JNJ - Earnings call transcript Q4 2024

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Operator

Good morning, and welcome to Johnson & Johnson's Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] This call is being recorded. [Operator Instructions] I'd now like to turn the conference call over to Johnson & Johnson.

You may begin.

Jessica Moore

Hello, everyone. Vice Investor Moore, & for Jessica Johnson. is President Relations of Johnson This company's results outlook of quarter to review Welcome our business year and and XXXX for our XXXX. financial for full fourth the before logistics the get A few we details. into

materials, As and today's Relations of associated a Johnson & Investor presentation the the including Johnson find on website reminder, can section you additional schedules, at investor.jnj.com.

operating and presentation contains other company's future among business forward-looking things, position market regarding, this and statements that performance, note Please strategy. financial the

to not based expectations future available cautioned You subject these are uncertainties risks events of A can risks, and and on information website. XXXX to are at the company's actual statements, which on date and are that rely found results be on Form forward-looking the recording available the the SEC's of to and may filings, as certain projected. this of other cause XX-K current uncertainties description of differ including factors investor.jnj.com our the those materially SEC in is our which these from using

of strategic Additionally, with are developed today being and those companies. discussed slide compounds collaboration relationships. products from acknowledges or in This licensed partners the other several

medicine tech will minutes. for ensure to of XX for questions, Joe as CEO, enough our today's year the then and on we Duato, Reed sharing address Joaquin to us Chairman Tim open our full a for fourth quarter over guidance XXXX. med Q&A. anticipate catalysts our will Wolk, Jennifer our webcast allocation leaders the innovative enterprise. comments CFO, results review John overview Moving a well with XXXX provide company. little cash P&L few our the and will and as priorities key joining agenda. we To and then time an will performance last close Tower, Schmidt, will your for be I and capital position, the by sales and results

Joaquin. call will over turn I to now that, With the

Joaquin Duato

amounts and and and in Jess, the M&A growth morning, make & which in investing And year, continue success Therapies, vision In in and pipeline, things. inclusive immunology a and in of decisions the disciplined was high progress we while while you, operate robotics segments fundamentals high acquisition businesses broad and Thank the announced oncology, period billion XXXX, been unmet high in a R&D our industry-leading including a year of about speak our exit recently in in will Johnson rooted the cardiovascular, of medicine Indeed, for Today, innovative good company and neuroscience transformation MedTech. is shortly. X transformation, through lower $XX last set we XXXX of our we with to of innovation everyone. Johnson. remain agreement approximately need, Intracellular enduring I have to priority same.

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a pharma We med just company a or are not tech company.

health a descent are solutions. end-to-end We company. strategies focused and our on care are

and recovery invasive impact about and interatrial impact Think think of the [indiscernible] Just and in promise [indiscernible]. minimally of the heart pumps shunt. myeloma CARVYKTI, Abiomed multiple DARZALEX, about heart of TECVAYLI the VWAPs

JNJ-XXXX [indiscernible] peptide and bowel targeting the of TNF. STELARA that targeted of intracellular SPRAVATO [indiscernible] think week. health last and Invega of our our therapeutic and Think TREMFYA the announced the and acquisition IL-XX inflammatory potential therapies disease portfolio, -- about impact and of impact the about potential and mental and and the oral blocks we

financial a hallmark reach, are we Johnson care is only is of As expertise pharmaceuticals industry on that health and unique company the and technology, both with pace innovation sustained medical and the growth of to deliver global Johnson. high major muscle & in this focused the the

half These growth strategic decade XXXX decisions second sustained strengthen the confidence beyond and we made and our our in XXXX of & in Johnson position the guidance. Johnson through for

XXXX. Now to the numbers for

Over the X%, $ billion growth $ with have that at delivered vaccine robust sales, billion Sprabato the excluding full COVID-XX we sales XX surpassing platforms revenue. year, annual in generate operational X annual now X in of least we

STELARA markets. Tremfya brands studies resulted the of [indiscernible] a in Across strong despite lung growth entry medicine, our III filings non-small which advanced biosimilars in full FDA to XX digit. cell in of as with third approvals registrational readouts is year, impressive treatment sales you seen the pace the Equally we we oncology, major Phase X off start of billion XX last RYBREVANT of $XX and are and consecutive XXXX, And including Tenke colitis the in reported we for the innovation, major in submitted first-line approvals XX reported we with well treatment neuroscience fast EU. for pulmonary weeks, positive XX studies across immunology initiated ulcerative over XXXX mutated EGFR quarter hypertension for innovative for for In patients of XXXX. growing exceeding a with In performing achieved have double in and cancer. markets,

invasive last significant drug received with XXX, our for last for FDA approval the patients treatment-resistant year. and non-small overall or cell with metastatic RYBREVANT for of TAR received cancer. review survival to for adults as for nipocalimab in designations non-muscle Track the application [indiscernible] of monotherapy SPRAVATO intravesical improvement system of announced week, depression. need as release the bladder myasthenia only generalized X in per the We received treatment drug we of many in Fast We new a and first-line for impacting priority the indications advanced of treatment an FDA addition area And million as showed significant gravis lung year. therapy treatment breakthrough cancer, first other the unmet

$XX growth across the of in momentum with sales strong of million parts including for reported year, particularly most to medtech full we Turning and business, second ambition. in the a cardiovascular year over

highlights major launched post-field the the markets in major for several to platform products XXXX. of unicompartmental every our robotic-assisted innovation year ablation in [indiscernible] with of pace accelerate clearance Our Major knee of approval and in use medtech bellies of solution procedures. also the XX include our continues arthroplasty

peripheral As of well as treatment for treat heart pants an to difficult and of Impella pediatric clearance for to IVL expanded catheter Javelin FDA FDA indication peripheral the patients close lesions. tight shockwaves

[indiscernible] at achieved products, XX We IDE trial the system progressed mapping the the also XX surgical the Carto clinical of including full clinical IVL Altaba U.S. of lens. programs, our of trials [indiscernible] our sites. which version electroatomical peripheral release to including We U.S. approval the Shockwave catheter II in begin system, market robotic major and allows

the development biopharmaceutical acquire on antibody medicine. last And in And last company on value-creating XX-year portfolio and needs to of bispecific significant high address and year, Intracellar week innovation high-growth and our a plans of central our unmet M&A. by fortified investments innovative in investments legacy These the This future shift nervous nearly focused building Medtech system acquisitions therapeutics and for further our commercialization to Therapies, Ambrx neuroscience [indiscernible] included in in we in enable [indiscernible] the markets. to [indiscernible] disorders. making we us shockwave announced

Johnson now the solidifies and opportunity research advancing of industry-leading transforming through Johnson. sales It these and unique therapies reflect growth catalysts company, the long-term for analyst Together, further the & expectations strategic above investment add in providing This levels our also mental growth and decade. intracellular transactions to of commitment care represent remainder health. near to for

sales able Turning growth more the planning growth to continued the impact we year exclusivity of XXXX. pressures at to associated of X%. company in earnings And per end we as that for with X% previously deliver a of other China. headwinds product. redesign overcoming I macroeconomic XXXX, of impressive, would of cannot party entries U.S. STELARA even biosimilar are to guided deliver growth through back operational Perhaps, multibillion-dollar the [indiscernible] operational any for the of expect and and first of nearly think adjusted share be

our in IBD business, in the cancer energy catheter assets the in SmartTouch well strength including the [indiscernible] results our electrophysiology. of additional and diversification able and are XXXX, because the of [indiscernible] dual to breadth achieve as lung of Thermocool with We and these commercial barypulse launches pipeline TREMFYA our of as

want to patients. at to Johnson closing, thank I everyone Johnson In & help do they for that all

from year the guidance for over Jess. starting and call we in our that, position to are of the confidence have and growth a with I'll turn We strength, XXXX. EPS sales And

Jessica Moore

Thank Joaquin. you,

QX Worldwide results. financial exclude Furthermore, and to otherwise increased XXX and X.X% Sales results translation. represent outside Starting guidance the reflect and quarter. the the impacted Worldwide our Unless and impacted XXXX percentages Moving & was Johnson. growth results. X.X% were operations XX% of highlighted by points negatively therefore, currency operational positively STELARA the sales and $XX.X of results with basis Johnson growth billion the divestitures. quoted due points the in acquisitions continuing for due sales stated, of XXX the impact to U.S. to by today with U.S. of basis

Europe to the by exclusivity to COVID-XX and of impacted points negatively important vaccine. STELARA It's in note was basis due the growth of XXX loss

earnings. to now Turning

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

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

IP quarter acquisition. Earnings $X.XX impacted by was acquired the The related R&D in share of per negatively ZWave to the expense

growth Sales For worldwide $XX.X basis the the the the points. and by X.X% impacted X.X% vaccine and full were billion. U.S. worldwide sales positively in X.X% growth XXXX, divestitures XX COVID-XX year XXX basis impacted Acquisitions with and [indiscernible] grew negatively points. outside U.S. growth of by of

earnings diluted full earnings COVID-XX XXXX billion, by $XX.X was due of share exclusivity of $X.XX versus of the $X.XX, share net was and of a representing XXXX. respectively, the $X.XX, share Growth versus an Europe earnings to full were earnings the XXX negatively per decrease loss XXXX STELARA. ago. per and billion, $XX.X and adjusted a Full earnings diluted impacted was increase X.X%, for and vaccine year adjusted diluted points per year Net basis were of in year X.X% year

the by quarter. IPR&D charges on sales in delivering negatively XX year. XXX performance double-digit X.X%, and launched X.X% increased STELARA uptake growth. was various with a products, growth Earnings driven our brands was year decline Beginning Innovative Medicine COVID-XX billion to U.S. outside growth by medicine. with excluding business impacted acquired of $XX.X Worldwide key the due the on in recently by comment with of assets the from U.S. throughout negatively transactions sales impacted share growth now will points. innovative I of worldwide of vaccine per $X.XX the the XX.X% and continued in basis

be positively Starting associated with to continue with with consistent portfolio oncology. hyperinflation, impacted by market the practice. price across Results adjustments Argentina

growth achieve over expansion. This of reflects $XXX This in sales drive to first share continue & sales driven market the We the of quarter. achieved driven of our growth portfolio. accelerating to XXX% over with gains with strong setting therapy marks half XX.X%, across of all and year. CARVYKTI gains frontline sequential well over million growth. back as growth a Johnson's aligned $X DARZALEX sales capacity X X points by in share multiple XX.X%, growth in expectations of of myeloma in billion of points and lines by growth the Johnson brand across primarily as was our and

the reflecting duration $XXX a in with of strong dosing XX%, refractory TECVAYLI setting. adoption intervals. relapse Bailey were Demand of continued sales in longer the million strong remained launch quarter despite growth

multiple our strong trajectory launch its with of quarter portfolio, continued within Finally, growth. [indiscernible] myeloma another

[indiscernible] quarter reported the we in category As in first a other sales currently of XXXX, reminder, are disclosing oncology. which the anticipate

antibody ERLEADA share first continues of in or primarily strong expand $X lung growth to [indiscernible] deliver driven as for the approved in reaching cell sales XX.X%, continue category contributed annual time. for to cancer other oncology bispecific market non-small by we and growth, to growth billion gains the indications.

XXXX. quarter We also sales of the first in [indiscernible] disclosing anticipate

mix offset partially TREMFYA of in X.X%, by growth Within unfavorable gains in and inventory patient market immunology, share dynamics. and PSO sales and saw strong by growth PSA, driven we

current UC see We biosimilar of to launch and XXXX. expect excited anticipated indications IBD recent uptake STELARA and declined of the driven the in XX.X% by competition. impact about are strong the

in and entered As biosimilar by positively competition a sales of Remicade January return U.S. were rights worldwide reminder, distribution impacted The XXXX. has in a Symphony Europe. the

In XX.X% continues by physician demand. to and driven be neuroscience, of growth SPRAVATO increased patient

partially by has Other share offset and SPRAVATO pulmonary by exceeded annual in market sales mentioned, neuroscience time. driven in for the loss and gains, growth of As Europe. OPSUMIT measures was in Joaquin $X first decline by driven hypertension, SPINRAZA U.S. X.X%, billion the in inventory Europe. the grew austerity tender In dynamics

and and which XXXX, other report grew Starting pulmonary to category by begin gains. XX.X% mix in reported market Uptravi the [indiscernible], will driven hypertension we growth, share is currently in OPSUMIT. patient

favorable sales Finally, patient Xarelto growth was driven by mix.

basis U.S. PFA electrophysiology I'll by Overall, U.S. U.S. of increased points and Acquisitions strength of and in basis primarily product worldwide $X.X attention Asia of driven in med your commercial net U.S. tech. Worldwide the points X.X%, outside had med partially in XXX impact pressures outside now growth headwinds both points execution continued by introductions, billion of XXX in the new XXX Pacific, turn a basis the U.S. and growth, offset tech positive in China. to and the sales of increased on competitive was and divestitures

shortage by included ShockWave. of in and growth X.X was continued of competitive million partially XX.X%, Performance growth catheter acquisition IV associated Despite in uptake in commercial uptake sailing global and Cardiovascular, $XXX the In Cardiovascular in growth, regions delivered strong ablation U.S., product driven and PFA with technology. the China. growth Abiomed by VBP and the Impella electrophysiology driven results Impella also X.X%. of new the by execution, adoption procedure RP offset of delivered all U.S.

pressures by offset other as of vision prior sanctions. ACUVUE lenses execution, U.S. from performance Contact XX.X% the trade dynamics, X-Day competitive products and of was by by year impacts and Commercial [indiscernible]. well lapping driven and partially OASYS actions, as in grew family in PRC price driven TECNIS growth strategic continued Russia X.X% inventory Surgical TECNIS strong

Orthopaedics inclusive driven announced previously partially Hips from VBP by and product of launches grew by China and transformation, success of competitive recent commercial of disruption impacts offset X.X%, growth primarily X.X%, pressures. the execution, of revenue the Orthopedics

grew basis X.X% by XXX points. surgery Lastly, negatively Acclarent the results with approximately divestiture impacting

new offset and by primarily execution, products hyperinflation, driven adjustments competitive of and wound continued pressures with associated energy in partially the Growth closure biosurgery Performance VBP endocutters primarily with campaign market practice. China. anticorruption was consistent strength as as well by commercial and price across was and in

consolidated to our year. have quarter noteworthy of last the to statement highlight of changed for I'd turning items the XXXX. few to Now same that earnings fourth of like a quarter compared

strategically with to IP acquisition. in or invest to sales, development continue levels $X.X V and includes future Wave of acquired We R&D our research billion expense million competitive fortify XX% nearly of investing associated the which at $XXX

in million XXX rate $XXX percent the million Other due was as offset litigation debt expense and partially as securities, the XXXX. net basis average Selling, compared was average benefit lower Interest by driven lower by increased in benefit to a income higher a a on a higher programs balance. lower Innovative income to marketing gains and lower income rates balance a discount primarily and $XXX by administrative expense the $XXX of points, in This to business. on related Medicine million and a driven sales prior income on million of rates investment interest income to commercial year, was last $XXX earned deleveraged cash year. of of employee lower expense driven expense by net of interest income compared

in as our certain in that effective for the was Regarding purposes deduct post-acquisition same company taxes the year. tax prior decrease the was allowed in both versus as of tax well primarily last jurisdictions U.S. XX.X% quarter, matters rate of acquisition efforts to the driven This period tax integration by costs the XX.X% resolution outside

specific upcoming Excluding same special filing for you review versus last additional in I period details XXXX XX-K tax effective to matters. rate X.X% items, the XX.X% on tax-related year. was encourage our the

box before to net your tax, earnings adjusted and also have share the intangible attention the of provided section where per of income special slide, to Lastly, impact expense earnings our we amortization the exclude I'll direct and items.

Medicine look driven declined tax the of margin acquired adjusting to from XX.X% R&D adjusted by tech Innovative strategic acquisition was strategic med margin impacted note investment associated declined primarily IPR&D items, to due acquisition. flat. to income for When expenses by let's XX.X% in the at before tech [indiscernible]. V-Wave primarily driven segment Now margin quarter. to advancement. pipeline that Please from these the by relatively onetime was Med the both for XX.X%, expense tech med margin XX.X%, with commercial related years negatively and

tax the XX.X% adjusted result, acquired from decreased results a sales as of As by points. to percentage income with for enterprise basis before XXX the Wave expense impacting a XX.X% IPR&D

When This sales before to adjusting turn on various the income flat to year, looking of relatively IP remain the at full it medicine, transactions when concludes R&D year-over-year and adjusted pleased years. portion the I am enterprise Joe. MedTech mainly and the now the call. the items onetime highlighted across for both expenses innovative slide, acquired on earnings tax over

Joseph Wolk

and everyone, Jessica, for us you, thanks, joining today. Thank

full costs at As future. guidance you've results the solid the we above operational delivered the for to the our business incurred in acquisition year XXXX of we quarter heard . and overall fourth already, set excluding fortify when year we beginning

throughout particularly the platforms. key core pipeline, year, We advancements milestones are with across made strengthening our pleased areas and therapeutic achieving

We further differentiated long-term near- for for focus strategic innovation enhance company margins, our improving partnerships continue positioning growth. to investment that in business and the prioritize on and

litigation. progress made the we've Additionally, resolving towards talc

in of many from overwhelming recent support bankruptcy current are future our claimants and months. representative received you claims the prepackaged has plan and support aware, that only As increased

of XX milestone next Court. The hearing confirmation commencing Bankruptcy in the the scheduled is on District Southern Texas February

marketable $XX net into allocation. debt We approximately of billion get starting XXXX $XX a with the cash of let's $XX of capital billion. for approximately and securities position approximately and billion debt numbers, ended Now with cash and

more cash settlement free payments focus higher having and flow resulted from in months cash flow delivering contribution of XXXX, $XX XXXX, on Consumer of tax XXXX. toll during during approximately Health X company despite in litigation billion TCJA $X.X XXXX, billion Our than the higher in

In Our successful and rating, strategically our moving ability and strength or one R&D & unlocks against that investors deploy and us development, success than financial capital industries. Johnson forward. has credit remain to in underscores be priorities. will to important as research Johnson in enables of the & of all top the invested We discipline value which Johnson capital allocation for billion of execute invest strong Johnson's sales. and XX.X% past evaluate made our across We we more $XX the

is continue know capital annually. this dividend plan the XXnd We dividend and increase our to a consecutive to increases. marked XXXX we of investors, our year priority use for of

well We deployed, to over value-creating in committed This includes transactions such much bispecific billion antibody, the or V-Wave, Shockwave, as for to the more also Therapies than are more growth our NMXX opportunities planned us transactions. Intracellular collaborations than amount the businesses announced early-stage acquisition $XX months. larger XX that ProteoLogics, strategic and in last inorganic smaller larger partnerships as of XX as complement common

a As heightened to flow we shareholders behalf to strong XXXX, cash deploy on on financial and foundation value. look focus maintain our will create of ahead judiciously generation we on build to capital

our that XXXX. excludes comments that the time for now impact acquisition on guidance few is at the guidance discuss to this Therapies, planned transaction full It from important will year but a I Let's some note moments. in of provide Intracellular

of operational growth to and [indiscernible]. in and $XX.X growth sales range ERLEADA anticipate line operational medicine of X.X%, by divestitures impact enterprise will assets our growth are Joaquin the in and across an operational Acquisitions business midpoint review be such XX of a our as favorably We or X.X%. XXXX by proven basis sales our resulting approximately innovative Sales billion late adjusted DARZALEX, the with businesses at as to in noted. driven points expected X.X% outlined X.X% expectations midpoint with

of and lung and Our [indiscernible] [indiscernible] [indiscernible] IBD launched in recently plus TECVAYLI CARVYKTI, our launches in cancer. new and TREMFYA products,

and our medicine strength despite enabling technology negative ACUVUE TechniOdyssey, well impact as to continued biosimilar of be the [indiscernible] recently and products launched recent Veles such Part competition acquisitions, portfolio Varapulse, our D hemostat The as enables and of will of portfolio ShockWave as approximately Oasis our by grow redesign. uptake expanded sales STELARA and the MAX, our Abiomed portfolio. growth innovative billion driven from $X Medtech

expect to to a headwind through XXXX. remain continue We China

Regarding investigation, complete working provide information have an to additional U.S., in the we'll Varipulse to diligently we when share. are our and update we

impact to there of activity reminder, Varipulse States. to United commercial a is the no As outside

currency As movements. you speculate future don't know, we on

X.X% $X.XX of or For are relative call, rate today's growth X% midpoint. foreign estimated such, This we unfavorable as spot $X.X XXXX last billion on spot currency euro to results $XX.X estimate rate we of below quarter's sales at significantly impact sales in -- or yesterday's and U.S. utilizing the the euro reported X.XX. of of an dollar billion

and approximately items competition our biosimilar expect other to P&L. on increase is operating XX XXXX Despite expense. points in we of pretax operating and the October. half the on D which from points than the acquired approximately QX of to remainder reduced by margins driven Part Turning This about we STELARA call better IP by management R&D basis the is impact basis spend discussed adjusted redesign, earnings XXX

on is income reduction no interest to net benefit billion cash, interest XXXX in to earned last to royalty dividend. incurred and XXXX related XXXX. a assumptions, we associated the rates driven with income versus nonrecurring rights higher primarily monetization [indiscernible] $XXX anticipate million. We based the and discount net for programs $XXX on year between employee a expect benefit other rate in Due to of longer receiving debt be lower reduction million acquisitions $X.X by and $X The

to are tax in XX.X% XX.X% on our across based projecting income rate XXXX anticipated range mix we Finally, the an of and effective geographic businesses. tax laws for current our

we midpoint operational factors, grow earnings a for per of the range share expect adjusted to $XX.XX. $XX.XX to at these X.X% all Given

reported our share the estimates earnings While currency the previously negative year impact year for the $X.XX. not per full a of of now predicting exchange movements, rate utilizing adjusted referenced, recent impact

of at adjusted expect As per the such, share midpoint. earnings $XX.XX reported we

we the into that initial chart A this stronger about for is foreign planned few acquisition a EPS Intracellular clear considerations this transaction regarding analysts the incorporated of outlined it impact, the of considerably on When operational performance impact becomes finance their half Therapies, with adjusting currency only than debt. mainly plan consensus models. to our as assumed

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a impact the approximately these review and expected and transaction acceleration to quarter, XX anticipate early on close have assuming closes subject approximately of in is influenced of second regulatory growth this very Given the to a of are financing we impact points. $X.XX to an adjusted EPS the by sales when dilutive basis Inclusive of of preliminary the $X.XX cost, will borrowing Again, in be XXXX. which thoughts, rates. transaction our

our will sure to provide the after complete. acquisition full guidance update We to shortly year is be an

I'll your the notable modeling. provide of for some events qualitative phasing now considerations on

We med expect to second versus half and both higher operational the growth in medicine innovative of sales the be tech half. first year the

biosimilar the HUMIRA's the number medicine, best to increase. redesign impact percent once additive consistently continues throughout sales curve, the proxy year D be as STELARA the redesign. the for STELARA The accelerate of Part of with year. of entrants Part competition innovative material applied biosimilar as anticipate D a of to will impact we throughout erosion biosimilar be erosion with competition faced Regarding

QX, We these throughout with acquisition. faced we excluding throughout we launched ShockWave to build of anticipate year-over-year more half XXXX comparisons, acceleration newly benefit positive tougher We the med launched counter impact from pronounced the first products expect to as In progress prominently the tech, in newly for a of our associated year. the the products year and headwinds. more our

continue As to we've procedure said we expect and seasonality. normalized volume before,

Regarding onetime the XXXX. impacted consider P&L, in EPS items our it results is important that to

XXXX in Higher recorded expense and the prior the [indiscernible] in Wave QX dividend associated with is of first royalty and the IP antibody NMXX benefit the interest Specifically, income in repeating. quarters of R&D of closure the QX. bispecific [indiscernible] to in May, QX acquisition acquisition not Shockwave X monetization in rights

the versus second we the Given per and these in of half aligned factors the share year higher half. with expect first growth earnings sales,

discussion the commitments. to Moving beyond financial

subcutaneous for cancer. includes for We excited lung medicine, for for pipeline gravis expected Crohn's cell are the planned TREMFYA innovative for and this XXXX. approvals nipocalimab myasthenia progress for non-small disease, subcutaneous generalized In ribevant

for in expect neck data in in lung head-to-head ulcerative as cotracindra cancer, acorakindra file We as well psoriasis. colitis planned readouts versus as to and in head overall and for data of ribevant invasive data well colorectal psoriasis non-muscle regulatory [indiscernible] and cancer and cancer survival approval in as bladder and TARXXX

upon medtech, cardiovascular portfolio, major recovery a Impella ECP our to and anticipate the approval, surgical advancements across FDA in our electrophysiology, for on building In robotic circulatory product the XX we [indiscernible] launches progress submission continued XXXX, system a regulatory heart and including restoration.

long-term summarize, to to So continue value create commitments advance we the financial XXXX, sustainable challenges deliver positioned our in for are and tackle to pipeline, well our on shareholders.

around the share the a successfully work patients is world. success Our who sincere colleagues passion to result of the serve hard and dedication our of

extremely We efforts. their grateful for are

are take questions. we that, happy With to your

it instructions Kevin the to now to will in seeking for I provide Q&A. So those to turn participate

Operator

first [Operator Morgan from is from Instructions] Our Flynn Stanley. question Terence coming

Terence Flynn

as we a franchise XXXX. also myeloma is but Obviously, think driver it. very about Appreciate history, Great. important growth

you're about as thinking growth community setting that, as 'XX. the ramp here well bispecifics you wondering maybe how the us frame think and just CAR-T if both the from the a of as So into for and in kind the pace can we of broadening about

Jennifer Taubert

for review, hit year back billion achieving that we ERLEADA, had like as Calve all nice That that. SPRAVATO really our ribevantplus this colleagues and [indiscernible] will cancer. we key enterprise Terence come and TREMFYA was in brands well . We're billion cleared back Great. I double-digit that with early world the third includes XXXX. of hit $XX to made quarter and in progress morning, just cell over such were everybody. hello, year important sales our goal our And UPTRAVI. good TECVAYLI brands $XX around making commitment including to thanking those quarter. this XX growth, CARVYKTI, our at DARZALEX, This as in to we billion our and ulcerative a as a ones very start and innovative year, for Well, that and strong medicine target an with by I'd here on Terence, non-small colitis $XX the note, by lung launches, XXXX, like

franchise So with will and was and to is frontline in was settings And we growth billion. out DARZALEX I eligible multiple patients continue both and transplant really for XX% build myeloma us. an $X.X really maybe triplet and and over It billion across in share extraordinary the start regimens. ineligible quad our $X because quarter

hit quarterly that billion in with for And performing we're continue. sales. in DARZALEX, anticipate fact, to very so And well it's $X brand and first to DARZALEX our

important milestone too. So to that note

really, CARVYKTI had the quarter that year, million contract in expansion in strong nearing U.S., really with as well capacity also see robust as strong demand continue billion very Europe $X manufacturer. setting in as and well plus very to a we a as second-line as $XXX year

a step also it so line, and year. very year linear talked performing continued the the And before -- that seeing we're this nice about of throughout being direct quarter that is very, expansion of well, we've than more and will stair rather continue in a first

of in standpoint, utilized the the we've and best-in-class important growth bispecifics. being Both on agents be which [indiscernible], and well yet our setting, continued uptake. share We well. tech. for don't We performing a from setting For got and break working competitive sales of did They're these more report into both we're we Tech products out are very that nicely out academic on their community by them [indiscernible]. will

working a we John, not the we on strength stronghold doing with that assets we're have, there. is for address the of that combinations. also really bispecifics to of stopping multiple additional types myeloma multiple you Because and total, the maybe have, us, in specifically. So we're what want we're

John Reed

your with innovation in, Yes. well had the We NMEs double to year to acquisitions Maybe positive pipeline. of pipeline, came XX internal approximately and follow jump thanks benchmarks of the X [indiscernible] Phase my submissions, at and I'll XX a for bolt-on price out XX the rate. added success and the positive, the XX impressive front on before just appreciation XX lead point humans, and research POCs than industry new X to quite in [indiscernible] Jennifer. an year added and of by colleagues our X exceeding a a R&D. from more the industry median molecules below I offer heck BD XX% pipeline new you, III, out approvals, Thank XX

So to my the team. congratulations

this front, Now where you of them the are myeloma saw some the on were XXX% bringing to getting frontline MRD these if lines portfolio you tantalizing or the together data Hematology, the where you, our form could the [indiscernible] therapies. together is minimal ASH residual or combinations. bringing in the early negativity that point minimal early we residual reinvent the of we're And a we've now as of next around side medicines, been first, disease broad second line at of surrogate therapy approvals. of potential American disease accelerated either MRD myeloma, of showing last FDA myeloma impressive and [indiscernible] for mineral with endpoint negativity, basis new the tec declared negativity, tau, Congress, year, within Mind

break remind frontline also would now and there And with survival we a lines. CARVYKTI transplant earlier in stem of asking excited in for cell are So then reported go-to outcomes these eligible I about setting as our And autologous replace CAR-T we're already with bringing new a regimen for can the approved only overall data ineligible therapy CARVYKTI, year, an whether opportunity you randomized and setting, course, we with transplant is for in studies unprecedented to doing CARVYKTI, the through really the into myeloma hazard in X.XX. that CAR-T ratio patients. of last impressive line second with we setting.

So therapy well. CARVYKTI about really, great as of into earlier I bringing feel lines

Jennifer Taubert

press clinical And me. commercial excited both across patient to We've and it the actually is off industry. X,XXXth in most come therapy successful reached our with the infused was night. very tell CARVYKTI, completed The the hot settings. and last cell team launched Maybe the

Operator

Thank you.

question next Cowen. is from Our Josh Jennings today from TD coming

Joshua Jennings

I to more me. more hoping medical just sector, was established are some a the couple about I strategy, continue and be or be a mix the you fully established? going mean, to to in Or the And other go-forward talk [indiscernible] established and business, going that between is is under just on to businesses roof. with acquisition pre-revenue had -- just swings Wave device the the you've to you excuse Can be and there pre-revenue ask of formally a shift the going about strategy strategy? basis? a it more companies

Joaquin Duato

External enterprise. been investors important allocation good strategy top but Johnson for and R&D. only M&A, It's Thank capital Johnson very fact, has are not always innovation in morning, our & the you, we everyone. part in of Joseph, Joaquin, a of for And the in also one

and be enhance for to our our always are portfolio opportunities looking pipeline. We able to

than in transactions. completed business alone, development more And we XXXX XX

but our portfolio. them and portfolio. big, our in Some of smaller them were were of acquisitions some complement MedTech these small, them also all innovative of of Many both were MedTech

or more You innovative that have of like are case acquisitions medicine to larger side, ShockWave outliers. in the think the intracellular

always It's forward. to our lamina smaller seen more like go wave like That's some focused of where have outliers. on we the which opportunities IL-XX you medicines billion be mentioned blocker, able larger been [indiscernible] have more ones are create to complete or like innovative opportunities. or these opportunities like ones the than Our $X are value, or we

Thank And to to our really working you projections both commitments underline strength well. and progressing looking our which to opportunity the space, I and also upon looking financial and reinforce that the have that an opportunity [indiscernible] an Abiomed in and of revenue fortify is a leadership of closure to always & into are today there finally, model, neuroscience forward Johnson we been acquisition, future. start the Intracellular are Shockwave that Johnson delivering on on which the you. also overall has ahead position want of

Joseph Wolk

Joaquin's on med comments building a relative tech. just maybe Josh, to And

of just activity tremendous a attention I transactions the in notably development evidenced business have XX big Joaquin's almost of of a across lot get to all alone. point, think by acquisitions amount our businesses While most we 'XX

more portfolio I and results, constant excitement we've and acceleration in which year we grew be base full driven did validity more seeing could not we made we are significant ShockWave. investments evidence shock I tremendous for want to this think to both have, the around Abiomed the we to point by firstly, portfolio. XXXX, excited the about bring XX% Abiomed the really the around danger have

This to benefit. in actually is years study XX survival a first the demonstrate

improvement the care. of standard a versus XX.X% mortality fact, In

last also in while safety approval is in pediatric a of received around We fourth think -- community, I profile opportunity, confidence not product. year further the of for commercial which building FDA of Impella quarter this evidence the big use the of the

the of world. This actually the We to French This will along and to insertion, pump is the ad a in which smallest barriers mentioned FDA about Josh ease its inside with X to half in the year. heart, believe we for profile, first earlier further reduce to also are be the the adoption. that expands submission use, lower XX a we our that ECP French planning first be excited which

confident year. and acquisition. a smaller of latest comments A bigger to our this delivered for And reinforces to play technology. closed the at of And is pioneer We failure finally, category, then certainly, Shockwave. goal in building blood shunting This the least while a last a a of certainly intraatrial on of to leading transaction, our advantage. but role there's heart septum. couple we V-Wave, across acquisition of first-to-market commitment is growth million active first-mover and and in which really leadership around It's IVL excitement lot It May X- in our to year. we're important heart that last of failure the X-year allows the $XXX that have

and X extremely easy-to-use the well to designed now catheter IVL to vessels. fact cross And as which also catheters. peripheral recently additional down we We've announced as comes addition novel is Javelin, catheters, narrowed catheter, is X that of a which our an non-balloon system within with this available EX have workhorse our the based modify calcium

investments, impact Josh. and continue while tremendous feel on make drive to confident And will so business. enormously Thank patients big we our they you, that

Operator

Next Hammond is coming Wolfe Research. from today question from Alexandria

Alexandria Hammond

on last Congrats deal week. the Intracellular

acquisition, should For on [indiscernible] expect growth of I of the cadence sales and aptacaprant? to sales we of CAPLYTA, a how the And be the $X deprioritization about billion? we guess thinking forecasted should

Jennifer Taubert

to job, to CAPLYTA patients. pipeline, in both well Thanks question. Intracellular bringing the welcome be excited we so for bipolar & commercializing II the developing And Johnson. are to have much as and depression. for I colleagues so also to extraordinary their They for bipolar an Johnson done and but able as schizophrenia CAPLYTA and

nice into think the a at you trajectory, for take filing current curve really then their MDD, account disorder. can take growth look and sales which that I is a depressive also done a major

indications year. done for anticipate that ultimately the regulatory the CAPLYTA. authorities been A we largest for has of with X be in filing believe those the MDD, we to The approval later

additional be think I excited a thinking. for really be that, it billion-plus catalyst being be that it health to think an so as know more together, do patients And into to $X about factor company we asset, that and mental you we're your issues. definitely so even well will can we think growth, will able going had with We're CAPLYTA. the that to for guided that

others. really also potential XXXX psychosis, pipeline in and We're disorder their Alzheimer's about and anxiety general excited and

as both catalyst us. as Intercellular see we growth near So in term for as well long-term

Unknown Executive

though, not. question, portfolio, things prioritize in you we'll around the whether absolutely do your About Yes. other

not We disorder, we're developing, a that heterogeneous remind one accommodates Let a subpopulations. me of different molecules to size neuroscience fits each example, see can ticker, that for play everyone just is a precision using mechanisms very that we're developing and unique it's [indiscernible], these all. depression having that And a in strategy. those disease

of to portfolio, course, [indiscernible] we So we repertoire broad of see this includes, mechanisms bear. bring which can as different

The suffer not medicines. of get relief people that than depression. worldwide disability XXX more do the the from ongoing XX% chronic leading from It's and of million cause those

don't standard brand, so [indiscernible] mechanisms, [indiscernible] about I portfolio you we of portfolio, all have really gain, whether which compared our weight whether you X to hope have a the benign the it's into CAPLYTA, the of don't is With profiles dysfunction. it's care. that SPRAVATO, to the like are side thing effect sexual or welcome other The

extrapyramidal many the with medicines dyskinesia or today. that You common effects are of so tardive the don't have

So for us. this really exciting is

patients therefore, the with This received that the about for for talking I it SPRAVATO FDA. prior offer just depression often the congratulate care, time Maybe also a while approval I about the had resistant and just standard priority do excited review mentioned that the bring. use treatment ever from FDA also That's our to designation from of We I without portfolio, avoiding solution depression as of received context. a antidepressant care on recent SPRAVATO team am top necessity monotherapy SPRAVATO indeed to only that us receive standard ever the and antidepressant to acknowledge so. side allows that only SPRAVATO and the review, of approval. on the the those Very breakthrough would to effects had medicines in submission. second is

patients momentum great So depression. suffering with a commitment to long-term and

Operator

Anderson is Bank coming America. Tim of from from . today question Next

Timothy Anderson

a on and immunology question have TREMFYA. franchise I

facing STELARA [indiscernible]. like if biosimilars, I'm with out how it might it play So wondering with has

was wondering case whatever So of in XXXX in said I'm you shifts that erosion the the could actually occur in with volume favor the XXXX. [indiscernible], to on you other can like [indiscernible]. side, expect that of volume if I incremental driven TREMFYA HUMIRA access the they then biosimilar has talk maintain side. the price erosion relative And price to in on price about brands

Jennifer Taubert

about that we're really with diseases talked making the psoriatic Specific In really and particularly we've inflammatory to will be or and model. about thing much with probably the patient the we're ulcerative very there about excited there the for TREMFYA. now up And STELARA, -- the your Crohn's guided great launch maybe coming upcoming. bowel with being We've psoriasis best to question erosion back curve should you but on switches. HUMIRA in question. Thank arthritis, colitis progress just

of I of market better both immunology now. therapies than in are or of in they think right there are the need on are now a that in advanced need patients are lot

lot to the patients in both unrivaled we growth subcu in induction bar of lot got reasons think shifting And it's newer I efficacy as across camp. are so a differentiation. well for think a the and It's We've squarely We in of TREMFYA. of next of and We've focus and for CDXX. switch. into products. dose, know the that -- have we and our potential on we're are better as dual-acting to movement and the for got and flexibility. reasons set patients only who more on the would agent with board, got optimism the IL-XX lots there TREMFYA ready IL-XX put there great And we in IBD IBD, going really we x need the

So the induction the IV. ability for for opportunity maintenance and well as subcu as

the prescribers for be access able to we've launch very UC got appropriate a got really the so. make question, very got the as invested to So -- write we've and code. appropriately strong upcoming the commercial in sure looking for patients we're that I in as with permanent when abilities launch to now TREMFYA optimistic last for of right We've we've We've J Tremfya so to going well excited that [indiscernible] pricing. frontline is the want part in as well patients. we now UC, access And to think, forward Crohn's with that right and subcu. seeing the launch, was And right coverage invested in do we're on

of So is what sort factored now. we're and that in seeing into

Operator

Wells question Next from is from coming Larry Fargo. Biegelsen

Larry Biegelsen

what the And thinking VARIPULSE. business are you growth the the are and the how relative to assuming market? for Tim, market J&J XXXX you tech and med in of about EP

Joseph Wolk

Larry, your business. you, continued our Thank and appreciate interest in

saw communicated growing X%. we our start me the the review markets that we business Let with market end Enterprise that X% to roughly

have, for most we come, believe at procedures normalized. year part, the we As to look within the that they

back for last most procedures. expected XXXX. the we same pre-COVID expect have specifically the You of procedures world, We the half part the levels, we will clearing in backlog, as normalized the recall of tailwinds the some that on and now believe year, around of in first we into that move orthopedic

while frankly, I electrophysiology, this we U.S. And matter, decision this sharing given priority is an Farapulse on the are out announced X well firstly us of to And time. This want is this for credo. the now align cause an our that caution, pause absolute be disappointing. at we an will with we to as always FDA to events. us. collaborating to recently did Larry safety for Patient of easy is of temporary acknowledge we of all that root abundance reported a neurovascular Specific case investigate all

We information to we when share. additional will updates proactively provide have further

outside remind rollout -- X,XXX I do important U.S. there VARIPULSE expected is it's where specific I been to the cases completed. the case and technology of to impact everyone this successful U.S., the that the think has have of approximately no commercial announcement to is with

from tremendous X%, relatively we a aging I important do market it's penetration know, you due have while opportunity we with commercial a global and that Today, more to grew are pressures, of billion populations. as to in XXXX, the size and exciting execution and headwind reinforce market, expanding notably PFA position which ultrasound, have low facing space. an U.S. by introductions driven to most in VARIPULSE, know, in offset Cardo XX% portfolio [indiscernible] significant new by -- $X under partially product It's electrophysiology as in you here recently, electrophysiology, market-leading think important a competitive well an we -- today, the

Europe, in Canada. systems, highly market broad been feedback and catheters RF software on XXXX, we an and happened know, the with first in X,XXX of trenched in a and and building a footprint in mapping mappers benchmark we've our ablation initial Now XX with years, trained and VARIPULSE network PFA Cardo our launched success Japan catheter navigation strong which as you recognized for is and installed widely leader, that over of Larry, base

on working TSF most expanding to to modeled focal on we building We're of RFS beyond PFA. in widely which similar the success catheter pulse market TSF in catheter and the also omni a this our large EU Additionally, and tip world. bring the portfolio on demonstrating in announced we are catheter that ablation the used historically approval dual an catheter, portfolio, is [indiscernible] energy to [indiscernible] recently comprehensive

Larry, will of also in left announced beyond XXXX. And so moving acquisition enter we're the say, and we're market in EP, the through it's fourth Laminar not I atrial quarter closure the we appendage AFib to also just working of which

position in while term. facing retain market our know, global summary, our In the especially we're U.S., leadership over long we in as to ability Larry, the are absolutely headwinds, short-term confident you here

Operator

is from coming JPMorgan. Chris from question Next Schott

Christopher Schott

margins. I on just had X-parter operating a

mix about of I XXX basis in in should year the at, trying to despite in what's R&D. elaborate more the Can part from points guess, And that remarks enabling you product mentioned guide? year year. line the lower down growth you just improvement second we to some was be of process beyond I embedded OpEx STELARA. think on this this top be negative get bit expecting little this I'm just and the a that

Just reaccelerates? about we help us and of margin and think about the cadence top expansion as think XXXX beyond line

Joseph Wolk

those the to would Yes. related what With when couple to Chris. a say IP for and we've improvement of prioritized to portfolios as wasn't we its XXX innovative question, been basis to within now own we chance we And health medicine in investments I a look you really that's infrastructure. into comparison part well. corporate R&D company, Thanks consumer the take out med did year-on-year for the separate at specifically had doing business parcel a the as that from know, and respect tech, also our years

more became focused to of starting see culmination that you're So . we much and year. the this

within charges organization. benefits in out neuroscience, still technology have noticed to getting to You significant tech efficiency so infrastructure immunology, Those our you we roost, less to come call few of stable, pretty might related in our some but speak, yield we are prioritizing moves some certain that were breads to so starting orthopedic thorough I of over have improving to tell. the last innovative invested around can the we There's med manufacturing. years medicine, in to investment most in terms did home what -- investment that's starting made, obviously, that into would restructuring more as in a around profitable oncology, our last some well have markets as And the our of come, way. year,

So knew years few face now competition. for that STELARA would a biosimilar we

how organization had of and And has be so about we this gone it. prepared, kind to the is

comments to that EPS the with As with think XXXX and will overall respect beyond, far commensurate sales. back operating as growth I'd be probably that, to and margin I made go I

that So outlook. a should be positive

know, you multibillion X% Most year, we're despite calling dollar line. a to growth both would contract this be top probably for and operational organizations bottom headwinds. As looking

X% growing on about operationally the line. on X% are line we Here, the top and bottom

higher and equilibrium could with a better you in beyond, but an for XXXX expectation have that think some look growth. I maybe sales little bit we'd

Operator

from Matt Next from Miksic Barclays. question coming is

from Leerink Partners. Our next question is coming David Risinger from

coming Sachs. Goldman Our [indiscernible] from question is next David from

Unknown Analyst

the just think especially end in you I over the speak of I VARIPULSE. wanted when a to M&A, the does reversal can I exited through bit, market? strategy. that more previously to organic your walk range. And come term, this that a EP versus the med ex for you of communicated that And then back orthopedics [indiscernible] you [indiscernible]. some contribution high about that pick big established X% that below to of you little number number just confirm is long I organic recognition as apart with the end you clearly, numbers how revenue I surgery the the business franchises accounting there if investment overall just start when the X%, to the inorganic number quarter to that look had tech of bit little you the no a at want appreciate charges or in to But come M&A, in think year so percentage from maybe X% just the being

Unknown Executive

to for Shockwave, billion remain range with XX%. in we between of operational confident of X.X%. and average over be David, at in EBR. a at be weighted clear X% let of we the impact markets X% to in XX% operational expect we very we we of thrilled the end very that deliver you we more performance And X.X%. almost end between upper that's me while thank that XXXX. And growth are grow communicated expect question. And there delivered on basis the an When you period. the expectations delivered out rate our And that sales And and could the not reminder, CAGR as an a opportunities, take $XX our

continuous tech, with and growth knees This Shockwave, growth we're with improvements, electrophysiology is the new X.X%, a Ortho. in was pleased continued our proud in [indiscernible]. mid-single-digit in enabling laggard XXXX, earlier. and cardiovascular, especially that improvements the business historically technologies in and to and I but hips a core med referenced in tremendous innovation specifically our with double-digit both also business mentioned, within We're acquisitions which Abiomed In as the of and I our continued

core know, of operational the to start encouraged but as rate another year, continuous in the in And business. culminating a said, throughout also by We're we we as saw X.X%. growth fourth pressures vision, in we you have had improvements quarter the XXXX, XXXX That mentioned know slower some have U.S. do which we've included that you continue headwinds a continued as estimates. and well, in to too will short-term be in EP one; we competitive in in and headwinds China, near-term secondly, our headwind, that

VARIPULSE, as Ortho, know, TECNIS our the lens and tremendous that by our As IOLs, of portfolio and products, be surgery. broad-based hemostats but in you sector, continued we Barb premium look Strata our and new confident driven portfolio will to growth year specifically ahead, provide we contact we're fixed portfolio don't by in our guidance sutures [indiscernible]

evidence. We body to Joe to also growing rapidly of see it's new of recent earlier, our that important to that about mentioned new as in I Abiomed, continue think Shockwave XXXX exceptionally believe expect recognize, will I back fueled multiple mentioned the acceleration acquisitions clinical and say we'll and half. products, earlier, you perform we well as by an that a indications as

and to prior of change related revenue in builds Ortho versus in Inventory we days seeing our to compare selling will and a XXXX. electrophysiology be the onetime some of A comparators tough We year. factors U.S. are recognition positive when outside business. finally, headwinds couple

to that you you the And recommend year your ahead. in statements would consider these so for encourage we

Joseph Wolk

And any maybe, to quarter. off, was around asked David, none impact There had on that cap just reversal question related to whether specific . VARIPULSE. and you a accounting the

Operator

company. . but we Thanks, team hesitate remaining with remarks. We because David, may the to over to our some for I'll questions interest now your Investor closing and couldn't continued in and questions apologize Relations your the any brief reach get call thanks of to out to for Joaquin that to have. don't those you time, everyone turn to

Joaquin Duato

you, everyone, you, Thank and joining Jason, for you. Thank thank the call today.

for strength elevated of rest to As the our lead that year you ready of XXXX, heard, performance and have we the for decade. solidify balance a the are will Enjoy the day.

Operator

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

may You now disconnect.

Johnson & Johnson (JNJ) 22 Jan 252024 Q4 Earnings call transcript