George Abercrombie

Hoffmann-La Roche US prescription drug unit of Roche Group, founded 1896, Swiss-based international health care company with principal businesses in pharmaceuticals, diagnostics and vitamins> Active in more than 100 countries, employs approximately 66,000 people worldwide with 1999 sales about $18.4 billion, global pharmaceuticals sales accounting for about 60% of total> Industry leader in hospital-based products, expanding into primary and chronic care markets> US operation began in NY City 1905, moved to Nutley 1929, NJ became world administrative center during World War II> NJ facilities include administration, production, research, Nutley one of six world research centers> Roche Institute of Molecular Biology devoted exclusively to basic research, relocated 1995 from NJ to CA, along with some 5,000 corporate-wide layoffs as part of downsizing> Belvidere plant world's largest producer of Vitamin C, trademarks include tranquilizers Valium and Librium; Xenical (obesity treatment); Tamiflu (flu); Rocephin (leading injectable antibiotic); Zenapax, (monoclonal antibody used as anti-rejection regimen for kidney transplant patients); HIVID (AIDS therapy); also markets Zantac (leading ulcer drug) in joint venture with Glaxo Corp.> One of leading US companies working on AIDS research> $1 billion, 5-year capital investment program redeveloped US sites, including new $120 million science building, biotechnology center for expanded protein production, modernized manufacturing operations> Roche Diagnostics world headquarters facility in Branchburg, Roche & Fine Chemicals headquarters in Paramus, Givaudan-Roure subsidiary based in Clifton one of world’s leading fragrance suppliers, Raritan clinical testing laboratory in processes 20,000 patient test samples daily by 800 employees> Parent company May 1999 entered guilty plea to criminal antitrust charges and agreed to pay record $500 million fine for leading worldwide conspiracy with other vitamin producers including BASF to raise and fix prices and allocate market shares for certain vitamins, former president and marketing director of vitamins division sentenced to  prison terms> Parent company facing pressure in 2000 from Martin Ebner, largest shareholder holding some 16% of shares, for sale or merger of company> CEO Patrick Zenner resigned suddenly October 2000, succeeded by George Abercrombie, former marketing executive with Glaxo Wellcome> Non-profit support includes FAIRLEIGH DICKINSON UNIVERSITY, provided major support for $5 million academic building opened 1998, named for company, former CEO Patrick Zenner  and chief financial officer Martin Stadler, both FDU alumni holding MBA degrees; PRINCETON UNIVERSITY ($250,000 over 5 years to support molecular biology program); NJ PERFORMING ARTS CENTER ($250,000 over 5 years); RUTGERS UNIVERSITY; Newark Children's Hospital ($100,000 AIDS pediatric research fellowship)> Cited as one of top 100 US firms by Working Mother magazine for parental leave, day care programs.

3 Penn Plaza East

Former Blue Cross Blue Shield of NJ, changed name September 1998> Established in 1932 as Associated Hospitals of Essex County, NJ Blue Cross began service in 1933 to meet needs for affordable, accessible health care,  first multi-hospital pre-payment system in country, in 1942 NJ Blue Shield established by NJ MEDICAL SOCCIETY as Medical Service Administration to cover medical and surgical services> NJ Blue Cross introduced first health maintenance organization in NJ in 1973, Blue Cross and Blue Shield merged in 1986> Until 1992, BCBSNJ served as NJ's ‘insurer of last resort’ in individual market providing health care coverage for anyone regardless of medical condition, legislation enacted in 1992 to reform individual health coverage market, requiring all health coverage carriers in NJ to share in individual market> Blue Cross subsequently shifted to promote managed care, negotiated fee agreements with NJ acute care hospitals agreeing to provide service for new HMO coverage plans> Headquarters in Newark, other office locations include West Trenton, Neptune, Mt. Laurel, Wall and Parsippany> Proposed merger with Anthem, Inc., one of largest Blue Cross and Blue Shield plans (4 states) cancelled 1997 as result of legal, regulatory questions on Blue Cross and Blue Shield of NJ charitable status requiring establishment of charitable foundation before conversion to mutual operation and shift to for-profit status> NJ courts subsequently rejected Blue Cross claim for exemption from status as  charitable corporation, held that any conversion to mutual organization required transfer of all assets to charitable foundation> Announced 2003 decision to abandon plan to convert to mutual organizations due to legal, political barriers> Merger with larger insurer providing additional capital viewed as important to future competiveness with national, regional firms, following withdrawal of Anthem from merger announced  renewed plans to expand regional market, including operations as HMO in NY City and five surrounding counties, also contracted with NY-based MultiPlan, Inc. to participate in managed care network for new health plan known as Medigroup of New York, also filed to operate as HMO in DE and PA> Faced potential loss of its license from national Blue Cross Association in 1988  resulting from series of substantial deficits, avoided insolvency by obtaining series of rate increases by State government to reduce deficit, reported profits for calendar years since 1991>  $100 million headquarters office complex in Newark completed 1992 by HARTZ MOUNTAIN INDUSTRIES consolidated administrative staff from Florham Park offices> NJ statute enacted 1991 restructured board, provides for Governor to appoint 4 of total 15 Blue Cross Blue Shield trustees> Chairman Vincent Giblin brother of Thomas Giblin, past chairman of NJ DEMOCRATIC STATE COMMITTEE; CEO WILLIAM  MARINO  appointed 1994, served 23 years with PRUDENTIAL, elected 1999 to board of Health Insurance Association of America, also alumnus and chairman, board of trustees of ST. PETER’S COLLEGE.

World's largest and most comprehensive manufacturer of health care products serving consumer, pharmaceutical and professional markets> Origins date to 1885 founding  in New Brunswick by brothers James and Edward Mead Johnson of medical products company, joined 1886 by third brother, Robert Johnson, who developed antiseptic surgical dressings, first products produced in converted wallpaper factory> Edward left 1897 to found drug company Mead Johnson (later absorbed into BRISTOL-MYERS SQUIBB)> J&J bought gauze maker Chicopee Manufacturing 1916, introduced Band-Aid 1921 along with Johnson's Baby Cream, later expanded into birth control products (Ortho) and sutures (Ethicon), bought McNeil Labs 1959, which developed Tylenol (acetaminophen) as over-the-counter drug 1960, also acquired Switzerland's Cilag-Chemie in 1959 and Belgium's Janssen in 1961> Purchased PA-based biotechnology firm Centocor for $4.9 billion 1999, adds products in anti-clotting, bowel disorders, autoimmune diseases> Now 93,000 employees and 170 operating companies in 50 countries around world, selling products in more than 175 countries>  World's largest in over-the-counter pharmaceuticals; contact lenses; interventional cardiology; minimally invasive surgical equipment; surgical sutures> Major brands include ACT Fluoride Rinse; Band-Aid Brand Adhesive Bandages; Carefree Panty Shields; Clean & Clear Skin Care Products; Imodium A-D anti-diarrheal; Johnson’s Baby line of products; Monistat remedy for vaginal yeast infections; Motrin analgesic products; Mylanta gastrointestinal products and Pepcid AC Acid Controller; Neutogena skin and hair care products; Nicotrol smoking cessation products; o.b. Tampons; Penaten and Natusan baby care products; Piz Buin and Sundown sun care products; Reach toothbrushes; RoC skin care products;  Shower to Shower personal care products; Stayfree and Sure & Natural sanitary protection products; and family of Tylenol acetaminophen products> Recent introductions, approvals and clinical trials include Reminyl (galantamine hydrobromide), new treatment for Alzheimer's disease; Trapease Permanent Vena Cava Filter, used to help prevent pulmonary embolism occurring when blood clot breaks free from peripheral circulation; Remicade (infliximab) with methotrexate for reduction of signs and symptoms of rheumatoid arthritis> Sharp drop in stock 2002 following disclosure of federal criminal investigation of allegations of falsified records at Puerto Rico plant making anemia drud Eprex> Terminated marketing of heartburn drug Propulsid March 2000 following reports of 80 deaths from use, accounted  for $950 million sales 1999, led to drop in stock price from impact on sales, potential costs of legal claims> Formed joint venture 1989 with MERCK & CO. to develop, market non-prescription products, largely derived from Merck prescription medicines, other acquisitions> Highly de-centralized organizational structure, subsidiary companies with NJ headquarters or major facilities include Advanced Care Products (Raritan, nonprescription contraceptives, antifungals for vaginal, yeast, athlete's foot infection, home pregnancy tests); Ethicon (Somerville, surgical products); Immunobiology Research Institute (Annandale, peptide drugs for immunologic, endocrine, psychiatric diseases); Janssen Pharmaceutica (Washington’s Crossing, prescription pharmaceuticals); Ortho-McNeil Pharmaceutical (Raritan, family planning products); Personal Products Co. (Milltown, feminine hygiene)> Major force in New Brunswick redevelopment, opened new headquarters 1983, centerpiece for adjacent Hyatt hotel, office, commercial projects> Named one of nation's ‘10 Best’ companies for working mothers by Working Mother Magazine, operates 4 day care centers, 3 located in NJ, serving 500 children of employees> Active participant in NJ affairs, with executives holding key positions in interest groups, government-related organizations, focus of philanthropic support on health, education, arts causes> WILLIAM WELDON named Chairman and CEO January 2002, succeeding retiring Ralph Larsen, previously vice chairman, joined J&J 1971 as salesman>  ROBERT WOOD JOHNSON FOUNDATION located near Princeton, created pursuant to will of Robert Wood Johnson, single largest J&J shareholder> 2001 revenues $33 billion, up 10.6% over 2000, net earnings $5.7 billion, up 14.4% over 2000.