UNITED STATES
            SECURITIES AND EXCHANGE COMMISSION
                  Washington, D.C.  20549

                        FORM 10-Q

(X)   Quarterly Report Pursuant to Section 13 or
      15(d) of the Securities Exchange Act of 1934
      for the quarterly period ended April 1, 2007

                          or

(  )  Transition Report Pursuant to Section 13 or
      15(d) of the Securities Exchange Act of 1934
      for the transition period from to

             Commission file number 1-3215


                 JOHNSON & JOHNSON
     (Exact name of registrant as specified in
                    its charter)

NEW JERSEY                              22-1024240
(State  or other jurisdiction of     (I.R.S. Employer
incorporation or organization)     Identification No.)

             One Johnson & Johnson Plaza
          New Brunswick, New Jersey 08933
      (Address of principal executive offices)

Registrant's telephone number, including area code
                 (732) 524-0400

     Indicate    by  check  mark  whether   the
registrant (1) has  filed all  reports required
to  be  filed by Section 13 or 15(d)   of   the
Securities   Exchange Act of  1934  during  the
preceding   12   months (or  for  such  shorter
period  that  the registrant was  required   to
file  such  reports),  and (2) has been subject
to such filing requirements for the past 90 days.
(X)  Yes  (  )No

  Indicate by check mark whether the registrant
is  a  large  accelerated filer, an accelerated
filer,   or   a  non-accelerated  filer.    See
definition  of  "accelerated  filer  and  large
accelerated  filer"  in  Rule  12b-2   of   the
Exchange  Act.  Large  accelerated  filer   (X)
Accelerated filer (  )   Non-accelerated  filer
(  )

  Indicate by check mark whether the registrant
is a shell company (as defined in Rule 12b-2 of
the Exchange Act).  (  ) Yes       (X) No

   Indicate   the  number of shares outstanding
of   each  of  the issuer's  classes  of common
stock, as of the latest  practicable date.

   On  April 29, 2007 2,896,558,402 shares of
Common Stock, $1.00 par value, were outstanding.


JOHNSON & JOHNSON AND SUBSIDIARIES


                         TABLE OF CONTENTS

Part I - Financial Information                   Page No.

Item 1.  Financial Statements (unaudited)

 Consolidated Balance Sheets -
   April 1, 2007 and December 31, 2006              3


 Consolidated Statements of Earnings for the Fiscal
   First Quarters Ended April 1, 2007 and
   April 2, 2006                                    5


 Consolidated Statements of Cash Flows for the Fiscal
   First Quarters Ended April 1, 2007 and
   April 2, 2006                                    6

 Notes to Consolidated Financial Statements         8

Item 2. Management's Discussion and Analysis of
        Financial Condition and Results
        of Operations                              24


Item 3. Quantitative and Qualitative Disclosures
        About Market Risk                          35

Item 4. Controls and Procedures                    35


Part II - Other Information


Item 1 - Legal Proceedings                         35

Item 2 - Unregistered Sales of Equity Securities
           and Use of Proceeds                     36

Item 6 - Exhibits                                  36

  Signatures                                       37










Part I - FINANCIAL INFORMATION

Item 1 - FINANCIAL STATEMENTS



          JOHNSON & JOHNSON AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                (Unaudited; Dollars in Millions)

                             ASSETS

                              April 1,      December 31,
                                2007            2006
Current Assets:
Cash & cash equivalents       $5,175         $4,083

Marketable securities             16              1

Accounts receivable,
trade, less allowances
for doubtful accounts
$164 (2006,$160)               9,293          8,712

Inventories (note 4)           5,047          4,889

Deferred taxes on income       2,088          2,094

Prepaid expenses and
other receivables              3,054          3,196

     Total current
     assets                   24,673         22,975

Marketable securities,
non-current                       14             16

Property, plant and
equipment at cost             24,239         24,028

Less: accumulated
depreciation                 (11,059)       (10,984)

Property, plant and
equipment, net                13,180         13,044

Intangible assets, net
(note 5)                      15,568         15,348

Goodwill, net (note 5)        13,663         13,340

Deferred taxes on income       3,273          3,210

Other assets                   2,695          2,623

     Total Assets            $73,066        $70,556



See Notes to Consolidated Financial Statements



          JOHNSON & JOHNSON AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
                (Unaudited; Dollars in Millions)

              LIABILITIES AND SHAREHOLDERS' EQUITY

                              April 1,      December 31,
                                2007           2006
Current Liabilities:
Loans and notes
payable                      $4,682         $4,579

Accounts payable              5,643          5,691

Accrued liabilities           4,483          4,587

Accrued rebates,
returns and
promotions                    2,352          2,189

Accrued salaries,
wages and commissions         1,125          1,391

Accrued taxes on
income                        1,378            724

     Total current
     liabilities             19,663         19,161

Long-term debt                2,012          2,014

Deferred taxes on
income                        1,375          1,319

Employee related
obligations                   5,660          5,584

Other liabilities             3,428          3,160

     Total liabilities       32,138         31,238

Shareholders' Equity:

Common stock - par
value $1.00 per share
(authorized 4,320,000,000
shares; issued 3,119,842,548
shares)                       3,120          3,120

Accumulated other
comprehensive income
(note 8)                     (2,124)        (2,118)

Retained earnings            50,850         49,290

Less: common stock
held in treasury, at
cost (225,826,000 and
226,612,000 shares)          10,918         10,974

     Total shareholders'
     equity                  40,928         39,318

     Total liabilities
     and shareholders'
     equity                 $73,066        $70,556

    See Notes to Consolidated Financial Statements



          JOHNSON & JOHNSON AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF EARNINGS
       (Unaudited; dollars & shares in millions
               except per share amounts)


                              Fiscal Quarters Ended
                          April  Percent    April  Percent
                        1, 2007       to  2, 2006       to
                                   Sales             Sales


Sales to customers       $15,037   100.0%  $12,992   100.0%

Cost of products
sold                       4,385     29.1    3,612     27.8

Gross profit             10,652     70.9    9,380     72.2

Selling,
marketing and
administrative
expenses                  4,802     31.9    4,095     31.5

Research expense          1,652     11.0    1,532     11.8

In-process research &
development                 807      5.4       37      0.3

Interest Income             (95)    (0.6)    (197)    (1.5)

Interest Expense,
net of portion
capitalized                  62      0.4       16      0.1

Other(income)expense,
net                        (228)    (1.5)    (718)    (5.5)

Earnings before
provision for taxes
on income                 3,652     24.3    4,615     35.5

Provision for taxes
on income (Note 3)        1,079      7.2    1,310     10.1

NET EARNINGS             $2,573    17.1%   $3,305    25.4%

NET EARNINGS PER SHARE
Basic                     $0.89             $1.11
Diluted                   $0.88             $1.10

CASH DIVIDENDS PER
SHARE                    $0.375             $0.33

AVG. SHARES OUTSTANDING
Basic                   2,894.2           2,974.5
Diluted                 2,924.3           2,992.7




         See Notes to Consolidated Financial Statements




          JOHNSON & JOHNSON AND SUBSIDIARIES
         CONSOLIDATED STATEMENTS OF CASH FLOWS
           (Unaudited; Dollars in Millions)



                                   Fiscal Quarters Ended
                                   April 1,     April 2,
                                     2007         2006
CASH FLOW FROM
OPERATING ACTIVITIES
Net earnings                        $2,573       $3,305
Adjustment to
reconcile net
earnings to cash
flow:
 Depreciation and
amortization of
property and
intangibles                            622          521
 Stock based
compensation                           164          153
 Purchased in-process
research and
development                            807           37
 Deferred tax provision                 (5)        (153)
 Accounts receivable
allowances                               3           (4)
Changes in assets and
liabilities, net of
effects from acquisitions:
 Increase in accounts
receivable                            (562)        (568)
 Increase in inventories              (120)        (219)
 Decrease in accounts payable
and accrued liabilities               (229)        (633)
 Increase in other current
and non-current assets                (373)        (207)
 Increase in other current
and non-current liabilities            957        1,242

NET CASH FLOWS FROM
OPERATING ACTIVITIES                 3,837        3,474

CASH FLOWS FROM
INVESTING ACTIVITIES
Additions to property,
plant and equipment                   (446)        (446)
Proceeds from the
disposal of assets                     214            1
Acquisitions, net of
cash acquired                       (1,368)        (811)
Purchases of investments               (52)        (327)
Sales of investments                     6           69
Other (primarily intangibles)          (40)         (63)

NET CASH USED BY
INVESTING ACTIVITIES                (1,686)      (1,577)

CASH FLOWS FROM FINANCING
ACTIVITIES
Dividends to shareholders           (1,085)        (982)
Repurchase of common stock            (295)        (401)
Proceeds from short-term debt        8,117          357
Retirement of short-term debt       (8,051)        (267)
Proceeds from long-term debt             -            -
Retirement of long-term debt            (5)          (7)
Proceeds from the exercise
of stock                               234          136
Options and related excess
tax benefits                        (1,085)      (1,164)

NET CASH USED BY FINANCING
ACTIVITIES
Effect of exchange rate
changes on cash and cash
equivalents                             26           34
Increase in cash and
cash equivalents                     1,092          767
Cash and Cash equivalents,
beginning of period                  4,083       16,055

CASH AND CASH EQUIVALENTS,
END OF PERIOD                       $5,175      $16,822

Acquisitions
Fair value of assets acquired       $1,599         $850
Fair value of liabilities
assumed                               (231)         (39)

Net cash paid for
acquisitions                        $1,368         $811





    See Notes to Consolidated Financial Statements



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE   1   -   The   accompanying   unaudited   interim
consolidated  financial statements  and  related  notes
should   be  read  in  conjunction  with  the   audited
Consolidated Financial Statements of Johnson &  Johnson
and  its Subsidiaries (the "Company") and related notes
as contained in the Company's Annual Report on Form 10-
K  for  the  fiscal year ended December 31,  2006.  The
unaudited  interim  financial  statements  include  all
adjustments   (consisting  only  of  normal   recurring
adjustments) and accruals necessary in the judgment  of
management for a fair statement of the results for  the
periods presented.

During  the  fiscal first quarter of 2007, the  Company
adopted FASB Interpretation 48 (FIN 48), "Accounting for
Uncertainty in Income Taxes - an interpretation of FASB
Statement  No  109".  This interpretation  prescribes  a
recognition threshold and measurement attribute for the
financial  statement recognition and measurement  of  a
tax  position taken or expected to be taken  in  a  tax
return.   The interpretation also provides guidance  on
derecognition, classification and other  matters.   See
Note 3 for more details.


NOTE 2 - FINANCIAL INSTRUMENTS
The  Company  follows the provisions  of  Statement  of
Financial Accounting Standards (SFAS) 133, SFAS 138 and
SFAS  149 requiring that all derivative instruments  be
recorded on the balance sheet at fair value.

As  of April 1, 2007, the balance of deferred net gains
on    derivatives   included   in   accumulated   other
comprehensive  income  was $29 million  after-tax.  For
additional information, see Note 8. The Company expects
that   substantially  all  of  this  amount   will   be
reclassified into earnings over the next 12 months as a
result of transactions that are expected to occur  over
that period. The amount ultimately realized in earnings
will  differ as foreign exchange rates change. Realized
gains  and  losses are ultimately determined by  actual
exchange   rates   at  maturity  of   the   derivative.
Transactions with third parties will cause  the  amount
in accumulated other comprehensive income to affect net
earnings.  The  maximum length of time over  which  the
Company is hedging is 18 months.  The Company also uses
currency   swaps  to  manage  currency  risk  primarily
related to borrowings, which may exceed 18 months.

For  the fiscal first quarters ended April 1, 2007  and
April   2,   2006,  the  net  impact  of  the   hedges'
ineffectiveness, transactions not qualifying for  hedge
accounting   and  discontinuance  of  hedges   to   the
Company's financial statements was insignificant. Refer
to  Note  8 for disclosures of movements in Accumulated
Other Comprehensive Income.




NOTE 3 - INCOME TAXES
The worldwide effective income tax rates for the fiscal
first  quarters of 2007 and 2006 were 29.5% and  28.4%,
respectively. In 2007 the increase in the effective tax
rate  of  1.1%  was  primarily due  to  the  in-process
research  and  development  (IPR&D)  charge   of   $807
million,   which  is  not  tax  deductible.  This   was
partially  offset  by increases in  taxable  income  in
lower  tax jurisdictions relative to taxable income  in
higher tax jurisdictions along with the benefit of  the
Research and Development (R&D) tax credit in 2007 which
was not in effect in the fiscal first quarter of 2006.

The   Company  adopted  FIN  No  48,  "Accounting   for
Uncertainty in Income Taxes" effective January 1,  2007
which resulted in the recognition of an additional  $19
million  of previously unrecognized tax benefits,  with
the corresponding adjustment to retained earnings.  The
Company  had $1.1 billion of unrecognized tax  benefits
as of January 1, 2007 including the previous adjustment
mentioned  above.   The  Company  classifies   interest
expense  and  penalties  related  to  unrecognized  tax
benefits  as income tax expense.  The total  amount  of
accrued interest on January 1, 2007 was $0.2 billion.

The Company conducts business and files tax returns in
numerous countries and currently has tax audits in
progress with a number of tax authorities.  The U.S.
Internal Revenue Service (IRS)has completed their audit
for tax years through 1999; however, the years 1996
through 1999 remain open while a limited number of
issues are being considered at the IRS appeals level.
In other major jurisdictions where the Company conducts
business, the tax years remain open generally back to
the year 2000 with some jurisdictions remaining open
back to 1995.


NOTE 4 - INVENTORIES
(Dollars in Millions)

                           April 1,       December 31,
                             2007            2006

Raw materials and
supplies                   $1,046             $980
Goods in process            1,627            1,253
Finished goods              2,374            2,656
Total                      $5,047           $4,889

NOTE 5 - INTANGIBLE ASSETS & GOODWILL
Intangible  assets that have finite  useful  lives  are
amortized  over their estimated useful lives.  Goodwill
and  indefinite  lived intangible assets  are  assessed
annually   for   impairment.   The  latest   impairment
assessment  of goodwill and indefinite lived intangible
assets  was  completed in the fiscal fourth quarter  of
2006   and   no  impairment  was  determined.    Future
impairment  tests  will be performed  annually  in  the
fiscal   fourth   quarter,  or  sooner  if   conditions
warranted.



(Dollars in Millions)
                              April 1,     December 31,
                                2007           2006

Trademarks (non-
amortizable) - gross          $6,692         $6,609
Less accumulated
amortization                     136            134
Trademarks (non-
amortizable) - net             6,556          6,475

Patents and trademarks -
gross                          5,333          5,282
Less accumulated
amortization                   1,774          1,695
Patents and trademarks -
 net                           3,559          3,587

Other intangibles - gross      7,177          6,923
Less accumulated
amortization                   1,724          1,637
Other intangibles - net        5,453          5,286

Total intangible assets -
gross                         19,202         18,814
Less accumulated
amortization                   3,634          3,466
Total intangible assets -
net                           15,568         15,348

Goodwill - gross              14,405         14,075
Less accumulated
amortization                     742            735
Goodwill - net                13,663         13,340


Goodwill as of April 1, 2007 as allocated by segment of
business is as follows:

(Dollars in Millions)

                      Consumer   Pharm  Med Dev  Total
                                         & Diag

Goodwill, net of
accumulated
amortization at
December 31, 2006      $7,866     $902   $4,572 $13,340
Acquisitions                -        -      437     437
Translation &
 Other                   (118)       2        2    (114)
Goodwill, net as of
April 1, 2007          $7,748     $904   $5,011 $13,663

The  weighted average amortization periods for  patents
and trademarks and other intangible assets are 15 years
and  27  years, respectively.  The amortization expense
of  amortizable intangible assets for the fiscal  first
quarter  ended April 1, 2007 was $175 million  and  the
estimated  amortization expense for the five succeeding
years approximates $740 million before tax, per year.








NOTE 6 - SEGMENTS OF BUSINESS AND GEOGRAPHIC AREAS
SALES BY SEGMENT OF BUSINESS(1)
(Dollars in Millions)

                           Fiscal First Quarters
                         April 1,   April 2,   Percent
                           2007      2006      Change
Consumer
U.S.                     $1,629     $1,150      41.7%
International             1,867      1,205      54.9
                          3,496      2,355      48.5

Pharmaceutical
U.S.                      4,034      3,701       9.0
International             2,187      1,925      13.6
                          6,221      5,626      10.6

Medical Devices &
Diagnostics
U.S.                      2,584      2,520       2.5
International             2,736      2,491       9.8
                          5,320      5,011       6.2

U.S.                      8,247      7,371      11.9
International             6,790      5,621      20.8
Worldwide               $15,037    $12,992      15.7%


(1) Export and intersegment sales are not significant.

OPERATING PROFIT BY SEGMENT OF BUSINESS
(Dollars in Millions)

                           Fiscal First Quarters
                         April 1,   April 2,   Percent
                           2007      2006      Change

Consumer                  $760       $465       63.4%
Pharmaceutical           2,281      1,927       18.4
Medical Devices &
Diagnostics (1)            715      2,160      (66.9)
  Segments total         3,756      4,552      (17.5)
Income/(expense)
not allocated to
segments                  (104)        63
Worldwide total         $3,652     $4,615      (20.9)%


(1) Includes $807 million of IPR&D charges related to
    the acquisition of Conor Medsystems, Inc. completed
    in the fiscal first quarter of 2007. The fiscal first
    quarter of 2006 included the Guidant acquisition
    agreement termination fee, less associated expenses,
    of $622 million.




SALES BY GEOGRAPHIC AREA
(Dollars in Millions)

                           Fiscal First Quarters
                         April 1,   April 2,   Percent
                           2007      2006      Change

U.S.                      $8,247    $7,371      11.9%
Europe                     3,812     3,071      24.1
Western Hemisphere,
excluding U.S.             1,046       822      27.3
Asia-Pacific,
Africa                     1,932     1,728      11.8

Total                    $15,037   $12,992      15.7%


NOTE 7 - EARNINGS PER SHARE
The  following  is  a  reconciliation  of  basic  net
earnings per share to  diluted net earnings per share
for the fiscal first quarters ended April 1, 2007 and
April 2, 2006.

(Shares in Millions)              Fiscal Quarters
                                       Ended

                                 April 1,  April 2,
                                   2007      2006

Basic net earnings per share       $.89      $1.11
Average shares outstanding -
basic                           2,894.2    2,974.5
Potential shares exercisable
under stock option plans          209.4      233.2
Less: shares which could be
repurchased under treasury
stock method                     (183.2)    (218.9)
Convertible debt shares             3.9        3.9
Adjusted average shares
outstanding - diluted           2,924.3    2,992.7
Diluted earnings per share         $.88      $1.10

The diluted earnings per share calculation included the
dilutive effect of convertible debt that was offset  by
the related reduction in interest expense of $1 million
for  both the fiscal first quarters ended April 1, 2007
and April 2, 2006.

The diluted earnings per share calculation excluded  68
million  and  47 million shares related to options  for
the fiscal first quarters ended April 1, 2007 and April
2,  2006, respectively, as the exercise price per share
of  these  options was greater than the average  market
value,  which  would have resulted in an  anti-dilutive
effect on diluted earnings per share if included in the
calculation.

NOTE 8 - ACCUMULATED OTHER COMPREHENSIVE INCOME
The   total  comprehensive income for the fiscal  first
quarter ended April 1, 2007 was $2.6 billion, compared
with $3.4 billion for the same period a year ago.  Total
comprehensive   income  included  net   earnings,   net
unrealized  currency gains and losses  on  translation,
adjustments  related  to Employee  Benefit  Plans,  net
unrealized gains and losses on securities available for
sale and net gains and losses on derivative instruments
qualifying  and  designated as cash  flow  hedges.  The
following   table   sets  forth   the   components   of
accumulated other comprehensive income.


(Dollars in Millions)
                                                            Total
                               Unrld            Gains/      Accum
                       For.    Gains/     Pens  (Losses)    Other
                       Cur.    (Losses)   Liab  on Deriv     Comp
                      Trans.   on Sec     Adj.  & Hedg      Inc/
                                                           (Loss)

December 31, 2006     $ (158)      61    (2,030)    9     (2,118)
2007 Three Months
changes
 Net change associated
 with current period
 hedging transactions                             (83)
 Net amount reclassed
 to net earnings                                  103*
 Net three months
 changes                 (96)      32        38    20        (6)
April 1, 2007          $(254)      93    (1,992)   29    (2,124)





Amounts  in accumulated other comprehensive income  are
presented  net  of  the related  tax  impact.   Foreign
currency  translation  adjustments  are  not  currently
adjusted  for income taxes, as they relate to permanent
investments in international subsidiaries.

*Primarily offset in net earnings by changes  in  value
of the   underlying transactions.

NOTE 9 - MERGERS, ACQUISITIONS AND DIVESTITURES
During  the  fiscal first quarter of 2007, the  Company
acquired Conor Medsystems, Inc. for a purchase price of
$1.4  billion  in cash. Conor Medsystems,  Inc.,  is  a
cardiovascular device company, which currently  markets
the CoStar Drug Eluting Stent.

In  the  fiscal  first  quarter  of  2007  the  Company
recorded  an in-process research & development  (IPR&D)
charge of $807 million before and after tax related  to
the acquisition of Conor Medsystems, Inc.

The  Company  is  in  the  process  of  finalizing  the
allocation  of  the  purchase price to  the  individual
assets   acquired   and   liabilities   assumed.    The
preliminary  allocation of the purchase price  included
in  the  current period balance sheet is based  on  the
best  estimates  of management. The completion  of  the
purchase price allocation may result in adjustments  to
the  carrying  value  of  the  Conor  Medsystems,  Inc.
recorded  assets  and  liabilities,  revisions  of  the
useful lives of intangible assets and the determination
of  any  residual  amount that  will  be  allocated  to
goodwill.  The  related depreciation  and  amortization
from  the  acquired assets is also subject to  revision
based on the final allocation.

During  the  fiscal first quarter of 2007, the  Company
completed  the  divestiture of the KAOPECTATE(R),  UNISOM(R),
CORTIZONE(R), BALMEX(R) and ACT(R) consumer products to
Chattem, Inc. for $410 million in cash.

The  2006  acquisitions included Animas Corporation,  a
leading  maker  of insulin infusion pumps  and  related
products;  Hand  Innovations  LLC,  a  privately   held
manufacturer  of  fracture fixation  products  for  the
upper  extremities;  Future  Medical  Systems  S.A.,  a
company  that  primarily  develops,  manufactures   and
markets arthroscopic fluid management systems; Vascular
Control Systems, Inc., a  company focused on developing
medical  devices  to  treat  fibroids  and  to  control
bleeding  in  obstetric  and gynecologic  applications;
Groupe  Vendome S.A., a French marketer  of  adult  and
baby  skin  care products; ColBar LifeScience  Ltd.,  a
company  specializing  in reconstructive  medicine  and
tissue  engineering; Ensure Medical,  Inc.,  a  company
that  develops devices for post-catheterization closure
of  the  femoral  artery; and the  Consumer  Healthcare
business of Pfizer Inc., which included brands such  as
LISTERINE(R), NICORETTE(R), NEOSPORIN(R), SUDAFED(R),
BENADRYL(R) and VISINE(R).

The  Company recorded the Guidant acquisition agreement
termination  fee,  less associated  expenses,  of  $622
million  before tax in other income during  the  fiscal
first quarter of 2006.


NOTE 10 - PENSIONS AND OTHER POSTRETIREMENT BENEFITS
Components of Net Periodic Benefit Cost
Net  periodic  benefit cost for the  Company's  defined
benefit  retirement plans and other benefit  plans  for
the fiscal first quarters of 2007 and 2006 included the
following components:

(Dollars in Millions)

                   Retirement Plans     Other Benefit Plans
                   April 1,   April 2,  April 1,   April 2,
                     2007       2006      2007       2006

Service cost        $ 135        126      $ 37         18
Interest cost         160        140        37         26
Expected return on
 plan assets         (197)      (173)       (1)        (1)
Amortization of prior
 service cost           2          3        (2)        (2)
Recognized actuarial
 losses                47         63        17         10

Net periodic benefit
 cost               $ 147        159      $ 88         51


*Includes other post employment benefits as per the
adoption of SFAS No. 158.

Company Contributions
The  Company contributed $11 million during the  fiscal
first  quarter  of  2007 to its U.S. and  international
retirement  plans.   The  Company  does  not  expect  a
minimum  statutory  funding requirement  for  its  U.S.
retirement plans in 2007.  International plans will  be
funded in accordance with local regulations.





NOTE 11 - LEGAL PROCEEDINGS
PRODUCT LIABILITY

The Company is involved in numerous product liability
cases in the United States, many of which concern
adverse reactions to drugs and medical devices. The
damages claimed are substantial, and while the Company
is confident of the adequacy of the warnings and
instructions for use that accompany such products, it
is not feasible to predict the ultimate outcome of
litigation. However, the Company believes that if any
liability results from such cases, it will be
substantially covered by existing amounts accrued in
the Company's balance sheet and, where available, by
third-party product liability insurance.

Multiple products of Johnson & Johnson subsidiaries
are subject to numerous product liability claims and
lawsuits, including ORTHO EVRA(R), RISPERDAL(R), DURAGESIC(R)
and the CHARITE(TM) Artificial Disc. There are
approximately 1,800 claimants who have filed lawsuits
or made claims regarding injuries allegedly due to
ORTHO EVRA(R), 700 claimants with respect to RISPERDAL(R),
120 with respect to CHARITE(TM) and 100 with respect to
DURAGESIC(R).  These claimants seek substantial
compensatory and, where available, punitive damages.
Numerous claims and lawsuits in the United States
relating to the drug PROPULSID(R), withdrawn from general
sale by the Company's Janssen Pharmaceutica Inc.
(Janssen) subsidiary in 2000, have been resolved or are
currently enrolled in settlement programs with an
aggregate cap below $100 million in payments by the
Company. Litigation concerning PROPULSID(R) is pending in
Canada, where a class action of persons alleging
adverse reactions to the drug was recently certified.
The Johnson & Johnson subsidiaries responsible for
marketing the above products are vigorously defending
against these claims except where settlement is deemed
appropriate.

AFFIRMATIVE STENT PATENT LITIGATION

In patent infringement actions tried in Delaware
Federal District Court in late 2000, Cordis Corporation
(Cordis), a subsidiary of Johnson & Johnson, obtained
verdicts of infringement and patent validity, and
damage awards against Boston Scientific Corporation
(Boston Scientific) and Medtronic AVE, Inc. (Medtronic)
based on a number of Cordis vascular stent patents. In
December 2000, the jury in the damage action against
Boston Scientific returned a verdict of $324 million
and the jury in the Medtronic action returned a verdict
of $271 million. Multiple post-trial proceedings and
appeals have ensued with respect to these verdicts,
with the ultimate outcome still subject to uncertainty.

Cordis also has an arbitration claim against Medtronic
accusing Medtronic of infringement by sale of stent
products introduced by Medtronic subsequent to its
products subject to the earlier action referenced
above. Those subsequent products were found to have
been licensed to Medtronic pursuant to a 1997 license
by an arbitration panel in March 2005. Further
arbitration proceedings will determine whether
royalties are owed for those products.

In January 2003, Cordis filed a patent infringement
action against Boston Scientific in Delaware Federal
District Court accusing its Express2(TM), Taxus(R) and
Liberte(R) stents of infringing the Palmaz patent that
expired in November 2005. The Liberter stent was also
accused of infringing Cordis' Gray patent that expires
in 2016. In June 2005, a jury found that the
Express2(TM), Taxus(R) and Liberte(R) stents infringed the
Palmaz patent and that the Liberte(R) stent also
infringed the Gray patent. Motions filed by Boston
Scientific seeking to vacate the verdict or obtain a
new trial were denied in June 2006. Cordis expects
Boston Scientific will appeal to the U.S. Court of
Appeals for the Federal Circuit.

PATENT LITIGATION AGAINST VARIOUS JOHNSON & JOHNSON
SUBSIDIARIES

The products of various Johnson & Johnson subsidiaries
are the subject of various patent lawsuits, the
outcomes of which could potentially adversely affect
the ability of those subsidiaries to sell those
products, or require the payment of past damages and
future royalties. With respect to all of these matters,
the Johnson & Johnson subsidiary involved is vigorously
defending against the claims of infringement and
disputing, where appropriate, the validity and
enforceability of the patent claims asserted against
it.

In July 2005, a jury in Federal District Court in
Delaware found that the Cordis CYPHER(R) stent infringed
Boston Scientific's Ding '536 patent and that the
Cordis CYPHER(R) and BX VELOCITY(R) stents also infringed
Boston Scientific's Jang '021 patent. The jury also
found both of those patents valid. Boston Scientific
seeks substantial damages and an injunction in that
action. In June 2006, the District Court denied motions
by Cordis to overturn the jury verdicts or grant a new
trial. Cordis has moved for re-consideration of those
decisions. If reconsideration is denied, Cordis will
appeal to the Court of Appeals for the Federal Circuit.
The District Court indicated it will consider damages,
willfulness and injunctive relief after the appeals
have been decided.

The Federal District Court in Delaware granted Cordis'
motion for summary judgement of non-infringement in
Boston Scientific's case asserting infringement by the
CYPHER(R) stent of Boston Scientific's Grainger patent.
Boston Scientific is expected to appeal that decision.

Boston Scientific has brought actions in Belgium and
the Netherlands under its Kastenhofer patent to enjoin
the manufacture and sale of allegedly infringing
catheters in those countries, and to recover damages.
The Belgian case is pending and no hearing date has
been set. A decision by the lower court in the
Netherlands in Boston Scientific's favor was reversed
on appeal in April 2007.  Boston Scientific is expected
to appeal further.

In Germany, Boston Scientific has several actions based
on its Ding patents pending against the Cordis CYPHER(R)
stent. Cordis was successful in these actions at the
trial level, but Boston Scientific has appealed.


The following chart summarizes various patent lawsuits
concerning products of Johnson & Johnson subsidiaries
that have yet to proceed to trial:




J&J		 		  Plaintiff/
Product        Company  Patents	  Patent Holder	     Court  Trial Date  Filed

Two-layer      Cordis Kasten-     Boston Scientific  N.D.  Cal 10/07    02/02
Catheters             hofer       Corp.              Belgium       *    12/03
                      Forman

Stents         Cordis Israel      Medinol            Multiple E.U. *    05/03
                                                     jurisdictions

Catheters and  Cordis Fitzmaurice Medtronic AVE      E.D. Tex  09/07    06/03
stent delivery
systems

Contact Lenses Vision Nicolson    CIBA Vision        M.D. Fla.     *    09/03
               Care

Drug Eluting   Conor  Jang        Boston Scientific  D.  Del.  09/07    12/03
Stents         Medsystems         Corp.

Drug Eluting   Cordis Ding        Boston Scientific  Germany       *    04/04
Stents                            Corp.                                 11/04

Stents         Cordis Ricci       Medtronic and      E.D. Tex      *    03/07
                                  Evysio

* Trial date to be established.

LITIGATION  AGAINST  FILERS  OF  ABBREVIATED  NEW  DRUG
APPLICATIONS (ANDAS)

The following chart indicates lawsuits pending against
generic firms that filed Abbreviated New Drug
Applications seeking to market generic forms of
products sold by various subsidiaries of the Company
prior to expiration of the applicable patents covering
those products. These ANDAs typically include
allegations of non-infringement, invalidity and
unenforceability of these patents. In the event the
subsidiary of the Company involved is not successful in
these actions, or the statutory 30-month stay expires
before a ruling from the district court is obtained,
the firms involved will have the ability, upon FDA
approval, to introduce generic versions of the product
at issue resulting in very substantial market share and
revenue losses for the product of the Company's
subsidiary.

As noted in the following chart, 30-month stays expired
during 2006 and will expire in 2007 or 2008 with
respect to ANDA challenges regarding various products:



Brand Name     Patent/NDA  Generic              Trial    Date   30-Month
Product        Holder      Challenger  Court    Date     Filed  Stay Expires

ACIPHEX(R) 20   Eisai       Teva       S.D.N.Y.  03/07    11/03     02/07
mg delay
release       (for Janssen) Dr.Reddy's S.D.N.Y.  03/07    11/03     02/07
tablet                      Mylan      S.D.N.Y.  03/07    01/04     02/07

AXERT(R) 6.25 Almirall      Teva       S.D.N.Y.    *      03/06     11/08
and 12.5 mg   Ortho-McNeil
              Neurologics

CONCERTA(R)   McNeil-PPC    Andrx      D.Del.      *      09/05      None
18,27,36 and
54 mg         ALZA
controlled
release tablet

ORTHO TRI
CYCLEN(R) LO Ortho-McNeil  Barr        D.N.J.      *      10/03     02/06
0.18 mg/0.025 mg
0.215 mg/0.025 mg
and 0.25 mg/0.025 mg

PEPCID(R)
Complete     McNeil-PPC    Perrigo     S.D.N.Y.   02/07   02/05     06/07

RAZADYNE(TM) Janssen       Teva        D.  Del    05/07   07/05     01/08
                           Mylan       D.  Del    05/07   07/05     01/08
                           Dr. Reddy's D.  Del    05/07   07/05     01/08
                           Purepac     D.  Del    05/07   07/05     01/08
                           Barr        D.  Del    05/07   07/05     01/08
                           Par         D.  Del    05/07   07/05     01/08
                           AlphaPharm  D.  Del    05/07   07/05     01/08

RAZADYNE(TM)
ER           Janssen       Barr        D.N.J.       *     06/06     11/08

RISPERDAL(R)
Tablets      Janssen       Mylan       D.N.J.     06/06   12/03     05/06
..25, 0.5, 1, 2, 3, 4       Dr. Reddy's D.N.J.     06/06   12/03     06/06
mg tablets                 Apotex      D.N.J.       *     06/06     11/08

RISPERDAL(R)
M-Tab        Janssen       Dr. Reddy's D.N.J.     06/06   02/05     07/07
0.5,1,2,3, 4 mg

RISPERDAL(R)
Oral         Janssen       Apotex      D.N.J.       *     03/06     08/08
Solution, 1 mg/ml

TOPAMAX(R)   Ortho-McNeil  Mylan       D.N.J.       *     04/04     09/06
25,50,100, 200 mg tablet   Cobalt      D.N.J.       *     10/05     03/08

TOPAMAX(R)
SPRINKLE     Ortho-McNeil  Cobalt      D.N.J.       *     12/05     05/08
15, 25 mg capsule          Mylan       D.N.J.       *     10/06     03/09

* Trial date to be established

Trial in the action against Teva, Dr. Reddy's and Mylan
with respect to their ANDA challenges to the patent on
Aciphex of Esai Pharmaceutical, Inc., Ortho McNeil
Pharmaceutical's marketing partner, proceeded before
the district court in New York in April. The court
indicated it would issue its decision in the case on or
before May 15, 2007.

In the action against Mylan and Dr. Reddy's
Laboratories regarding RISPERDAL(R) (risperidone) tablets
and M-Tabs, the District Court in New Jersey ruled, on
October 13, 2006, that the RISPERDAL(R) patent was valid,
enforceable, and infringed by the generic products at
issue, and entered an injunction prohibiting Mylan and
Dr. Reddy's from marketing their generic risperidone
products until a date no earlier than patent expiration
in December 2007. Mylan has appealed that ruling and
argument is scheduled at the Court of Appeals for May
10, 2007.  Dr. Reddy's withdrew its appeal.
In the action against Mylan with respect to the patent
on TOPAMAX(R), the District Court in New Jersey, on
October 24, 2006, granted the Company's subsidiary
Ortho-McNeil Pharmaceutical, Inc.'s (Ortho-McNeil)
motion for a preliminary injunction barring launch by
Mylan of its generic version of TOPAMAX(R). On
February 2, 2007, the district court granted Ortho-
McNeil's motion for summary judgment dismissing Mylan's
claim the patent was obvious, the only remaining issue
in the case. The Court entered judgment in the case for
Ortho-McNeil, and entered an injunction prohibiting
Mylan from marketing its generic topiramate products
until a date no earlier than patent expiration in
September 2008.  Mylan has appealed and requested a
stay of the trial court's order.

In the weeks following the adverse ruling in the
DITROPAN XL(R) ANDA litigation against Mylan in September
2005, Johnson & Johnson and ALZA received seven
antitrust class action complaints filed by purchasers
of the product. They allege that Johnson & Johnson and
ALZA violated federal and state antitrust laws by
knowingly pursuing baseless patent litigation, and
thereby delaying entry into the market by Mylan and
Impax.

With respect to all of the above matters, the Johnson &
Johnson subsidiary involved is vigorously defending the
validity and enforceability and asserting the
infringement of its own or its licensor's patents.

AVERAGE WHOLESALE PRICE (AWP) LITIGATION

Johnson & Johnson and several of its pharmaceutical
subsidiaries, along with numerous other pharmaceutical
companies, are defendants in a series of lawsuits in
state and federal courts involving allegations that the
pricing and marketing of certain pharmaceutical
products amounted to fraudulent and otherwise
actionable conduct because, among other things, the
companies allegedly reported an inflated Average
Wholesale Price (AWP) for the drugs at issue. Most of
these cases, both federal actions and state actions
removed to federal court, have been consolidated for
pre-trial purposes in a Multi-District Litigation (MDL)
in Federal District Court in Boston, Massachusetts. The
plaintiffs in these cases include classes of private
persons or entities that paid for any portion of the
purchase of the drugs at issue based on AWP, and state
government entities that made Medicaid payments for the
drugs at issue based on AWP. In the MDL proceeding in
Boston, plaintiffs moved for class certification of all
or some portion of their claims. On August 16, 2005,
the trial judge certified Massachusetts-only classes of
private insurers providing "Medi-gap" insurance
coverage and private payers for physician-administered
drugs where payments were based on AWP. The judge also
allowed plaintiffs to file a new complaint seeking to
name proper parties to represent a national class of
individuals who made co-payments for physician-
administered drugs covered by Medicare. The Court of
Appeals declined to allow an appeal of those issues and
in January 2006, the court certified the national class
as noted above. A trial of the two Massachusetts-only
class actions concluded before the Massachusetts
District Court in December 2006. A decision is expected
in the third or fourth quarter of 2007. The trial judge
has scheduled jury trials to begin in June 2007 in the
national class action on behalf of individuals who paid
co-payments for Medicare Part B drugs. Trial in the
action brought by the Attorney General of the State of
Alabama making allegations related to AWP is set for
November 2007. Additional AWP cases brought by various
Attorney Generals are expected to be set for trial in
2008.

OTHER

In July 2003, Centocor Corporation received a request
that it voluntarily provide documents and information
to the criminal division of the U.S. Attorney's Office,
District of New Jersey, in connection with its
investigation into various Centocor marketing
practices. Subsequent requests for documents have been
received from the U.S. Attorney's Office. Both the
Company and Centocor responded, or are in the process
of responding, to these requests for documents and
information.

In December 2003, Ortho-McNeil received a subpoena from
the U.S. Attorney's Office in Boston, Massachusetts
seeking documents relating to the marketing, including
alleged off-label marketing, of the drug TOPAMAX(R)
(topiramate). Additional subpoenas for documents have
been received. Ortho-McNeil is cooperating in
responding to the subpoenas. In October 2004, the U.S.
Attorney's Office in Boston asked attorneys for Ortho-
McNeil to cooperate in facilitating the subpoenaed
testimony of several present and former Ortho-McNeil
employees before a federal grand jury in Boston.
Cooperation in securing the testimony of additional
witnesses before the grand jury has been requested and
is being provided.

In January 2004, Janssen received a subpoena from the
Office of the Inspector General of the U.S. Office of
Personnel Management seeking documents concerning sales
and marketing of, any and all payments to physicians in
connection with sales and marketing of, and clinical
trials for, RISPERDAL(R) (risperidone) from 1997 to 2002.
Documents subsequent to 2002 have also been requested.
An additional subpoena seeking information about
marketing of and adverse reactions to RISPERDAL(R) was
received from the U.S. Attorney's Office for the
Eastern District of Pennsylvania in November 2005.
Janssen is cooperating in responding to these
subpoenas.

 In August 2004, Johnson & Johnson Health Care Systems,
Inc. (HCS), a Johnson & Johnson subsidiary, received a
subpoena from the Dallas, Texas U.S. Attorney's Office
seeking documents relating to the relationships between
the group purchasing organization, Novation, and HCS
and other Johnson & Johnson subsidiaries. The Company's
subsidiaries involved have responded to the subpoena.

In September 2004, Ortho Biotech Inc. (Ortho Biotech),
received a subpoena from the U.S. Office of Inspector
General's Denver, Colorado field office seeking
documents directed to sales and marketing of PROCRIT(R)
(Epoetin alfa) from 1997 to the present, as well as to
dealings with U.S. Oncology Inc., a healthcare services
network for oncologists. Ortho Biotech has responded to
the subpoena.


In March 2005, DePuy Orthopaedics, Inc. (DePuy), a
Johnson & Johnson subsidiary, received a subpoena from
the U.S. Attorney's Office, District of New Jersey,
seeking records concerning contractual relationships
between DePuy Orthopaedics and surgeons or surgeons-in-
training involved in hip and knee replacement and
reconstructive surgery. Other leading orthopaedic
companies are known to have received a similar
subpoena. DePuy Orthopaedics is responding to the
subpoena as well as several follow-on subpoenas for
documents. A number of employees of DePuy have been
subpoenaed to testify before a grand jury in connection
with this investigation.

In June 2005, the U.S. Senate Committee on Finance
requested the Company to produce information regarding
use by several of its pharmaceutical subsidiaries of
educational grants. A similar request was sent to other
major pharmaceutical companies. In July 2005, the
Committee specifically requested information about
educational grants in connection with the drug
PROPULSID(R). A follow up request was received from the
Committee for additional information in January 2006.

In July 2005, Scios Inc. (Scios), a Johnson & Johnson
subsidiary, received a subpoena from the U.S.
Attorney's Office, District of Massachusetts, seeking
documents related to the sales and marketing of
NATRECOR(R). Scios is responding to the subpoena. In
early August 2005, Scios was advised that the
investigation would be handled by the U.S. Attorney's
Office for the Northern District of California in
San Francisco.

In September 2005, Johnson & Johnson received a
subpoena from the U.S. Attorney's Office, District of
Massachusetts, seeking documents related to sales and
marketing of eight drugs to Omnicare, Inc., a manager
of pharmaceutical benefits for long-term care
facilities. The Johnson & Johnson subsidiaries involved
are responding to the subpoena. Several employees of
the Company's pharmaceutical subsidiaries have been
subpoenaed to testify before a grand jury in connection
with this investigation.

In January 2006, Janssen received a civil investigative
demand from the Texas Attorney General seeking broad
categories of documents related to the sales and
marketing of RISPERDAL(R). Janssen is responding to the
request. In October 2006, the Texas Attorney General
joined a qui tam action filed against Janssen in Texas
state court alleging off label marketing of RISPERDAL(R)
and seeking compensation for alleged adverse reactions
due to RISPERDAL(R).

In February 2006, Johnson & Johnson received a subpoena
from the U.S. Securities & Exchange Commission (SEC)
requesting documents relating to the participation by
several Johnson & Johnson subsidiaries in the United
Nations Iraq Oil For Food Program. The subsidiaries are
cooperating with the SEC in producing responsive
documents.

In June 2006, DePuy received a subpoena from the U.S.
Department of Justice, Antitrust Division, requesting
documents related to the manufacture, marketing and
sale of orthopaedic devices, and had search warrants
executed in connection with the investigation. DePuy is
responding to the request for documents. In the wake of
publicity about the subpoena, DePuy was served with
five civil antitrust class actions.

In September 2006, Janssen received a subpoena from the
Attorney General of the State of California seeking
documents regarding sales and marketing and side-
effects of RISPERDAL(R), as well as interactions with
State officials regarding the State's formulary for
Medicaid-reimbursed drugs. Janssen is in the process of
responding to the subpoena.

On November 27, 2006, Centocor received a subpoena
seeking documents in connection with an investigation
being conducted by the Office of the United States
Attorney for the Central District of California
regarding Centocor's Average Selling Price (ASP)
calculations for REMICADE(R) under the company's Contract
Purchase Program. Centocor is producing material
responsive to the subpoena and cooperating with the
investigation.

On February 12, 2007, Johnson & Johnson voluntarily
disclosed to the U.S. Department of Justice (DOJ) and
the U.S. Securities and Exchange Commission (SEC) that
subsidiaries outside the United States are believed to
have made improper payments in connection with the sale
of medical devices in two small-market countries, which
payments may fall within the jurisdiction of the
Foreign Corrupt Practices Act. The Company has provided
and will continue to provide additional information to
DOJ and SEC, and will cooperate with the agencies'
reviews of these matters.

On March 5, 2007, Cordis Corporation received a letter
request for documents from the Committee on Oversight
and Government Reform of the U.S. House of
Representatives regarding marketing and safety of drug-
eluting stents.  Cordis is cooperating in responding to
the request.

On March 12, 2007, the Company announced that it had
received separate subpoenas from the U.S. Attorney's
Office in Philadelphia, the U.S. Attorney's Office in
Boston and the U.S. Attorney's Office in San Francisco.
The subpoenas relate to investigations by these three
offices referenced above concerning, respectively,
sales and marketing of RISPERDAL(R) by Janssen, TOPAMAX(R)
by Ortho-McNeil and NATRECOR(R) by Scios.  The subpoenas
request information regarding the Company's corporate
supervision and oversight of these three subsidiaries,
including their sales and marketing of these drugs.
The Company is cooperating in responding to these
requests.

On March 21, 2007, the Company received a letter from
the Committee on Energy and Commerce of the U.S. House
of Representatives seeking answers to several questions
regarding marketing and safety of PROCRIT(R), the
erythropoietin product sold by the Company's Ortho-
Biotech subsidiary.   The Company is responding to
these questions.

In September 2004, plaintiffs in an employment
discrimination litigation initiated against the Company
in 2001 in Federal District Court in New Jersey moved
to certify a class of all African American and Hispanic
salaried employees of the Company and its affiliates in
the U.S., who were employed at any time from November
1997 to the present. Plaintiffs seek monetary damages
for the period 1997 through the present (including
punitive damages) and equitable relief. The Court
denied plaintiffs' class certification motion in
December 2006 and their motion for reconsideration in
April 2007. Plaintiffs have indicated that they will
appeal these decisions.  The Company disputes the
allegations in the lawsuit and is vigorously defending
against them.

In late December of 2005 and early 2006, three
purported class actions were filed on behalf of
purchasers of endo-mechanical instruments against the
Company and its wholly-owned subsidiaries, Ethicon,
Inc., Ethicon Endo-Surgery, Inc., and Johnson & Johnson
Health Care Systems, Inc. These challenge suture and
endo-mechanical contracts with Group Purchasing
Organizations and hospitals,in which discounts are
predicated on a hospital achieving specified market
share targets for both categories of products.  These
actions have been filed in the Federal District Court
for the Central District of California.

In November 2005, Amgen filed suit against Hoffmann-
LaRoche, Inc. in the U.S. District Court for the
District of Massachusetts seeking a declaration that
the Roche product CERA, which Roche has indicated it
will seek to introduce into the United States,
infringes a number of Amgen patents concerning EPO.
Amgen licenses  EPO for sale in the United States to
the Company's Ortho Biotech Inc. subsidiary for non-
dialysis indications. The suit is in its preliminary
stages.

In October 2006, Wyeth, Inc. initiated litigation in
Delaware against Cordis Corporation alleging that
Cordis breached the license and supply agreement
pursuant to which Wyeth supplies Cordis the drug
Rapamycin which is used in connection with Cordis'
CYPHER(R) Sirolimus-eluting Stent. Cordis has commenced
its own action in Delaware seeking a declaration that
no breach has occurred.

The Company is also involved in a number of other
patent, trademark and other lawsuits incidental to its
business. The ultimate legal and financial liability of
the Company in respect to all claims, lawsuits and
proceedings referred to above cannot be estimated with
any certainty. However, in the Company's opinion, based
on its examination of these matters, its experience to
date and discussions with counsel, the ultimate outcome
of legal proceedings, net of liabilities accrued in the
Company's balance sheet, is not expected to have a
material adverse effect on the Company's financial
position, although the resolution in any reporting
period of one or more of these matters could have a
significant impact on the Company's results of
operations and cash flows for that period.

Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations
Analysis of Consolidated Sales
For  the fiscal first quarter of 2007, worldwide  sales
were $15.0 billion, with a total increase of 15.7%  and
an operational increase of 13.3% over 2006 fiscal first
quarter  sales  of  $13.0  billion.   Currency  had   a
positive  2.4%  impact on total reported  fiscal  first
quarter  2007  sales. The acquisition of Pfizer  Inc.'s
Consumer    Healthcare   business   net   of    related
divestitures  increased  both total  sales  growth  and
operational growth by 7.0%.

Sales by U.S. companies were $8.2 billion in the fiscal
first  quarter  of  2007,  which  represented  a  total
increase of 11.9% over the same period last year. Sales
by  international  companies were $6.8  billion,  which
represented  a total increase of 20.8%, an  operational
increase  of 15.4%, and a positive impact from currency
of 5.4% over 2006 fiscal first quarter sales.

Sales by companies in the Western Hemisphere, excluding
the  U.S., achieved growth of 27.3%, operational growth
of  26.9% and a positive impact from currency of  0.4%.
Sales by companies in Europe experienced an increase of
24.1%,  with operational growth of 15.0% and a positive
impact  from  currency of 9.1%.  Sales by companies  in
the Asia-Pacific, Africa region posted sales growth  of
11.8%,  with operational growth of 10.4% and a positive
impact from currency of 1.4%.

Analysis of Sales by Business Segments

Consumer
Consumer  segment sales in the fiscal first quarter  of
2007 were  $3.5 billion, an increase of 48.5% over  the
same  period  a  year  ago, with 45.7%  of  operational
growth  and  a positive impact from currency  of  2.8%.
U.S.  consumer  segment  sales increased  41.7%,  while
international   sales   increased   54.9%,    including
operational  growth  of 49.4% and a  positive  currency
impact of 5.5%.



Major Consumer Franchise Sales
(Dollars in Millions)
                                     Fiscal Quarters Ended
                       April 1,   April 2,   Total   Operations   Currency
                         2007       2006     Change    Change      Change

OTC Pharm & Nutr        $1,257      $653     92.5%     90.4%        2.1%
Skin Care                  764       659     16.0      12.8         3.2
Baby & Kids Care           447       406      9.9       6.4         3.5
Women's Health             421       399      5.6       2.5         3.1
Oral Care Products         359        93        *         *         1.7
Other                      248       145     71.4      69.3         2.1
Total                   $3,496    $2,355     48.5%     45.7%        2.8%

*Percentages greater than 100%


The  acquisition  of Pfizer Inc.'s Consumer  Healthcare
business  net  of  the  related divestitures  increased
total  sales growth for the total Consumer  Segment  by
39.1%.  The corresponding impact by franchise  is;  OTC
Pharm  &  Nutr 77.5%, Skin Care 6.3%, Baby & Kids  Care
2.2%,  Women's Health 5.3%, Oral Care Products  greater
than 100% and Other 62.0%.


Consumer segment sales growth was attributable to solid
sales performance, and the impact of new products  from
acquisitions   net  of  divestitures   in   the   major
franchises    in    this   segment,    including    OTC
Pharmaceutical & Nutritionals, Oral Care Products, Skin
Care and Baby & Kids Care.

The  OTC  Pharmaceuticals  and  Nutritionals  franchise
achieved   operational  growth  of  90.4%.   This   was
attributable to new products from acquisitions,  strong
growth   in   the   upper  respiratory  product   lines
reformulated    with    phenylephrine    instead     of
pseudoephedrine, as well as growth  in  IMODIUM(R)  and
SPLENDA(R) products. The impact on OTC Pharmaceuticals and
Nutritionals  total sales growth due to newly  acquired
brands from Pfizer Inc. is 77.5%.

The Skin Care franchise operational growth of 12.8% was
driven by strong performances from the AVEENO(R), CLEAN &
CLEAR(R),  and  Suncare product lines. Solid  operational
growth  related to new products launched and new brands
acquired as well as strong promotional activity.  These
gains  were  partially offset by softer  sales  of  RoC(R)
products. The impact on Skin Care sales growth  due  to
newly acquired brands from Pfizer Inc. is 6.3%.

The  Baby  & Kids Care franchise operational growth  of
6.4%  was  the  result  of the strong  performances  by
cleanser, lotion and cream product lines. The impact on
Baby  &  Kids  Care sales growth due to newly  acquired
brands from Pfizer Inc. and divestitures related to the
acquisition is 2.2%.

The   Women's  Health  franchise  achieved  operational
growth  of 2.5%, which was attributable to new products
related  to acquisitions. The impact on Women's  Health
sales  growth due to newly acquired brands from  Pfizer
Inc. is 5.3%.

The  Oral Care franchise strong results were driven  by
LISTERINE(R) products and the relaunch  of REMBRANDT(R)
Whitening  Products.  The impact  on  Oral  Care  sales
growth due to newly acquired brands from Pfizer Inc. and
divestitures related to the acquisition is greater than
100%.

Pharmaceutical
Pharmaceutical  segment  sales  in  the  fiscal   first
quarter of 2007 were $6.2 billion, an increase of 10.6%
over   the  same  period  a  year  ago  with  8.6%   of
operational growth and a positive impact from  currency
of  2.0%. U.S. Pharmaceutical sales increased by  9.0%,
while  international Pharmaceutical sales increased  by
13.6%,  including  operational growth  of  7.7%  and  a
positive impact from currency of 5.9%.


Major Pharmaceutical Product Revenues
(Dollars in Millions)
                                   Fiscal Quarters Ended
                       April 1,   April 2,   Total   Operations   Currency
                         2007       2006     Change    Change      Change

Anti-psychotics         $1,178     $1,018     15.7%     13.2%       2.5%
PROCRIT(R)/EPREX(R)        817        786      3.9       1.5        2.4
REMICADE(R)                731        681      7.4       7.4          -
TOPAMAX(R)                 610        471     29.7      28.4        1.3
LEVAQUIN(R)/FLOXIN(R)      479        401     19.4      19.5       (0.1)
ACIPHEX(R)/PARIET(R)       336        306      9.8       6.8        3.0
DURAGESIC(R)/
 Fentanyl Transdermal      303        325     (6.8)    (10.2)       3.4
CONCERTA(R)                252        235      7.3       6.0        1.3
Hormonal Contraceptives    237        254     (6.5)     (7.6)       1.1
Other	                 1,278      1,149     11.2       8.1        3.1
Total                   $6,221     $5,626     10.6%      8.6%       2.0%


Sales  growth  within the segment  was  led  by  strong
performances  from RISPERDAL(R) CONSTA(R) (risperidone),
the launch of INVEGA(TM) (Paliperdone), REMICADE(R)
(infliximab), TOPAMAX(R) (topiramate) and LEVAQUIN(R)
(levofloxacin).  Generic competition related to
DURAGESIC(R) (fentanyl transdermal system), oral
contraceptives and DITROPAN XL(R) continued  to
negatively impact sales during the fiscal first
quarter of 2007.

The    anti-psychotic    franchise    which    includes
RISPERDAL(R) oral (risperidone), a medication that treats
the   symptoms  of  schizophrenia  and  bipolar  mania,
RISPERDAL(R)  CONSTA(R)  (risperidone)   a  long  acting
injectable and INVEGA(TM) (paliperdone) Extended-Release
tablets  for  the treatment of schizophrenia,  achieved
operational growth of 13.2% in the fiscal first quarter
of  2007.  Sales growth was positively impacted by  the
U.S.  launch  of  INVEGA(TM)  and  the  global  success  of
RISPERDAL(R) CONSTA(R).  In March, the U.S. Food and Drug
Administration (FDA) granted pediatric exclusivity  for
RISPERDAL(R), which extends the marketing exclusivity  in
the  U.S.  for RISPERDAL(R) oral to the end of June  2008
and RISPERDAL(R) CONSTA(R) to May 2014.

PROCRIT(R) (Epoetin  alfa)  and  EPREX(R) (Epoetin  alfa)
combined   had  operational  sales  growth   of   1.5%.
PROCRIT(R)'s increase  was due to market growth coupled
with  market  share  gains in the hospital  and  retail
markets   offset  by  softer  demand  in  the  oncology
clinics.  Contributors to the EPREX(R) results were  the
indication  for once weekly dosing and the  restoration
to  the  label of subcutaneous administration.  In  the
U.S.,  Epoetin alfa products are now subject to a label
change,  which may negatively impact future sales.  The
label for Epoetin alfa products is also under review in
jurisdictions outside the U.S.

REMICADE(R) (infliximab), a biologic  approved  for  the
treatment  of  Crohn's disease, ankylosing spondylitis,
psoriasis, psoriatic arthritis, ulcerative colitis  and
use  in the treatment of rheumatoid arthritis, achieved
operational growth of 7.4% over prior year fiscal first
quarter.  This continued growth was driven by  expanded
indications  and  overall market  growth.  REMICADE(R)
is experiencing increased competition which may negatively
impact the future rate of sales growth.

TOPAMAX(R) (topiramate), which  has  been  approved  for
adjunctive and monotherapy use in epilepsy, as well  as
for  the  prophylactic treatment of migraines, achieved
strong  operational growth of 28.4%. The primary driver
of  increased demand was in the focus area of  migraine
prescriptions written by primary care physicians.

LEVAQUIN(R)  (levofloxacin)/FLOXIN(R) achieved   strong
operational growth of 19.5% over prior year.  This  was
primarily due to strong seasonal market growth  in  the
U.S. In March the FDA granted pediatric exclusivity  in
the U.S. for LEVAQUIN(R), which will extend the marketing
exclusivity by six months to June 2011.

ACIPHEX(R)/PARIET(R) a proton pump inhibitor,  achieved
operational growth of 6.8% primarily due to  strong
market  growth  in the U.S. Depending  on  an  imminent
court decision related to the ACIPHEX(R) patent of Eisai
Pharmaceutical, Inc., the Company's marketing  partner,
future  sales may be negatively impacted due to earlier
than anticipated generic competition.


DURAGESIC(R)/Fentanyl  Transdermal (fentanyl  transdermal
system)  experienced an operational  sales  decline  of
10.2%.  Although  U.S.  sales grew,  operational  sales
outside  the U.S. declined due to the continued  impact
of   generic   competition  in  certain   international
markets.

CONCERTA(R) (methylphenidate HCl), a product for the
treatment of attention deficit hyperactivity disorder,
achieved operational sales growth of 6.0% over the
fiscal first quarter of 2006. Although the original
CONCERTA(R) patent expired in 2004, the FDA has not
approved any generic version that is substitutable for
CONCERTA(R).  Two parties have filed Abbreviated New
Drug Applications (ANDAs) for generic versions of
CONCERTA(R) which are pending and may be approved at
any time.

The  hormonal  contraceptive franchise  experienced  an
operational  sales decline of 7.6% primarily  resulting
from  generic competition in oral contraceptives. ORTHO
EVRA(R) (norelgestromin/ethinyl   estradiol), the  first
contraceptive patch approved by the FDA, experienced  a
significant  decline in sales as a result  of  labeling
changes  and negative media coverage concerning product
safety.  This was partially offset by growth in ORTHO TRI-
CYCLEN(R) LO (norgestimate/ethinyl estradiol),  a  low
dose oral contraceptive.

NATRECOR(R) (nesiritide), a product for the treatment of
patients  with  acutely decompensated congestive  heart
failure  who  have  dyspnea at  rest  or  with  minimal
activity,  experienced  a  decline  in  demand  due  to
negative  media coverage regarding a meta  analysis  of
selected   historical  clinical  trials.  The   Company
believes that the data does not support the conclusions
of these medical and consumer publications.

Medical Devices and Diagnostics
Medical  Devices and Diagnostics segment sales  in  the
fiscal  first  quarter of 2007 were  $5.3  billion,  an
increase  of 6.2% over the same period a year ago  with
3.7%  of  this change due to operational growth  and  a
positive  impact  from  currency  of  2.5%.   The  U.S.
Medical  Devices  and Diagnostics  sales  increase  was
2.5%, while the growth in international Medical Devices
and  Diagnostics sales was 9.8%, including  operational
growth  of 4.7% and an increase of 5.1% related to  the
positive impact of currency.




Major Medical Devices and Diagnostics Franchise Sales
(Dollars in Millions)
                                   Fiscal Quarters Ended
                       April 1,   April 2,   Total   Operations   Currency
                         2007       2006     Change    Change      Change


DEPUY(R)                $1,157     $1,039     11.3%     8.4%        2.9%
CORDIS(R)                  928      1,075    (13.6)   (15.3)        1.7
ETHICON ENDO-SURGERY(R)    891        794     12.3      9.4         2.9
ETHICON(R)                 870        774     12.4      8.8         3.6
LIFESCAN(R)                549        504      8.9      6.0         2.9
Vision Care                513        441     16.4     15.2         1.2
ORTHO-CLINICAL
 DIAGNOSTICS(R)            393        370      6.2	4.1	    2.1
Other	                    19         14     38.6     37.8         0.8
Total	                $5,320     $5,011      6.2%     3.7%        2.5%



The  DePuy franchise's operational growth of  8.4%  was
primarily    due    to   DePuy's   orthopaedic    joint
reconstruction  products including  the  hip  and  knee
product lines.  Strong performance was also reported in
Mitek sports medicine products.

The  Cordis franchise experienced an operational  sales
decline  of 15.3% as compared to the prior year.  These
results were  impacted  by  lower  sales  of   CYPHER(R)
Sirolimus-eluting  Coronary Stent primarily  due  to  a
global  contraction  of the drug-eluting  stent  market
following  reports of a potential risk  of  late  stent
thrombosis  associated  with the  use  of  drug-eluting
stents.  These  results were partially offset  by  very
strong  sales  growth achieved by the Biosense  Webster
and Cordis Endovascular businesses which were driven by
the   sales  of  AcuNav  Ultrasound  Catheters,   newly
launched  carotid systems and the continued  growth  of
the chronic total occlusion devices.

In  April  and  July  of  2004, the  Cordis  Cardiology
Division of Cordis Corporation received Warning Letters
from  the  FDA  regarding  Good Manufacturing  Practice
regulations and Good Clinical Practice regulations.  In
response  to  the  Warning  Letters,  Cordis  has  made
improvements  to its quality systems and  has  provided
periodic  updates  to  the FDA.  The  Clinical  Warning
Letter   issues  have  been  resolved  to   the   FDA's
satisfaction.   With  respect  to  the  Quality  System
Warning Letter, in addition to the improvement updates,
the  Cordis Juarez, Mexico and stent supplier locations
were  inspected   with  acceptable  results.  The   FDA
inspected the Miami site and the Global Quality system,
including  Design Control System, in August 2006,  with
acceptable  results;  Cordis received  no  observations
from   the   FDA  during  this  inspection.   The   FDA
inspections were completed in Cordis LLC in San German,
Puerto Rico and Cordis laboratory operations in Warren,
New  Jersey  in  January 2007, thereby  completing  all
scheduled  follow up inspections. Cordis has  met  with
the  FDA  to review the results of the inspections  and
the FDA is in the final review of the inspection report
from   the   Puerto   Rico  District   Office.   Cordis
anticipates that the FDA final review will be completed
in the second quarter.

The Ethicon Endo-Surgery franchise achieved operational
growth of 9.4% over prior year.  This growth was mainly
driven by endocutter sales that include products used in
performing  bariatric procedures for the  treatment  of
obesity,  an  important focus area for  the  franchise.
Additionally,  strong results were  achieved  with  the
continued success of the HARMONIC ACE(R), an ultrasonic
cutting and coagulating surgical device.

Ethicon worldwide sales grew operationally by 8.8% from
the   same   period  in  the  prior  year.   Sales   of
VICRYL(R)PLUS sutures, DERMABOND(R), Meshes and women's
health products had strong results in the first quarter
of 2007 as compared to the same period in the prior year.

The  LifeScan franchise achieved operational growth  of
6.0% with the ONETOUCH(R) ULTRA(R) product line being the
major  contributor  to growth outside  the  U.S.  Sales
related  to  the  acquisition  of  Animas  Corporation,
acquired  in  the middle of fiscal first  quarter  2006
also contributed to this growth.

The  Vision Care franchise operational sales growth  of
15.2% was led by the continued success of ACUVUE(R)
OASYS(TM), 1-DAY   ACUVUE(R)   moist,  and  ACUVUE(R)
ADVANCE(TM) for Astigmatism.

The   Ortho-Clinical  Diagnostics  franchise   achieved
operational  growth of 4.1% with the  Immunodiagnostics
product  line being a major contributor.   Included  in
first  quarter  sales  was the  launch  of  the  Chagas
screening assay.

Cost of Products Sold and Selling, Marketing and
Administrative Expenses
Consolidated  costs  of goods sold increased  to  29.1%
from  27.8% of sales over the same period a  year  ago.
The  increase  is due to the impact of  newly  acquired
consumer brands as well as unfavorable product  mix  in
the  pharmaceutical and medical devices and  diagnostic
segments.

Consolidated   selling,  marketing  and  administrative
expenses  increased 17.3% over the same period  a  year
ago.  Selling, marketing and administrative expenses as
a  percent  to  sales were 31.9% versus  31.5%  in  the
fiscal   first  quarter  of  2006.   The  increase   is
attributable  to  the addition of  the  newly  acquired
consumer  brands  to  our mix of  businesses  partially
offset  by continued cost containment efforts primarily
in our pharmaceutical business.

Research & Development
Research activities represent a significant part of the
Company's business.  These expenditures relate  to  the
development  of new products, improvement  of  existing
products,  technical support of products and compliance
with  governmental  regulations for the  protection  of
consumers  and patients.  Worldwide costs  of  research
activities  for the fiscal first quarter of  2007  were
$1.7  billion, an increase of 7.8% over the same period
a year ago. This increase reflects both the significant
number   of  pharmaceutical  projects  in  late   stage
development and higher levels of investment in research
projects   in   our  Medical  Devices  and  Diagnostics
segment.  As a percent to sales, the level of  research
and  development  spending decreased to  11.0%  in  the
fiscal  first  quarter of 2007, from 11.8%  during  the
same period a year ago.  This decrease as a percent  to
sales  in research and development is primarily due  to
the  change in the mix of businesses with the inclusion
of the newly acquired consumer products.

In-Process Research & Development
In  the  fiscal  first  quarter  of  2007  the  Company
recorded  an in-process research & development  (IPR&D)
charge of $807 million before and after tax related  to
the  acquisition  of Conor Medsystems Inc.  The  fiscal
first  quarter  of  2006 IPR&D charge  of  $37  million
before  tax, and $29 million after tax related  to  the
acquisitions of Hand Innovations LLC and Future Medical
Systems S.A.

Other (Income) Expense, Net
Other   (income)  expense  included  gains  and  losses
related to the sale and write-down of certain equity
securities of the Johnson & Johnson Development
Corporation,  losses   on   the disposal of  fixed
assets,  currency  gains & losses, minority  interests,
litigation settlement  expense, as well as, royalty income.
The change in other (income) expense was the result of
the net gain of $175 million before tax related to the
divestiture of certain brands partially offset  by  the
integration costs of newly acquired businesses recorded
in the fiscal first quarter of 2007, as compared to the
same  period a year ago, which included a gain of  $622
million    recorded   for   the   Guidant   acquisition
termination fee, less associated expenses.

OPERATING PROFIT BY SEGMENT
Consumer Segment
Operating profit for the Consumer segment as a  percent
to  sales in the fiscal first quarter of 2007 was 21.7%
versus  19.7%  over the same period a  year  ago.  This
increase  was  primarily  due  to  the  gain  from  the
divestitures  offset  by integration  costs  and  other
operating expenses related to newly acquired products.

Pharmaceutical Segment
Operating  profit for the Pharmaceutical segment  as  a
percent  to sales in the fiscal first quarter  of  2007
was 36.7% versus 34.3% over the same period a year ago.
Operating  profit  was  positively  impacted  by   cost
containment   efforts   in   selling,   marketing   and
administrative expenses.

Medical Devices and Diagnostics Segment
Operating   profit   for  the   Medical   Devices   and
Diagnostics segment as a percent of sales in the fiscal
first  quarter of 2007 was 13.4% versus 43.1% over  the
same period a year ago. Operating profit was negatively
impacted  by IPR&D charges of $807 million,  associated
with  the  Conor Medsystems acquisition in  the  fiscal
first  quarter of 2007. The fiscal first  quarter  2006
included the Guidant acquisition termination fee,  less
associated expenses, of $622 million before tax.

Interest (Income) Expense
Interest  income  in the fiscal first quarter  of  2007
decreased by $102 million over the fiscal first quarter
of 2006, due to a lower cash balance. The cash balance,
which  included marketable securities, was $5.2 billion
at  the end of the fiscal first quarter of 2007.   This
is  a decrease of $12.0 billion from the same period  a
year ago. This is primarily due to acquisition activity
and the stock repurchase program during the fiscal year
2006.

Interest  expense in the fiscal first quarter  of  2007
increased by $46 million over the fiscal first  quarter
of  2006 due to a higher debt position of $3.9 billion.
This  was  due  to acquisition activity and  the  stock
repurchase program during the fiscal year 2006.


Provision For Taxes on Income
The worldwide effective income tax rates for the fiscal
first  quarters of 2007 and 2006 were 29.5% and  28.4%,
respectively.  The increase in the effective  tax  rate
of  1.1% was primarily due to the IPR&D charge of  $807
million  recorded  in  the  fiscal  first  quarter   of
2007,which  was  non-deductible for tax purposes.  This
was partially offset by increases in taxable income  in
lower  tax jurisdictions relative to taxable income  in
higher  tax  jurisdictions along with the Research  and
development tax credit, which was not in effect in  the
fiscal first quarter of 2006.


LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
Cash  generated  from  operations  provided  the  major
sources  of  funds  for  the growth  of  the  business,
including  working  capital, capital  expenditures  and
acquisitions.   Other  uses  of  cash  included   share
repurchases, dividend payments and debt repayments.  In
the  fiscal  first  quarter of  2007,  cash  flow  from
operations  was  $3.8  billion,  an  increase  of  $0.4
billion  over the same period a year ago. This increase
was  primarily  due  to  a  $0.4  billion  increase  in
accounts payable. Net cash used by investing activities
increased  by $0.1 billion due to an increase  of  $0.6
billion  in acquisition activity offset by $0.2 billion
in  proceeds from the disposal of assets and a decrease
of  $0.2 in the purchase of investments. Net cash  used
by  financing activities decreased by $0.1 billion  due
to  a $0.1 billion decrease in the repurchase of common
stock and an increase of $0.1 billion in proceeds  from
the  exercise of stock options offset by a $0.1 billion
increase  in dividends paid to shareholders.  Cash  and
current marketable securities were $5.2 billion at  the
end  of  the  fiscal first quarter of 2007 as  compared
with  $17.2 billion at the end of fiscal first  quarter
2006,  a  decrease of $12.0 billion, which was  due  to
acquisition  activity  and the  2006  stock  repurchase
program.


Dividends
On  January 2, 2007, the Board of Directors declared  a
regular  cash  dividend of $0.375 per  share,  paid  on
March 13, 2007 to shareholders of record as of February
27,  2007.  This represented an increase of 13.6%  from
the fiscal first quarter of 2006 dividend.

On  April  26, 2007, the Board of Directors declared  a
regular  cash dividend of $0.415 per share, payable  on
June  12, 2007 to shareholders of record as of May  29,
2007.  This  represented an increase of  10.7%  in  the
quarterly  dividend rate and was the  45th  consecutive
year  of  cash dividend increases.  The Company expects
to   continue  the  practice  of  paying  regular  cash
dividends.

OTHER INFORMATION
New Accounting Standards
In September 2006, the FASB issued Statement of
Financial Accounting Standards No 157, "Fair Value
Measurements".  This statement defines fair value,
establishes a framework for measuring fair value under
generally accepted accounting principles, and expands
disclosures about fair value measurements.  The
statement is effective in the fiscal first quarter of
2008 and the Company will adopt the statement at that
time.  The Company believes that the adoption of SFAS
No 157 will not have a material effect on its results
of operations, cash flows or financial position.

In  June  2006, the FASB issued FASB Interpretation  48
(FIN 48), "Accounting for Uncertainty in Income Taxes  -
an  interpretation  of  FASB  Statement  No  109".  This
interpretation prescribes a recognition  threshold  and
measurement  attribute  for  the  financial   statement
recognition and measurement of a tax position taken  or
expected   to   be   taken  in  a  tax   return.    The
interpretation also provides guidance on derecognition,
classification  and other matters.  The  statement  was
effective  for the fiscal year 2007   and  the  Company
adopted the Interpretation at that time. See Note 3  to
the  Unaudited  Consolidated Financial  Statements  for
more details.

In  February 2007, the FASB issued Statement  No.  159,
"Fair  Value  Option for Financial Assets and  Financial
Liabilities", which permits an entity to measure certain
financial  assets  and financial  liabilities  at  fair
value. Statement 159 is effective for fiscal year  2008
but  early  adoption  is  permitted.  The  Company   is
currently   in   the   process   of   evaluating   this
pronouncement  and the impact of the adoption  of  FASB
159 would have on its results of operations, cash flows
and financial position.

Economic and Market Factors
Johnson  & Johnson is aware that its products are  used
in  an  environment  where, for  more  than  a  decade,
policymakers,  consumers and businesses have  expressed
concern  about the rising cost of health care.  Johnson
&   Johnson  has  a  long-standing  policy  of  pricing
products responsibly. For the period 1996 through  2006
in  the  United  States, the weighted average  compound
annual growth rate of Johnson & Johnson price increases
for  health  care products (prescription and  over-the-
counter drugs, hospital and professional products)  was
below the U.S. Consumer Price Index (CPI).

Inflation rates, even though moderate in many parts  of
the  world  during 2006, continue to have an effect  on
worldwide  economies  and,  consequently,  on  the  way
companies operate. In the face of increasing costs, the
Company  strives to maintain its profit margins through
cost reduction programs, productivity improvements  and
periodic  price increases.  The Company  faces  various
worldwide  health  care  changes  that  may  result  in
pricing   pressures  that  include  health  care   cost
containment  and  government  legislation  relating  to
sales, promotions and reimbursement.

The   Company   also   operates   in   an   environment
increasingly  hostile to intellectual property  rights.
Generic  drug  firms  have filed Abbreviated  New  Drug
Applications seeking to market generic forms of most of
the  Company's  key pharmaceutical products,  prior  to
expiration  of  the applicable patents  covering  those
products. In the event the Company is not successful in
defending  a lawsuit resulting from an Abbreviated  New
Drug  Application filing, the generic firms  will  then
introduce  generic  versions of the product  at  issue,
resulting in very substantial market share and  revenue
losses.  For further information see the discussion  on
"Litigation  Against  Filers of  Abbreviated  New  Drug
Applications" in Note 11 to the Unaudited  Consolidated
Financial Statements.

CAUTIONARY FACTORS THAT MAY AFFECT FUTURE RESULTS
This  Form  10-Q  contains forward-looking  statements.
Forward-  looking statements do not relate strictly  to
historical  or  current  facts and  anticipate  results
based  on  management's  plans  that  are  subject   to
uncertainty.   Forward-looking   statements   may    be
identified by the use of words like "plans," "expects,"
"will,"  "anticipates," "estimates" and other words  of
similar  meaning  in  conjunction  with,  among   other
things,  discussions  of future  operations,  financial
performance, the Company's strategy for growth, product
development,  regulatory approval, market position  and
expenditures.

Forward-looking   statements  are  based   on   current
expectations  of  future  events.  The  Company  cannot
guarantee that any forward- looking statement  will  be
accurate,  although the Company believes  that  it  has
been  reasonable  in its expectations and  assumptions.
Investors should realize that if underlying assumptions
prove inaccurate or that unknown risks or uncertainties
materialize, actual results could vary materially  from
the  Company's expectations and projections.  Investors
are therefore cautioned not to place undue reliance  on
any  forward-looking statements. The Company  does  not
undertake to update any forward-looking statements as a
result   of   new  information  or  future  events   or
developments.

Risks   and  uncertainties  include  general   industry
conditions  and competition; economic conditions,  such
as   interest   rate   and   currency   exchange   rate
fluctuations; technological advances, new products  and
patents attained by competitors; challenges inherent in
new product development, including obtaining regulatory
approvals;  challenges  to patents;  U.S.  and  foreign
health   care   reforms  and  governmental   laws   and
regulations;   trends   toward   health    care    cost
containment;  increased scrutiny  of  the  health  care
industry  by  government agencies; product efficacy  or
safety   concerns  resulting  in  product  recalls   or
regulatory action.

The Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2006 contains, as an Exhibit, a
discussion  of  additional  factors  that  could  cause
actual results to differ from expectations. The Company
notes   these  factors  as  permitted  by  the  Private
Securities Litigation Reform Act of 1995.

Item 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK

There has been no material change in the Company's
assessment of its sensitivity to market risk since
its presentation set forth in Item 7A, "Quantitative
and Qualitative Disclosures About Market Risk," in
its Annual Report on Form 10-K for the fiscal year
ended December 31, 2006.

Item 4 - CONTROLS AND PROCEDURES

Disclosure controls and procedures. At the end  of  the
period  covered  by this report, the Company  evaluated
the  effectiveness of the design and operation  of  its
disclosure  controls  and  procedures.   The  Company's
disclosure  controls  and procedures  are  designed  to
ensure that information required to be disclosed by the
Company  in the reports that it files or submits  under
the  Securities  Exchange Act is  recorded,  processed,
summarized  and  reported,  within  the  time   periods
specified  in  the  SEC's rules and forms.   Disclosure
controls  and  procedures include, without  limitation,
controls   and  procedures  designed  to  ensure   that
information required to be disclosed by the Company  in
the   reports  that  it  files  or  submits  under  the
Securities Exchange Act is accumulated and communicated
to  the  Company's management, including its  principal
executive and principal financial officers, or  persons
performing similar functions, as appropriate  to  allow
timely   decisions   regarding   required   disclosure.
William   C.  Weldon,  Chairman  and  Chief   Executive
Officer, and Dominic J. Caruso, Vice President, Finance
and  Chief Financial Officer, reviewed and participated
in  this evaluation.  Based on this evaluation, Messrs.
Weldon and Caruso concluded that, as of the end of  the
period covered by this report, the Company's disclosure
controls and procedures were effective.

Internal  control.  During the period covered  by  this
report, there were no changes in the Company's internal
control  over financial reporting that have  materially
affected,   or  are  reasonably  likely  to  materially
affect,  the Company's internal control over  financial
reporting.

Part II - OTHER INFORMATION

Item 1 - LEGAL PROCEEDINGS

The information called for by this item is incorporated
herein by reference to Note 12 included in Part I, Item
1.    Financial    Statements    unaudited)-Notes    to
Consolidated Financial Statements.


Item 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND
USE OF PROCEEDS

(c) Purchases of Equity Securities by the Issuer and
Affiliated Purchasers.

The  following table provides information with  respect
to  Common  Stock purchases by the Company  during  the
fiscal  first quarter of 2007.  Common Stock  purchases
on  the  open  market are made as part of a  systematic
plan to meet the Company's compensation programs.

                               Total Number of         Average Price
Fiscal Month	               Shares Purchased       Paid per Share

January 1, 2007 through
 January 28, 2007                  1,303,500               $66.18

January 29, 2007 through
 February 25, 2007                 1,153,800               $65.61

February 26, 2007 through
 April 1, 2007                     2,139,500               $62.25

Total                              4,596,800               $64.21



Item 6 - EXHIBITS

         Exhibit 31.1 Certifications under Rule  13a-14(a)
         of the Securities Exchange Act pursuant to Section
         302 of the Sarbanes-Oxley Act of 2002 - Filed with
         this document.

         Exhibit 32.1 Certifications pursuant to Section 906
         of the Sarbanes-Oxley Act of 2002 - Furnished with
         this document.







                      SIGNATURES



Pursuant  to  the requirements of the Securities
Exchange  Act  of 1934,  the registrant has duly
caused this report to be signed  on
its behalf by the undersigned thereunto duly
authorized.



                                   JOHNSON & JOHNSON
                                     (Registrant)




Date:  May 10, 2007          By /s/ D.J. CARUSO
                                    D.J. CARUSO
                                    Vice President, Finance;
                                    Chief Financial Officer
                                    (Principal Financial Officer)



Date:  May 10, 2007         By /s/ S.J. COSGROVE
                                   S. J. COSGROVE
                                   Controller
                                   (Principal Accounting Officer)