Group will our company site. move here in the course of 2011. In the context of the

reduction of the number of Johnson & Johnson the acquisition of the operating sites on a global scale, our colleagues from Dutch company Crucell by Janssen-Cilag Benelux, GCO and J&J Consumer J&J, an operation that was moved from Berchem to Beerse 2 last year. The high successfully completed concentration of know-how in a limited number of early in 2011, is probably locations in Belgium is already important in itself. But even more important, and the major benefit is that, from now on, all these that offers us the perspec- departments and services will work even closer tive of developing into one together in order to obtain a whole that is greater of the world players in the than the sum of its components. This should give us area of vaccines in time. the assurance that we are in a strong position to face the future. Taking the difficult economic conditions and numer- ous challenges of the markets into account, we are We can also report plenty of positive news in the area now focusing more than ever on our main objective: of the development of new medicines in 2010. For To develop new drugs against complex diseases for example, a total of no less than four registration which insufficient effective treatment is currently applications were submitted in the USA and/or available. Janssen in Belgium is playing a leading role Europe. These are also important files, including the in this respect, and remains a major player in the INCIVO (telaprevir) file, a pioneering product for social and economic areas, as well as a world player in patients suffering from hepatitis C, and the ZYTIGA drug research, development and production. But all (abiraterone) file, a promising product for patients this is only possible thanks to the motivation and with prostate cancer that has been approved by the efforts of our employees in all the areas in which we American FDA in the meantime. With these medi- operate. Their talents continue to be our greatest cines, we are setting a new standard in the treatment assets for our continued success in the future. of these diseases. There is also fresh hope for HIV/ AIDS patients, because we have a very promising new medicine in the pipeline for them as well, EDURANT (rilpivirine), a product that was discovered on our campus. The management is confident that these important products will soon meet the needs of a great many patients, and will be able to help fill some of the still numerous gaps in the health care sector.

In addition, major cooperation agreements were signed with a significant number of academic institu- tions and external companies. We mention here, for example, the cooperation with the renowned Koch Tom Heyman Institute in the USA, which holds great promises for Managing Director future innovations in the battle against cancer. But Janssen Pharmaceutica NV

D2011/1060/04 JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 1

Patients

Janssen Pharmaceutica’s most important The global integration of Johnson & Johnson’s contribution to society is the discovery, pharmaceutical research activities also pro- development and production of new drugs. vides other departments based in Beerse JExpenditure on Research & Development with plenty of opportunities for intensive increased slightly in 2010, and amounted to cooperation and support. The possible 1,067 million euro. The basis of our R&D establishment of external partner compa- activities remains the search for new medi- nies at the campus will also have an enrich- cines with a high added-value that are not ing impact on our own R&D staff. In addition only safe and efficient, but also satisfy unmet to the close cooperation with academic cen- medical needs. This means that we focus pri- ters, biotech companies and other pharma- marily on those disease areas for which no ceutical partner companies, a number of effective treatments are available yet. agreements were entered into in 2010 that are particularly important for our future. The Janssen R&D departments in Beerse These include agreements with WuXi mainly focus on the research into substances PharmaTech, which operates in China and intended for disorders in the field of neuro- the USA in the area of pre-clinical services, sciences (psychiatry and degenerative disor- the Koch Institute in the USA, which is con- ders), oncology (remedies for slowing down centrating on cancer research, and Neuro- the growth of tumors) and infectious diseas- Search, a Danish company active in the field es, areas in which we currently hold a leading of neurological research. In our own coun- position worldwide, or in which we intend to try, a collaboration with the Flemish Institute become market leaders in the future. for Biotechnology was announced, with the Diagnostic tools will also become an impor- aim of developing new medicines for the tant research area for us. Our colleagues treatment of psychiatric and neurodege- from Tibotec-Virco Virology, who have been nerative disorders. based on the campus in Beerse since mid- 2010, are concentrating on the discovery In 2010, several files of important new pro- and development of pharmaceutical products ducts were submitted to the authorities for an and innovative treatment methods that can initial or for additional registration. In addi- be useful in the treatment of patients with tion, our company was involved in the devel- chronic infectious diseases, such as HIV/ opment and/or production of a number of AIDS, hepatitis C and tuberculosis. substances by their group associations.

2 JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010

Products for which the registration application was submitted in 2010: XEPLION® (paliperidone palmitate) schizophrenia 1250 INCIVO® (telaprevir) hepatitis C ZYTIGA® (abiraterone acetate) prostate cancer 1000 1,137

EDURANT® (rilpivirine) HIV/aids 1,106 1,067 1,031 XARELTO® (rivaroxaban) venous thrombosis and atrial fibrillation 750 REMICADE® (infliximab) pediatric ulcerative colitis INVEGA® (paliperidone) pediatric schizophrenia 500 YONDELIS® (trabectedine) ovarian cancer 250 NUCYNTA ER® (tapentadol) chronic pain SIMPONI® (golimumab) rheumatoid arthritis 0 Progress was booked in the research into the following substances: 2007 2008 2009 2010 Bapineuzumab IV Alzheimer’s disease Canagliflozin type 2 diabetes Evolution of R&D investments (in million euros) CNTO136 (sirukumab) autoimmune diseases DACOGEN™ (decitabine) cancer treatment Fulranumab pain relief CNTO328 (siltuximab) cancer treatment TMC207 tuberculosis TMC435 (simeprevir) hepatitis C

In the calendar year 2010, 42 new patent applications were submitted under the name Indicators 2007 2008 2009 2010 of Janssen Pharmaceutica NV. Numerous R&D investments (in million euros) 1,137 1,106 1,031 1,067 checks to ensure patient well-being and Product responsibility: safety are carried out in both the initial stages system available Yes Yes Yes Yes of research and during the development, production and sale of our medicines.

The company keeps the various authorities Subject Programs Audit up-to-date on progress and applies for the Product responsibility Quality Assurance, GLP, GMP Internal and external, necessary licenses that are required by law. Internal reporting international For example, a new environmental permit Regulatory files was obtained for the expansion of our sites Pharmacovigilance with the activities of Tibotec-Virco, Janssen- Cilag Benelux and J&J Consumer. The site in Olen was also granted a 20-year extension on tion, internal audits are carried out on a re- its permit by the authorities. In addition, the gular basis, in accordance with the require- Prevention Department supports the “Open ments of our certified environment, safety Innovation” project to ensure that our exter- and health care systems. In order to protect nal partners are also able to carry out their our supply chain and reputation, all external activities on the campus in a safe, healthy and pharmaceutical and API sites of the Janssen environmentally-conscious manner. Group were assessed in terms of their main environmental, safety and health risks in In 2010, the company underwent 20 audits 2010. This was one of the objectives of the and inspections by external authorities in Healthy Planet 2010 Goals of Johnson & the context of general prevention. In addi- Johnson.

® All product names in capitals are Johnson & Johnson trademarks. JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 3 Employees

Since September 2010, all Johnson & Johnson cy, and Tibotec-Virco and Janssen-Cilag the beginning of 2010. This name expresses pharmaceutical companies have been oper- Benelux are handling this for their emplo- more clearly what this department is actually ating under a single common identity and yees. The second pillar is the strategic HR offering: Besides the care for people who Swith one new logo: JANSSEN. This is a special policy based on the so-called “HR Service become ill at work and first aid in the case of recognition of the pioneering work of Dr. Paul Delivery Model”. The Belgian campus is accidents, the department preventatively Janssen and his company, Janssen Pharma- already well advanced in this. According to promotes and monitors the health of ceutica, during the past decades. In 2010, the the model, HR provides services to the vari- employees. General health care and preven- campus in Beerse was extended by a range of ous J&J companies on the campus. We are tion are central areas of attention for the important new entities: The staff members of also looking into employment flexibility Company Health Department. In 2010, one Tibotec-Virco moved from Mechelen to options, a motivating payroll policy and the of the initiatives in this area was the launch of Beerse 1, and the colleagues from Janssen- training and development of our employees the 10,000 steps plan. In this context, hun- Cilag Benelux and J&J Consumer Belgium in the context of our career planning policy. dreds of pedometers were distributed free- from Berchem found accommodation in The third pillar of the HR policy involves the of-charge among the staff members. In Beerse 2. We now have a fully integrated cam- care of our own staff. This mainly aims to addition, it is also intended to provide even pus, which is the largest Johnson & Johnson establish a campus where it is pleasant to more efficient and better services. To campus outside of the USA. work, and where people can feel good in achieve this, a number of small amendments their job, and be appreciated and recog- were made within the department in Beerse. The Human Resources policy supports the nized; where they can also enjoy healthy and campus strategy and is therefore evolving in balanced food, and have the opportunity to With regard to safety, a slight increase in the same direction the company embarked take part in sports and keep fit ... in brief, a both the number of occupational accidents on in 2010. The strategy is based on three satisfying working environment that sup- with absence from work and the degree of pillars. The first pillar relates to the opera- ports confidence in their own future and in severity was observed in 2010. The program tional aspects, i.e., every activity that is ne- the future of the campus. relating to “safe conduct” remains a major cessary in a business context in the area of concern; this program focuses on creating a salary and payroll, holiday and leave arrange- The names Medical Department and workplace culture where all staff members ments, training, recruitment, career plan- Company Medical Department were are firmly committed to complying with all ning, etc. Janssen manages its own HR poli- changed to Company Health Department at applicable prevention rules and agreements.

4 JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 Indicators 2007 2008 2009 2010 Number of employees * 4,571 4,208 4,061 3,855 Number of occupational accidents (with absence from work) 20 20 29 30 Absence due to illness (% of total working hours) 4.62% 4.63% 4.40% 4.38% Days of absence from work (due to occupational accidents) 373 332 278 373 Voluntary termination of employment (% of total staff) 2.84% 2.40% 1.80% 1.43% Average number of training course hours per employee 44 33 31 29 (average % of total working hours) (2.7%) (2.0%) (2.2%) (2.1%) Number of training initiatives per employee 29 25 28 27 Ratio men/women ♂ 58% ♂ 59% ♂ 58% ♂ 58% in general ♀ 42% ♀ 41% ♀ 42% ♀ 42% Ratio men/women ♂ 65% ♂ 65% ♂ 63% ♂ 62% in management functions ♀ 35% ♀ 35% ♀ 37% ♀ 38% Ratio men/women ♂ 82% ♂ 78% ♂ 77% ♂ 76% at director level and higher ♀ 18% ♀ 22% ♀ 23% ♀ 24% Formal employee representation Yes Yes Yes Yes

* This figure relates to the personnel figures of Janssen Pharmaceutica and JC General Services together.

Subject Programs Diversity policy • The Colors of Diversity • Unwanted and unacceptable behavior at work • Intercultural training courses Safety • Working on safe behavior • Prevention share • Safe Fleet program Health • Health monitoring, targeted examinations, spontaneous consultations, sickness registration, ergonomics, industrial hygiene, vaccinations, travel advice, blood collection, psychosocial counseling, first aid, health promotion Information and • Focus intranet, with daily updates • R&D group worldwide magazine The Pharma Frontier communication • Three-weekly bulletin (Janssen Bericht) • Six-monthly staff information sessions • Quarterly company magazine (Focus Magazine) • Permanent “Open Dialog” via Focus intranet

5000 76%

62% 4000 58% 4,571

4,208 42%

3000 4,061

3,855 38%

2000 24%

1000

0 Ratio m/f Ratio m/f Ratio m/f 2007 2008 2009 2010 in general in management functions at director level and higher

Trend in number of employees Ratio men/women in 2010 (Janssen Pharmaceutica + JC General Services)

JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 5 Community

Care of the environment In 2010, we were once again able to carry off an important external recognition. Janssen PProduct management in 2010 was still a Pharmaceutica received an honorary men- major area of attention for the Prevention tion from the CEFIC (Europese Federatie van Department, due to the further implemen- de Scheikundige Nijverheid – the European tation of the European REACH (Registration, Chemical Industry Council) following our Evaluation, Authorization and Restriction of participation in the European Responsible Chemical Substances) and GHS (Globally Care Awards 2010 with the Solvent manage- Harmonized System of Classification and ment@Janssen Pharmaceutica project: a Labeling of Chemicals) regulations. On the responsible approach from development till • The pharmaceutical production depart- subject of REACH, the first registration production. The project included a series of ments of GPSG in Leiden, Beerse and Raritan deadline of the ECHA (European Chemicals initiatives that were taken in recent years (USA) received an Energy Excellence Award Agency) expired on 1 December 2010. Six with the aim of limiting our environmental for the “outstanding energy programs, pro- substances were registered for Janssen. footprint by reducing our use of solvents. jects and results that are achieved on the According to the European GHS regulation, three campuses involved”. Thanks to inten- better known by its English abbreviation Internally, three J&J Worldwide Sustainability sive energy-saving programs, Janssen

CLP (Classification, Labelling and Packa- Awards were awarded to projects from Beerse Belgium was able to reduce its CO2 emissions ging), all relevant substances were to be and Geel in 2010: by 65% within five years by concentrating on registered with the ECHA by 1 January 2011. the best practices in this field, by effecting a A total of 217 products were registered via • One EHS Excellence Award went to the change in mentality among the users, and by group registration for all legal Janssen enti- Chemical cleaning re-invented: Clean, Lean switching to 100% green energy. ties in the EU. The environmental risk analy- & Green project of Janssen Geel. Thanks to sis of rilpivirine, abiraterone acetate, cana- this project, the ergonomics of the central • In the Product Stewardship Excellence gliflozin and TMC207 were coordinated in washing department could be thoroughly Award category, a prize was awarded for the order to ensure the timely registration of improved, the use of chemical substances Recuperation of API from Drug Product our new medicines at the EMA (European could be reduced, and noise and the envi- Matrices through Extraction and Crystalli- Medicines Agency). ronmental impact could be limited. zation project. This project involved the re-

6 JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 Indicators 2007 2008 2009 2010 Energy consumption (kWh) 325,269,854 347,162,053 339,364,016 364,852,020

CO2 reduction (in tons) 14,869 15,760 17,360 12,873 Use of green power 100% 100% 100% 100% Water consumption (m3) 1,110,236 1,008,702 986,207 1,000,889 Waste incinerated, dumped or physicochemically 12,532 11,593 11,662 14,301 treated (according to the definition of the HP2010 targets) (in tons) Paper and cardboard packaging (in tons) 2,672 2,955 3,665 3,403 % of packaging originating from certified forests 58.1% 58.5% 61.6% 83.2% or recycled materials Initiatives on environmental awareness Yes Yes Yes Yes and biodiversity Incidents and fines 0 1 2 0 Operational environmental costs (in million euros) 15.1 14.7 14.1 13.2 Audit of suppliers and external manufacturers Yes Yes Yes Yes Product management, use of DfE ** Yes Yes Yes Yes

** DfE stands for “Design for the Environment”, the process that is used by Chemical, Pharmaceutical and Packaging Development for the development of a medicine up to the final commercial product, during which the environmental impact of products and processes is closely monitored. covery of active pharmaceutical ingredients care systems. A significant area of attention from pharmaceutical development and vali- in this context was the further development dation batches in order to re-use them in of our program relating to contractor safety, non-GMP experiments. As a result, the time to ensure that also our external partners can involved and the cost of development activi- come and work here every day in a safe, ties could also be greatly reduced. healthy and environmentally-conscious manner. The combined environmental, safety and health audit that was carried out on the cam- The Janssen Pharmaceutica branches in Geel pus in Beerse, Geel and Olen in February and Beerse have joined the Voluntary 2010 was completed successfully. It was the Environmental Agreement (MBO) between first time that this audit has been carried out the Flemish Government and essenscia, the combining the three standards (ISO, OHSAS Belgian federation for the chemical industry and MAARS), the three sites (Beerse, Geel and life sciences, with a view to reducing and Olen) and the four sectors (R&D, NOX emissions between 2009 and 2013. In Chemical Production, Pharmaceutical Pro- addition to the annual reporting of the NOX duction and Support Services). As a result, emissions, a feasibility study was carried out the overall time required for the audit was into the reduction potential of our largest significantly reduced. The auditors were combustion plant in Beerse in 2010. Following impressed by the professionalism and the this, investments were made in the installa- dedication of our staff. Since 2010, we have tion of a new low-NOX burner in December the honor of not only operating as an 2010, resulting in a further reduction of these ISO14001 certified company, but also as an emissions with 5 tons every year. OHSAS 18001 certified company, and this applies to our three sites, Beerse, Geel and Olen. Our commitment to continuous im- provement is always at the basis of these

JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 7 General Ethical Policy As a pharmaceutical company, our aim is to discover and develop prescription drugs that are suitable for the treatment of nume- rous very serious diseases. All our activities must comply with the applicable legislation, and must be in accordance with the values of Our Credo. In addition, our company sub- scribes to the core principles of compliance, which means that we comply with our own internal regulations and procedures that fully correspond to the global and regional laws, legislation and requirements in terms of Research & Development, pharmaceutical One of the messages from the local residents in resulted in the immediate noise remediation of the ventilators in Building 014 by the Engineering Department. A small adjustment to the ventilation settings had caused marketing and promotional activities. an unexpectedly large increase in the noise level. The sound cards provide a picture of the specific sounds of the building’s noise sources before (on the left) and after (on the right) the remediation was carried out. All contacts between Janssen Pharmaceutica personnel and government officials (“Govern- transparent documenting of why we are questions or to address remarks with regard to ment Officials” or GOs), which includes pro- working together with specific people, our company. This toll-free hotline enables us fessors and university personnel, as well as groups or associations, and not with others, to quickly respond to any concerns that may customs officials, doctors, nurses and other and why and how much they are being paid, arise in the immediate neighborhood of the experts in the health sector (“Health Care etc. Following the introduction of this pro- company. In 2010, 14 messages were regis- Professionals” or HCPs), must be conducted gram, the Janssen employees who are invol- tered, and all these were looked into. After the in a correct and ethical manner. The HCBI ved in specific HCBI-sensitive activities were internal follow-up, the callers receive feed- guide, which was developed in-house, and asked to attend the obligatory “e-University” back about the actions that have been under- the corresponding HCBI procedures will help training course. taken. us to correctly apply and strictly comply with the various legislations, codes and directives, The Janssen hotline is a confidential, free-of- In addition, a neighborhood information and rules and obligations. The Health Care charge telephone number that can be used evening was organized in Beerse, during Business Integrity (HCBI) team of Janssen by employees to report any breach of the which not only the current environmental Pharmaceutica is responsible for the imple- legislation and/or company guidelines rela- aspects were discussed, but also the activi- mentation and maintenance of the overall ting to Health Care Business Integrity (HCBI), ties of the company fire brigade and of the Health Care Business Integrity program rela- financial reporting, accounting, auditing and new colleagues of Tibotec-Virco Virology. ting to the activities that take place in our related subjects. The hotline is staffed by an offices in Beerse, Geel, Olen and Merksem. independent third party, and can be reached Any complaints or information about side- 24 hours a day, 7 days a week. effects regarding our medicines can be “Request Navigator” was launched on 1 May reported to the Customer Service Center of 2010: this is a program to help users with In order to maintain our relationship with Janssen-Cilag Benelux, our commercial sis- both the creation of the necessary contracts neighboring residents, we have organized a ter organization, which has been accommo- for HCBI-sensitive activities and with the green number that can be contacted to ask dated in Beerse 2 from 2010.

Subject Indicator Programs Audit Child labor • Workforce: Employment Policy Yes - internal no children employed for young people Human rights • Complaints: None Advertising • Communication and Sponsoring Deontological Code of Mdeon Yes - internal + external Complaints: 1 request for information was replied to • Advertising to patients: Not applicable Pricing • Not applicable Employee privacy • Complaints: None Yes Yes Patient privacy • Complaints: None Yes Yes

8 JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 Social Responsibility Janssen Pharmaceutica aims to be actively With the annual “Prevention Share”, we re- text, the company supported the Mamosa involved in the community, and supports pro- cognize the efforts made by departments and project for the reconstruction of a home for jects that are in line with its economic exper- staff in the field of creating a safe, healthy and students managed by the Flemish Scheut tise and know-how. At the Janssen Meeting environmentally-conscious working environ- (CICM) missionary Jan Hoet in Haiti. In Center in , we accommodate 16 local ment. A department can score points during Pakistan, emergency medicine parcels for non-profit organizations, the social objectives the year for every prevention initiative they local hospitals were reimbursed to the local of which are in line with Our Credo. In addition, come up with. The ‘platinum’, ‘gold’, ‘silver’ J&J branch. in 2010 Janssen Pharmaceutica also supported and ‘bronze’ awards are then presented at the a number of private initiatives by doctors who end of the year. The financial appreciation in Furthermore, the company contributed to help to alleviate medical needs in developing the context of the 2009 Prevention Share was the success of the sponsored march that countries using our medicine parcels. donated to three local organizations that are was organized in December 2010 in the active in the field of (mental) health care: the context of the Studio Brussel Music for Life Janssen signed a contract with the Brothers of ‘Centrum voor Geestelijke Gezondheidszorg campaign. Most of the proceeds of this suc- Charity on the 6 December 2010. For the co- Kempen’ (Center for Mental Health, the cessful fundraising campaign went to AIDS ming five years, Janssen will donate parcels of Kempen), the non-profit organization Krik- orphans in Africa; the remainder being DIPIPERON, HALDOL, ORAP and RISPERDAL, Krak, and the MPI De Mast in . donated to our own Sikiliza Leo project in with a value of about 100,000 euro a year, to Uganda. This project includes making pota- this religious organization. The Brothers of Like J&J, Janssen also supplies emergency ble water, health promotion and family Charity maintain sixteen centers for mental aid after major natural disasters, such as counseling available. AIDS orphans are sup- health care in six African countries. These cen- after the devastating earthquake in Haiti ported in this way, and an attempt is made ters treated an estimated 80,000 psychiatric early in 2010 and after the immense floods to make the community more viable by patients in 2009. in Pakistan in the spring of 2010. In this con- means of social campaigns.

Activity Projects Partners Financial support • Community and social projects Fight against Cancer, Den Leeuweric, Ter Loke, Home Monnikenheide,Toy library 't Otterke, Special Olympics Belgium, Het GielsBos and other non-profit organizations Company-related initiatives • Cooperation agreement for the conservation Xian-Janssen in China and restoration of historical monuments Janssen PMP in India Free accommodation • Janssen Meeting Center Turnhout 16 non-profit organizations Product donations • Medicines and medicine parcels Brothers of Charity Private initiatives Other donations • Second-hand furniture and technical/ Various schools and colleges, universities, scientific equipment and materials and numerous non-profit organizations Regional development • Strategic Project Organization Kempen (SPK) Membership to business organizations • Business & Society Belgium, Kauri, Itinera Institute (in cooperation with Janssen-Cilag Benelux)

JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 9 Economic

Janssen Pharmaceutica’s turnover in Belgium In 2010, substantial investments were again ing, ventilation and air conditioning installa- increased by 196 million euro to 2,010 million made in buildings, infrastructure and new tions in the Powder Unit, and modification euro in 2010, compared to 2009. 86 % of this technologies. In Beerse, a number of modifi- work was carried out on the sewer system. Jturnover was achieved via the associated cations were carried out to the buildings due companies. The loss on ordinary activities to the relocation of the activities of Tibotec- In the sites in Beerse, Geel and Olen, an before taxes amounted to 4 million euro, Virco from Mechelen to Beerse in 2010. additional amount of 36.8 million euro was primarily due to higher operating expenses. Investments were also made in a product also invested in a series of minor building The bottom-line profit of 22 million euro for line for McNeil products, and in an expan- renovations, machines, installations and the financial year is mainly the consequence sion of the capacity of the Computer Data equipment necessary to keep the sites up- of extraordinary results, including the profit Center in Beerse. On the Beerse 2 site, the to-date. on the sale of the shares of Movetis NV, necessary arrangements were made to make which was acquired by Shire in 2010, the space for our colleagues from Janssen-Cilag In La Louvière, Janssen purchased industrial profit on the sale of the shares of Johnson & Benelux and J&J Consumer Benelux, who land for the construction of a European Distri- Johnson Consumer NV to JHC Nederland moved from Berchem to Beerse in 2010. bution Center for the J&J Pharmaceutical BV, and an extraordinary cost of 48 million Group; the construction officially started in euro due to the legal settlement of the cef- In Geel, substantial investments were made October 2010. An amount of 14 million euro tobiprole damage claim from Basilea. The in the new Pilot Plant for chemical develop- was invested in this project in 2010. In local turnover and profit figures should, of ment and the related utilities. The Pilot Plant, Diegem, an office building was purchased and course, be incorporated in the overall results which constitutes the bridge between renovated, and will be made available to the of the Johnson & Johnson group, our parent Research & Development and Production, Belgian companies of the J&J MD&D Group. company quoted on the New York Stock was officially inaugurated on 1 October 2010, The MD&D Group will find accommodation Exchange. and will be fully operational in 2011. Further- here in the course of 2011. 12.3 million euro more, amendments were made to the heat- was made available for this project in 2010.

10 JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 Indicators 2007 2008 2009 2010

Turnover (in million euros) 1,787 1,792 1,814 2,010

Profit from ordinary activities before tax (in million euros) 24 61 57 -4

Profit (in million euros) 674 40 -4 22

Total payroll (in million euros) 442 542 420 425

Investments in buildings, infrastructure, new technologies (in million euros)* 178 173 131 151 Purchases from suppliers that represent more than 10 % of the purchase amount (in million euros) None None None None

* This figure relates to the investments of Janssen Pharmaceutica and Janssen-Cilag General Services together. All other figures in the table only relate to Janssen Pharmaceutica.

2500 500 200 542 2000 400 150 178 442 173 425 1500 300 420 151 2,010

1,814 100 1,792 1,787 131 1000 200 50 500 100

0 0 0 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010

Turnover evolution (in million euros) Total payroll evolution (in million euros) Capital Expenditure evolution (in million euros)

Programs and challenges for the future As mentioned earlier, we are now at a pivotal cular & metabolic conditions. We will also where new business ideas can be converted moment in the history of our company. We work together far more with external into viable projects. The VIC provides sup- need to invest far more than before, with far experts, firms or academic institutions that port for the launch of new healthcare initia- greater risks than before. We therefore need are at the top in their respective fields than tives that are in line with the campus strate- to concentrate fully on increasing our pro- we did in the past. A good example of this is gy, it encourages entrepreneurial talent and ductivity and competitiveness in all sections Crucell, the Dutch company that has been assists in channeling the use of this talent. of the company. At the same time, we will fully acquired by J&J in the meantime, and Finally, the VIC also contributes to a partner- need to enter into a dialogue with the regu- that is among the global players in the field ship community based on the principle of latory authorities to make the long journey of vaccines. The other partnership agree- open innovation. The Entrepreneurial Boot to the approval and reimbursement of new ments that were concluded in 2010 should Camps offered by the VIC provide entrepre- drugs more efficient. Efforts are also being also be seen in that perspective. The “Open neurial talent with a platform to develop new made with regard to a more efficient distri- Innovation” model will therefore become business ideas. bution of our products. For example, the increasingly widespread. SODIAC project was started in 2010. This In line with the new strategic plan for the project is oriented towards creating a new, Our campus aims to create, develop and Janssen campus, the second Science and integrated distribution platform in the EMEA deliver therapeutic solutions that transcend Knowledge Week was organized in September region (Europe, Middle East, Africa) in order limits, and this will make a difference for the 2010. The purpose was to provide everyone to be able to meet the changing needs of patient. This is the reason why we are work- with the best possible opportunity to take part patients and customers. ing on building an open and entrepreneurial in the various activities that are of interest or campus community, with the purpose of are useful. This was also a way to stimulate the If we are to increase our productivity, we will focusing together on activities with a high group spirit and to encourage potentially have to specialize in a number of disease added-value - as a center of open innova- refreshing social contacts and new insights. areas and research disciplines. Five integra- tion. The Venture and Incubation Center The closing event of this Science and ted therapeutic areas have been specified (VIC), a division of the Office for Campus Knowledge Week was a true family day for worldwide: oncology, infectious diseases, Strategy and Growth (OCS), is playing a very the whole family on the company site of neurosciences, immunology and cardiovas- specific role in this: It is a type of incubator Janssen in Geel.

JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 11 Preservation and Material Protection The Janssen Pharmaceutica Preservation control of storage diseases has become more The third cornerstone is ecological. Post- and Material Protection (PMP) department important than ever. Furthermore, the harvest treatment requires and pollutes less has been a world leader for many years in socially responsible, sustainable post-harvest water than treatment on the field. In addition, the development and marketing of mildew treatment makes rational use of fungicides, Janssen PMP has developed technologies to antimycotic products for the post-harvest and combines the application of the treat- ensure the complete breakdown of the treatment of fruits. The existing range of ment with inspections regarding the dosage chemical load of the treatment water after this autonomous department includes and the nature of the compounds used. Only treatment (FUNDSTM technology). Finally, the FUNGAFLORTM and FUNGAZILTM on the basis in this way can healthy fresh food, such as production, transport and processing of con- of the imidazole compound imazalil, fruit, which is essential for the intake of suffi- taminated fruit that can no longer be sold can PENBOTECTM on the basis of the pyrimidine cient vitamins and antioxidants, also be made be avoided, and this results in the reduction compound pyrimethanil and the patent- accessible to less wealthy population groups. of the overall ecological footprint of the fruit protected PHILABUSTERTM, in which both One single kilogram of imazalil prevents the sector. Calculations show that one ton of ima- active molecules are combined. Interesting loss of 25 tons of fruit! zalil leads to a reduction of 8,250 tons of CO2 new products are currently in the evaluation emissions. The effective use of PENBOTECTM phase or in the development phase, with The second cornerstone is economic. The for apples could even reduce the CO2 emis- special attention to non-chemical methods, use of post-harvest fungicides not only pre- sions by no less than 134,000 tons. such as active plant components or benign vents the loss of food, but savings can also yeasts that compete for space with the be made on the repackaging and the need- In 2010, in the context of its social commit- pathogens. less transport of perishable food. Post- ment and the Janssen Pharmaceutica Preven- harvest treatments against fruit rot are tive Heritage Preservation Fund, Janssen PMP Janssen PMP intends to remain a world lead- more efficient than treatments prior to the made an important financial contribution to er in the post-harvest protection of fruit harvest, and they are less susceptible to the the UNESCO Chair for Preventive Preserva- also in the future. To achieve this, the development of resistance. Moreover, this tion, Monitoring and Maintenance of Monu- department relies on the three corner- type of treatment does not depend on the ments and Sites at the KU Leuven. The ongo- stones of sustainable enterprising. weather conditions and allows for greater ing cooperation between Janssen PMP and flexibility in the timing of the harvest. the Archeological Survey of India (ASI) was The first cornerstone is at a social level. As a also continued in this context, and a detailed result of the growing world population, the report was prepared on the biological con- increasing international trade and the tamination at the summer palace of Sultan demand for high-quality food, the efficient Tipu in Srirangapatnam, Karanataka (India).

The summer place, a sanctuary build as a burial chamber for Tipu Sultan, ruler of Mysore in South India during the second half of the XVIII Century.

12 Some of our 2010 Highlights

Relocation operations from Mechelen New Janssen identity a fact Fourth Dr Paul Janssen Award and Berchem On Friday, 10 September 2010, Janssen The Dr. Paul Janssen Award for Biomedical Several hundred Tibotec-Virco employees Pharmaceutica officially took on the new Research was presented for the fourth time moved from Mechelen to Beerse 1 in the Janssen identity of the Pharmaceuticals in September 2010. This prestigious award spring of 2010. Later, in the months of August Group. This meant that the new logo could recognizes one or more passionate and cre- and September 2010, the employees of officially be used from this day onwards. The ative scientists who are active in basic and/or Janssen-Cilag Benelux, J&J Consumer and stylized deer continues to highlight our link clinical research, and whose scientific achieve- Global Clinical Operations, who were previ- with the Kempen, but now has a more time- ments have had, or will very probably have a ously employed in Berchem, took up resi- less and forward-looking appearance. The measurable impact on human health. The dence in Beerse 2. As a result of their arrival, logo also evokes a patient with outstretched Award was presented to Prof. Em. Erik De the integration of all pharmaceutical activi- arms, waiting in hope for our medicines to Clercq and Prof. Anthony Fauci for their pio- ties – and part of the consumer activities – of fulfill his unmet medical needs. Most J&J neering work in the understanding and com- J&J in Belgium at one campus became a fact. Pharmaceutical companies have adopted bating of viral diseases and, more specifically, this new identity in the meantime. the understanding and combating of HIV/ AIDS.

Pilot Plant in Geel inaugurated Best employer in Belgium European Distribution Center Janssen inaugurated its new Pilot Plant in For the past ten years, Janssen Pharmaceutica in La Louvière Geel at the beginning of October 2010. The had the best result in consecutive Randstad On 19 October 2010, the symbolic first stone new Chemical Development Pilot Plant surveys regarding the best employer in of the new Janssen European Distribution (CDPP) represents a bridge between Belgium. According to Jan Denys from Center for medicines was laid in La Louvière Research & Development (R&D) and the Randstad, Janssen has a number of impor- in the presence of Rudy Demotte, Minister- production of medicines. The inauguration tant trumps in its hand, despite the various President of the Walloon Region, and PS was the culmination of the many years of restructuring phases over the past few years: Chairman and Minister of State Elio Di Rupo. fruitful cooperation between the colleagues “The company is still perceived as “a local In March 2010, Janssen decided to invest 49 from Chemical Development and Chemical company”, even though it has been in Ameri- million euro in a new logistics center for the Production, and is a testimony of J&J’s con- can hands for many years now.” In addition, distribution of medicines in Europe. Together fidence in the know-how and skills of the continuing high esteem for Dr. Paul with three satellite centers, this distribution Janssen in Belgium. The mission of the Pilot Janssen and his work probably played a deci- center will bundle the activities of the current Plant is two-fold: On the one hand, the sive role. With an average relative attractive- fifteen distribution centers in Europe from chemical development of active ingredients ness of 47% in ten appearances in the annual 2012 onwards. This will substantially reduce for the clinical research, and the chemical Randstad Award, Janssen certainly performed the number of steps in the supply chain. production of small volumes of medicines much better than its direct competitors. on the other.

JANSSEN PHARMACEUTICA - SUSTAINABILITY REPORT 2010 13 © JanssenPharmaceuticaNV2011 www.janssenpharmaceutica.be More information: Turnhoutseweg 30,B-2340Beerse,Belgium Lieve Deconinck,JanssenPharmaceuticaNV, Director ofEditing: Janssen PharmaceuticaNV,2011 Published by: OlenandMerksem. Geel, Beerse, JanssenhassitesIn Belgium, Pharmaceutica in • • • company incorporates: NV.Pharmaceutica limited ThisBelgian liability relatesThis SustainabilityReport to Janssen above-mentioned organizations. above-mentioned providingtoProcurement, etc., the support Finance, theLegal Department, Department, theEH&S Human Resources Department, suchasthe A rangeservices, ofsupport andOlen; Geel productionpharmaceutical plantsinBeerse, and chemical theBelgian Janssen SupplyChain, Group;Pharmaceuticals researchworldwide organization oftheJ&J Janssen R&D, divisionofthe theBelgian

Design and Production: Campus Communication, Beerse, Belgium