JNJ - Earnings call transcript Q4 2019

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Operator

Good morning. Welcome to Johnson & Johnson's Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions].

I would now like to turn the conference call over to Johnson & Johnson.

You may begin.

Christopher DelOrefice

morning. Good DelOrefice, Investor Chris & for President Johnson. Vice is Relations of Johnson This company's results of quarter to review Welcome our business year XXXX. and of for full fourth the

the are Joining today's Wolk, Executive Financial Executive Alex Board Chief Joe of President, Gorsky, Officer; me and Directors call Chairman Officer. on Vice Chief and of

where today's certain such made encourage you statements section factors logistics accessible investor.jnj.com, the company's that through webcast, before the that can of A Form website via to Johnson well you get to regarding few today's statements. Johnson in details. This company's statement as may additional today's materially Investor presentation cause cautionary includes Relations projected. find available into presentation we review results from the those included as & schedules. is materials, being and actual presentation also the forward-looking identifies review differ which Please at We the including note this XX-K, associated

our being including to the companies. and the are those utilized with This discussed the discussion today's filings, products with Several our for other investor.jnj.com. partners non-GAAP comparable from collaboration are financial and SEC GAAP of licensed at along XX-Q, XXXX today also most measures reconciliations Our developed of recent in measures relationships. most XX-K available strategic compounds Form or acknowledges slide

review for questions. XX up for our will quarter our webcast X will capital and providing business We sales on allocation Joe will fourth for time and P&L anticipate cash the the some agenda. Alex segments. year. to business the and highlights your I our will the available corporation results remaining The for by Moving position, and will to conclude then be XXXX. minutes. today's guidance insights overall about the perspective results provide last deployment,

regions of increase sales XXXX, translational of versus Worldwide X.X sales U.S., points. X%, which excludes In the reported our quarter quarter the of results growth In effect Operational XXXX. was reported with Operational U.S. $XX.X currency negative our the growth, U.S., X.X% had growth increased points. impact X.X as an sales the billion currency by was for of outside outside of the X.X%. fourth a fourth currency negatively increased impacting X.X% were OUS sales the X.X%.

impact sales Excluding U.S., the and the worldwide, was and in U.S. net adjusted X.X% the outside acquisitions of divestitures, operational X.X% growth X.X%

compared having of For year full In X.X% increased year consolidated X.X%. sales $XX.X growth U.S. U.S., X.X increase X.X%, impact in OUS X.X%. outside the of results the was our reported Operationally, by regions the growth sales points. were sales XXXX, a Sales negatively impacting to negative U.S. billion, points. full our currency was reported currency outside with year by X.X with the X.X%, an Operational XXXX. full growth the of grew

Excluding the outside X.X% of worldwide, and in adjusted the impact X.X% growth divestitures, X.X% and U.S. net acquisitions was the operational U.S., sales

Turning now earnings. to

$X.XX per For $X earnings $X.XX a share ago. diluted the billion year diluted of versus net were and per was share earnings earnings quarter,

billion items of were earnings X.X%, and of diluted diluted special net compared periods, for operational expense quarter both per earnings the respectively, intangible after-tax Excluding and X%. fourth to for decreases adjusted On X.X% share and share asset per the $X representing $X.XX, amortization quarter basis, an adjusted was earnings adjusted XXXX. declined

grew earnings X.X% $X.XX, diluted XXXX share adjusted per and per $X.XX. versus operational adjusted year, $XX.X X.X%. billion and was adjusted XXXX $XX.X respectively, XXXX. per was earnings X.X%, full up earnings net share full basis, diluted an billion earnings were the year and net earnings Regarding were diluted share On

stated, impact in segment and exclude quarter currency now quarter, upon highlighting percentages Unless the slides fourth items the that you quoted XXXX comment will sales have otherwise represent Consumer, sales fourth with therefore the the change performance in to of build comparison of the Beginning on of translation. I business for operational you. front

on While for website models. full in of have not by the to XXXX year part the sales you segment prepared commentary provided today's assist call, for our updating remarks we your additional

Consumer Worldwide $X.X X.X%. totaled sales segment billion, growing

U.S., around the globally of multiple sales products, our and outside grew performance and adjusted acquisitions adjusted primarily XX% Excluding net with X.X%, growing X.X%. on OTC rapid-release as almost medicines gels, the and growth of was operational is PEPCID, franchise. growth such Over-the-counter Adult an due share basis. to was U.S. of X% strong Zarbee's. Growth in U.S. divestitures, and driven in by operationally, the In growth the impact in was X.X% OTC Tylenol

incremental However, growth to was points of due promotion trade distribution stocking basis programs. aided U.S. by and XXX about

body by grew NEUTROGENA delivered strong performance anti-aging just and exclude lapping X% prior in U.S. of cleansing X% Beauty to under XXXX as Pacific U.S., and acquisition X.X% the category EMEA driven outside moisture product largely franchise as builds Labo growth of pipeline divestiture. when the market by The of or in hand the Asia offset new Ci of trade impact and the NEUTROGENA. the in In were innovation well and investment growth year the region. share adjusted Dr. strength with higher RoC globally and

pressures notably was segment, adjusted or continued of primarily most Consumer Care exclude decline United when globally activities, to well negative year comparisons BabyCenter impact in X% divestiture. the This the to the Baby to States. relaunch as prior competitive due as Concluding the X.X% declined

Generic and above seventh $XX.X our in on double-digit XXX Sales worldwide almost growth Pharmaceutical U.S. grew by consecutive The of for Pharmaceutical in products. and $XX the revenue. grew U.S. outside competition and ZYTIGA growth by negatively X.X%, X% U.S. Worldwide to X%. Moving billion points, basis delivered X key by about about sales our respectively. impacted increased enabled quarter segment. the billion XXX segment in its

products portfolio headwinds. and generic us above-market enabled significant deliver strong capabilities biosimilar growth has at Our of commercial and to despite levels global

The growth XX%, myeloma almost growth over transplant-ineligible population. driven by with frontline medication worldwide therapy, of about performance, with quarter XX%. U.S. DARZALEX strong XX% grew strong its strong lines another delivered of across for multiple portfolio oncology new the continued Our all the globally. growing

outside outside about The partially and by line data, indication continued almost penetration share declines therapy. in quarter over of due third the X XX% In with strong U.S. the declined IMBRUVICA on U.S., was competition, of U.S. XX% U.S. in lymphocytic market XX% U.S., growth of the and XX%, share primarily by based to uptake points the leukemia IMBRUVICA continued growth driven globally, chronic by grew strong offset above ZYTIGA market is with gained X in increased share Worldwide by the gains which outside growth U.S. CLL market driven gains. largely in the strong growth, generic along strong almost the

progress United which of in generated to be global States. in QX $XXX $XXX for million primarily million continue the of pleased sales We year, launch the the and ERLEADA, with full

market approved We in quarter gaining with first Sales non-metastatic prostate castration-resistant for indication U.S. metastatic X continue cancer, reflects U.S. share grow castration-sensitive the for the quarter. this to over in prostate full patients the points in the cancer.

EMEA with XX We pleased countries. are in in also launch available ERLEADA is now where the progress

of due was SIMPONI growth of performance the discounts we delivered of by XX% X%, U.S., growth area where approval the and October, increased global therapeutic treatment driven and sales Sales partially share ARIA immunology growth for and STELARA points fourth STELARA strong biosimilars. which X X.X% of shares sales of Our of psoriasis of to ulcerative from REMICADE of by STELARA driven XX% is XX% offset increased modest market in about active loss ARIA severely FDA quarter just U.S. over double-digit driven the fourth disease of and the grew continued points of by adults colitis. an market primarily TREMFYA. X.X%, share of by in delivered up indication, Crohn's growth received in XXXX. moderately strong to was U.S. of about U.S. to and the the market in the growth share U.S. the alternative gains action versus In quarter with SIMPONI by almost the mechanisms over XXXX. TREMFYA achieved X erosion

growing higher In share with XX%, performed starts persistency. long-acting driven strong market by neuroscience, paliperidone and new increased our well, patient portfolio

Patient remains unmet we addition, launch demand to to the and In high. of need SPRAVATO. the continues continue very progress build,

to continue Further, we patients SPRAVATO adults pleased that treatment-resistant with treated are to in depressive date. Europe report X,XXX with major over to each December, starts being disorder. increase patient New month for was steadily approved in

cardiovascular, to In XX% increases for and along the X.X%, to primarily INVOKANA HIV, by for for metabolism our portfolio, driven strong flat doughnut led an our portfolio by the by XARELTO other with partially and offset X.X%, sales PROCRIT. experience increased generic Juluca competition infectious and utilization. in offset biosimilar volume declining diseases, was rate declines higher SYMTUZA with legislative hole product rebates grew did other of hole we primarily doughnut from growth In products. due and cannibalization competition in in increase by Medicare and XX%, of

In declined impact. the this with total change when This basis portfolio, a impacted pulmonary efficiencies growth change a sales to our result growth of by about hypertension in of distribution for U.S. capabilities. as model leveraging X.X% XXX by negatively distributor our adjusting onetime sales realize X% sales points,

OPSUMIT respectively. We result growth sales also sales by model were TRACLEER a declining distributor share Portfolio strong onetime XX% was as when and UPTRAVI. their for continued growth see for impact, generic XX%, and the continue about And worldwide competition. of to impacted adjusting in

segment. Devices X.X%. Devices Medical Worldwide the growing to billion, attention your sales Medical turn now $X.X I'll were

remainder QX, in about The through Excluding this sales to down items quarter change, related the XXXX. the growth by consumption X.X% of to impacted primarily impact which business. net ASP, divestiture majority of the expected basis in in QX occur worldwide. adjusted bleed our of the forward sold of primarily growth operational negatively impacted with has divestitures, in of was QX and points, buying the ahead Onetime tax in the a Japan largely acquisitions XX Vision

the underlying pleased year-on-year that Medical basis basis, has with second sales XXX X% growth. worldwide Additionally, a growth delivering on by Devices of points, we accelerated to XXXX are half report

globally, electrophysiology strength double-digit contributing all Interventional catheters, trend about driven and consecutive atrial over continuing led for growth fibrillation regions, market business, in our our year. advanced strong the Growth was achieving to growth worldwide XXth in for in ablation XX% of Solutions and the XX% year, product continued by XX% offerings its grew newer growth. procedural almost by

strong by double-digit ischemic of innovation, stroke. driven including its market Additionally, of EmboTrap business the growth sixth quarter our straight treatment for product delivered new and growth, CERENOVUS

of growth by Japan consumption Japan of OASYS Vision contact X% for bleed daily family. grew mentioned was I tax Growth the X.X% grew negative adjusting when the of lenses, forward X% the buy led buy, forward or the by earlier. double-digit primarily in driven or adjusted the X.X% consumption globally for disposables tax impact which

consecutive continued fourth year X%, year, line saw contact was the grown due cataract in to IOLs, due in grew For above strong Asia OUS performance which refractive with lens surgical weak lens be the has U.S. the that to market or In in in the to offset by contact above-market market. This expect the vision, market, overall at performance business growth pressures we growth lower almost we representing competitive surgery. and primarily Pacific. in

We commercial year, this and adjusted the momentum each strategies of continue On our the to XXX to of progress This positive basis, delivering versus by execution performance. Orthopaedics, major improve innovation platform growth growth annual continued and for quarter improved for prior in an franchise accelerated basis see aimed points. reflects X.X%. the

as System Hips driven the system. of by position performance Automated the stem, the Anterior at growth launched ATTUNE demand grew growth X.X% leadership primary strong X.X% X.X%, innovations of S+ Approach; ACTIS; of such our Cementless the ATTUNE as driven QX. Point continued in navigation such platform, led Knees was strong Revision, Asia Joint enabling rotating in new and KINCISE by and OUS end Surgical by technologies ATTUNE Pacific. the of was which quarter, and our

United Additionally, quarter. to this States returned growth the

by supported to was QX of true-up, U.S. onetime driven XXX favorable growth, by such strong not negatively Neck adoption global being Trauma impacted points. growth pricing-related newer a the innovations declined with driver, Femoral X.X% globally basis X.X%, partially repeating as of market which growth our System. due the XXXX Spine primary by

performance for full line the impact, this year. was the with Excluding quarter in

lost newly newer we products and continue are in While system of SYMPHONY posterior share uptake we our the to surgical spine see for procedures. pleased quarter, use with positive the launched of start cervical in strong

decline Orthopaedics. price all continued for categories was adjusting true-up. after Price about U.S. in price in and both with compared negative of pressure impact knees and Spine pricing-related consistent year's X% improved Trauma last QX Pricing the X%. flat, pure in to at respectively. QX to declined X% hips

of of growth by surgery market gains delivered and biosurgery global Moving X% to about led business. growth the by Pacific led results Advanced for growth. all regions, over with Surgery X%, in the share Asia growth

United was up Asia gains tempered driven and in partially the OUS the the in with in in continued approximately offset back Pacific by endocutters by X%, United to X% ramp growth Energy new growth the grew pressure respectively, as SURGIFLO and quarter However, States. share products and region, States. competitive

Wound strong sutures. China continued closure in as share market by grew over growth X%, as driven in well conventional and barbed gains

days fourth selling in growth points, days the offset XX selling an QX. our being growth In Medical Devices global rates expected, had over As impact XXXX, impact immaterial in will majority basis quarter. negatively QX by with the on

the the now our earnings provide attention schedule. some would I the Please your section for on year. direct to of commentary bottom the boxed at

special and we You items. exclude earnings have to expense amortization will provided our see adjusted intangible

exceeding driven growth of October, and high of surgery in operational did end Consistent adjusted operational X.X%, XX margins our our Medical from a Devices. with morning, basis in investment both slight reported strong see of pretax our by this of EPS EPS adjusted range by X.X% performance. operating As we in adjusted reported growth points, digital guidance, driven reported decline of guidance and $X.XX the reflects our

Moving to slide. the next

XXXX. before adjusted full versus basis XXX for income improved enterprise XXXX tax the Our year points

the to of Consumer to to divestiture gains basis impact at currency. segment. in XXXX, of XX%, margins Looking the than basis reductions, higher primarily the spending higher year by planned driven points by cost gains due driven gains Medical pretax and by at sold XX.X%, margins to an improved investments increased prioritization XXX Devices negative by offset partially surgery. increase XX by is due adjusted and by products reduced divestiture in income offset digital partially in in previous by Pharmaceutical declined points reduced divestiture XX.X% XXXX.

the please boxed regarding of the for the your fourth earnings attention section XXXX, direct our of Now schedule. of statement quarter to consolidated

exclude referenced expense As earnings by net are of table driven amortization to intangible primarily in fourth $X of quarter measures, of after-tax an items adjusted special billion. on and non-GAAP amortization the the billion $X XXXX asset intangible basis,

of is EPS X% impact XXXX. fourth share the down constant-currency X.X% adjusted our items, $X.XX, was XXXX. a decrease the Excluding of fourth quarter versus per on versus those Adjusted a basis earnings quarter $X.XX,

a year. to by primarily driven increase now like favorable I'd favorable investment Selling, Pharmaceutical offset as that earnings Device result few the and in planned products on of investment business. expense, quarter same noteworthy Cost delevered have in of prioritization highlight amortization administrative year-over-year to increased of lower the Consumer improved a sold Devices by solutions the milestone consistent increased marketing segment items an compared in in partially slightly Medical business changed was investment offset mix, with business. by the mix. business slightly, margins payments the R&D the segment last in in digital statement quarter partially by and Medical for offset the

net lower of the balances. the earned Net interest litigation and divestitures. was line reduced gains effect resulting income partially positive offset by higher from gains interest hedging lower rates primarily lower securities, by driven cash on was of by million, in $XX interest investment The expense, offset income partially change unrealized by by on driven expense expense other lower primarily from arrangements,

includes our you other of associated further details certain tax issued matters. encourage by on U.S. quarter Regarding rate to quarter compared offset the effective Swiss fourth tax tax X.X%. of reform. this with expense for of for and of rate subsidiaries The provisions XXXX regulations reform tax partially specific to additional and an reorganization quarter, the our transition foreign tax of current impacts XX-K the taxes, reference X.X% was tax in estimated We recently

items, with tax special which relatively the rate the period XX.X%, was XX.X%. was same consistent year, Excluding last effective

LifeScan XXXX. basis enterprise Medical increase impact before Now last declined primarily digital in are The in by The QX looking by Consumer of an following Pharmaceutical the RoC at XX.X% payments. adjusted basis income by XXX by driven slight points, in primarily Devices fourth XXXX by investment as the driven as gain year. a reduced robotics divestiture adjusted XXX by before XXXX, QX of from of primarily margins in points, quarter in driven XX.X% gains income main was in tax. the our reported the declined to of XXXX, before increased segment. In tax and adjusted well the XX in divestiture of fourth quarter by income percentage divestiture sales for the QX driven drivers margins of tax decreased of milestone of the points as XXXX. solutions basis

for quarter the concludes fourth & XXXX. P&L sales Johnson's That and highlights Johnson

the slide some were a notable mentioned in your here's reference, For in which summarizing my quarter, of comments. occurring developments fourth

to now call the turn Alex I'm Gorsky. pleased over to

Alex Gorsky

all very our We of be year. in revenue highlighting the thanks that for Chris, full performance. you, pleased us XXXX, we year We're today. Thank growth of the beginning strong and quarter to and the set at metrics financial fourth to performance you earnings joining delivered exceeding and

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it's company and note on to our medicines globe, robust be us reaching list. most of life-changing retain attributed to but to sales number the annual patients in growth medicines strong Fortune deliver the for admired Magazine's be that people the one company Now around only number our also can it volume, growth with reflection us needs. transformational not is important price, not the unmet of a position enabled world, life-saving increased become to pharmaceutical growth number in the U.S. to and our This enabled as companies our third-largest one and leadership pharmaceutical the recognized we're

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the extensions million. STELARA, greater sales potential and in to $XXX our submitting many brands, value is including DARZALEX that with line continue peak approvals also than for ERLEADA, key receiving numerous brands, filings maximize and for market We

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transformation operating and Fueled significant time for made of reduce year health science-based, business. throughout path well delivering on and We XXXX, reestablished strategic and brand consumer improve on professionally insights, will placed segment our XX a decisions consumer endorsed complexity of already XXXX purpose a we focus in points margins. by strong year. brands and concerted marked benchmark the XXXX over the way, accelerate plan Now that to the margin and improvement establishing its and basis clear is for a adjusted achieve pretax profitability growth,

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just As of innovation portfolio focus our underlying our management, a on execution, relentless result X%. under was and growth

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surgery surgery. entry frontier fortified acquisition of Consistent elevate pioneering Auris as care field designed focused technologies smarter, standard digital the our of digital fastest accelerated personalized The and we with growing in surgery. invasive the exciting medicine, more of lung health Health, spirit interventions to Inc., year, developer make of of ecosystem accelerated cancer, part are Devices, on historical we robotic robotics in and the next into our currently During medical the into one our commitment a of the of and transformative to categories also entry care. less our Medical

to remaining strengthen Surgical in Verb to an ecosystem. announced acquire stake our we further agreement Additionally, just last month, the

ATTUNE XXXX, Cementless ECHELON; technology; contact across lens circular our the TRANSITIONS INTELLIGENT throughout LIGHT also launched successfully critical sheath Knee first-of-its-kind in electrophysiology stapler, including business. we products ACUVUE VIZIGO our system; steerable and powered industry's Now with each market-leading the OASYS franchise first the

as augment portfolio on improving expect innovation our growth. divestiture included acquisitions that Advanced as of partnerships strategic further Sterilization our completion or future XX execution our Products and focus which will cadence the to optimization, continues more of the the of well than team Our we

We Review we are growth our surgery. to be drive that May Day the hosting strategies will will to and further provide into in digital And that on I'm believe upon committed Device additional plans Medical XX the share highlight momentum in XXXX. building this pleased we Business insights team's to

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who and been without efforts, to that possible and Now be that not did engagement the XXX,XXX not I would global approximately patients, communities remiss colleagues Johnson acknowledge & continue passion of to around these health all our Johnson I benefit world. consumers would delivering solutions care many the have demonstrate commitment a if of accomplishments

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we Now first needs is know directly resources. natural means in human and to that protecting health health shared those of Healthy hand communities serve putting the the our people and We the hand go also planet. environment of linked are carbon by is why XXXX reducing a with with healthy operations, chain, environment. This footprint electricity of we XX% committed products procure to XX% targets the from reduce environmental renewable supply and our of and to emissions resources.

focusing optimizing water reduction everywhere. the in and for and design all improve our goal people delivering of energy on sustainable Looking over as product operations while efficiency health are well, long term, we packaging to with the better

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This reach role driving the the future defining We it within very of XXXX in about of beyond. a play have are and and confident so opportunity to health we putting and why an is excited leading and incredible everyone care everywhere.

it now for your to turn I additional details the and addressing upcoming but I'll provide to about who will you. look our guidance results forward over during Q&A, Thank questions Joe XXXX. Joe?

Joseph Wolk

actions Thank position year-end everyone. that we year providing for capital our XXXX guidance appreciate today's context our with including the call. I you allocation performance, will be We around cash and you, joining then Alex. XXXX. throughout and our additional executed conclude Hello, the

delivered and solid a Chris capped we results, As fourth of Johnson performance which Alex quarter Johnson. for & year mentioned, strong

long-term results Our continued shareholder across a strategy consumers we our returns. confident delivering are patients commitment products globe. full the focus overall ability and in maintained our to reflect yield life-changing the Throughout strategic on that strong our across to and and will objectives. the Heading drive into life-saving results to XXXX, year enterprise the and year, quarter we

generated strong $XX solid cash during of cash billion. our nearly of Our free year the results flow, flow, ever level highest

position, billion end With and of of approximately respect the had of and debt. to cash of consisting our billion XXXX, securities billion at $XX.X debt, marketable of net cash $XX.X approximately approximately we $X.X

flow come settle Although XX% we for a we transparency, don't a a we do to litigation, decline generation, the guidance, of provide as year payment approximately opioid record previously XXXX cash of related in expect to off cash planning flow in agreement as free we principle for are as disclosed.

In of executed capital all allocation strategy. our XXXX, X we on elements

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the dividend investors almost In free quarterly delivering is us. XX% As approximately and $XX capital increasing to by flow, allocation for we investors, which Johnson our know, increasing & dividend a returned billion cash competitive Johnson of in X.X%. a is priority XXXX,

M&A compelling Once where our we dividend seek can we've value. capabilities opportunities our create satisfied objectives,

acquisitions totaling portfolio, year, $X the we a number which Alex completed billion in During almost strengthen of to further the outlined our earlier strategic call.

such to third these prudent of program ways $X value concluded consider as December XXXX capital share on of X the return after in executing and XXXX. to billion important allocation in priorities, began we repurchase we shareholders, Finally, other quarter the

Let's the guidance with information move in we your that modeling the I'll qualitative comments our ahead. and for begin some outlook. to year discussion assist considered financial to

week days XXXX SKU in sales offset to will program shipping a by our with benefit includes partially projected rationalization XXrd an be additional First, our our Consumer X calendar. associated the This X of segment. growth in fiscal a

be will impact segment brands over translating in to improve potential. continue approximately to growth franchises. consumer XXX basis will the second Considering plan basis primarily coming a focused program, with in the segment. portfolio, the with to and points of and benefit negative of This across Therefore, invest rationalize company's sales efforts slightly for SKUs profitability XX% fiscal our net of we additional points the Consumer week a part greatest platforms the U.S., the baby outside XXX top both half the the of a Beauty As impact where impact larger further program the growth year in XXXX to on days to approximately to have with the is outlook. the SKU associated in shipping XXXX, of XXrd the we XX rationalization global the line differentiated

the of our by sales to in continued generated indications; the continued DARZALEX, to each executing we by Devices such Health program also Medical And Consumer penetration adjusted the rationalization while to as assumes acceleration to continue strong profitability. continued key above-market segment, IMBRUVICA, in growth recent will our position STELARA Pharmaceutical guidance in and and growth SKU performance Specific the grow driven above segment new execution. ERLEADA TREMFYA, launches in segment, business, for benchmark increased market the and U.S. sales products from due improved

estimate which and divestitures, a to models range $XX.X business billion. basis or of acquisitions $XX.X points, comfortable sales year performance. X.X% reflecting The sales in the we XX X.X% on growth or the midpoint. Considering adjusted sales operational between with X% we Given at your the a how billion adjusted growth to operational manage X.X% net expect X.X% these are our negative growth from to operational is of at X.X% factors, for full reflecting X% constant-currency we of basis, impact and we

to we not last currency euro spot there X.XX, approximately As week impact sales $XX.X you relative to of between $XX.X predict an billion but of currency compared the foreign know, impact resulting points, and movements, do to negative an estimated X% XXXX as of basis in billion. of utilizing XX estimated the is growth U.S. or dollar reported the rate translation at X%

share. discuss earnings now Let's per

$X.XX our I on primarily see next of the the is to manufacturing basis XXX versus improvement operational slide expenses; a provides improve for continued column points, sales growth your and contribution, growth approximately Operating segments. screen, depicting guidance prior just incremental investments margin rationalization growth capabilities; Using the EPS of of year. and based components our assumptions will $X.XX marketing efforts adjusted strong approximately EPS. be included on can X.X% you across the by of The discussed. SKU improvement operating guidance. here's continued driven administrative translates or $X.XX just sales, core net EPS results which an to optimize XXXX business consumer in This As the referenced expected in margin and to

Offsetting those anticipated $X.XX the two to reduced is level approximately of operating income other of compared XXXX. components

EPS second the share which growth from XXXX, recall benefit may sale $X.XX of adjusted compared element midpoint rate of $X.XX an the our repurchase the Advanced EPS that have resulting X.X%. waterfall Sterilization The divestiture we program business XXXX from gain XXXX, the of from Products completed quarter of final will the large adds in we XXXX. You operational at chart in this in a is to to to a EPS or benefited

of the predicting movements, at approximately earnings our midpoint, reported of not negatively per impacted resulting exchange share adjusted using recent approximately per EPS in reported $X.XX the growth by $X.XX While currency rates, would reflecting be impact X%. of share, adjusted

provides our with EPS items Continuing XXXX summary year a better full into to This of additional slide P&L provide insight guidance. guidance.

prioritizing pretax further accelerates to operating for approximately XXXX, that margin by while products investment our adjusted for our our the expecting long XXX earlier, term. points new and in basis are of business referenced still we As strengthens pipeline improve

assume comfortable opportunities, modeling million. of major value-creating your between other therefore are X for external we evaluating you $XXX expense purposes and interest uses models, net with currently continuously major acquisitions are no and we cash of Although or

is your models by items, do comfortable in billion a levels we gains magnitude other losses expect We sales the for divestitures, Development well line Johnson as would XXXX. than XXXX as income write-offs. and had reflecting not and of net divestiture to expense such where XXXX our and reminder, be income other Corporation, P&L as $X.X ranging to an event is from items elevated income related the and income billion. Johnson As gains, record royalty asset litigation, and special on lower of expense, & we as that This $X.X excluding investments we the net as with

on taxes. Moving to

to week, impact would of be per EPS by adjusted special approximately share. in EPS, potential XXXX, X.X% Again, Our benefits approximately effective in of some but tax our adjusted we onetime changes the excluding Therefore, than impact guidance for our items, $X.XX and to on with mix XX.X% comfortable EPS we is range global ended XXXX. reoccur operational the or range the negatively impacted EPS a $X currency rates factors, by approximately for all not on currency to is basis, rate miscellaneous between estimate midpoint. to insight XXXX, per earnings of are at predicting driven XXXX share share share constant per $X.XX reflecting to $X.XX using while guidance adjusted of to of in higher XX.X% where or $X.XX reported per not $X.XX constant X.X%. expected growth Considering the reported from exchange provide a movements, a last these on or currency expected

largely I guidance time. repurchase I utilized count final billion share average estimate assumes the line shares we XXXX guidance. this the outstanding share comment, a diluted what or street fourth since our than count, provide lower X.XX looked, assuming reminder for As last with time the shares. no an wanted We formal at to significantly are share is program quarter estimates this to our in average be which XXXX

few provide to your factors we in his quarterly for models the not consider fluctuations Although remarks mentioned in beyond there selling do you are for guidance, a day Chris Medical Device.

to consumer program benefit of days, but year, the the that quarter fourth SKU more the are expect partially additional can by the projecting of half. you throughout rationalization the have XXXX pronounced in the offset we sales, shipping back For

quarter the XXXX guidance the with included gain acquisition Labo, an to included consumer the ASP related equity respect associated earnings, the in With to Medical first in aligned Ci first in second half to of today's gain quarter Dr. for divestiture XXXX and of the income but would don't of the elevated XXXX. of half levels anticipate and expense second income the Devices. of other similar We events other of expect XXXX

today's rates, a based impact currency the half XXXX. in negative Lastly, on of first will spot more have

That summary concludes and of XXXX of remarks financial results XXXX prepared guidance. our

look in our broad-based reinforce as business results forward we continued on of stakeholders. our and XXXX, to value we XXXX behalf Our confidence delivering head into all

will Device on this Medical forward City XX, Day of seeing New our you held hosting all in Review event, year. this be I be to will at person York Business we mentioned, and which May look in exciting Alex As

based conferences highlighting such segment investment be consumer-focused at purposes note that your events, year. CPG our we For this please will planning as on and Consumer community feedback, notable

Johnson A the attained the Chris associates begin who their world outlook now Johnson Q&A. special efforts thank commitment to turn will possible we back you our to call bright. to & for I the have so the results make around the and tireless and

Christopher DelOrefice

Thank Joe. you,

provide please We can to will instructions Operator, portion the those line you a question? ask to webcast. of now move wishing the Q&A for the on

Operator

[Operator Instructions].

Chris first Schott with comes from Your JPMorgan. question

Christopher Schott

Great.

pharma. of the what XXXX? elaborate on also And year? your STELARA expecting launch little Can on you you I elaborate headwinds was you're this bit terms can for of patent exploration competitive expectations first are and with just on for a you psoriasis expecting in just in Skyrizi? growth for specifically, in dynamics both The the more guess, TREMFYA

Joseph Wolk

question. joining thanks today. the Chris, us for Thanks for

my in with continued So some mentioned the expect I market. above do pharmaceuticals, remarks, growth we as of prepared a

in to credit, competition. of to a on business that outperform into our the products efficacy, we to our last for still and the a safety, a loss products market I comfortability call certainly that headwind. the pharmaceuticals a the have And I'll were able the think, little physicians the continue familiarity bit general. It's XXXX. -- products a would exclusivity tailwind as those portfolio neutralized I and neutralized of bleed bigger data, but expect not per the general longer. impact with will biosimilar headwind. of call it, and generic I'll we from think To and expect we to that would retain se, the year, XXXX products based that, We XXXX, team's sat of and we do it but patients, here Compared to expected even in do,

Alex Gorsky

Chris, Alex. this is

the comment that. to to of pharmaceutical our we're proud, Just our pharma. particularly performance within overall, extremely group, group on add one Look, immunology

and If had over the of at for that were impact step growth. And able look compounds while To they simultaneously launching TREMFYA with biosimilar new -- the in XX% STELARA indications several XX% all, and years, that quarter, past you REMICADE frankly, a at back note, just it's what's clinical the TREMFYA, way like versus growth the manage STELARA, the only multiple moment comparative TREMFYA. first launching short-term used, but the really to results. having Humira against differentiation I also are own particularly long-term for areas results, it's that with not compounds, also, in And but it's think that only the products these important where trials, for Cosentyx. example, development not our competitive and important is the --

helps condition continued TREMFYA, product its and and like physicians by for confidence from explain and and long from patients product in uptake many months' duration patients are compound and having on So to the of I think, marketplace. effect, shift and of a this use in time will by excess treatment psoriasis worth suffering a XX really

impact. include of lot in having of there such even seeing particularly for category, compound programs think ahead. We with GI doesn't we that think with So lot if think some the penetration of STELARA, opportunity of that a these We XX% like opportunity development probably rate we're compounds. rate for combine somewhere overall as still we of a a clinical that And that well unmet still the to that there's this a where, need. great areas the lot is additional in that as there's in we're XX% these,

Christopher Schott

$X.X really one Great. Great. I $X.X other Other billion do can to quick income, one here. And billion.

know a a should but lumpy, as bit think we that I XXXX? can of think further number historic bit this a income. this I look beyond your of be norm declining think number type still about as that's new we above could level about other we or levels

Joseph Wolk

number would not into the would say we to down come I it's just XXXX And certainly experienced yet, as Chris, we that what out. thanks down XXXX. question. expect to I insights look in for expect from but I further any would provide

the So operating had do year, by as think see, XXXX, of offset to you and that. some I XXX we're that our in the points to nearly benefit we margins basis we'll effect of continue improving this

truthful, rigorous we that be both manage look making owners of works very portfolio the sure that to that ways. and and fashion, But continually the have, our we're best in a assets we

we'll also look look we value to complement So, portfolio, to underperforming and other ways. but in our for take businesses create shareholders

Operator

Wells comes from Fargo. Your with Biegelsen Larry question next

Lawrence Biegelsen

of about the X% it one Just businesses more week and comments it in impact one can than international? the others? XXXX, some more about on but talk U.S. pharma heard on more you follow-up. it the extra I one Consumer, In Joe, thinking week neutral was your XXXX? to and on the I Does and X% about have extra I'm the tech. Does med year EPS. than in litigation. QX, And full impact for impact

Joseph Wolk

Yes.

Medical with because and about respect to about. Consumer impact pretty bit you've Larry, doesn't a say units the to to the shipping X asked of X Device days. It's that's season. much that fiscal for the stocking terms it norm would that during week, So Pharmaceutical in in holiday I XXrd impact translates little less the

absolutely and -- you're So correct.

you pretty full It's of EPS. the of We have a the sales. expenses because week of really have around without assumptions a week full still benefit same much neutral

Lawrence Biegelsen

one litigation. Alex, just And on

lastly, had what's we latest about. dates, hearing? should the on on do Thanks talc, previously the milestones the for important decision you think $X taking litigation, expect you the settlement the And just from billion the Just Daubert announced? when Any latest on questions. opioid the

Joseph Wolk

Hey is I'll this that. Larry, Joe. take

billion, was hear finalize agreement for principle. We continue remain, lead Attorney and as to $X thanks respect we more the announced the representing months to agreement our negotiating opioid you municipalities. agreement set extent state just say, We're we to coming in over where to the to that principle, finalize from Generals committee the with counties to progressing know, settlement QX the earnings, So the hope optimistic would not we of states, engaged well. With that's questions. work the that highly very I in that be after negotiators principle shortly the and in the and cautiously but we the aside can

one and sure that's great as awaiting With American all the and just we'll know, talc Medical you needs no and the comprehensive that probably clarity saw weeks that sources, scientific so ago, litigation, the to you found in we as evidence of make the respect from as article Journal type to a be of presented, most to to the able standards few between verdict you link are in Wilson's an certainty Judge there's talc Daubert evidentiary Association, published probably hearing, reports of studies independent that. be cancer. and Again, know, evaluating

we again, that source. another we data, that's, facts, independent And the think will scientific think So bear that those -- research those out in end.

Operator

with question Stanley. is Your next Lewis Morgan from David

David Lewis

Great.

Just couple a one just Joe, one qualitative clarification questions this morning. of revenue. and on

days of X% the for to to guidance XXX XXXX, XX includes way the SKUs? that that think X% So net selling of operational basis effect to adjusted for points Consumer the the about about is

Joseph Wolk

That's right, exactly David.

David Lewis

one one that. just And after quick on And then follow-up Okay. more a revenue.

which a of a businesses stable. business? are you've businesses Device qualitatively, us Pharmaceutical, Just which up framing more sort historically, of us sort and And accelerate of can how XXXX, Joe, you sort you to from Consumer help understand see it Medical of given likely are sense

Consumer, see do guide? of parameters and Pharma across qualitative XXXX So you driving sort the the how MD&D or

Joseph Wolk

for David. Thanks the Yes. question,

of great X I we all businesses. have, across So our narratives think,

BALVERSA will the you thought If growth growth. were this again, to very It's look of time not subject we we subcutaneous a around is as hope and our to to probably again, DARZALEX looking continued business got portfolio approval year, hopefully have a tremendous I on as for was market. healthy We market. of patients. the above generic But retain we'll are complement to able -- some continue And at Ponesimod be above would sclerosis. couple biosimilar for say formulation, would accelerate We've we'll see benefit gain we'll be robust pipeline. certainly we of this uptake multiple And Pharmaceuticals, that that which to the because advancing with filed be SPRAVATO. last and competition. things will year

some the X.X%, analyst in XXXX, now it just we In grew we're to X.X%. we're we're community and Medical grew pleased. put XXXX, and And up context not here, very for And sorry, we done. X.X%, in Devices, into to I'm

the launch we what the going horizon that we're towards in to range differentiated market digital growth, So XXXX. we to of very believe have be opportunity around the a surgery. continue on be offering think middle we accelerate to robotic will for that's And that is the before

In skin and Consumer, our have focused categories stronghold some his remarks, we as of there. on Alex focused profitability We again, putting behind of mentioned in health investment self-care.

the category, for Those I productive for except suspect more to TYLENOL grow line and that in would and looking MOTRIN health. to AVEENO that be for rationalization, for continue skin where extremely with the market brands brands. So self-care, do we would we'll less SKU well. deprioritize NEUTROGENA some be

David Lewis

able just then of one to follow-up some been driving question, other on SG&A sort more In it offset gains with you've significant of quick Okay. you've And had Joe, a years, headwinds, income margins. margins. the

visibility margin on that XXX tailwinds should thinking we You're just talking expansion about, expansion the continues of to agreement in of XXXX. the about? track and well. points and margin basis Medical about points JV sort Other headwinds underlying but of basis more XXX in dynamics be XXXX spending Devices,

Joseph Wolk

something? you Chris, don't add I Yes. know. do want to

Christopher DelOrefice

to I Consumer. on just wanted amplify

past that, of on on X% growth, year NEUTROGENA this examples X% growth. sharing just were you full Just build TYLENOL at Consumer. the to and what NEUTROGENA for Tylenol, year.

Joseph Wolk

Right.

consumer to to specifically I to there. certainly think capabilities, margin point functions behind David, information rationalization, productivity at to is procurement that and Chris. would respect we'll enabling for then profitability. improving our we Thanks, Okay. With across look opportunities to get savings. manufacturing finance, other would the continue to technology HR, improve expansion, design look SKU I And the

that deliver shape XXXX. So we're for pretty we think good to in

Operator

Stewart question next from Barclays. Kristen comes with Your

Kristen Stewart

with net to impact to the clarification. Just a that The it's SKU It's line. Is overall. one rationalization, XXX week correct? extra the top XX

Joseph Wolk

Kristen. That's correct,

Kristen Stewart

Okay. Perfect.

terms just know big-picture, guess, activity. further take share portfolio I that. had the and Just want you models just need clarify repurchase into mentioned then share count, a in of And I consideration to just capital question, with allocation. to no

more good $XX your the I You position, allocation cash forward? from to repurchase generating a Just billion why not should think pay perspective? flow how expectation year. we capital pretty It out guys a sorry, obviously, settlement. are guess, get aggressive share share in is -- a this going perspective, sounds But opioid about like from

Alex Gorsky

Kristen, much the you of this very year, forward. proud model look, is for allocation really it to it as And question. frankly, performance Alex. our Thank in this our our And going and businesses. capital we're across confident we're very strong relates

in our front cash As of I discipline spin-off if indicative see think you across the earlier, lines. is And flow not of had about P&L in we that results the only mentioned in various it the think free great we you. XXXX, you

almost of X did acquisitions, important context year. it's it agreements, of But in just note $X.X to quite course billion in to we XX in where invested also the than that was invest healthy. we licensing the So more also about overall, that continuing the

we in invest talked we'll the in and as to past, development an appropriate rate. in research about brands our at and continue So

the that. think during based gotten we've new in than up $XX back upon think Pharma, add product the our our Consumer go of over you number last X R&D, And business business, if I on launches we've the time good that billion Medical that Device that numbers and years, invested a we more If in you return frame.

at dividend, a we important is. keep same to how that continue We time, healthy the realize

And same that of number During course, $XX always at $XX we've billion number And a our comes we after It's time it's $XX that, X that again, that R&D. frame, during about to years, acquisitions. same frame, time to to look think similar I invested. pretty billion billion. the value-creating a about take

Auris, made Verb and year thing. additional and the Over Verily the think say the the you that in buyout -- was note we is with we might we Verb of right that later did investment the past -- that with with combining

the business. think ahead exciting shift are there digital opportunities together, in few us. Medical are you as opportunity and more for as represent bringing that then in tuck-in also domain, our But shift If think, a a secular robotic going And a continue value-creating creates probably to we to Pharmaceutical very surgery. into well things that do those Devices, we

in end got And area as in the year, lot a capability well certainly exciting a really the opportunity. just about of great conditions, of both X at As talked particular, compounds, we as a it's where think, bermekimab an we in we've represents and brought of other lot AS we expertise.

going talk outcome years P&L, -- things we we to in think way to employ certainly when think that we'll It's share manage a do X significant our think that order, of we forward. strategy an I continue these repurchases. again, that share particularly continue last simultaneously. that the in the finally, we've And overall we repurchases we we not and about X demonstrated it way. expect And means over necessarily that we're or can And undervalued, I

Joseph Wolk

It share average share count, then less, in $X.XX share in a community in $X.XX. the complement just Kristen, investment almost XX Yes. the when form in comment through which we or was where thanks tip hat shares consensus the translates because spot the on. of about to where around to dollars was was comments consensus noticing the the absolute I million for have count. quick my used close, came P&L, about and of out, the income and eerily disconnect count fact. And go terms

guidance that made provide while may much analysts that line with seems don't thought currently very any we not share authorized, in have it expectations were. consensus' few assumption. were a repurchase So that's we And what we assuming

Operator

Next of the question is Jennings Josh line from with Cowen.

Joshua Jennings

on is with robotics, the and First have you clearly investments. in a ground stake put in

May. appetite in launch, you And digital You're the your could any a give the at in to ecosystem. Day see understand Device surgery But if Med update I today, any at in get if I leadership pursuing our we're going indications wet just just you to wanted Orthotaxy? next X play see progress the Auris in a time that play is then could where X all to into portfolio? on line today updates for years come robotics of not over that big

question other second a guess, Alex, then And Joe just is and I is, on line for the has income been just focus.

that assets talk I fall for think maybe the concerns pruning portfolio underperforming about are roof. then and under could where a out assets years. the up when your within And review fit next don't your process year that or you

gets regiment pruned about every just year? could noise. for just I the a formula? apologize you annually? there that If how is Or talk X% is? opportunistic of background process a and that and Is it it the portfolio there strategic Is

Alex Gorsky

terms J&J. a what say, pioneer a our thrilled our to dispense unique have seeing term, and with longer it Moll couldn't going really is robotics the acquisition the entire science it what that you potentially it is to and exactly just Physicians very And Josh, it. them performed platform we're an for good digital overall, it oncolytic CEO, for really Auris question. cancer Fred to new the than we're robotics with our the can The procedures viruses our much be former and first mentioned parts having play of course, lung, team very very in pleased ablation, where And what exciting. platform. look X,XXX of terms more Look, treating with to is. the technology even we start, platform Monarch at what role that's And us in to at on because, cancer glad Health. and critical ways and of with lung what a in we I'm great his And of and you with with leveraging in you bronchoscopy NeuWave potential the the of it's have more in would thank off let's start initiative. and distal do when It's brings start. technology, off

Second, development. the we you platform And in saw we announcement and ensure combining surgery Verb that very our think the next-generation role a digital on have really and of helps Auris ongoing strong Verb.

right a look the machines, from working feedback. we through the in component kind in sorry together excited the we're in May is is the I very say way. early that that partnership encouraging. in provide Joe platform -- be a why tangible that evidence but the this really do that will several decades. teams And step platform next now to we clear, But really And very a preview as York what as for this transparent that Therefore, also way. of of it important you these is Our teams we look for mentioned the will We it's are that at results comprehensive something would this New do think collaboration this and only because we're between not XX of seeing that's well. on place the digital give

and that's to an Next, use, technology. well. excited low-cost as that made we're will improve We offer really will surgeon ensure to platform being to intimately the a involved. exciting coordinated training in Orthopaedics that nice a VELYS It's about easy the also our system progress combination it's with technical going think be robotics it's that's the easily portable, accuracy. look ORs surgeons. at It if between remains something support, is and we And

a submission for towards this. regulatory progressing XXXX we're So mid-year

if just placed you what term, the of in and that Monarch, going back excited about digital broadly Auris we robotics very think and have you with more and really, about have that So surgery, VELYS we out about in plans across platform you Orthopaedics, it. step think we if now we're with generation longer next bring as

Joseph Wolk

would I And It's question portfolio, Josh, our of not the your regarding though. it's formulaic, so management rigorous. say to address

patients be deletions portfolio we or what on from team management aspirations in we makes executive better in that globe. a of solutions the additions our as be across we in defined one committee number and meet terms the So all probably with sense. that of to have monthly in in should consumers And bringing makes and sense promise or the play space either to two markets number space

But underperforming to think, where Alex's under in be able in a and we back We take of in gotten time to proved think after win. to would to businesses, don't we'll a businesses very have that. that's those assess differentiated into alternatives. and of how do plans our place I plans been that say, period areas right productive, other that got for we've come pretty rigor, terms of we've leadership, in this I we've to disciplined turn all reinvest businesses gains and fruition,

Operator

with Matt is Your Suisse. next from Crédit question Miksic

Matthew Miksic

knees, any the lines growth spine other the which improvement looks digital in if the I just So in Devices. like parts on to of color of And U.S. had I X able category, pretty and then Alex your in could, drivers a I was were had Then willing business I follow-up on like Med for on solid deliver decline. the offer of just of Orthopaedics, in it X be follow-up, one wondering the spine within health. were clearly, that And you'd sort the if you to

Joseph Wolk

to speak Matt. So Good with the question, you. thanks for

the So of we performance. are very proud knees

If declining We've XXXX. was there. had you look, business improvement that in a a almost X-point

has a the So team job. very done nice

business, the primary We've know, as entry the made what of business. an horizon. side also We fastest-growing into which, cementless Revision the And Alex we look as platform as the have for do piece that mentioned, is of both available the to ATTUNE on you as could well VELYS patients. the forward

I With you to XXX account respect XXXX about comparative to growth U.S. think adjustment, of impacted take have a points. into the basis rebate spine, which impact

the was saw the of it probably at on you what on If based the growth, look that decline U.S., about of half you comparison.

in Pacific. there's spine Asia don't other Chris, good specifically pretty U.S., out if commentary growth see any the there. in know, outside to I continue We

Christopher DelOrefice

say say, have low Systems. has new at I particular, and cage success PRIME would adjust Where where if seeing declines. VIPER in is spine single-digit I our would that, in for with Matt, we're business the just XD stabilized Yes, you our innovation, degenerative we

the posterior will level later was launched cervical, improvements of I this think from next which SYMPHONY in come system year.

improvement all, year So and in didn't through and this we'll to see expect really get beyond. that that benefit next year at continued we

Matthew Miksic

the great. robotic surgery follow-up. intelligence it guess, I it's the that the realize on artificial but I And Alex. But noticed of we've then in health. digital and is and a of lot a sort things buzz-worthy in how I see overview strategy, That's -- just appreciate we term, just of a one and update quickly magazines,

you'll stroke. around it. I'm could sure making I'm spring. looking your to perhaps the of reason, it and an but about just and what the competitors health. you're I'm And curious For of in you're whatever perhaps innovation, is wondering, space surgery of us seems watching digital the a a investments it. be if and that or sure in give of you partnered moving implementation with innovator update preview just fastest categories digital at one smaller talk

Alex Gorsky

Thanks more is data a frankly, example, of new the insights, apply a areas and to our for development and Mammen by I tracking is would Pharmaceutical us I patient hospitals supporting touched Sure. sets as reviewing Matt. it's the capabilities. -- technology, Bill And is or you are Paul areas in whether I gain of productive platforms just you question, medical that most this or for helping can of think example, and about Stoffels our AI, selection new medical us developing across tell they much and identification technology whether talked to same more when what terms you much faster our that those coming it's And again skills it's not these cloud. development. are and it through Hait, much the ML, innovation important and the large from of whether insights whether that capabilities we few is systems, of and Look, one the different can there you've for you programs review in mean we detailed records, health and clinical better being digital, certainly lead some helping work sciences' large data portfolio, Mathai with way if targets. think or it's

it So there. certainly excited about we're

then is thinking more an in that component her or be of preoperatively the helping very getting again, think, that terms get surgeon terms area, only -- guidance to also relates about a sharing a consistency it better digital way, procedure, As even that, applied away not particular component space, intraoperatively, And to Medical areas But we've a may additional in I of can AI certainly the into generation help systems. in him plan, the and to could detailed of cause our perhaps it robotics helps facilitate term, could being think, by developing a been, in very problem. exact we this next Devices, having longer consistent stay perhaps that having and that to a tighter help from but access.

to we then, care how And and of course, large ever. care be health place, really value-added that can efficient information utilized and got than systems by more important programs most health effective that delivery think, ensure in will they've the be

those one across Johnson again, our doing time about Johnson, business, capabilities And reason our sectors. of of broadly across to that Alphabet, a and each more doing spending So our Verily part it's building research and more we're become for of are all of more and partnering how going those & hence, development Verb something with lot in our and thinking capabilities.

Operator

Leerink. question Danielle from with is SVB Antalffy Your next

Danielle Antalffy

more talk bit Just little wanted about Medical to Devices. a

Can I next in be talk strong adjusted How about basis quarterly, not guys be I pretty the Ashley the it's another year. XXXX have the an you specifically know sales on uptick. help Specifically, think that? growth we linear drivers said, suspect we saw that of year? in you for about should a this but operational acceleration looking what will do past,

Alex Gorsky

a Sure, Danielle. from growth you -- just much trajectory got Look, about Ashley the team to X.X%, little I certainly the and number you and timing a there's a the still Joe progress other we bit -- the look in last we're careful we the think the for we're have you Ashley's at versus some have I took the X we're over while moment, continue that of second expect that for second though, we with it And half we that that, think Thank But really you always a made and of the of at to consistent and very doesn't years. change question. several had 'XX of has X%. could in in through growth If growth to half. of days saw trend to of overall just those, the you proud impact. down potentially on first improvement look really coming her of XXXX years. XXXX, in taking And again, to the and at XXXX. half saw things, holidays be that accelerated what if between QX, But lumpiness first look, few quarters, an half comments think the we attribute.

in our seeing Now In look at performance quarter new growth a really of like areas by this you're in is factors. we technology. it's business, business, being strong XX% what surgery if driven another great number with our electrophysiology,

continuous in year well We as products. expect coming launch with a the new

part overcoming energy business about growth rate biosurgery X% drivers, supply growth, the good especially coming our also frankly, performance half, just latter of probably just You at cut about think our biosurgery saw X% XXXX. growth at our issue and year. in of We the growth. in That one is the in in in

going think we a we for that's growth us. So to our way be work driver once through that,

lap well. year. launch as the the going well Our CIRCULAR Stapler in had we going We're recall is also past that to

core are surgery those think business. drivers definitely we our So in

of cadence at look we we've too, seen Orthopaedics, If improvement. steady here, this

in platform. is in physicians' growing you that an Our shows this turned moving the X% see And starting if knee the that very business, X.X% confidence down about -- ATTUNE, how X.X% to the about in almost again of we're the with at at over uptake of to see is from it, we Cementless, increasing we've to Revision which, And that quarter, going really launch of market. forward. think course, primaries, well. X%. And and being again, issues pretty and addressed the in think pleased at then, spine we're ATTUNE Strong to so X.X%, that. our some see performance X% hip Chris we coming trauma consistent in

then, Care. what Care performance contact lenses. in And of course, Vision see Vision is And strong we fundamentally think in I there's

overall X% is growth there growth contact about X% business, but in States. saw to what's our had the important we United You in lens note

So to We've in our continue surgical some to we've the lens, the been in disappointed performance, daily particularly lens, well. Frankly, go disposables place in the astig that. got plans transition of address U.S.

the at only look rollout the the that If going make ongoing TECNIS competitive, and platform. but area, that we're entire you the have optimistic with to not astig that it's to more and Synergy, in we're very the across SYMPHONY going really us

that go to for that continued and XXXX to continued well. So we're we through certainly beyond even lead that's setting trends growth confident up as ourselves going growth as

Operator

question next from Flynn Terence Your is Goldman Sachs. with

Terence Flynn

me. Maybe just two for

a the overcoming where recently at guys file term and myeloma Would BCMA got later paradigm. presented on planning your thoughts designation You this additional from ASH to year. treatment you initial faced of see in role love other playing and drugs CAR-T this or data your CAR-T in longer program by the for breakthrough some hurdles drug approval

methods participating. what the asbestos And that relates question was a company and be think are to just there? of next then going second announcement The key wondering FDA I month to the discussed do testing is talc. you for if the meeting on issues

Alex Gorsky

Sure, Terence. Thank you very much.

first one Let at regarding take data the ASH. me CAR-T the

a sure important the therapy. time it's this saw were dependability our maybe released lines, myeloma. particularly we who to got And development other very this about have the again, last the they multiple as of supply CAR-T back support at very condition the put in that ensure taken confidence. we news that able we that programs supply results. when at out you like to that were look And and the Legend, think multiple chain, that difficult-to-treat think different our how integrity years were we made. the I patients, from lines the that data, way development the demonstrate I'm the results accelerate proud well progress the when strong that over that's able doing by in to are think And we saw you great here, think or step regarding there, several those As I is we treatment we've way, work source the of team great those is chain place, excited when too, steps increasing we just to failed our has And ongoing shared we're the ASH for really and

going teams. treated think this an in that We've a think about is look, the it are patients way confidence we opportunity as forward, transform lot space. we And truly in to this of got our reimbursement

at frankly, innovative demonstrated not with in with also make very United way. the the data that that products also other only get a that but it. sure we it's programs patients the that We're way that well. for system. -- available also collaborative saw And introduced think you can the the only they work And that that ultimately health in in work intend is not bringing, effective providers both therapy in we just States, to I that as this we to as and in to areas it's reimbursement but access ASH, abroad, can payers overall payers we we're that we to but cost-effective as care

Christopher DelOrefice

want you do to... Joe,

Joseph Wolk

product, of it's Sure. February next discussion And I Terence, X, specifically. certainly believe regarding and with efficacy the welcome respect to the testing any around meeting, methods safety month, the talc. We around

that active not meeting. will be participants at We

of current internal exceed However, I methods current for talc. can our cosmetic that testing standards FDA that say

Operator

from question Fitzgerald. Chen Louise coming will be last That with Cantor

Louise Chen

So regarding a consumer is you M&A my the Is of second first for then question it for or And universal how optimistic what this or interested on above? your And in? opioids. you all you're is most pharma, areas what settlement devices year? my question is, are view

Alex Gorsky

Okay.

demonstrated take that, areas. for Thanks I Let think Look, part lot XXXX, of first remained I all as across really in me the a the question. earlier, we Louise. that X we mentioned active

I and think licensing more we than capital $X billion did agreements work. of XX worth to putting acquisitions, X

as pattern to our Pharmaceutical I saw that did both that. technologies, you continued, opportunities acquisitions expect XBiotech get business. of other we new our think, we continue in would have where with We tuck-in We and

year. a Device Auris amount did also Medical led of did by in -- fair We we that activity had earlier in group, our the

by with us that And also segment, of great that was the beauty particularly Dr. might say, to then Ci which our States. plans premium in course, expand a but into led group, Consumer into in United you Asia, gave toehold the Labo, that

looking be all we but areas. of ongoing an of be we'll there three cadence across activity segments, to in different our So M&A expect would those

Joseph Wolk

with Louise, opioid the to And respect settlement.

in that with the agreement agreement committee state that in to So confident will to optimistic predict attorney but the is the principle. work say the can't we remain continue when principle negotiating finalize and agreement generals we moving I finalized. of forward, certainly be would

we'll and So continue to needed resolution. to monitor a hopefully come engage that, as

Christopher DelOrefice

we hesitate Alex I'll just to as company. continued turn Thanks couldn't those your time, reach questions our closing but to now Relations for interest to everyone to in the Apologies for some to because and don't needed. call team Investor out to get of back the comments.

Alex Gorsky

thank everybody, support ongoing XXXX. Well, your you, across for

more mentioned XXXX we excited and very prospects hold and confident about more earlier, of the beyond. even But we're we're As strong performance. our proud for what

a review in lot updated plan. lie the that had we front and year look we the progress of throughout keep to think our opportunities of us, you chance a to forward continuing I as to we through

great So thank you very much, have and day. a everybody,

Operator

Johnson's This XXXX Conference Fourth Johnson concludes & Call. you. Earnings Thank today's Quarter

now may You disconnect.

Johnson & Johnson (JNJ) 22 Jan 202019 Q4 Earnings call transcript