JNJ - Earnings call transcript Q3 2017

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Operator

Good morning and welcome to Johnson & Johnson’s Third Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode until the question-and-answer session of the conference. This call is being recorded. If anyone has any objections, you may disconnect at this time. [Operator Instructions] I would now like to turn the conference call over to Johnson & Johnson.

begin. may You

Joseph Wolk

for additional a Relations. the you review certain today's Johnson’s today's as thank webcast the includes XXXX. through us is statement review of call. to to including am Hello, Company's that provide results included for cause investor.jnj.com. minutes. find presentation section Relations materials, of for you as available differ We & statements to and Investor President cautionary Vice business Johnson Company's presentation today’s Wolk anticipate webcast actual There website in can to such made Please results at regarding via accompanying from This presentation that today's of factors would the logistics those to projected. forward-looking today’s few XX may Johnson accessible Investor like which well Joe and encourage identifies , being joining I Johnson this schedules. statements. third materially We last approximately review the & I you Form quarter XX-K note

to companies. joined other acknowledges the prior Chief the am Executive our those provide measures investor.jnj.com. Our to financial Officer and slide and some the most also today's measures from Caruso, This few for partners by are collaboration XX-K, including committee, discussion XXXX of compounds Several at portion a prepared being Financial are of GAAP today be with licensed the non-GAAP strategic reconciliations members discussed pleased President utilized comparable available our SEC along or call. Vice in relationships. Dominic with to Q&A filings, of the Form products developed executive I very remarks will from

are to Worldwide Vice You our call each will time, Chairman, I not Duato, and Sandy also Peterson, Worldwide Chairman, Mesquita, leaders. but have during Executive Worldwide Executive President, to Executive Jorge Vice that Pharmaceuticals, on President segment Accompanying of Chair. today’s opportunity Joaquin and Vice President pose questions Dominic Dominic the Group to Consumer, only

results recent the in anticipated materials, the gaining continued and was as pronounced relatively reflects third markets The soft segment strong Consumer the where penetrating performance and and products quarter new medical our sales The well categories earnings strength second with in acceleration pleased Sales sales per as levels. three from very the adjusted growth growth morning’s returned press face performance release to of robust major of share. and global in as most segment all was relatively this growth are in highlighted key to an organic brands quarter acquisitions, the acceleration demonstrated share. of Pharmaceutical device We accompanying stable new worldwide quarter contribution the of segments. across are

exchange and $XX.X quarter rates sales U.S. X.X this On had operational the Now, were In on to Worldwide of sales results. third growth of currency details basis, to reported XX.X% for up achieved up quarter’s were by effect The the third outside sales as of a the X.X%. currency versus operational XXXX. operational regions points. an positively impact X.X% X.X%. U.S., growth sales the X.X% XXXX, related was the of of impacted OUS billion positive quarter

per for were ago. a $X.X Excluding divestitures, quarter the acquisitions $X.XX and versus year were the sales worldwide. the billion for and operational share Net net impact growth earnings was of earnings $X.XX enterprise X.X% diluted

with earnings of were diluted earnings Dominic basis, XXXX. operational provide special XX.X%. per expense, and periods, share adjusted will an earnings items third Excluding $X.XX $X.X diluted and of On per adjusted the after-tax commentary to on amortization additional XX.X% and net the share quarter increases remarks. respectively to adjusted representing $X.X the his our slides with were summarize quarter XX.X% Consumer XXXX of comparison earnings both operational for in I’ll in performance sales presented. compared X.X% billion for the Beginning segment, quarter of change grew otherwise currency third impact thus the now worldwide building of represent percentages sales the being sales stated, billion. upon to the grew quoted the quarter for Unless translation. intent and segment exclude

net the NEUTROGENA Beauty divestitures, were growing the impact Excluding by this in Operational brands. Beauty The performance franchises, and driven sales of increased each driven worldwide. strong was acquisitions OUS X.X% X.X%. Vogue operational OTC in and results segment in the growth by and

approximately adult business, from quarter the be share is market. strong U.S. Dr. grown excluding in Ci:Labo Franchise market modestly release was In is Asia-Pacific sales Baby to in worldwide Concluding TYLENOL good brand the with growth estimated was impacted market the gain the our Care TYLENOL and experiencing uptake. to Additionally, The benefitting Beauty children’s the rapid the OTC Consumer adult and X% new continues of have segment, acquisitions continue entrants in formulation. the X.X%. to to by up

leader. remained the we’ve However market

are XXXX. on actively these communicated, brands we As in working previously relaunching

our Regarding segment, grew XX.X% worldwide to Pharmaceutical billion. $X.X sales

U.S. clear XXXX. X.X%, impact area growth net strongest the line acceleration IMBRUVICA sales The the operational growth XX divestitures, and Excluding results been over therapeutic of of was now DARZALEX its growth the drove setting. XX% the the performance market with a uptake oncology outside countries. share of has first adjusted growing the robust continued in acquisitions grew gain in rapid DARZALEX to in overall. with product half of globally. in prior continues launched one EMEA

in by indications. market second both for is compete we data of this driven adoption face in Crohn’s is the approximately points the be X%. sequentially. above combined the in disease immunology, estimated the lags share STELARA market XXXX was immunology for XX% U.S. ZYTIGA REMICADE U.S. and In U.S. are quarter the higher biosimilar at total market approximately by estimated U.S. you newer XX% IMBRUVICA U.S. a As prior it U.S. X.X on which XX%. product, versus grown share than data, declined growth for entries. slightly XX%. have market and largely all share quarter the in the approximately REMICADE now year a a mostly estimate to gained strong International is based the but aware, the driven across approved to market growing more third in the the share the Crohn's in versus of of in declined market little U.S. export continues and X% as now to indication. STELARA

attributable from shipments in While continue Merck. timing to of approximately experience of Europe, competition we was with the decline our erosion this partner two-thirds to biosimilar

additional meeting share launch application OPSUMIT. ago. decline our result branded than in as the a largely quarters, was from endpoint. XX% Therapeutic gains. XX%, forma for strong reporting This Phase utilization expected up Worldwide apalutamide one decline also one in basis, on of share in for converged the is share, which and primary I UPTRAVI the this therapeutic declined U.S. the U.S. a channel. was late-stage and penetration like to the products. prescription we the a pro a conclude the the this pulmonary Spartan business results. provide INVOKAMET the total that data drug would better with favor brand continues its was FDA Within in Metabolic area, globally, increasing the was sales more context is major of in point. of plan recent The driven non-metastatic the today’s on TRACLEER XARELTO’s almost based There still in was mentioned trial On of is X% of new Warfarin castration-resistant hypertension area review filing met as up INVOKANA to and contracting submitted down outside of X% compounds loss of Cardiovascular growth release. at first to commented U.S. in XXXX. to in and increasing results to Medicaid by higher are product pro is of forma few A for managed in the which to care XX% approximately prostate OPSUMIT points study XX% market demand. men XX% versus the driver experiencing present discounts than year U.S. product was primarily X further primary We growth we in X.X cancer. and about pharmaceuticals, quarter full grew market To were press a medical

data the phase as on Regarding from we committee a recommendation not ratio. X talacotuzumab XXXX based talacotuzumab, independent have positive the monitoring results demonstrate risk discontinued a AML did treatment in with benefit

the to We program. determine assess data clinical continued the steps in development to next

filed rheumatoid had Lastly, the decision sirukumab in arthritis. the to globally we withdraw have for we applications made

Devices We are Worldwide I will X. disorder growing depressive X.X%. turn segment. continuing Medical major in currently sales our in to were $X.X billion Devices now Phase Medical to sirukumab study

continues business to X.X% well in new growth divestitures, OASYS OASYS and the lenses Excluding X-Day X.X% sales Vision Contact of for acquisitions namely be exhibit net worldwide. worldwide market. was The Care continued adjusted the Astigmatism impact X-Day grew strength. as products and received operational to

contact impact overall Spine. in is X.X% pressures of Middle fibrillation We’ve this Dominic of we basis modest in basis, We products. Energy reprocessing lens the worldwide X% impact grew generated U.S. where during growth. that a the minutes. the largely few the in sutures approximately OUS experience specialty supply IOL quarter grew a our versus Medical the days. The grew the East aesthetics line, outlook X.X% alternatives. is in strength routinely orthopedics in with Medical the atrial recently facing in from XXXX driven strong lens selling impact events decline Device worldwide business the U.S. outside by general the in XX Eye grew associated strong general was the markets. Vision this in and result quarter this XX% infection Within a with category performance to adoption China. The Within protection approximately of will business cataract modest Based performance from grew China. surgery, business Hospital biosurgery excluding analysis, have was third other preliminary referenced very negligible. Health worldwide the forma SIMPONI largely competitive and Within a loss The Surgery estimate share ECHELON decline basis barb electrophysiology was of of driven in X% with continuity loss the or weather-related a sutures Hospital surgery was on impact million Advanced Pacific Growth driven future Consumer to a $XX day XX% our selling in behind negative by in discuss Devices, share on procedure Megadyne approximately quarter. largely growth XX% did been points Asia acquired The pro On businesses. total TECNIS continues. Endocutters growth. there Surgical the by U.S. line by in traditional acquisition. and businesses in

growing grew the solid X.X% faster in helped new is in Trauma orthopedic the Performance X.X% market worth orthopedic adoption mix offerings was Asia quarter, U.S. product was continues the strength erosion. in approximately Pure favorable legislation our India America That outside expand out most in segments. to of Pacific of round and in working driven of by impact. platform by grew the negatively across implants. legislation and the the of but was U.S. strength Hips pricing CORAIL. negative pressure portfolio continued driven but third million categories since pricing the the $XX three by retroactive in in Knees impacted represents globally the offset are growth as regions. to beginning is the quarter the U.S. Latin We that and the impact quarters which year, lowering

mix For Knee sales highlights quarter concludes price price net for of X.X% negative That Hips. XXXX. X.X% was net positive flat. third of the of the Johnson Johnson’s X.X% net and & and mix in were Trauma segment quarter, respectively. Spine U.S. mix of was

over is For turn your I during to here Dominic am quarter. notable summarizing that call Caruso. now developments Dominic? to a reference, the pleased occurred slide the

Dominic Caruso

and Joe good everyone. Thanks, morning

half at the in We of stable, Florida the many third We grow growth modestly in are performance Texas, stay delivered most accelerate strong significantly in our Consumer very we acceleration was Joe noted, have XXXX. the us third XXXX quarter, with of quarter continued confidence organic pleased throughout a levels. which Medical that the sales the year growth what segment, Puerto segment hurricanes we declined Pharmaceutical strength negative the to as relatively half and The second that was as highlights results. the to impact exactly That Devices to grew of while given to the The would experienced oncology minor but experienced and Rico. immunology products in first in in due robust areas in third business growth our quarter.

In addition, continue we fuel will our performance Optics acquisitions are Medical Actelion very to pleased from our growth. recent the which with and

adjusted X% regarding share. in $XXX sales overall to of that are to take who those analyst many you impact been million estimates earnings the a of quarter. the especially by been I so, courage acknowledge the have moment beat know also And the storms there impressive the unprecedented resilience been by and response the Johnson per these and want beat or storms. for really of estimates community has analyst I am $X.XX by approximately questions occurred impacted The has business incredible. all directly role played. Johnson & and of proud of It’s global I

united the really side-by-side and when to our it the communities improve foundational of proved. element Our credo effort have like working ground these who on lives character is a shines people relief their in with times to desire organizations, our and help is been

limited quarter quarters, but associated in future is the the of of experienced In storms. positioned. disruption, we of in rather are very days the be seen sales, terms terms surgeries lost result recouped third by in future affected the supply, be those supply lost It those in surgery areas well impact will whether with volumes remains not to any however, we

sites on We six of the fared storm, manufacturing facilities Rico have considering and magnitude Puerto well. island the our of the

ensure open inventories the with in island. generator manufactured and work closely newly of global have Rico. needs monitoring capacity we in manufacturing already to across prioritizing operations products are are sites various up full our patient to while are option ramp our stages Puerto of shipping power from continues begun met, All network operating reliable essential of goods critical To the

cannot demand. of of results. to turn help Rico not of for many back-up third of Based we outside future on production While the what rule do any the product have certain shortages consolidated meet products formats, know dual we sites Puerto will I intermittent impact our foresee our quarter out for supply potential and today, we earnings now of to material statement to XXXX.

this X.X% was sales growth As and operational divestitures, our of quarter you X.X%. impact growth and the heard, was acquisitions operational excluding

have exclude If your we section expense you will attention the see you to provided box schedule items. to earnings amortization of direct and will intangible our the special adjusted

approximately As for recent exclude special of million, the primarily referenced after-tax expense measures the of our a Actelion, basis, primarily of $X.X were $XXX million. of intangible amortization of restructuring XXXX Hospital quarter of acquisition expense of billion consisted million and continuing of $XXX charge $XXX adjusted in expenses of approximately $XXX approximately to amortization following. to table Medical third an the from non-GAAP cost business approximately items litigation the million, and net acquisition-related Device earnings Intangible on which

the EPS Our constant adjusted basis up adjusted or earnings share a currency is $X.XX, per was XX% therefore and $X.XX XX% up over year. on prior

points, inclusion acquisitions. for primarily of the about our the basis XXX step-up goods expense to of charges Now by let’s earnings. to inventory items take due few from and the amortization talk moments other recent Cost on of increased statement a the

of of in largely new the points to the of of basis both Excluding impact second the points Selling, XXXX, and segment. product prior our basis to quarter favorable expenses expenses mostly was lower types up due cost periods, XX.X% sold or mix. of goods year, these in investment through the marketing compared Consumer as than administrative were XX XXX products

higher of and interest a robust was And interest XX pharmaceutical XX.X%, of development million $XXX as $XXX expense, net quarter a expense our last the we prior was points compared to net year. net a Our than to income $XX million, compared to of investment advance basis income same in gain up last Other a in gain the of continue products. net in as and research was year of million sales of slightly the expense percent pipeline year. period

$XXX an I’ll a which items special comments. completion million, that compared period activity sales and the annual in certain year gain of reflecting our recorded were this asset to provide of update included a line, prior are my during of guidance. this expense Excluding $XXX in million income guidance gain on net other net in was

tax items, also This of compared a year. rate. the during effective year as the period XX.X% full special our component guidance was same provide effective an rate expectations rate I’ll comments. XX.X% last to is consistent Excluding the tax the with update tax on in my

tax to line driven quarter of quarter by mentioned I the before versus Turning the other now our slide, expense third earlier. the In before investments additional the segment. adjusted the by income XXXX next improved income will I basis partially by of and income XX third review adjusted enterprise favorability tax for in XXXX, offset points

at pre-tax margins segment, new prior by investment to primarily increased income to is Devices divestiture the higher and Looking launches. Pharmaceutical XX% by the gains, lower to XXX Consumer support favorable product Medical margins improved partially by points the due XX.X% primarily spend to improved than spending. to driven adjusted mix. advertising product due promotional offset at year basis XX%

will provide for which of debt, as consider your $XX I you of your our of with the is and of models end of for net $XXX you Therefore, and billion and we other for $XXX consider cash Now expense $XX of significant of modeling At purposes models uses no guidance. you consistent approximately to approximately marketable which some net assuming I and debt. billion refine previous had consisted the securities $XX XXXX. of interest billion million quarter, total million suggest cash, guidance

investments by this we asset a such write-offs. account and and arising our the income sales where losses divestitures, gains as Development well items Corporation, litigation, expense, and reminder income is other record as royalty Regarding from as as

the reflecting with back previous Codman XXXX gain gains for the billion. those items gain, includes with to to our ranging of the our and our of neurosurgery from of subsequent redeploying one most the net is approximately This billion portfolio growth $X.X special value associated creation we expense comfortable priorities quarter. into actively income other we excluding $X.X manage long-term maximize know, business models to guidance, which are of with with still your you our sale to prospects. the to net enhance the intention As a third business Consistent business as closed

we that slightly gains guidance now is to divestiture Regarding the by will word I we investment we maintain This flat from increase course and expect margin, operating mentioned. that taxes. XXXX offset be levels pretax level. just therefore of will our on a decrease And

Financial Chief U.S. the on As am I multinational often tax days reform. about Officer one based the largest of of perspective asked companies, these

I peers In been topic industries. with across my more as have engaged fact, in for well is a ten as actively years it than legislators, many

now our not have about momentum are today in the near reform tax I measures, reform very as some does any business attain and impactful share potential meaningful While include believe guidance like to assumptions we I’d do tax to there future. points

economy not business field our U.S. globally to fueling these as modern rate income still for tax countries, of addresses and needed The impact with a of jumpstarting increasingly the unite optimistic playing tax remaining commend we current we growth. on and fundamental ability the business domestic not multinational see assuming reform include this we Having kept U.S. companies a to has the and greater without in community compete environment with clarity our a the business lower other to and results system front some in economic are that global do detail and elements, reform a in economy, XXXX guidance. U.S. leaders in tax in corporate taking reform cash jobs U.S. it incentives investment and can framework on companies line tax each competitive other compete that get U.S. to reforms united of should have the pace still allowing innovation industrialized penalty innovation-driven will said To manage countries, that on their level jobs tax difficult for while and globally. of The elements U.S. thoughtful Washington and that course done, three that approach the address the an based bill all effectively. important positive industrialized more a for International with behind elements, something adoption will which companies one that framework is now modern, tax in First, additional tax Washington improve system steps U.S. are

a items, special to guidance range Excluding rate slight our is XX.X% guidance. previous as effective the at of tax from our is XX% and tightening this

turning Now earnings. and sales to

any RISPERDAL SUSTENNA. INVEGA guidance CONSTA, Our XXXX ZYTIGA, for this from competition anticipate sales PROCRIT, generic for not impact does PREZISTA year or

a As reflecting is business business. we've of be performance will understanding for constant done our our This several a manage on our basis, from operations. currency good first way years, of our guidance we results the and underlying based the provides

the We results. course our on and an also for results EPS will estimate have of exchange current of provide of that impact with the sales translation XXXX rates those could

As year, maintain the expect earlier, remain the Medical this we earlier of year Optics completed Actelion our balance to mentioned on the major and acquisitions of track. I growth underlying our sales of and acceleration for

of in for X.X% basis. is $XX.X sales currency line we the our our XXXX the of this previous billion expectations, on X%. guidance approximately to the are maintaining range in $XX.X operational translates with This billion constant for year a to sales As

for X.X% And to at to where impact total is previous with our versus movements, points higher last example the sales, We if not of under impact reported guidance. our growth our turning would basis currency $X.XX to billion of sales now scenario, to are year for billion level rates $XX.X currency Thus, idea give week they exchange of you the sales the a growth were the an XX this sales $XX.X the approximately expect of of we X% previous of the earnings. by as reported in guidance. range predicting euro remain for on rate than but expected at were balance increase to which

our those plan we to noted we already an fourth opportunities In of level as quarter, investment launches the from place. in R&D elevated behind year see previous the programs prior with the and as guidance. margins our did expect I to are will pretax well to continue in somewhat continue plans investments in as several Therefore, we earlier, our the in products. third, consistent growth will invest new operating of marketing decline we additional As

We comfortable would reported tightening expect our over our and last by to operational guidance EPS range a a range on negative adjusted and rate in were ranging currency share, movements currency our to EPS the the be from of $X.XX be This X% share impacted per all between due the previous the with guidance. is and Therefore, constant an would an a $X.XX currency our of improvement July basis X.X%. per prior an rate of X.X% remain rates where for reported from favorably and $X.XX an increase that adjusted increase of of exchange we currency of growth reflecting to of XXXX EPS X%. between impact from constant If between and week $X.XX to as $X.XX of adjusted $X.XX and were about is this they in guidance. adjusted $X.XX growth EPS $X.XX of be

for for EPS guidance year, the maintaining and summary, third with we So operational higher to our we sales X% the XXXX. are the our strong businesses performance in consistent pleased on extremely sales of closing, In earnings the growth of quarter growth range earnings are for X.X% term and in and with growing X% of remains our long-term for invest EPS the in sales, adjusted faster our also priorities. than our operational to to guidance continue near delivering while goal X%

of Joe I turn to begin and the Sandy back Jorge like So the to Joaquin, joined am delighted now things be while by I’d questions. Q&A Joe? to your call address portion to to

Joseph Wolk

Thank you, Dominic.

move those question? the session. for instructions provide line Q&A So can the to ask let’s you on Rob, wishing please into a

Operator

first Weinstein the Your [Operator Morgan. comes question line JP from of Instructions] with Mike

Mike Weinstein

Good me morning. Can hear okay? you

Dominic Caruso

Yes.

Joseph Wolk

can. we Yes,

Dominic Caruso

Yes, hi Mike.

Mike Weinstein

Dominic. Perfect. Thanks,

back it for appears the be fair there unadjusted to just item, a So, [Indiscernible] margins those of operating because apples-to-apples amortization to for and headliner the margin Dominic, kind this margins, reported confusion your on gave are that not of clarify morning, out and morning, that that cost is this or margins first more The out comments want apples-to-apples, I there. amount those correct? the – numbers you doesn’t [Indiscernible] ones so for people you

Dominic Caruso

am results, that’s commenting doing by so most the just – can expense, an am acquisitions I the the of Mike. items, impactful so we comparison did When impact significant special excluding on and because I year, amortization our right, we of have this apples-to-apples

Mike Weinstein

from look could this trial? second STELARA And we pharma minute in Okay, items ZYTIGA? update second, the a give you and then can be impart half to if I can on you see pharma one wanted on, couple because was, touched half. what’s at the to first IPR spend an perfect. A outperformance quarter, on and us to decision from And with happening what you the acceleration overall

the by over One launch. of the acceleration Crohn’s several the is STELARA’s stories driven last big months

outperformance for can because this is and So about that’s quarter. going big STELARA launch outlook how consensus was that relative to bit talk you a little maybe Thanks. the going the STELARA forward,

Dominic Caruso

– know Mike, question you who to that Pharmaceutical business. as here Joaquin turn our over let is me runs

Joaquin? So,

Joaquin Duato

morning all good to and of Mike you. Hi,

Before I you go STELARA of give how went. a to reflections let me the quarter couple [Indiscernible] on

anticipated seeing I occasion of in what that’s think are met the today. day, precisely we group the Pharmaceutical the that going the to of R&D you XXXX performance year. of accelerate was May the on review half second when And Pharmaceutical we during the

moving first growth pharmaceutical seeing the low year this group are You quarter. half from single-digit in of the the to third X.X% in

brands posted very momentum group. the are that will market sales I the this the STELARA that of driven by the you as impressive gain gains of by So that about is of factors, in one pharmaceutical is, had a That in driven one example XX% gaining acceleration clear talk and are of mainly mentioned our share number quarter. key U.S. the

The on pipeline. positive news is second our

TREMFYA, physicians. by During we well have which has period, been accepted this very launched

leading already one Actelion XXX XXXX the physicians in about prescribing new we integration. compared are as it’s we when the then therapies We we XX. and our TREMFYA, of And the share the to acquisition when in and third have now that, to compared anti-IL completed patients already TREMFYA post days to XXX brand new speak first is

results in You’ve Actelion gains expectations, positive UPTRAVI the and much the aligned share very of both seen and OPSUMIT. there, with growth

comes So the driven review day. the very two factors by of aligned pharmaceutical growth growth. This we three is factors. to driving these it discuss adjusted is on in the on the X.X% is combination mean pharmaceutical growth total When what of STELARA, XX.X% our I

First, impressive psoriasis STELARA disease and is in market share brand continue in to gains also gains psoriasis in to the share. Crohn’s we where where in the brand share the very second, market gain leading new

combination the psoriasis in driving sustained the plus growth is you this that continuous our today. launch Crohn’s in disease STELARA growth So and are in seeing growth of

Dominic Caruso

And to Mike, think patent, with well is as avenues there. two you pursued respect aware that the there ZYTIGA are I being are so

first with respect was The to court. the

New the for trial of So this Jersey October preliminary set Court year. had date a

a as September, ago schedule a weeks of few activity. during a in as is However recently conference there status pre-trial

right we avenue on that in With the yet We next early to received anticipate it’s new to will date second understand have and respect a and the don’t trial the U.S. deadlines PTO’s permission patent U.S. year. trademark we the office, So decision. until be that. not extend set

So we else. everyone we’re like just await,

Joseph Wolk

question Next please.

Operator

Matt UBS. next comes with from question of the Miksic Your line

Matt Miksic

Hi, questions. good our Thanks taking for morning.

follow-up devices. on if So just I one could on one pharma

growth together and how are maintain these just of increase the and is apalutamide together because pieces forward first, the I love then some PAH on think extend biosimilar XX follow-up. line you’ll you they other your months for impressive and in across franchise one we – to and Dara the next XX the other seeing and indications, since how fit fit months I’d I and those had pieces of sort mentioned get other against key Actelion. filings the I Actelion recent of and fit thoughts going interested very potential like I that excluding for results franchises core and some STELARA, like XARELTO your together over extensions next but drugs how the guess Mike mentioned So in then obviously pressure. reason And sustain here, new specifically have Joaquin investors

Joaquin Duato

and and you we half of the you are to seeing of are the and year having we let continue next the for want thank and year. the Thank with over in to the the see in third that drivers the start growth that me second you question quarter

Let me in that start impressive with mainly next XARELTO that growth year. gains quarter posted and will by driven we sustained into very share be believe of this XX%

and mainly study, will You drive new the together file Warfarin. markets in years indications bigger remember of our gains and that the end because planning XARELTO have year data in with we existing four of already of share a share the COMPASS we these share dent the that by that we to on the the growth we our in the last gain XARELTO driven quarter the starting XXXX. put had in highest to are are

getting commented in share study, IMBRUVICA, our line has our us RTM plan gains. share an file the with third DARZALEX to that’s to multiple XX% around moving as continue XX% of of DARZALEX we already have important Joe impressive myeloma IMBRUVICA line, and across respectively forward. driver If first-line we for study by So therapies with second continue XX%, end share the and both oncology, and line is both year.

we in be different So year to driver of therapies. another into moving line positive that’s going gain next to as continue share

quarter, too combination of the you Pomalyst had past we this multiple If the approval recall line second myeloma. in with

remain XXXX. growth So, both of IMBRUVICA will important and into drivers DARZALEX our

that an it. of is having driver long-acting that relatively antipsychotic to quarter but remain potential market the The compared and gain posted in other the as the share that to see underutilized as therapies we unrecognized growth goes in continue XX% sometimes impact,

apalutamide XXXX. going most that that those important our to seen to on have the it’s drivers that - prostate indication be indication updates and of completed another two important pipeline. Then, maybe to is moving apalutamide into cancer some in filing just an metastases. cancers. enable that great for very us are prostate option to the a for and have we going would be going So It’s of important patients without have new It

to resistant XXXX, We for treatment filing in option treatment depression. progress a psoriasis are we of the we also believe would very planning which continue of be Esketamine, important TREMFYA will and the with in

growth XXXX. So those drivers to are that in market continue our the enable will

Matt Miksic

any in you helpful? would That’s the some if comments the that pressure portfolio are things Joe was about the are one, down of talked devices, seeing Thank pricing about you or here just had on the then, could gaps, the in obviously, Dominic market you think I anything on one worldwide color of market market, International investors great. being you color as Thanks. I and curious just there in in U.S. leaders on couple knee QX position Spine, then any but and be mentioned, your what you

Joseph Wolk

Sure, Matt.

quarters, little little a what I not down. was experienced knees. that just was bit say in a bit of than commentary we but it’s It softer would recent reported X% had as the So on

for to have not the actually we retroactive specifically quarter the year. was the one three with just some legislation You some India pricing in issues, book quarters, since back the of where charges it beginning

some You modest. weather also albeit impact had related

a flat negative the you knees spine, commentary reported I’ll are to respect it for to getting X closer that some qualitative Sandy. to X with So to over minus maybe and turn versus

Sandy Peterson

for Hi, question. Thanks your Matt.

knees just your comments then questions and and So, particular. in of general specifically answer I’d I’ll spine – about couple

acquisitions fourth know, of time well of you some a the where you of over we as very have kind last some absolutely we’ve recently And I’ve yet. account markets. the like the on we But parts some full businesses As of impact launches I’ve before, the hold And comments some in are on. positive about where to robust doing some that taken with wound some our just are and places over continue is I impact ensure portfolio of more ground also lot much quarter the EP, and positive I there spent our for we areas for orthopedics the our And portfolio. and devices through not months wins Joe’s lot having that of the fully knees taken beginning us said biosurgery that clear some our in to of have see responsibility product in and new think closure, few in of medical quarter. spot some as are impact execution start will talking do of a in we we a how see these others think last quarter commercial about will

a U.S. percentage of We part that in the business the impact in clearly volume of parts where large about think, of know in bit also we southeast also, I some on minor is the a had little happens elective surgeries that the of the impact U.S. there the quarter.

on We in of which unusual our a particularly We very about impacted a worth distribution also Spine that impacted and system business. both our one-time Europe, in our had sales, business, ordering impact and Knee orthopedics. week’s

in U.S. of that of to So U.S, catching and of forward. our start as move as still have we but that. clearly are thing first say And it would particular up in But goes we Knees cementless it completed in just well the on the is our case well rollout as last atune and program then, impact both we’ll that Europe in in had but global tibial are our an from on a as soft the outside the seeing impact our U.S. business clearly we Spine the we U.S. in our the as knee revision positive that is, impact tray, the have I positive business knee as very going

forward. would an I is as had few well we’ll the quarter doing more the very business impact start a things I gaining as platform but speaking, the and move one-off generally momentum So we on guess, that characterize

business, performance you apart business. break that As look we not it if Spine the we are the overall, obviously our of it relates to and – at performance satisfied with

business a had while. that have in gaps portfolio We for

the starting new things starting and had are look things the we a if should get in some Spine quarter macroeconomic America. and launch positive the business standpoint, industry to And and we procedures overall through year. in business over do business from at seeing and in last But U.S. been Spine the quarters the business is the America I to of regional as our to next there Latin Spine. Asian impact general, a more But business. work have that We couple some North those into in have a you go think down and momentum on you start good clearly in

Matt. So, thank you,

Joseph Wolk

please, question next Rob? Great,

Operator

Wells Your next with coming will question be from Fargo. Biegelsen Larry

Larry Biegelsen

taking for question. one you Thank for morning. the for One Good Jorge, Dominic.

exploring Pfizer its deal for has any consumer that implication for reshaping if everyone alternatives the obviously, you current have deals What’s your in Consumer? recent been Consumer, I J&J large Consumer years? in is its do Health Dominic. on So, continue I prefer one strategic have the seen news and Are smaller you said, franchise consumer to business. As portfolio a for your in in Do interested follow-up to category?

Jorge Mesquita

establish acquisitions in our asset. thank a you So, value whether use good Well, know, always as that’s we is evaluating you systemic have criteria your primarily and approach creation interest the we focus an that and particular and to potential disciplined morning for overriding question. on and to or very we a have not

focus Johnson them, for the scale regardless of So, evaluate always but value systemically And of Dominic? is as create asset. we Johnson assets & can our become we available, the

Larry Biegelsen

you and QX about the am know the it? an for growth in ask top-line normal XXXX. the puts Yes, you be until not on are but versus And if should anything see to curious incremental probably I you so. about expect or taking call. I out how about should questions. Thanks to on that that to Actelion takes your wanted the EPS thinking I operational more and would But, XXXX, EPS accretion guidance I the that giving we or about, call will am XXXX. of X% some X% incremental curious It’s we reinvest of top $X.XX for

Dominic Caruso

$X.XX $X.XX full described to of accretion the look a Actelion Hi, I year share. previously first think, be we’ve Larry, to for

that said is accretion share. a about this have We $X.XX year’s be going to

that that’s mean, EPS right, I $X.XX So, acquisition. accretion additional get you potential are place a to just of you from under

in terms in the have products new to As we now own product are of they and their do, behind best of want is plans we momentum of to all always determining new place have in right to businesses and evaluating we the what launches. invest. our terms invest launches continue where What

you give from we’ve suffice But how we and versus through to be will an to grow compete much grow at early sales categories say, a than too faster as earnings aim you invested. rate generally, the of aimed of faster it’s accretion know, to how our it So our sales. expectation our we we Actelion will in grow much fall sales, to than

that will in as to picture you and that our set January. give we we So continue a talk of clear when do XXXX will we for we plans

Joseph Wolk

Larry. Rob? you, next question, the And Thank

Operator

Jefferies. question next Your from Holford with Jeff comes

Jeff Holford

much. thanks taking Hi, me very for

unless just U.S. give on Just information more I so guess, about the your you us bit hopefully, can a color little you in you if talk DARZALEX. better wonder have what market of share very you get in to in the lines? kind are those duration you and lines to of you are of therapy going in Thanks think much. that just therapies

Joaquin Duato

Thank you.

U.S. already is plus grow. I of line, shortage, as in our in So, continue to as in third and of north depending as XX% north in commented, DARZALEX, line share on second far market the it the generally XX% and

combination particularly seeing with the one trends line in we the are after and market we presented one are the to end as that the first-line planning we prior finished positive, and line I the before in also in approval commented and study file prior in are we data earlier, – the Our year. the BMP already of very in

positive So, is that on side. all

developing also X formulation our a are working you subcue as with we phase guys Importantly, in going year. start subcue we know, study are formulation and the this to

multiple customers. from myeloma getting that we in the becoming are DARZALEX a that the So, of feedback backbone we that’s treatment increasingly see and therapy

Jeff Holford

how delivered And mean, Dominic, be couple I then can if accretion I times just think just about from I talked of pretty deal Actelion. quick quickly. one can on this follow-up

through really this to? you to in you that there $X.XX you you. Just on any give will drop think that and wondering, XXXX for XXXX, from previously upside accretion do of the Thank kind $X.XX is the of potential update talked will some whether to level us

Dominic Caruso

obviously January, our we’ll the Actelion when Yes, growth. all Jeff, point and of actually talk acquisitions impacts of we in on out

about and of acquisitions organic see estimate give the major you able an the to any make. the growth we to impact our we’ll to earnings has of bottom-line, impact and investments on overall therefore also So plan we’ll and picture you talk it will be

Joseph Wolk

you, Thank Jeff.

Next question please, Rob?

Operator

with comes next Morgan Your David question from Stanley. Lewis

David Lewis

morning. Good

of questions. maybe just, you, with couple Maybe Jorge, couple a a for Joaquin. starting Just

Just, strategic the really Jorge, strategically these questions just sort in making of do some impact on saw first are are impact the pressures focus year business, you earlier the broader you consumer about, to versus that prior you strategic based in just flowed you Millennials for just positioned about of on strategically how company, of when change investors is the now last that very the impressive improvements investments some brands. think Other J&J? the has a of you’ve the and you There some near than there this got joined well the you franchise of the since lot consumer Amazon to for in talked the have do continuing it term. business or on of plans, macro is

Joaquin Duato

a us change very a of But is it’s of question, in are run Thanks the field. a one digital here very competing in established good we the years share I the sustained fundamental this is is right a growth. one. and number the much what of industry that very see small seeing that competitive am are for large landscape I we’ve our strong continue of a with in CPG for no it, broader rise market that to and lot strategies which and the with mean, the fate doubt a now is companies by confident technologies there there had absolutely of Dave shift companies enabled for the

are we have some the we have on just focus the We adjustments accelerated to doing channel growth to In those online strategies. in of operational that. of terms make particular, drive and

rates this e-commerce We with online estimate we are the point, our twice channel of at at broader capabilities. the growing,

and in fundamentals leadership, our in share in our We are we that heavily drive offline to in capabilities sales online, very systems, so investing match for general share. of e-commerce

broad some we much our had driven So, that’s and overall, in and strategic very adjustments we positioned. have are for focus last are very but remains years the we there the results making, we place are feel that few well

David Lewis

Okay, very me helpful pharma. from Joaquin questions and on just two then

that safety Day at this for is about ZYTIGA’s a we going you future And this programs talacotuzumab, the question the talacotuzumab? how opportunity. little issue, of strength is, Analyst First year with the have and Can detail more the much growth to quarter, efficacy the do just so Thanks you multi-billion part that going talked me and should with second much. dollar does patient issue franchise just us forward? resolving path disconnects assistance potential give what’s forward this how think about

Joaquin Duato

driven Thank of the U.S. and gains. in for strength the you. you market by been Thank growth mainly in share combination and the question – ZYTIGA it’s

that’s So these reason the U.S. ZYTIGA in we the strength had have

David Lewis

yet. incremental that so it still significant what independent QX, about a when see sequential comparator lift quarter compare these quarter. Joaquin, just you four Again, to to in to anniversaried is Patient but an headwind quarter? predict you Would – growth was year’s the still last in a Assistance hard organizations, hasn’t expect that Foundation to five point are the this may QX. we it’s the actually from fourth happen, didn’t from but So the

Joaquin Duato

of received increasing has survival with third-party results overall including the of price in significant patients share and progression new metastatic ZYTIGA. in we is recently growing get is source free the been to the patients is radioactive effect to presentation continue What latitude very the by - and continues well the hormone was of where So and strength and overall data gain very the naïve. by market for a which negative customers of the the that’s ZYTIGA that be foundations the also survival but

So in other and the recently. Europe we the a in this this some is indication in this CHMP in and received indication U.S. we medicine positive fact tested and time opinion a Europe is that the first filing are for in

across So ZYTIGA that the driver market growth is combined penetration higher port. major share with the gains of is

that now pursue on based the mean, we recommendation benefit in Regarding see ratio using based of as IDMC data in AML other to on and we the Joe evaluating future. may safety those we revenues are discontinued the talacotuzumab commented, which I indications risk talacotuzumab, and

So still it on with we premature doing talacotuzumab. what to else be is comment would

Joseph Wolk

David. you, Thank

please, question Rob? Next

Operator

of comes Hopkins question with next America Bob Merrill Your Bank from Lynch.

Bob Hopkins

thanks Hi, the questions. for taking

clarifying one Sandy. one for and Just question then question

clarify, in First the U.S. the to just the more points. growth XX is basis on tech that hospital areas impact Is global was pronounced certain there of hurricanes or device others? wasn’t it medical and med on versus

Dominic Caruso

zip preliminary I line the would But not phenomena a obviously storm. at codes with would indirect to disruption. to that say, might the anything Bob, were hit way been a looked that it’s best particular – have to was metropolitan is what because and mostly supply analysis. some do U.S. areas to classify surgery it We see related of be it days very

Bob Hopkins

impact So, hospital but tech the XX point worldwide basis growth? the was on med

Dominic Caruso

Correct.

Bob Hopkins

that med for pricing India, in hospital in outlook on pricing been like could okay. are a harder we’ve the it’s because feels of governments just the and tech, then, tech impacts And for forward. be U.S., picture question Not taking med around Sandy, China something noticing whether or or countries it line bigger it just growth Australia these that sort going

growth get tech to So States? outlook look a for just outside this big curious on hospital your you business the med is as concern at you United how views of the

Sandy Peterson

So, for the question. thanks

to we of time, about not that’s happens line the these finding, also with and guess of concerned is them to it these that find these I of not ways I to over product it’s go provide concerned of and because markets, alone unusual deal us terribly about it’s what able think thing But questions that systems physical with we work are beyond incremental episodic it’s to sense have some some be pricing. Our but been is, value ways to in able an a about actually we and it many are hospital and the governments to punch for it.

an an price marketplaces the impact regard a the product of to have integrated clearly them talking we’ve have I seen in which that in sort of cases that’s conversations them and more it’s one-time India, purely extreme strategy and as more in much broader the physical example we impact with of to beyond up Now, lot some marketplace business think we why changed number different about on other has business what were obviously, part forward. a in opportunity and to our show on knees moderated the situation have things a this really going of

address how that’s so we when it arises question to in are this And markets. believe going OUS

Joseph Wolk

just pick benefit on that point to the the on maybe Hey, Bob, call. of up those for

to If it you we negative it and or in price entire contribution the about look about decline positive in actually about was at price enterprise to enterprise. some the our negative was for consumer, down Pharmaceutical X% price price the it that a was slightly translates in X% and results, where sector saw impact medical and actually devices erosion X% slight

So improvements. of it related from types volume, question next it really share Rob please? pharma strength came speaks to that the of market

Operator

Capital from comes Markets. with Your RBC next question Glenn Novarro

Glenn Novarro

guys. morning good Thanks Hi, the for taking question.

selling you years for portfolio its been are looking know Sandy. at for cardio. several question strategically diabetes. reshaping Another device selling I J&J now has diagnostic,

you be that areas utilization follow-up other areas said see And you helped you've Thanks. time, are through only know So there there and hoping as that U.S.? that I what in recently. portfolio So there be the the may then a at on but you then, when then the been you was as I I short analyze you update ANIMAS portfolio, most beyond at give have us a you and an And look question that are portfolio, look long on M&A? divested? may the

Sandy Peterson

So, thanks, Glenn.

important So, acquisitions, that doing is, – terms platforms to strategic have our actions taken investing the R&D. But this most all significant you the we’ve I start believe the with I’ll growth in in both we thing the have taken actions invest we and seen think partnerships of of portfolio. been regarding and we’ve in have

significant we’ve you made in growing. as our So only stroke huge need bet you a our look know, at a unmet it’s if is where – business neurovascular and

due well we get And of XX some so a months. last as couple the internally to as business in a we things now acquisitions have

the So, have you way EP the time that build built see should us we business over that business.

Obviously, small last tuck-in we all the been important driver investing you’ll been The as acquisitions it’s to So, portfolio for an vision core technology as making businesses, innovation in a us orthopedics growth plus investments in have most obvious we in acquisitions, year company. as broaden and significant our see have our is of continue making to in that. in one vision us drive the care. well

three vision to acquisitions did we the our breadth depth this portfolio. and broaden So year of

this in whether orthopedics, it’s what So of I it’s vision where think a call you combination it’s think now do should in Whether in care the we business. we whether as core growth interventional. or about surgery, see in

we continuing us to choices when You of investments should over we other portfolio, make you expect and those those time, to see our about choices. make parts make as we’ll know let

Glenn Novarro

anti announcement than on Okay. correct? diabetes update Anything mos, is on other that no on - the

Sandy Peterson

Right.

Joseph Wolk

on was utilization? question The

Glenn Novarro

I your it surgery was be positive at a quarter, we the looks business, first the and half. step-down U.S. slightly Joe. negative than orthopedic like yes, growth in lighter third it look business, growth If look there expected Yes, I U.S. in at coming your versus better

deductible So, utilization? I there to some there Is any So, either from impact plans in of any was why purchased? in saw wondering in with business the or Thank Is third the are utilization you with sign-ups if color to commentary we high quarter? provide you occurring can your as ACA? because what you. on respect seeing weakness impact U.S. being fewer

Joseph Wolk

machines again XXX basis Surgical about with looks are What third is, X%. our maybe X.X% to par sequentially much for from Glenn. procedures preliminary but points. flat seeing lens the the procedures being quarter basis hospital on about lab is Thanks be and to pretty down the down XX for up this points in we and questions, are line very then remaining

Rob? please, question Next

Operator

Your next comes with question Geoff from Barclays. Meacham

Geoff Meacham

morning for Good Thanks guys. the question.

want perspective a the field. like have few it INVOKANA, weak. pharma. performance get I was a the to ones looks for little On your from quick quarter Just

road few since Janus the been sequential presentation what to profile be the a of generic. I get ADA. How perspective And drop months apalutamide, want just cost of J&J benefit, competing, kind And to the stacks on have down would like that forward? it’s the the on much that the Obviously, you Now going it’s a attribute pricing? against ZYTIGA. then looks you’ll

a that’s on different then of prostate. maybe And bigger sort So obviously that. a sales cycle picture on

You guys extended. have pre-metastatic data good has and had

broader Just point get Thanks on your urologist for perspective tipping really guys. want the to adoption.

Joaquin Duato

in Thank leader you, the INVOKANA. start to me continues be with and INVOKANA let first ALDX in category. the prescriptions

show So mainly and the decline, and included a to it label. in quarter, category. price a we the it’s we in still box mainly, comes since saw also impact leader the decline fair our warning we the When SATX was this black by driven

it a some and of price to black warning. the share was combination due mainly box declines So

As we with see forward, INVOKANA. we opportunities move

The for order be is the nephropathy with XXXX first progress important one file one patients our in kidney in and CREDENCE into campus to their and on progresses. the function evaluate data how continue second just with diabetic study us going we moving we to our that’s to indication based main

of INVOKANA So two us confident moving those the future into are that elements of XXXX. make

excited super what to commented indicating for your you prostate mean, metastases. we I in to I that to a it’s indication and in are this great are it’s the this have these question compared think first is patients been of ZYTIGA, be of apalutamide with combination To file apalutamide. are aware are able cancer recently no leadership have ZYTIGA we that being metastatic agents analyzing you time as apalutamide, prostate been cancer we our continue to going that in ZYTIGA. of able that Regarding

able are to superiority. that So, if that transformational demonstrate be would we

our alliances prostate in market eventually we file that now XXXX moving with this how you studying that’s as and see to in indication the forward the are aware of PARP that we we are So agents. have in anti-androgen will combine we with cancer also inhibitor we area that of plan androgen

non-metastatic indications So apalutamide, in eventually and we’ll metastatic to of line from the the prostate ZYTIGA products Niraparib. have full the a area combining of cancer

very we how those have file in our and gains is complete apalutamide this you and that. about feel share are we the the speed which competitive also to and in our quarter feel offering being patients the that able very we to seen confident trials demonstrated about by is, options So confident that about for bringing being

Joseph Wolk

Geoff. question, for the Thanks question next Rob, Great. please?

Operator

is next from question Jami Goldman with The Rubin Sachs.

Jami Rubin

quarter. we had those down losing And Joaquin, how think to SGLTX about price negative the continues you of question you amputation anticipate spectacular forward? step of How thorn warning? is a this franchise should now could forward? you this follow-up think What we on a going more it’s of this down growth the sort to or be and of Would this a class? Dominic, Jardiance then the INVOKANA. have INVOKANA such share? you of price, some seeing you. follow-up maybe drugs about was a you rebalancing franchise about a the thanks. cloud pay a share or I to see you – Thank going because And rebasing and related expect just would that for with Are the are one should XX% couple to talked questions SGLTX territory start to

Joaquin Duato

we question, that driver SGLTX are of a patients. introduced losing the remain are share to step losing leader has label. We but first warning Certainly, even in this agents your you share, particularly the the in quarter. new our bigger since the seen the category, been yes, we other in decline price to we So, box the have

X forward Our risk data and utilizing in evaluating study we are diabetic the overall also their belief conducting, on in that in and reduction MACE that with the renal positive have moving we submitted nephropathy patients in the in INVOKANA the is function. CREDENCE based INVOKANA very that see we

we important for us INVOKANA SGLTX benefits bringing we overall, into see and and INVOKANA important as brand So, category see moving the continue XXXX. to an

Jami Rubin

Okay, And P&L thank just a couple questions. Dominic, you.

benefit. point currency had to swung X now percentage an that’s you so plus that from think three, has I five said minus

was that going million, become income just depending this going fluctuates back asset is sort $XXX and $X.X line, a range on increases, because line should of not billion, that the related now give you was million but it we XXXX, much analyze, guidance it’s that, obviously FX. model, forward, So my in picture how billion. most the a when bottom-line think most in the it’s are $X.X view of mean, secondly, should all us hard $X we assume majority so the to And billion. us I a this line to and it big Can on was you other of sales. terms that’s is but year about to very earnings? driver I or us of a more to because a for line know give the kind $XXX going There top-line item on in then guidance – it’s Thanks. in net

Dominic Caruso

Yes. Jami. Hi,

due So on top are the that first outlook bottom-line. of you to different question, all, on partly increase on is correct of guidance and course the FX FX in our both a

this in overall our the in it. a mean, include other in expectation hands, or will our made the our other we are about manage portfolio which So I that’s once for is good With respect decisions over we else’s that forecast. last and doing to difficult those as we whether been the a is that that, asset doing several better And consistently actively way years. we an I fact is determination the better income, think anyone intend in have think to for talked to someone line about here assessment. to do make we’ve hands year income on our accurate guidance

much very from would with So, sales we give that’s pretty are year see you the of we unless the the be beginning. occur – the beginning can and our with and you in this can overall we to our think that year asset therefore line we and expectation gave from why expectation that we of expectation part respect the you

don’t expect to work evaluating diminish. The our this executing to that are we going is, those. in We on think way the portfolio about is

to We going to that. continue are do

when at hands are a same it’s margin decreases increase, you sure a please your COGS SG&A model assets at We we R&D, either could made you portfolio is the income you that look which and that margin point do line which going goes our and it and at to operating the take after or in also better time other pretax the in someone I else’s see in look and to that earlier when hands and are make decision. that this, that see

that at So we are SG&A increasing cetera, these same our are R&D, we gains. investment in recognizing time et the

XXXX guidance. they So, drivers asset year are not the that item expect allows would But our as this up I quarter, drop would and investment that expect of last to sales that they this a and really XXXX investments of in really take I earnings, group I earlier, in as of keep to off complete our said well. are high when we we portfolio this so going levels not at in drivers therefore said that line earlier significantly and into talked us look

Joseph Wolk

for Rob, next please? question question, Thanks the Jami.

Operator

Cowen question The Jennings from is Company. with coming & Josh next

Josh Jennings

questions had good you. Joaquin. two and I morning Hi, just quick thank for

input XXXX is with with and contracting innovative just one REMICADE been get a effective, this have wins into been defense in within plan changes just wanted terms second on mark XXXX, to model anything you’ve successful as readiness in your on installed contracting biosimilar REMICADE biosimilar your the but strategy First, continuing highly secure the if of I follow-up. in to

Joaquin Duato

indications. are FDA. medicines interchangeable in million medicine the REMICADE experienced not as important based to understand and And than is is factor and the There recognize debate. the which sometimes, designated second is other study is. on for here treated you the dynamics REMICADE question XX successful lost this have is REMICADE a These as that by that as market high biologics are patients mean, in a in to the for trust interchangeable no and on key the confidence thing is So, these thank important I and overall. fact factor and REMICADE has being medicines physicians the patients immunology and the X more the not is element

the not not not generics They same. biosimilars are but So words, are they like other same. are and in they the

any gastroenterology the the in one data normal, are particularly stable that So, for. that used, marketplace having in said have medicines. REMICADE many to we in most not I what other into that, to patients of indications very switch physicians frequent that show because is REMICADE the biosimilars seeing reluctant mean, are do for these in the And is

So, data patient the on REMICADE the of the and REMICADE of is of most supports in important physician the experience using factor the lack that body success the and interchangeability.

on compete at that. continue and to course the has price to based when reductions drive price a we look the the year-over-year And matter Now, REMICADE in decreased net continue vigorously for we as system overall of of price. fact, of you

during aware experience therapeutic that of the So, work have been to that which body when the we move are continue have use data have to they are sure options. same the into continue XXXX, the in we option of going to years sure along they to physicians able and the to they of and have REMICADE lines these making making that had last

So option are in from REMICADE remain stable the really the can making of prescribe REMICADE sure that to making that benefit and base plan have that REMICADE. XXXX physicians can patients that that’s sure our

Josh Jennings

again. Thanks

post-data, XARELTO to capitalization any the but thoughts a Thanks peripheral disease on quick It’s opportunities? a the Just how trial. early still artery preliminary on coronary one in on COMPASS lot. days maximize

Joaquin Duato

very to pleased as I population, the and we and has for gain and the dose. with highest nothing COMPASS terrific as are be mean, the results you has coronary XARELTO vascular peripheral COMPASS do a this results is the disease question. you quarter. COMPASS with gains one the in share share four the had will years different a well used said, during Thank different last that, arterial I in because XARELTO know, It’s

driven So XARELTO all in is and seeing you VTE our existing today particularly indications prophylaxis. by atrial fibrillation and treatment

filing the data moving COMPASS So, into this for I year XXXX, commented. we are as

can heart our are drive XXXX. medically to syndrome, growth in program failure, competitive of the to one opportunities is indications extremely and seeking studies the total XXXX that’s that study after It’s coronary This drivers. profile one significant patients in the of excluded COMPASS to congestive data of acute treated that see XARELTO we COMPASS. that trial is is we the and to only a on patients So the of that in – the going of X multiple and in the be XARELTO be X contains based be the going million that continue ill would population believe included

Joseph Wolk

one got questions, question? Thanks like we’ve it looks for Josh. the Rob, time for more

Operator

line Partners. the next question of your Yes, Tony Butler comes from with Guggenheim

Tony Butler

XXXXs, the out has but backed J&J tremendous Sinacore back you’ve the The Yes, recently that for thanks acquisition of of section very immunology much. grower to even been the since one things RA. done that is sirukumab or in a in you’ve date you

And that So products for sirukumab outside third, a And you fill how opportunity that I very that’s have for market in two to number so I may you can has you been you and with a you much. curious large how received Thanks IMBRUVICA RA have anything back portfolio? GVHD, if payers? if am the would for large? there immunology, market on Joaquin of today, is say on the in the into comment within

Joaquin Duato

talacotuzumab, say, that Okay, above and so, of our the several TREMFYA, me to elements our of and those than sirukumab the of with like for it but important drive our through we remains or let’s growth on based remind market had were of existing before more XXXX outlook have surely Esketamine. we progress continue apalutamide, setbacks comes – to discussion it’s to when brands that the key growth pipeline

this category. assets to theme an to we When that's the immunology, remind. important comes with So it company for me in are more

We and behind SIMPONI, value are, additional physicians there request for has other The REMICADE, by an as we of stand it’s thing that STELARA us priorities. thought been we that IL-XX. introduction significantly disappointed complete competition with to sirukumab is having and were on have TREMFYA. mean, anti IL-X, very received the we sirukumab We four focus sirukumab? well approved because and Are have the I the patients. and it the data other letter assets, TREMFYA, with exists we anti on the response delayed best by would based

We’d will XXXX fact, to physicians very of a What prescribe TRMFYA market will into already we that when XXX the moving be that we XXXX. As will it. patients commented, and IL-XX. psoriasis I in have part that use that and to able to the in the it matter of this feel negotiating appropriate a in as XXXX payers? share TREMFYA be and feel anti have leading is in competitive this therapies new want and Look, confident the physicians to access the it’s want consider as speak brand this able to be about formula category new we you we when we use come for access is year TREMFYA, that good patients use prescribing

immunology, of as to growth to strength on that overall, even are positive with that STELARA even strength we REMICADE, going So based the TREMFYA we in of moving we are immunology and forward. going the discuss, we see to the in on post erosion considering continue have

Joseph Wolk

Great.

those continued we call for to in & the for call. So back everyone to Johnson of questions closing interest questions that remarks. concludes able turn weren’t the and Johnson and today’s Dominic now brief to apologies today. address some Thanks the I’ll Q&A portion for

Dominic Caruso

a terrific Well, Jorge who And to as very opportunity doing I earlier, continue have who also job glad to and are had in directly you noted we And strong our performance talented I to leading are pleased our strong very, the world hear we the thanks, innovative therefore quarter strong performance. with leaders, owe Joe. to Sandy, business businesses and third am Joaquin our from and very, very bring very our consumers. and around patients colleagues delivering results. strong the We thanks solutions our

you on day. forward great in thank time for full to a our January. year results you Have today. I your look So, updating

Johnson & Johnson (JNJ) 17 Oct 172017 Q3 Earnings call transcript