At Johnson & Johnson, we value transparency as the basis of trust-building with all those engaged in any way with our business. We strive to hold ourselves accountable by providing information about how we operate across our operating companies and markets. Further, we also recognize and comply with the multiple reporting requirements that regulatory bodies governing our three business segments define.
Our mandatory and voluntary disclosures:
- Financial Disclosures: We report on our financial results and other material disclosures as required for a U.S. public company by the Securities Exchange Commission and the New York Stock Exchange. Our filings are available on our corporate site.
- Citizenship and Sustainability Disclosures: We publish an annual Health for Humanity Report in line with leading global standards (Global Reporting Initiative, UN Global Compact) covering a broad range of non-financial updates and performance.
- Environmental Disclosures: In addition to our Health for Humanity Report, we disclose to CDP Climate Change, Water and Forest frameworks.
- Payments to Healthcare Providers: In the United States, we disclose financial information under the Physician Payments Sunshine Act. We also voluntarily publish aggregated data for our companies covered by Open Payments. In Europe, we comply with the European Federation of Pharmaceutical Industries and Associations healthcare payments disclosure framework with disclosures on the Janssen website. Other countries or regions have similar legal or industry code disclosure requirements that we have worked to help establish—and that we comply with—to help foster transparent business practices. For further information on our approach, see our statement on Funding for Professional Education and to Health Care Professionals.
- Clinical Data Transparency: We support the overall principles of greater clinical trial data transparency, including registration and disclosure of clinical trial results in external registries; publication of results in peer-reviewed journals; and sharing of clinical study reports and participant-level data from clinical trials. Clinical trials conducted around the world by our pharmaceutical, medical devices and consumer product companies are listed on the U.S. National Institutes of Health’s website, the European Clinical Trial Register, and country-specific and regional registries across the globe. Learn more in Bioethics section.
- Political Engagement: As a global healthcare company, we work with many stakeholders in the markets where we operate, and we take a stance on and support certain public policies in the United States and in different parts of the world as they relate to our core business of advancing health. Our stakeholders express interest in knowing what our policy positions are and the ways we contribute to advancing those policies. We disclose this information annually, including our philosophy on political contributions, our strategic priorities and our contributions data. Please visit Political Engagement for more information.
Johnson & Johnson advanced to “Trendsetter” status in 2018 on the Center for Political Accountability’s CPA-Zicklin Index, which the organization deems as those companies most transparent. The CPA-Zicklin Index benchmarks the political disclosure and accountability policies and practices for election-related spending of leading U.S. public companies.
Pricing Transparency in the United States
We know that in today’s complex healthcare system patients and families are increasingly concerned about their ability to access and afford medical innovation. These concerns have rightfully led to calls for greater transparency into the world of healthcare, including prescription medicines.
That is why the Janssen Pharmaceutical Companies of Johnson & Johnson publishes its annual Janssen U.S. Transparency Report, which demonstrates our commitment to responsible business practices that put patients first—including how we invest our resources, price our medicines, and help people who need Janssen medicines get access to them. In March 2019, Janssen published the 2018 Janssen U.S. Transparency Report. This year we share our ideas and perspectives on policy proposals, with the goal of building on what is working in our healthcare system while fixing what is not. We also detail our plan to include list price and typical patient out-of-pocket costs in our U.S. pharmaceutical advertising. We issue this Report because we believe open dialogue and partnership are essential to addressing the challenges in our healthcare system. Fundamentally, we believe transparency is a positive step toward a more sustainable, results-based health system that delivers greater access to care at a more manageable cost.
Greater transparency is a critical step toward giving patients the clarity they need about their healthcare options and out-of-pocket costs. In this year’s report, we disclose that the average net price of our medicines in the U.S declined 6.8% in 2018, falling for the second year in a row. At the same time, we maintained our significant investment in discovering and developing transformational medicines for patients facing some of the world’s most challenging diseases: our $8.4 billion global investment in R&D was 86% more than what we spent to market and sell our medicines.
In 1943, we adopted Our Credo, which guides how the Johnson & Johnson Family of Companies conduct business around the world. The third paragraph of Our Credo focuses on our community responsibilities as corporate citizens. We take these responsibilities very seriously, including paying our fair share of taxes, among them corporate income taxes, employment tax, social contributions, import and customs duties, and indirect taxes. We value and strive for cooperative and transparent relationships with taxing authorities, and we support tax policies that encourage innovation and growth.
Our commitment to these responsibilities is embodied in our Tax Policy Statement.
Many people turn to the Internet for information when navigating the process of seeking pre-approval access (PAA) to investigational medicines. It is essential they find an easy-to-understand, trusted and reliable source of PAA information. With this in mind, our Patient Support team has unveiled new materials as well as enhancements to the Compassionate Use & Pre-Approval Access section of Janssen.com. The site now includes an array of user-friendly tools and resources, the result of extensive patient-focused collaboration. To aid patients, consumers, healthcare practitioners and other external stakeholders, there is a new resource tab, which includes a brief video on compassionate use, a glossary of PAA terms, an infographic that depicts the process of making a single patient request (SPR), and additional tools.
In 2018, The U.S. Food and Drug Administration (FDA) approved ERLEADA (apalutamide) for the treatment of patients with prostate cancer that has not spread (non-metastatic) but continues to grow despite treatment with hormone therapy. This is the first FDA-approved treatment for this type of prostate cancer. The safety and efficacy of ERLEADA was based on a randomized clinical trial of 1,207 patients.
ERLEADA is the first participant in the FDA’s Clinical Data Summary Pilot Program, announced in early 2018, created to provide stakeholders with more usable information on the clinical evidence supporting drug product approvals and more transparency into the FDA’s decision-making process. Information from the clinical summary report and the ERLEADA submission is now posted to the FDA’s new Clinical Data Summary Pilot Program website.