Johnson & Johnson Establishes Wellness & Prevention Platform with Acquisition of HealthMedia, Inc.

As an initial step in the creation of a wellness and prevention business platform, Johnson & Johnson announced today it has acquired HealthMedia, Inc., a privately held company located in Ann Arbor, Michigan, that creates web-based behavior change interventions. Terms of the transaction were not disclosed.

HealthMedia combines advanced technology and behavioral science to effectively emulate a health coach via the web. HealthMedia's suite of interventions provides automated web-based coaching for wellness, disease management, behavioral health, and medication adherence with proven outcomes, increased compliance, reduced medical utilization, and increased productivity. HealthMedia's products have demonstrated improved cost savings for health plans and employers.

William C. Weldon, Johnson & Johnson Chairman and Chief Executive Officer, said: "It is exciting for Johnson & Johnson to establish a new business platform to offer customers meaningful products and services focused on wellness and prevention that reduce healthcare costs, and at the same time, deliver new growth for our Company. Global healthcare systems, including governments, employers, payers and individuals, are seeking new solutions to more effectively manage spiralling costs of care. Our establishment of a Wellness & Prevention platform recognizes our conviction that a comprehensive solution must begin long before the onset of illness, and that investing in wellness and prevention now can avoid more costly health care expenses later.

"This acquisition represents a critical first step in Johnson & Johnson's commitment to providing products and services that enable consumers to adopt lifestyles and behaviors that reduce the risk of preventable chronic diseases and sustain good health," Mr. Weldon continued.

Nicholas J. Valeriani, Vice President, Johnson & Johnson Office of Strategy & Growth, who is responsible for the Wellness & Prevention platform, said: "Johnson & Johnson has incorporated HealthMedia programs into our health and wellness initiatives for a number of years, generating documented improvements that we are confident other employers and healthcare providers will find beneficial. In the U.S., where the programs have been implemented, they have contributed to our employees' ability to lose weight and increase physical activity, reduce stress, quit smoking, manage diabetes, and improve medication compliance."

"At Johnson & Johnson, a focus on health and wellness, including HealthMedia's programs, has helped to reduce our per capita health-plan costs and improve overall employee health and productivity. We are confident that a combination of proven products and services will enable our customers to better manage chronic disease, improve overall health, and create more productive workforces. The acquisition of HealthMedia is an important first step in this effort."

Caring for the world, one person at a time... inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Our 119,400 employees at more than 250 Johnson & Johnson companies work with partners in health care to touch the lives of over a billion people every day, throughout the world.

SOURCE Johnson & Johnson