Collaborative Innovation
and Realizing Potential of Asia-Pacific1

13 October 2020

3

More Than 130 Years:
Creating Value
Through Innovation

4$11.4B

BusinessSegments

Invested in R&D
in 2019

Selling products
in more thanOver

175
countries

130,000
employees worldwide

4“Innovation at Johnson & Johnson isabout creating strong networks ofpeople who can combine resources,
ideas and technologies in a new way.
Paul Stoffels, M.D.
Vice Chair of the Executive Committee
and Chief Scientific Officer
Johnson & Johnson

Global Johnson & Johnson Innovation
Network 2020
Innovation Center (IC)IC OfficesJLABS @ Toronto

West NA & ANZ
Innovation CenterCanada

EMEA
Innovation Center

APAC Innovation Center

London, UK

San Francisco, CAShanghai, China

JLABS @ M2D2Lowell, MA

JLABS & JPODS

East NA
Innovation Center

Partnering OfficeCambridge, MA

Med Devices

Tokyo

JPOD @ Boston

Seoul

JLABS @ LabCentral
Boston, MA

JLABS @ BE
Beerse, Belgium

Hong Kong(China)

JLABS @ NYC
New York

JLABS @ MBC BioLabs

JLABS @ Washington DC

Bay Area, CA(Opening 2021)

Singapore

JLABS @ Shanghai
China

JPOD @ Philadelphia
PAJLABS @ SFF
South San Francisco, CA

JLABS @TMCTexas Medical Center,Houston

SydneyJLABS @ San Diego
La Jolla, CA

JJIPO @ QUTQueensland, Australia

CDI @ TMCJJIPO @ MonashVictoria, Australia

4Convergence Across Johnson & Johnson
External Innovation

World Without Disease Accelerator

Lung Cancer Initiative at Johnson & Johnson

Prevention, Interception and Cure Strategies and Solutions

Cross-Sector Initiative to Prevent, Intercept and Cure Lung Cancer• Focused on discovery, development and delivery of disruptive
products, technology and business models to advance theelimination of disease• Formed in 2018 to transform standard of care for lung cancer• Capabilities in areas including microbiome, immunosciences, data
sciences & predictive biomarkers and behavioral neurobiology• Develop holistic solutions for lung cancer through consumer
products, diagnostic, medical devices and pharmaceuticals• Strategic collaborations with academic medical centers• Technical expertise underpins scientific strategy

5Our Collaborations to Accelerate Innovation in Japan

Strategic collaborationagreements withseveral leading
Japanese academia on
open cross-innovation
accelerator platforms
across all of Johnson& Johnson Innovation’s
strategicareas of interest

A multi-target discovery
collaboration to identify
and optimize peptide
candidates into
therapeutic peptides

A ‘World Without
Disease Call-forProposal’ awarding
5 awardees
for researchacross lungcancer, myopia,
infant/child health,healthy aging andneuroscience

A researchcollaboration with afocus on drug
discovery research
for a specific proteinprotein interaction(PPI) target

A collaboration tofast-track the R&D ofnovel biomarkers forthe early detection of
Alzheimer’s disease
and relateddementias

6

Globally, aging is one of the largest societal issues andJapan is at the epicenter of aging

The population ofJapan is declining
and aging

Major concern for Japanese
government is the disproportionate
cost of healthcare for the elderly
population

Life expectancy and healthy life
expectancy for Japanese(2016, years)

Annual cost of healthcare per capita (in thousands USD / person)

Life expectancy

Healthy life expectancy

10.8

86.6

Female
9.3

-12.4

74.2
7.8
6.4
5.0

Japan has a growing 65+ segment
along with the highest share of 65+
individuals globallyMale

3.9
3.1

71.2

2.5

2.5

-9.0

2.0
1.6

Average annual cost of healthcare perperson in Japan for an 80-year-old isdouble that of a 65-year-old85+

80-84

75-79

70-74

65-69

60-64

55-59

50-54

Source: W hite paper on aging society, Cabinet Office 2015, https://ourworldindata.org/life-expectancy

45-49

40-44

35-39

30-34

20-24

15-19

10-14

5-9

1.1 0.8 0.8

1.4
1.1 1.3

25-29

1.4

0-4

… while having thehighest share of65+ individuals
across the globe

80.2

The average gap for Japan is 10.8
years which is 15% higher than theglobal average at 9.4 years1

The gap has been consistently
increasing for Japan with agrowth rate 0.4%

Our first focus is on lung cancer
Lung cancer is the leading causeof cancer deathHigher survival rate in Stage I while
Stage IV carries poor prognosis

Nearly half of lung cancers patientsare 75+

Number of deaths based on site and sex

Number of Prevalence

5 year survival rate (Lung and Trachea)in 33 cancer hospitals in Japan

25000
Colon (F)Colon (M)

100

20000

90

Prostate (M)
15000

80

Breast (F)70Lung (F)

10000

60
Lung (M)50

5000
Pancreas (F)40

Pancreas (M)30Over 85

80-84

75-79

70-74

65-69

60-64

55-5950-54

45-49

40-44

35-39

30-34

25-29

20-24

15-19

5-9

Liver (F)

10-14

0-40

Liver (M)20100

Gastric (F)Gastric (M)010000

20000

30000

40000

50000

60000

48%
82%

Ratio of patients over 75+

Stage Ⅰ

Stage Ⅱ

Stage Ⅲ

Stage Ⅳ

Ratio of patients over 65+

Source: Vital Statistics 2017 https://ganjoho.jp/reg_stat/statistics/stat/summary.html , Cancer Registry 2014 https://ganjoho.jp/reg_stat/statistics/dl/index.html#incidence4pref , Hospital Cancer Registry 2016
Confidential. For J&J Internal Use Only.

8

LCI is focusing on five solution areas to change the trajectory of lungcancer – the leading cause of cancer-related death globally
LCI VISIONTake a holistic approach to lung cancer, targeting root
causes of problems that lead to lethal disease to enableearlier and more effective intervention

Leverage Johnson & Johnson’s unparalleled breadthand depth of expertise across sectors
to create and deliver transformative solutions

TRANSFORMING THE PATIENT JOURNEYHEALTHYLCI solutions address challenges in order of scientific readiness

INCUBATINGPRIORITY GLOBAL LCI SOLUTION AREASEARLY CANCER

To eliminate lung cancer with solutions thatprevent, intercept, and cure

LCI ADVANTAGELCI MISSIONHORIZON 3

7-9 years

Identify and treat people incubating cancer

HORIZON 1

1-3 years

Identify individuals with early-stage lung cancer toenable curative intervention

HORIZON 2

4-6 years

Improve treatment of people with early-stage lungcancer
9With Smart Healthy Aging Initiative (SHAI) J&J would like to lead thismovement, starting in Japan with the potential to expand globally… J&J can lead the movement andenable transformative change

By leveraging J&J’s core strengths…
Scale and breadth: world’s largest and mostbroadly based healthcare company

Pharmaceutical

MedicalDevices

Consumer
HealthVision Care

Bring healthy aging discussion to theforefront for the public, government and industry
Enable efficient and high-quality healthcaredelivery for elderly and governments

Innovator: committed to positively impact humanhealth through innovation

Accelerate, empower and inspire innovation in
healthy aging

Collaborator: works and partners withorganizations—scientific societies, academia,
industry, government

Bring new solutions to support the elderly
beyond medical interventions20World Without Disease Call-for-Proposal in JapanThe University of Tsukuba
Lung CancerMyopia

The University of Tokyo

Dr. Susumu Kobayashi

National Cancer Center
The identification and validation ofcirculating miRNAs as a biomarker
related to lung tumorigenesis andearly-stage lung cancer.

Development of Highly Accurate
Prediction Model for Myopia Progression
Through Machine Learning (AI)Infant /Child Health

A Simple & Safe, Predictable Diagnostic
For Childhood Food Allergy

Nexuspiral Inc.
Genome Editing with Oligonucleotides
Neuroscience

ExTherea Inc.
Exosomes: Next Generation Therapy toCombat Neurodegeneration
11To address them, companies, governments and other entities within theecosystem must work together to innovate new solutions and offerings
To address the unmet needs tothe elderly…

…several challenges
exist…
Holistic approach needed to tackle
all dimensions of healthy aging

PhysicalhealthCognitive
healthB

Care andsupportAF

Healthy
AgingCD

Financialsecurity

Difficult for one company to serve
all needs making need for crossindustry partnerships

E Social
engagement

High barriers to coordination
given fragmented landscape ofservices, despite recognizedbenefits of connectionEnvironmental
adaptations

Complex stakeholder
relationships between patients,
providers and payors / governments…increasing the need forholistic innovation
Need for holistic healthy aging
innovation approach to drive productand services advancements
Thinking needs to shift from simple
product focus towards networks andpartnerships
Cross-sector thinking of increasing
importanceInnovation catalyst models need toadapt to drive impactful innovations

Need affordable solutions to scaleand serve the entire population while
containing cost

Source: McKinsey Global Institute (MGI) 2020, Silver Economy Study European Commission 201819

#MakeTheConnection
ASIA PACIFIC INNOVATION CENTER
Tokyo Office: 5-2, Nishi-Kanda 3-chome, Chiyoda-ku, Tokyo, 101-0065, Japan

Jun Kusunoki
Director, New Ventures, Japan
Johnson & Johnson Innovation
E: jkusunok@its.jnj.com

VISIT OUR WEBSITE FOR MORE INFORMATION:
www.jnjinnovation.com

Takako Ebata
Head, Government Affairs
Johnson & Johnson Japan(Project Lead of SHAI)
E: tebata@its.jnj.com