Johnson & Johnson Chief RALPH S. LARSEN doesn't shrink from a fight. In 1995, he won J&J's first-ever hostile takeover battle, snaring Cordis. Using ads that slammed a rival's product, Larsen also turned an obscure Merck prescription drug, Pepcid AC, into an over-the-counter heartburn powerhouse. J&J had one of its most profitable years on the 57-year-old CEO's watch. Net income is expected to be up 19%.

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