Johnson & Johnson (JNJ) 26 Jan 212020 Q4 Earnings call transcript

Good morning. Welcome to Johnson & Johnson's Fourth Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode until the question-and-answer session of the conference. The call is being recorded. [Operator Instructions] I would now like to turn the call over to Johnson & Johnson.

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cases levels contact Adjusting others. stable lens trends by last Onetime with portfolio, in XXrd divestitures, items onetime business, by basis adjusted onetime This while these remains impacted market. extra these impact benefit X.X% the shipping in current impact was net relatively benefit of hospitalizations XXX COVID-XX QX with world a for of device U.S. decline the as cases the net The of quarter. and ASP, line of in COVID-XX our QX acquisitions to XXXX in China the remain positively sales worldwide. and from communicated the results the did points. our quarter. quarter the contractions performance. associated divestiture offset the within across their reached about lead Excluding were dynamic softening highest operational of variable and items, In parts primarily medical is the anticipated comprised of partially inventory week, days the in in some QX, recovery the late items certain in

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Chris, to you, Thank joining thanks everyone call. and today's

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be not portfolio will divestiture earnings adjusted gains impact As in to forward, regarding we but of I rigorous on calls, the management, will include continue previous discussed we going EPS. significant

income income models we other comfortable net your reflecting for expense, as from considerations, million million. and those between ranging with be and would special net $XXX excluding items, Given XXXX, $XXX

external opportunities, other million. million for we We major of with or $XXX between your major are you continue cash we this financial and interest of purposes value-creating assuming but net any time. comfortable models, of $XXX Therefore, at expense to evaluate uses are actively not modeling acquisitions

related tax to of XX% items XXXX that XX.X% to range also jurisdictions audits of projecting beneficial a will for in XXXX. in several onetime the higher in due We in XXXX effective not of closeout a to XX.X% the or rate repeat are midpoint

segment quarterly about some or although not qualitative spend guidance. to a minutes XXXX, providing context few provide me Let specifically intended

by occurred XXXX above-market perspectives noted, the a our was Given COVID-XX-driven quarter as be I'll fourth for should starting XXXX, to COVID-related and segment of strong selling the quarterly dynamics, we most anticipate full each perspective, and where scale additional first phasing primarily not earlier, Throughout when, due the benefited that that From quarter will to growth. meant offers saw That from the variability across enterprise on we businesses. we we address both, year Pharmaceuticals, while fluctuations, pronounced illustrative, some the to benefited XXXX. in script noted be repeat applied sales as another Chris we not from to with this days slide, segment. and and longer year durations. in

authorization. invest vaccine the development, continue quarter pursue we while impacting We in to COVID-XX first

expect growth. balanced more we XXXX, For quarter-to-quarter

of and new Lastly, while continue or in not pricing to biosimilar negative generic generic competition, expect expect pressures impact significant biosimilar XXXX. we ongoing do the entrants and any face to we

Device segment. Turning Medical our to

both, to postponements As in health resulting mentioned nonemergency but continue systems XXXX. needs fourth of the through late in we quarter, COVID the we of instances procedure meet as and care progressed observed COVID-XX patients, earlier, less market disruption non-COVID

improvement While macro fluid, coverage throughout as expect to continued such anticipating market care fluctuating remain health the unemployment dynamics disruption moderate but XXXX some carry we and market quarter deployment, medical procedural device first by vaccine are quarter. into

digital growth November, taken the realized to platforms actions offerings. of notably, believe in business market COVID-XX expected significant expected the innovation combination continued our of quarter most surgery in second tempering to in portfolio market recovery by the update and including in Device highest disruption Medical given drive the enhanced execution driven our strengthen, the continue gaps, growth quarter during our advancing second each first heard and quarter, the We to revenue improved growth device core quarter the and critical to you As of and versus XXXX headwinds filling us positions cadence and strengthen our rate the some with XXXX. due future

primarily yielded XXXX, solid is segment in our But likely first yield on COVID-related the growth. the quarter over-the-counter pandemic, products. as noted in above-market sales negative that earnings performance of quarter Our Health comparisons throughout Consumer in third call, to resulting performance

we of progressing continued our rationalization half that on We program while have expansion. margin negative our a continue first also SKU sales the impact XXXX plan in will

we we for with linear, Therefore, to although For like the in return products in which anticipate we Health typical growth the more consumers second half, and normalized full growing would as competitively the year, not Beauty. markets compete. for more patterns Skin anticipate usage areas

confident are in business We fundamentals. broad-based underlying and its the strength of our

Alex in just to the positioned meaningful long to all forward are over We but our your stakeholders, deliver and questions. I XXXX, of term. addressing to value look not

now turn back the over pleased Chris? Chris initiate I'm session. Q&A the call to to So, to

Joe. Thank you,

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

[Operator Flynn Goldman Instructions] And your Sachs. first question Terence with is from

you're with to vaccine break participants all become some variants? the infected. Brazil, of were percentage respect for I terms data these again when the enrolled you us are report work vaccine next combat new to you're Thank the gathering what Thanks that was just can data, efficacy looking and of morning. by any you. of in to these wondering, you week. data out Good remind insight And participants we against have doing trial, And Hi. will from pandemic you the going the to sequencing if and results geography? hence, the in if South forward and vaccine Africa

just and vaccine. Hey patients for around laboratories has is on to tremendous around just could contributions answer of world, every very our XXX,XXX note, Thank have let maybe think once been continue factories been I to our Look, that for to question, associates again, up And the you alone the the the work work our back the services whom world, XX,XXX we're ensure and important going Terence, your and the this I of systems me day much to level. doing in this let products and approximate flow performance hospital question. -- Alex. what a before higher your

very tremendous world. just around also had I that COVID-XX important to think the has reflect Next, the impact on it's

You've taken States, mentioned here tremendous in whether that's X cost million today, globally, on it's and or people some million world, XXX the our during not almost numbers United just we businesses, but important us fourth cases our life heard everything of be individuals, certainly earlier for quarter on almost XXXX. deaths proud XXX,XXX I'm families, million in economy we right aspects the make a we only a throughout over let that of pandemic. alone this XX around the had, can that just different to the least, so of that not difference the doing very performance more the to all many Last but deaths,

also If a things for all segments, you look almost is than what market of like where at our we major started. year position And only near-term financial would in saw ending the our the gains we're the the development, each of we investment what sales we call we you us sectors, performance wasn't I the better made that improvements, where and share than and various and beyond, that in saw for that not platforms, but look future, we you preparing began. we only position and in even well-positioned research when marketing, XXXX, if and the stronger in year finish at think again, as but

part and possible anticipate we as back we gender follow ensure that an getting to us statements of the want question coming to well the to by vaccine. of various to going our efficacy think the have different appropriate cuts all specific geographically, ethnicity, of the give program, we're made very as with science. that it's also beginning, important to the the breakouts, Consistent to got in of the safety all of it days. information having. much your Now, that best not a more data, but robust the We regarding we other will the be more that think very effort number a we've very to provide follow as only of understanding from we parameters, the At with time, data profile you

tuned. stay So,

have comments, And others more his will the results. days. coming providing Dr. Chris, As these earlier in Paul have Joe we be results once Mathai Dr. in to much and Mammen, we and those alluded Stoffels detail expect scientists, to our

comes Biegelsen Fargo. with question Larry next Wells from Your

on the one vaccine question. One financial more, and one then

Joe, financial know coming next your until about competitive? a color to do guidance pricing billion you think XX% vaccine What for to still Joe's the need on call. heard any Joe, week, next I going XXXX? to and good you're or Thanks, to robust. after is you CNBC not But think Alex margins on in give comments during So, and show you the the be said any since X Is doses And produce I pandemic? I expect lastly, your do be expectations And guys. to floor? data that you just

very question. Larry, Hey you your much thank for

earlier, inappropriate our that today for thought significant beginning the lead What versus we said any that mentioned I proximity I the way, a into speculate be put strong As are us in results. the is we selection we we and work expect science it and of think when to the given very of review would very from lot candidate. and

of part review. think, Xa are this this we over question. were second of we see very But I and a the final data, X those published, in results, hopeful we until to we'll Phase hand it we that's as remain efficacy population, that look, kind precursor safety of that won't recently course, particularly remain good and certain. and that the diligent see to optimistic, go to to for know going the we're we through Joe take final I'll larger

firm to meet United that. to track have, And through we Good to the right were now, say the all that thanks Union we're to to well Larry. organization. countries or made whether Sure. for Gavi be that of on the commitments that do intend European supply, And would States, question. the comments respect to the the developing I morning, earlier, order we with with consistent

is I As And what we're happening to weeks. to, into a is there alluded with timelines. think respect trying to down seeing Alex bit little people some this fluidity are confusion with still of parse

in commitments the outlined. very just is here those think, comfortable that are I organizations definitive or our statement meeting I we respective countries to that

as In selling financial see will a the other once for imagine, terms chance data, and negotiations get impact to can and in the pricing, countries organizations, we're active and countries volume of the you implications price. other

and in can fluid earnings call projecting kind why as we of of good and on April bank for the somewhat to situation, So, time leading some XXXX. a credible many be you about will to give place, those folks when the of pieces balance a information first of we're it's or think quarter that's

next David Your comes Morgan Lewis Stanley. with from question

in consensus ones when The as and just on could need one, two dual are just here I think I can platforms? just just like would the points general, you guess, quick marketplace relative we and strength for your booster then, the just the comment given about for number probably mRNA-based guess of next basis expect closer just data, if wonder to be basis points of the margin the And dose XXX. just to upside estimates, what a margin Joe, variants number 'XX, seems about you expansion, maybe -- a that is just I earnings year-on-year for new me. upside earnings in XXX booster. one year, the maybe on need year-over-year versus you to thoughts relative XXX

it'd of so what's 'XX. sure the that's device super Thanks well. into sense margin some much. So sense a But, strength that's just recovery. I'm momentum of give of give driving of us helpful, pharma some any us as be strength, earnings medical just

very certainly again, And the back that we're again, of just expect and earlier, -- releasing, well. as and speak, pull that all thorough I'll -- plan follow -- can. transparent course information. Alex. dose let one. Hey in we We're this dual that I this in Joe the we would enrolling, that together And we to the David, year. end then as try as information out we first will the as as soon as with be as our we'll have continuing second to mentioned we're we to we data. is trial that We very the part disclosure take Look, to take in get of

Joe? our Stoffels on we're starts are scientists at of And strains Dr. think, prepared. exactly future. we've that our have with I we vaccine have to are Mathai about look look, regional, our we should that some geographical how the potential of that obviously, have the the companies, be closely, what you plans and more the as to data the think variants, some will that much Dr. that we But heard based other already will some And for work shortly. seen. Paul variants review Regarding think we're a able comprehensive a I scenarios watching that, currently taking anticipating, ensure it current and once we look, from the upon of and the against Mammen, give differences

were basis points. cute, greater to the Good morning, actually words And but operating you're the than XXX to margins, David. not specifically, and outlook With respect of the kind get correct. earnings

upward. gravitate could that in even that innovative beyond. that keep the all not continue during certainly ideas well XXXX fortify, this to So, want We year, had invest and really flexibility uncertainty we've that just but to to

year, our two again, the profile job of improving with last will the but something terms of we programs a margins, has the margins, the of that this margin objective is to over certainly In improving an that consumer team half first respect years. profit and great consumer point in leadership done under some Thibaut’s that with impact of have have on rationalization. I'd you the improving operating to SKU That are this sales

years supply our chain few a significant recall also may You in investments back infrastructure. made

those found term terms actually as differently, off the balance there are we or as And sustain think working some the in differently. there that are I'm correlate but Some work are not, forward. long being between work of like this state in of some efficiencies office, pay and a to move are XXXX steady suggesting will working of that well. in realized it that starting to I virtual we are that not and then, we efficiencies

into the going those our So, above that of XXX bullish are points margin basis are improvement. of factors some call

Chen from Fitzgerald. is Louise question Cantor Next with

you that you And vaccines as versus you as comment his is X/X pulls the see other you. durability, that your you the of potential second your in to big could care Thank care pushes are rolls parts Biden least development just goals health if for Phase health that curious the question out on any there just moving on data. policies, or industry? vaccine and your at the highlight did durability So, are

again your Hey question. for Louise, Alex. Thanks

a early to Regarding trials. that sustainable durable large-scale response, we work the in preclinical some to durability, the again, going and have how data in some done going see actual see and plays approach. hopeful of particularly to vector patent we're that of a We're out the certainly have you're our from

seen programs other have We in run. we that that

we'll that we that but play hopeful see it would we're expect here, So, out. to

We once the only the are will pleased T with but in level that cells. available we information final our not be that we saw cellular other But again, response have antibody response be more also some results. of would

term about COVID-XX we profound more care, health and Secondly, on I systems, and feel a longer had short that near term. health care -- do both very that think broadly, and -- has do effect

and or in differences candidates, the we've just if back the think, I that months you made. therapeutics And now the were, beginning of on vaccine XX in importance where only near we innovation the reflect the is COVID-XX we at they of very and XX term, number, ago frankly science. and innovative learned are but not where what of

to going better a to reduction they hospital example. what to rapidly quickly think led how using way morbidity, understand clearly, how was what with in impacted outcomes, entering started another that's facilities, the the If better patients protocols at should very information and sciences I data and you treated, look those be on take

offices. health see expansion the like significant would for and consider society, I a global going telehealth, a but economies, which systems, a of this forward. actually think seen care we've primary that the way and dynamic that has at that's programs, from us that's for of clear different just at now also and educate well-established, the on better side, we're public ours much rapid world, think health our without engage risk around offices important to world a the very lasting importance that time in understanding whether physicians Third, and I public of we companies as well-funded it's specialty also The mean, communicate it's levels. some health clearly, well. in care we And number

we a the the industry within certainly shout can collaboration be apply we I'd do there, of some and only that that not care cancer, around cures and take perhaps it across apply also the not are those last whether other And with paradigms a hope for industry the great patients, neuroscience, can those So, for of and seen term that to to but accelerations for that same news, it's conditions. in -- would not take some we've advancements, of but as systems, And certainly out If regulators just only with like and well. partnership least, some longer for and industry other health world. it's but trends. our them

administration your comment build may with, portfolio, is at commentary great around and fourth years. the the both, of to referenced Louise, for would We're again of going to that we've health Alex's Republican decreases different end if overall look the maybe they XXXX delivered that that's is to Democrat. you've the was the have in XXX our And to from just what administrations and other price What we for met been towards in continue performance think innovate. care. do pharmaceutical year, best, and do consecutive they I I one question kind upon policies XX It's what about new Hey around say I once portfolio.

it and the So, neuroscience. the benefit we're vaccine for in COVID-XX oncology, or immunology, other seeing be solutions innovation, of hypertension pulmonary whether

that's just so, be And Louise, got on. going I the by focused And comment. we're a what to way,

the this you. was really You news by did a work job on That nice program outstanding morning.

Louise, Hey and on add innovation, other forward opportunity with I access, to might the care we system. overall of as improve using feel perspective care. frankly, one Clearly, and just health to health the around is, the the around related issues an we will shape working terms new in point prioritization administration that look this to the pandemic actually

is question Morgan. next Your from with Chris Schott JP

beyond? second I guess help there of product sense competition that sales, The in is as bit levels? a to consider see Is Just in more we that and evolving get XXXX quantify to more XXXX color obviously but COVID space. over was normalized sales Maybe trying one close think just you. will thinking much time? around about about just XXXX about an how normalized Thank franchise despite on My growth is generating provide you psoriasis of STELARA. having healthy color we maybe be there to what be as on still you we step-up in increased impact just how to the just another of need a very or terms growth, us little be quick frame? can device time I'm in you the sustainability sales, of on think

to actually in the Chris, the the confident we medical look, signs quarter long-term medical at, XXXX, return device good over the up where I depending very rest remain of XX%, to XX% we overall, of as on device market course went third of to market. we And very saw that mid-single-digit drops in the drop around saw category to looking think through from we anywhere year. you're which the prospects the

of the the in current world, alluded certainly some But in hospitals' we're continue where you quarter see hospitals as through example, decrease areas comparison As ability in Joe -- XX% should other United early elective that we return. of we such, I'm And volumes hospital let about the on to with and see demands. significantly. the project, of of or the Europe. patient if surgeries quarter, earlier the in in impact States, tremendous as the their no second what at seeing certainly UK, strain I we're would expect first systems has would ability alone the systems. encouraged year-on-year by of in regions overall, couple the There the and improved overall, a quite you hospital although more manage Chris seeing around But and XXXX, a you some sure look in continued believe we're places the XX% commentary, for particular, than resiliency in signs, to are

expansion XXXX be. of well. expect and as would we market of a and as continue previously, we in over But to the to of XXXX. And continue indicator our or -- performance normal was baseline beyond again would a that see that a that to XXXX, a more more as we to the at we're mid-single-digits course use looking an to return benchmark look actually would that consider at As expect growing -- forward can we and team's again, what see to going

about There STELARA. was also question a

Yes.

upbeat overall of XX% quarter, you in very year. if on for look remain full we the at I look, STELARA, performance was the Regarding the about STELARA. performance fourth the it mean, growth

growth. agents. indications years of There XX% upon to of and and experience. rest really about an robust is a area a its it's the what's looking safety the We conditions, also medical are are in profile the remember and of efficacy the that know new GI diversity Crohn’s we number based in that competitive now significant we of And a well, again, particularly that need, have category. both compound, It category. we is differentiated of especially But of important with this unmet where in at STELARA just terms space as the unique, particularly GI now think very is

to grow for really maintain think not we opportunity our but there to remains position. so, only And good continue us

it seeing you STELARA in Alex GI if coming the from quarters, look we're that indications really recent noted TREMFYA. in for where is growth Chris, the nice growth has at in in And where has is uptake psoriasis been

psoriasis picking switches to is its on scripts TREMFYA, TREMFYA of play. up but market own seeing for we’re and STELARA You're right, our some space, out then it's a competitive new

growth Thanks, STELARA just And the share over for context, great was please? appreciate I so seeing questions. Chris. and the Rob, in X points there. question, Crohn's progress quarter-over-quarter, next

Your Wuensch next Citi. from question with Joanne comes

Two medical in device questions land.

on date whether contact a competitive as about vision out or then, us a we rationalization pulls as out, pressures? the about in you couple plans SKU in current pushes on, lenses both Could and environment? of are bit different little versus surgery. not Care, a in well change approval, as the that tease going how think you With And give those in of you're and Vision VELYS that sort can thinking there rolling

the Joanne, about And VELYS, you, regarding approval FDA. with Sure. from to Joanne. good very were hear excited look, the we

surgical in think we still we just our able Device the during growth is flexibility, it that Day and accuracy, penetration. -- the potential. teams, at opportunity of the this Innovation our for is a Medical were significant has a share you provides reduced we As it if footprint market that we with the think to look with has that tremendous group, Again, terms surgeon

will just nice it to other think bearing areas have be we beyond also remember, ATTUNE our replacement plans to also as VELYS complement And but to We knee knee. significantly well. a fixed cementless expand

is team other new expanding the they're But, be testing to we think will will look the course associated tell think great and over But, So, agenda all it a plans. overall forward an I'm up, position. of when what competitive. will ultimately the physicians, that and importantly, I XXXX going as we get to you and families. we completing has you got for combine patients And aggressive their into lined the launching again, our and speak. be more option it for we that, for very all surgeons orthopedic not of launch

There that It's enter position lens Vision XXXX. continued the near-term year, focus. have the And improved different also Synergy past business. with made got of the Regarding XXXX ended overall lens. the regarding surgery we'll well We're the high and focus number believe contrast. the quarter-to-quarter Care, a strengthen. we well-positioned we think in did our our to as market, technologies, first-in-class market. to year, in changes of in a IOL, number we we as in we significant lens has really with as are product, contact as a excited Symfony certainly We see contraction And in lot you're went that dynamics and saw improvement contact we about range of a launch TECNIS depth of a a great deliver TECNIS a surgical combining We've be right. also

We expect that in 'XX.

Care our So, again, in confident Vision we very optimistic potential overall business. and remain about the

small for the worth the that there the of quarter, it related stocking there. some you still then, contact actually Yes. It a you Joanne, In builds. see and contact we grow. of just almost was growth, was X lens to our And if we remember, in recovery in the of did noted, market side, We good. as on points. retail is in lens, market. was And do competitive inventory view and dynamics couple that some did surgical versus were adjusting as those the have growth prior double-digit noted U.S., it some

to good trend. it's see So, the

still declining, that including mentioned. remain we innovation improving the and it's optimistic, we're Alex While sequentially,

Credit from Matt question is next Your Miksic with Suisse.

Devices. a follow-ups just couple of So, Med on

If sort surgery, Joanne's in is, some generally -- orthopedics made for is to this progress helpful. You've -- digital surgery abdominal gap end And on you've just ortho VELYS back any new maybe that that maybe sort do in of top that get Med in markets, that year? these recovery benefit could the this about would launches. on year of super of following and rollout the half question digital in the these around cadence think you line Ottava lung. for to And and some the the got lay sort out and the in surgery great see market, of start XXXX, you the investments we closing Do entail year? both then, curious, how those following to volumes just the and be and of of Devices, we see

we've was put we to Look, I the at Medical faster the go to to back the Matt. are that's our it's where a we and it goal some overall where compete. maybe we almost range. businesses. where -- much. believe at if We a or additional X.X-point, in as markets in articulated X% you vision than And Sure, think, orthopedics division of rate. our If cardiovascular, and at it. the times, X% on is as X% And grow goal growing important and look we very we to went was compete growth and perhaps XXXX were believe Thank really number you the about our surgery expansion the I markets rate where for perspective to through care of others, XXXX, Device

significant our out course, trends XXXX COVID, and of overall, me, But pretty that fourth or here a effect with on X.X% XXXX third if excuse over -- a we after rate, had we for too, very quarter, As as -- the us course normalize again, that think of else will you and of quarters impact. were consistent, about put we good and mentioned down pull everything we and the out, beyond. earlier, those XXXX,

but outlook going take to unique we room. And course will think VELYS, our complement offer as recover arthroscopy. Regarding make personalize in does we At be further mentioned for it We overall surgeon's not operating knee easier year XXXX. others use the I the than well. think think get given system, the of over things the that will the just We versus potentially it see the a to increasingly and time, great more in some of again, we in capacity of market ability do down return return only But, that back, of hit it's the procedures has certain place normal longer to to a line hip get effective it the The that term, And of earlier, demand a a as a their really for the as hopefully it expect significant. to It year can enhance more as ATTUNE over number by course knee knee to continue same advantages. that market to are total many delayed, pandemic because perhaps will hospitals confident. our feel features dealt able state. be will with procedure. and patients way be the would think hip pent-up was the to procedures we we way, this to quite those likely we're see, others can that as more the perhaps

review back Ottava. offer in going we're truly excited think to We and our about digital in next-generation a November, surgery. robotic it's saw you As very

you months. mentioned, last made the As over the great XX progress team just

a than low various that have we And with the penetration, we're here all whether technologies the in it's on the certainly very too the of will kind XX%, build-outs very we so the that is -- we brought surgeons and on just the X% we committed lines confident -- offer be global previously on we options As less world, remain to that or here to. basis, in those penetration certain United together, the it when market the a think is continue time do has track more upon in that here that ability you the But, we around to categories to States. lines based time upside we'll expand mentioned. United technology just States significant or think bringing,

Danielle with Antalffy from is SVB question next Your Leerink.

like the But, had that what the just Is a I given over And impact. pretty were this, COVID to rate resurgence? just of there been, question. numbers get actually normalized it much. Alex. Matt's I could missed the the way allude not sort COVID give this would have a detailed question. Thanks you the feel for have to any did quick growth you in quarter, of so you two around to I if sense quarters, sorry COVID for last response I'm

would the one. Yes. by was at guidance can we guidance have gave an based we that was Thanks, been QX of there Yes, beginning I impact. impact our quarter, take we were of expected kind what throughout early do Danielle. the provided year. that as the able did in And because what a range to you original we on year, then, of

versus we look a could we that QX you in anticipated contemplated week. year-over-year, ahead or earnings, thinking, at we'd our this original have shared growth from what plus down anywhere If of would be some XX% which flat XXrd

that of where low we some landed more the were the at market that of range. procedures timeframe where you we at look range, basically XX% down probably experienced in If around softness the given the December landed, that additional end

more with low line the towards the some So, at expectations, overall, in but surge end, of saw end. the given we very

question with will Bob of last America. from Hopkins The Bank be coming

very Thank much. you

adjust if than headlines. about the you're quick And to too onetimers. QX, the if approach worse comments. back the Device also you. normal the States? levels give when relative procedure is of us in the no surgical based the in everything a of United to declines wondering QX were we what aggressive to was today in sense it Medical be you maybe United one appreciate in growth, assume to seeing onetimers. on I that net half of that device really I QX impressive globally to could the the XXXX, that comment pretty XXXX, I happened on those one. volumes Just again might revenue given appreciate you out think That's able in Thank QX, U.S., we States

elective position because on saw even had we the United differential procedures, hopefully, of period. the were What think again, much. the North that some to we country But, of ability we even systems And to in being America the where certain that a And fair to differential our in me, I impact Europe -- improving in LatAm of excuse places where States trends surges X%. were that say to very saw that down see in were more with you it about Europe to in or during significant see about as saw impact. a would us. pleased in spite majority Europe in it's the the Thank see impacts expect able of and of there stronger later virus continue QX of up we return. Bob. Hey in we course And the around just again, was XXXX, over regions we provide

And the your volumes in so, to upon where are. regarding we currently hard questions on based end, back it's look, predict

certainly this the QX. year we think significant will impact most As earlier, we said in be

take lot significantly into plans come year. would that ongoing then to a But, levels year-on-year QX finish and control to more to continue some expect expect have we to closely. a lot obviously, projections pretty of improved volumes would But a the assuming vaccine watch the those to in current of of would of we we COVID-XX, lot the As we better of dynamics back assumptions, And see kind QX. There's parts. consideration. of normalized as with surge, there's moving our comparisons we'll overall deal distribution, change much again,

Great. everyone the for who your to couldn't and don't Thanks, the hesitate remarks. Relations out some for question. in interest closing appreciate Apologies team, as Thanks get I'll needed. questions Investor to to brief because time, of the continued those reach back our Bob. I to to call Alex Company. we now turn your but

patients, comments, you Well, in term for questions Johnson. and thank XXXX, systems your a And as world, who’ve was XXXX updated and credit We at challenging your confidence on year the but but very where likely and you so tremendous Johnson on performance. to the through want everyone think we we point, that by we many also positioned go employees hard We're continue interest, much, just very to of & overused well health this again I forward the systems you embark around as to to we're and trust our acknowledging on proud support families, care this on end so taken fronts. year toll keeping on worked for look your different give same, hospital remarkable information gain for and It's more ongoing the has started and I period. to Thank an this everybody. our through the insights.

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

You may now disconnect.