Thank call call me, safe this good the appreciate before and to others on that you, spoke hope We to I close decided are join healthy. who you today Chris those you morning and and unlike everyone. you
Let of anything have & where state business the expectations is is the crisis fundamentals Johnson not me right upfront, are heading changed combating but current business our usual. Johnson’s of the strong and
to of consumer focus access aspects as However, & such and business Johnson innovation, many and advancing a as continued Johnson financially with usual patient being operate fostering disciplined. breakthrough
for never like motivated and of stopping are and we profound this. to a last built because you, frankly, to stakeholders our taking We it built by comes impact, lead, built care are have times to can when positive we quite
remarks is today’s twofold. central focus prepared My in
over we times continuity reliable put the First, that It steps provide. particularly in place I important of number will to plans. understand you years products recently have important ongoing of share challenge supply ensure and with in of our a business you is the we
the from context of issued outline trust performance in are at I intact. and poised & position obvious and years is of its stakeholders are of conclusion strong my call, for that is many we at of business all the I this Johnson crisis meet to the The thinking of in remarks COVID-XX our the a success. the obligation to fundamentals the January. near-term Johnson end financial what our and of the financial in end about Second, the that will how changes will impact have guidance we on
earlier, healthcare industry, broadly as As capabilities. research, and resilient company sustainable have we manufacturing in into the the global with flexibility designed business model a based Alex established mentioned most our commercial and
COVID-XX. active robust events business have preparing continuity us our plans have instrumental We been like in which for across network,
distributors, everyone in to the operations, Some capabilities Within surgeries with suppliers, providers ensure protocols trials. to closely safe. and engage as steps local and safest to priority commercial manufacturing healthcare we virtual possible and clinical all major we to clinical global our protect have address risk resource leveraging a of moving we physicians. footprint health distribution, effective better adequate address follow centers closely the their at Where like by high maintaining monitoring enrolled our taken supporting needed, to support them critical always ensuring for way keep our trauma and regulatory areas areas well-being to inventory while connections is insights and serve currently concerns directly participants to our distribution in in gain organizations governments recently working and health include through first dual-source to
change Our to satisfy next priority is to in manner these regulatory This requirements. priorities. complete trials these a pandemic not fully does
we As and meet needs. to are a these result of of patient able efforts, the majority consumer
rating, for cash Coupled most. We I on marketable to credit Johnson spreads we with previous these Given competitive quarter years. cash From a AAA balance generating the securities credit flow Johnson mind A of with and billion billion of don’t we nature days like of the quarters events, anticipate if ended capital most would to of the typically few is needed would valued detail, a of in positioned. free the times but are access most with $X $XX able macroeconomic & first two been in sheet markets provide and that of our consistent strong available. a securing and has top hallmark likely the first well quarter standpoint, are insights approximately topics distress. the are current we unprecedented liquidity of
many strength this benefit are to We use constituents. able to
approximately partnering to with and deliver vaccine include the billion time. $X Some coronavirus, potentially, only examples record for develop recent novel in to not jointly invest BARDA but a
highlighted. heroes Alex efforts of through healthcare activities numerous and other which We are and communities the complementing donations
suppliers increased We most it are to diverse when they shareholders. small a financial and offering time responsibly need we our and customers, and dividend supporting at flexibility
unchanged. are Our priorities and capital clear remain allocation
shareholders is months, investing that dividend. to It form above living to healthy several in that invest business to to particularly next that the commercial look straight investing we we to in aspect people. for years. of innovation, in capital investing Johnson in the for our that earlier bridge with of at in uncertainty meaningful address services After when in greater our but needs delivers and the We Johnson. continue year, We or a towards the shareholders not dividends. Alex in competitive our times or our of increasing capabilities more that many our prioritize announced few business, products next XXth innovation that & levels generate just allocate know are access will call the bias unmet
While strong optimism financially our that confidence from important intend We flows generating be continue in underscores positioned. to the a historical well cash is for standpoint, and future. notable it and announcement certainly this
our these enhance Our next priority compensate value transactions. we pipeline M&A, pursuing our risk on reduce their or desire shareholders is returns to the in to for behalf. not our are bearing portfolio The capital that invest do bolster targeting that while does current creating crisis transactions our
in to be opportunities augment a given we sustainable will long-term our fact, that fund In financial position strength, may growth. better
of develop example and recently therapies to allogeneic treatment believe While a the Therapeutics commercialize signed second types. preclinical which antigens, paradigm cell significantly has up is Fate with event, research the therapy collaboration for several four quarter tumor-associated distinct change we of off-the-shelf this good cancer our potential in to practice, current the a to in cell
simultaneously at past Finally, no active program to as few share an take repurchase time new programs. time. not the years, we and We within you program feel saw other capital precedence do allocate we this announce capital plans allocation have priorities paradigm, have our to allocation capital a this as also at
The states, in litigations. cities opioids, counties few announced a participation we to by an to and working a Given offer and let towards principle ongoing attorneys generals litigation. With this there cooperation broad related remarks often engaged agreement October, litigation. the as involved the settle it continues reached are me respect last in state be is to to question,
outcomes as the multiple Daubert Federal the products. supports We independent of testing in await Court have our of from Talc, previously the Judge stated, Regarding safety hearing of sources District Wolfson New third-party Jersey. we and science
Okay.
companies We XXXX. know our Let’s move guidance guidance. some pulled for their have in to our set peer
may that as look view offering business. some our as you We updated. for sell of much option forward and to that also uncertain well, side been but models have us We we into been insight have our know in times, not credible an understand transparency
have to perspective provide We assurances. with Johnson, Johnson guidance, objective balance the false of decided the in finding & not given have but will what updated confidence sense providing term know the while the that of right to upon between today, we rely make your bolstering Things still least, and at the in weeks change benefit days, financial consider our of near coming outlook. months, you numerous among to sources
next the impact. of emphasis on That most minutes, greater During significant to part the Medical experience our I few upon touch each is projected business will with Devices. segment currently
assumptions by me business. few our sharing however, entire Let that across apply start, a
impact the potential account Our in to insured will guidance macroeconomic healthcare the impact the the the individuals potential may people near COVID-XX on and of capturing disposable the prioritize number income term. how of and impact overall negative system for have it on attempts
as COVID-XX earlier of an rather curve reference, the as impact estimates affected being prolonged assume relative the the more than COVID-XX utilizing impact markets in the Second, of acute a shape shorter-term of experience a our impact.
peaks predicts mid-April the mid-to-late For U.S., our assumption by or the for Institute the consistent European market, The Health also several is peak of largest assumed this IHME. estimated IHME with countries. Evaluation and Metrics April
return, noted to world the Fauci What Third, assume by into not do the sources, returns the As much options prepared should may our statements I the also fall Dr. estimates be currently do have it. therapeutic the virus in scientifically and the same mean virus account test, and There forums, better with available. experienced. taking isolate intensity in other experts be if does accomplished various that? by recent identify
of is be year. premise that will half our visits this So, elective largely doctor the permissible and in second procedures
to considered a do with be has economy and the assume been insurance we experienced unemployment, the better improves quarter disruption in We quarter, procedures and out begins capacity at third on the we the that an peak. procedure what for smaller second quarter. will Finally, than it and some scale. Coming of assume improving fourth coverage a lower further anticipate higher in recovery global or have economy
the for segments. The Pharmaceuticals Let’s delve into story straightforward. fairly is
Our we Quite critical largely we itself. and results do unmet in resilient. our COVID-XX the business consequences the so and Pharmaceutical health they and expect of solutions to seek it important beyond in high be provide to it need patients unintended valuable will confirm is continue pandemic frankly, receive that with the avoid treatment. states to related We to first disease strength expect quarter
to With factors. new diagnosis starts. that small by expect level on associated date, based This is with what we do delayed have two disruption patient seen of and a driven we said,
by declined the First, data visits of IQVIA recently escalating have XX% and that by not use is telehealth interaction suggests from being services. office entirely offset that
know declined have new We suggesting that patient activity also benefit has inquiries slowed.
drugs. The to is physician-administered related second factor
For there with infusion centers being and in example, our some those of largest practices. repurposed duration in the The infusion to are variable outlook. distancing are treatment centers pharmaceuticals as chairs times staggered factors COVID-XX with comply fewer two social extent comprised
start again. in year the at However, delivering the the had confident net our anticipate the guidance in of it the business to we market is Pharmaceutical above expectation of the and that grow we all remain
beyond next XXXX. fuel year, the pipeline, to confident also of our ahead slightly should remain growth Looking we in progression which
from on approvals for projected status XXXX with delays major notification of regulatory any regulatory submissions. not the We our received authorities are and partnering our filings have health and authorities regarding
related to prepared XXXX We COVID-XX. track. this through time, At to are progress to our planned continue and any on approvals filings our in work major plans, implications
to consumer transition health. Let’s
very such quarter are as medicines look the to first consumers conditions was operate heard, pain. categories that self-manage segment you as products in high well and in perform such should as globe. the strong We As our over-the-counter to essential as for key across fever continue this demand
that our first store pantry January are skin by year distancing but remains category portfolio risks in result as behaviors across to necessary such continue, notably, continue likely products. some we e-commerce year. franchises offset will products was offset for certain the With expect perhaps projecting at said, not full opportunities that social segment. full in surge therefore to that in due a quarter partially fully assumption the the most and activity, be most we not be will health, softness consumer the too will sun There However, loading here traffic and the are impact reduced Access of our as that of categories, least higher to so care think intact for downside upside differently. some
executing the the continue We the in above expect market while the SKU U.S., program growth mostly U.S. to rationalization outside focused
remains So most the let’s in move our change uncertain. some of outset on been section Medical segment. this the to that referenced of have companies medical which it at withdrawn the guidance, guidance at I primarily core has the Devices, device is When and
the we pandemic. procedures with that to experienced address hospital our So quarter, uncertainty where and the is deferred be business exists. the first indication Consistent we negatively of device a are to good what as to in be expect continued medical resources diverted impacted many
negative some significant third then second a the the quarter. impact in the most assuming quarter in impact occurs are but signs in and the We quarter, recovery fourth of lingering stabilization
the capacity at impact, the constraints. determine reported our procedural expert and including cases of compared internal surveys, To level to at reviewing sales we data, data and epidemiology, We then panels, reviewed by data results external country started the weekly coronavirus. level
We collectively Kingdom, X at in the the our our world markets, the XX and revenue. States, to for thus remaining and bucket Russia, the decided success revenue. the XX which remaining of that revenue. the markets given was top Spain in of to have three rest Then XX% devices look curve our than to the United Italy, United the world, medical of first further this appeared along devices medical be and of Asia-Pacific far of impacted countries our country France, China believed Japan all containing COVID-XX rest the modeled approximately together, markets devices top of pandemic by approximately Korea Germany, of is makeup outside therefore Given first. medical which these had account the this our we XX% then countries represents The virus, XX% we
As medical we have you broad in portfolio know, a devices.
trends this events critical aren’t geographic I deferral, one-third procedures As with as address candidates depicts, of estimates. assume urgent a end high procedures for based to on medical our that in scenarios of business In countries. device XX% trauma, split that we cancer. end those key our during and Asia-Pacific the procedural are the surgeries range XX% the words, stroke the approximately that outlined, other Based classification data inform slide in and will quarter develop we observing associated decline non-elective elective currently low second supports those on this of such and markets, we to
expect recover Elective procedures for but in major these occurring markets, deferred given procedures declined time. unknown the X less the guidance. quickly, in earlier similar and these primarily up assumptions this felt being rest XX% declined We versus with rest assume year. half these XX% the in methodologies prior to compared third quarter quarter world earlier seeing this The stabilization to procedures. quarter stabilization this throughout procedures starting an of much second appropriate We the down we deferred Using XX% how countries the of do than see consistent with of could view fourth if ramps and other start the still see at be recovery to XX% to occurs remaining this backup countries is the countries. our the are in made world second we was deferred to and
assuming You Individuals procedures are ones, trauma. procedures engage which we well. impact activity, we to market can in urgent in as even spending also like that in time declines expect see physical particularly are outdoors less urgent a
were hospitals capacity including if increase weekends, XX%. could a recovery, by doing only of everywhere procedures they hours terms day, about XX In
as looked scheduling peak in we an So and get the still may recovering time impacts procedure, be unlikely. elective to year, procedures patients hospitals capacity systems view believe makeup suspect but COVID-XX and that highest and we from which earlier from We to could for surgeons have at it capacity will take increase the in factors deferred best we comfortable a the possible the And mutation income hospital as have to These a to estimates we assume all of discussed near-term. a of earlier, in economic in number the are again, impact our not lead challenges we have changing time. of of Those at XX%. recovery COVID-XX. a us or recurrence are a this significant range namely to assuming patients prioritization X% insured assumptions potential
hospitals, will assuming experiencing are minimal sooner with financial faced or who recovery we managing Similarly, maybe experience unexpected underutilized. measures that potential COVID-XX impact by being not challenges implemented resulting aggressive are from
As all to billion billion factors, forecast $X impact the below a guidance. Devices approximately result negative sales of approximately we these $X to of our estimate a prior operational Medical
the moving While impact the change parts, there Medical guidance our are many in the to prior is sole operational for enterprise. Device sales
this summarize you. let’s for So
have sales Device $X factors to approximately we with the models of minus of reflecting X% to I billion. range of Medical billion negative would described, approximately the plus operational all your $X be comfortable following: X.X% the Given impact the adjusted incorporating operational sales
X.X% is minus to to $XX.X billion guidance sales, operational $XX.X billion or to X%. Moving our
movements, XXX provided to compared X.X% guidance, points basis dollar basis an foreign utilizing of billion estimated between to relative reported billion. the in negative there but predict our at spot week the the last not versus resulting X.XX, As approximately $XX.X impact currency we growth rate currency translation is or XXXX of points January do minus negative impact of XX U.S. minus in of euro as estimated an the sales X.X% to $XX.X to
the due decline impacting to manufacturing operating to for basis a year which to adjusted higher margin, related operating now interest points earned. approximately range is expense to to billion. $XXX now due on regarding Net items million expense pretax COVID-XX lower of by of to be the earnings, expected offset costs reductions $X expect impact, partially pretax in is we sales Moving income $XX interest adjusted of to XXX rates about million spending margin
We expectations income. our are net lowering for other
strength. execute may earlier, present that is financial to with strength element to another enhance our There that mentioned current us As opportunities portfolio. or term transactions our near future
are achieve dependent on long-term objectives. our assets to We not selling
by market create divestitures will can $XXX other secure planned a our time $X decision current solid in for and we be very income commensurate we to previously Given until are billion. such we results million previously to conditions assuming businesses. range to million deferred the reducing returns, guided appropriate ensure value these This us $XXX of
XX.X% is effective the to estimated given of XXXX Our be wider previous approximately now range with associated regions. tax than guidance XX.X% major pace economic rate for variability to the recovery the and the across sequence
of updates, $X.XX of with in those a XX.X% range basis. EPS to reflects currency constant This decline or we the to $X.XX are operational Given X.X%. constant comfortable adjusted an guidance now on currency
$X.XX. on previously based $X.XX Device exchange of today. our by EPS estimated in negatively change A The per versus from EPS, reported January would we EPS XX.X% that, impacts the $X.XX impact to believe using prudent divestitures. predicting some on Medical would planned adjusted from for we are our minus be here. we guidance our X.X% is guidance quick and $X.XX, movements, Again, what presented from biggest your decline EPS obviously delay currency prior know a approximately a what to the reported provide is while potential comfortable models week, insight to with sales of on share some impacted illustration decision minus be rates range from of to reflecting negative impact not last Accounting but ranging adjusted
earnings Johnson’s worker employee healthcare to some development, COVID-XX, with $X.XX addressing have associated and well-being close a multifaceted & combat from leadership also Johnson totaling impact We vaccine billion. to needs,
To offset are expenses help basis. reducing these spend this to aligned But items, partially pre-tax $X.X largely clear, be naturally billion we me reduction by be we lower. a is believe a on approximately will that let
important best all for the are or practices that stakeholders initiatives programs, We reducing serve not long-term.
quarterly XX noting results continue X to to want update your future. you as they but the two years and convey items investors are We QX. Our that guidance, into for to consider managing us for X, for do us provide not you there models worth
likely is apparent. The first
in We the sales occur to second expect quarter. impact COVID-XX the on greatest
quarter quarter that a second of purposes, the income. Second, as for gain that Today’s we of gain other a is will divestiture comparative indication in XXXX. that the guidance occur size significant clear recall in not a of recorded second revised XXXX,
also humbled dedication few I & for a months. I extraordinary thank call useful. as many me want Q&A, to you the and back insights stories explanation basis. They by updates inspiration. hand to shared they serve have past the guidance around our the to process let Johnson XXX% of Johnson listening am day, hear not is our begin hope precision have daily an the our we I phone you Chris effort leadership these a world displayed appreciate the the the the the associates on thought and the magnificent Before order to on I today. thank enhance found We while of
Our business lives highlights the of health. challenging performance quarter in commitment of consumers better the resiliency solutions and that times and to our showcases seeking advance first patients during the enhance our of the employees
to Q&A you to begin back Chris, the portion.