Johnson & Johnson (JNJ) 18 Oct 222022 Q3 Earnings call transcript

Good morning and welcome to Johnson & Johnson's Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode until the question-and-answer session of the conference. This call is being recorded. [Operator Instructions] I will now turn the conference call over to Johnson & Johnson.

You may begin.

and meeting the forward-looking product business. company's position, business today's among relating development, that of and things, separation other future strategy note may Consumer statements include to, market the Please company's anticipated Health the financial performance,

cautioned there of these Form which actual and today's found A risks are to be significant the which on investor.jnj.com at XX-K, rely and date, are using particular, the further the and on future is materially from differ impact In certain pandemic. may can to company's XXXX uncertainty expectations factors in and about results of is website. available our events, to uncertainties, cause duration COVID-XX on risks, uncertainties other information not based contemplated You're projected. and the statements, SEC description filings, current available the that as subject SEC's these of our of those including

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

Jessica is Moore, President Relations for of This Johnson & morning. Good Investor Johnson. Vice

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

for anticipate approximately webcast our additional questions. priorities, capital cash available time today's the and sharing will quarter transcript highlights and key commentary and overview Joe financial third I and XXXX. of for In XX of the addition before We schedules. to will remaining as the allocation to provide your will then Excel be results the financial our we sales of last version presentation and The now the today's associated related well be for posting schedules, segments. an will call minutes. as three updated P&L will guidance business corporation position, review an

effect of an quarter move quarter billion to X.X% results. as third third sales XXXX, X.X% were sales the increased third growth, XXXX. translational quarter let's of of versus excludes for currency, increase Operational impact growth $XX.X of the Now, US, currency In the the Worldwide had with negatively of US results sales US, regions declined Operational outside negative OUS a impacting points. increased our In XX.X%, our the XX.X sales reported outside X.X%. currency by was points. reported X.X%. X.X sales which the the

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

earnings. to now Turning

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

will expense Health a streamlined of the X.X% exclude earnings to additional segment compared third Please of keep Beginning decline increased amortization increase both represent and the two Consumer earnings we the quarter items an franchise to sales special US. I currency adjusted quarter Q&A. per third decreased the per segment basis, $X.X adjusted the and to X.X% now asset comparison quarters, intangible was quarter with Health. an On time the $X.X X.X%, and and the Consumer to sales to respectively, periods, XXXX. of the more brief for slides plan and refer outside of and with comments share after-tax representing Unless Continuing diluted of the billion with X.X% shared commentary. operational remarks highlights. of impact therefore stated, Worldwide leave net diluted XXXX, in for of X.X%, translation. in prior were change comment for $X.XX, Excluding billion our otherwise sales US share X.X%. on performance business decreases earnings for operational percentages quoted in adjusted the

worldwide the operational X.X%. US, outside currency, sales And growth X.X%. increased operational sales translational Excluding growth increased

strategic by product market worldwide sales growth divestitures, primarily and US and of a products and in driven NEUTROGENA the the personal in due strong to growth of cold, OTC and Excluding care growth growth of season; and constraints growth acquisitions OUS offset due cough AVEENO X.X%. were flu price impact increases; Russia. was new This to launches. was partially suspension supply and in by Results in

Moving on $XX.X the segment. sales X% Pharmaceutical to with X.X%, Worldwide billion of growth and outside in the of Pharmaceutical of X% our US. increased US

increased the worldwide outside growth currency, XX.X%. X%. translational Excluding operational increased operational sales sales And US, growth

acquisitions divestitures, of worldwide and impact was the growth X.X%. Excluding

were X.X adjusted increased by growth growth growth its decrease worldwide competitive competition X.X% growth strong and Within pressures. worldwide. drive biosimilar the sales ERLEADA sales increased Excluding X%; growth IMBRUVICA with sales, remains XX.X%, respectively. worldwide XX.X% business, X.X%; ulcerative of by execution, was five of were by and partially REMICADE, US, the US, market colitis, our STELARA was driven business, US, approximately in growth and position operational offset while period market Growth XX.X%. in our and consecutive with points in growth. sales. a as grew decline CLL access paliperidone confident net of ERLEADA X.X IMBRUVICA of share enabling us in growth. adjustment XXXX. below strong MedTech the leadership sales points for year was gains Immunology basis sales and EU to US continued on and psoriasis in points above-market X.X to deliver our I'll Results to the the We to by growth MedTech arthritis, driven impacted commercial with $X.X quarter along in US, increases declined the gains turn outside continue a government respectively. disease market now DARZALEX X.X%, growth and strong our along negatively sales unfavorable prior X% portfolio XX.X%, X.X% of Worldwide the results growth, including operational offset levels, segment. Overall, the gains double-digit In and deliver clawbacks. worldwide in to to of of psoriatic COVID-XX by In DARZALEX, driven pre-COVID above-market increased driven remain and by due in points IMBRUVICA and vaccine by sales share maintains a increased Oncology growth. respectively, market the of US. by our TREMFYA, billion your X.X US Crohn's ability of XXX operational XXth well in of outside with sales points long-acting in with and the adjusted as increased was partially attention TREMFYA growth operational X.X% sales operational to and assets with Pharmaceutical with STELARA gains

growth sales and X.X%. X.X%, operational worldwide increased operational outside currency, translational Excluding growth sales the US, increased

market worldwide devices MedTech include orthopedic to additional data, and Drivers for sustain enhance share our X.X%. and or well strategies the recent across of energy; we recovery digital our positions solutions across platforms. as large such enhancing as new industry acquisitions solutions, commercial leading growth of impact differentiated platforms; most growth priority majority as the our divestitures, continue our in VELYS XX in portfolio. electrophysiology and on share was ENSEAL Based products procedure Excluding focused XX

volume the selling offsetting in billion MedTech sales previously and in and platforms communicated on supply days sequentially tenders, in of quarter. an the challenges, As is China a with XX expectations, quarter. $X reminder, versus in quarter Partially primarily the generate in results grew impact growth Aligned of international our timing surgical procurement had operational in based annual primarily additional sales. orthopedics these impact prior And each the vision. immaterial context, for over

driven the compared to Consumer by the chain the efficiencies products items to in few sold pharmaceutical businesses. a inflation, primarily our deleveraged that statement by partially unfavorable last for the Cost XXXX. turning and changed noteworthy points, offset in MedTech currency of basis consolidated and earnings like Health have by commodity Now of business year. of of the same I'd XXX quarter third to highlight impact quarter supply

invested competitive this and XX.X% the invest research to and progression X% investment quarter. $X.X increase primarily multiple increased business in at prior to the investing sales a year, development franchises pharmaceutical in business. continue billion The We across MedTech portfolio versus levels, strategically the due was in of

third of driven $XXX lower expense, an securities, related compared Health vaccine costs of of billion losses This separation COVID-XX costs million and income in third primarily of quarter. the partially XXXX. expense and The was by on an related expense $X.X other litigation the Consumer in XXXX by line in offset current quarter approximately was quarter expense to the

international due the tax income driven taxable our Regarding was incurred to the quarter versus the of in of certain a part in same effective the the planned period item company's XXXX reorganization that reduced Health by last QX rate one-time primarily quarter, in XX.X% of costs mix. and unfavorable was XXXX the income taxes special subsidiaries, in X.X% business This Consumer increase as separation tax year.

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

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

decreased income before a Now on by of segment. by currency enterprise of commodity before from In and look products impact XXXX, in third cost margins currency primarily and margins at of quarter remained as tax the sales XX.X%, our efficiencies chain MedTech driven to by leveraging. unfavorable income XX.X% Commodity sales, from administrative unfavorable let's at adjusted percentage and and for tax research the XX.X% supply XX.X%, inflation inflation products flat sold. were development investment marketing increased and offset in to Pharmaceutical XX.X%. declined driven of primarily cost sold. adjusted by

from earnings XX.X% I'm to & price quarter to investment Wolk. third actions Joe Joe? Finally, of inflationary to the Johnson the Johnson the pressures, driven Consumer despite concludes and XX.X%, sales improved margins pleased prioritization. now Health turn and results. This over portion call by

everyone. you, Good Thank joining morning, you us We appreciate Jess. today.

results segments the the to shared, accelerated growth business versatility macroeconomic significant meet across our able just segments, three earnings impacts We solid we're to reflects challenges. and costs. operational and across persistent to are despite report of Jess strength quarter. our This inflationary all global performance operations third despite sales we our As of expectations input pleased in business

against our we've periods care. XXX-year With history, health strong Johnson's we portfolio & on strategy, results we and a unfavorable to to volatility. navigating diversified Johnson outcomes macroeconomic and through no long-term access focused while conditions, proven but of repeatedly improving deliver short-term are to challenge executing of and stranger periods demonstrated a in balance record the our track of sheet, ability Given have

from a the highlights me Let share enterprise quarter. few

on We the and face provide rely continue that treatments to of strategies and patients the pressures. in supply deploy chain effective consumers to products, medicines

impact meeting we're demand. to sure teams by working with help working make been of partners these challenges the to tirelessly Our mitigate have our

San opening Francisco, growth, the to will R&D recent by continue science, being of the I pleasure We the Area. R&D expand for be me it of in at the our demonstrated which reinforces Bay data analytics combination invest in the technology the of and campus. Seeing as of had innovation, driven medicine. campus in future will that opening person for our for only presence by this

in name Consumer of separation We Kenvue, also company. progress the further the planned Health the new made of

addition named visual name, as to Thibaut, will call. announcing Chair the Non-Executive on purpose, Ashley updates was the brand, Merlo the Larry events and segments later provide Larry. In for identity their in and Congratulations, notable Jennifer Designate.

of and billion. cash Turning billion. cash of now $XX approximately quarter, cash third the securities to for At $X flow approximately billion capital free and marketable the generated allocation. we approximately of $XX of of position $XX billion in cash a had net excess we end debt and Year-to-date,

top allocation in capital Investing period the concurrently. and affords by balance through our multiple last innovation and our to And the approximately strong three over priorities X% R&D allocation our same quarters, us priority. capital unchanged, R&D Our we pursue increased have sheet year. is priorities remain flexibility investment

continues underscores $XX our Johnson also & nearly and common and strong our returned investing program, enable authorized pipeline, capabilities mid-September, up of business our repurchase to This shareholders combined enhance markets, to portfolio, financial our opportunities, acquisitions external billion that and with Directors our shareholders. would the while This already while In program other yielded XXXX. returns build to In organic growth of addition to stock. for collaborations to team play our returns. $X Johnson delivering confidence us upon a our being our billion share delivering current strategic in Board in higher-growth dividends, evaluate in in of has

Moving XXXX on year to full guidance.

across despite growth our by well the healthcare operational evidenced to businesses, business As third sales continues as quarter, be various in pressures. all rooted strong three macroeconomic as fundamentals,

remains on not seen the And We to unique the strengthening to at dollar decades inflation continue and US a in as see levels not relative this in other US. to US slide, currencies. experienced

reaffirming impact both per and reported margin business of higher QX quarter's some midpoints attributable of sales, to this Despite operational narrowing to are input billion saw these gross $XX the operational X% sales ranges. reflected share to a range XXXX, adjusted we in eroding cost. in to sales pressures, our You the comparison tightening On this or currency are at our we earnings midpoint. billion rate growth and $XX.X base and

loss year September. sales this on is year-to-date month acceleration We imply growth, deceleration operational guidance in While of an exclusivity during our it don't when third of and ZYTIGA driven to comparing slight impacts. does the full a of by the to growth, EMEA currency quarter the speculate

translation estimated is to approximately U.S. an estimated XXXX between currency or impact rate spot X.X% billion to to $XX However, of using basis reported compared in foreign XXX the sales X.X% to resulting points, an the there week as dollar billion. of of relative last $XX.X X.XX, at negative growth euro

Regarding the other lines on P&L.

spend were some to this While the points. across the of due inflationary approximately of absorb to to pressures most decline inflation a categories impacts year, we of projection are basis XX operating our year able full margin lowering we

employee on $X.X a our items, to favorable are increasing Given of billion to other $X.X estimates year-to-date we benefit-related trends billion. income range

reflecting we again, maintaining previously earning experience, and anticipated, have basis we XX.X% reflective of are tax midpoint estimate and these million, Regarding are estimates, And $X.XX $XXX range the at of XX.X%. to currency current expense, our whereby which finally, to a range higher XXXX of interest earnings of the to effective to we are higher of to our increasing rate is The law, X.X%. based over revised rate our per share adjusted balance $XX.XX, growth year-to-date a a cash $XX.XX our range or Considering midpoint. million at income. we is increasing of on estimate, on updated $XXX $XX.XX income of rates than a a constant

While potential is but adjusted reported predicting negatively by EPS, insights the expected approximately movements, currency per share. our not provide $X.XX to on some on impact to be impacted EPS

$XX.XX, of As by some to reported appreciate share to is tightening earnings $XX.XX a the which our per of XXXX. midpoint are the I turning of adjusted and that, result, $XX.XX. maintains attention you range, many previous your

you but anticipated goal XXXX, business every to perspectives we'll actively our pharmaceutical provide billion year for $XX that plans STELARA We towards to our the US. grow preliminary develop which the remain despite XXXX allow some models. of your in by is Pharmaceutical finalizing of year, continue second occur to confident the are me in We our LOE, qualitative to next consider as half sales in

pricing from capabilities For some China. time, in continues regionally, commercial our procedure MedTech, from be situation positive this a innovation expect enhance and At hospital competitiveness. that to volume-based we dynamic lingering our the staffing COVID-XX continue trends and investments anticipate we impact caveats headwinds with to in to

benefits For although challenges supply price continue strategic and some XXXX. Consumer increases, in Health, expected chain our we disruptions, into of to are a reduction are seeing the

inflationary pressures actions we offset costs expect persist, challenges. to We and input take to are these higher continuing and to

While some certain improving, in are we in inflationary pressures XXXX. XXXX P&L products be mind in our sold that, and keep flow will through manufacture

made this track announcement of year XXXX. the in as stranded well to in as how later initial to separation, as far independent details expect are the We XXXX an remain company, further we on in up costs XXXX. the stand-up as late type or of mid indicated As and we estimates, announce November standing as on complete separation to in Kenvue addressing early cost we

spot $X.XX globe XXXX's needs utilizing unfavorable to excellence. prouder impact call. XXXX meet the $X.XX we to executive euro an reliably and speculate environment. as don't unpredictable the previously currency per be to week, economic has could Johnson operating team $X.XX for share on mentioned, continues of approximately The of of impact earnings more not their or last year, navigating in our $X.XX July's estimate on be to currency and adjusted movement, across while committee Finally, rate but members proven referenced an the I commitment we patients of volatile & the to the $X.XX yet than Johnson global active

We am for delivering focus staying and unwavering inspired be I Thibaut are stakeholders Health, dedication welcome our now Consumer for on pleased true worldwide growth continuously our while officially their by credo. our Kenvue. to to to with starting chairs, soon

to morning Thank Joe of all and you, good you.

have proud far achievements indeed the in XXXX. completed of we so very are We

the Health of shared we you performance in is starting you second you good and performance quarter. with the As in deliver saw that Consumer with improved year, told half our exactly year the throughout what we third that the would

Our working. strategy is

pricing Our are constraints chain eased, also year and actions supply were prior against comparables. we realized, easier

dynamics Joe third results continues demonstrate quarter of our thanks And to those ability to and to referenced, and really teams. all macroeconomic results that brands our the the despite of Our achieve the strength this, our that of reflect environment quality be volatile. and

XXXX our portfolio, to-date, of So, continue the will market. to our business results together resilience brands, with our competitively looking towards line and do that anticipate perform the with consumer in position the loyalty strength to and well-balanced with we our to

recent regarding of towards strides announcement Health our future, just the from separation name, making heard of we are the as Now, new business, planned great Kenvue. our Joe, Consumer including you our

world taken lot chosen a our multiple stand-alone So, pronounce truly company skills applied for as thought the our core you around We association day. space but reflects a and us trust, leave name as to more of care, that name, can new ensure science, then also the to memorable, every touch was brands positioning easy that and was an a that create in demonstrating with represent company. care brand-building Kenvue with brand people element identity as future iconic the attributes expert digital-first modern to imagine, the was of a distinctive, lives a languages. than billion Every to

up society. impact and We also also we play around back unveiled the extraordinary Kenvue words, that our is power profound but to of And And need and indeed have what that well-being. these realize the caring, heritage our believe on work at reflect our expects we consumers in over purpose of add be will everyday this into self-care the in put the daily fulfill world. us cumulative a the rituals to role quarter, seven hands care. We which power world time of of

journey we're So, excited for the ahead.

Now, with Larry and potential Chair, our focused to let as nonexecutive Ashley. named me on continuing Merlo, results, while are towards designated now Kenvue. of our teams realizing the deliver to all hand over progressing And full

Thank you, morning. Thibaut. Well, good

these was our products So, year and first-in-kind last continuing that in in of new year launches are -- innovation product launched four clearly quarter really And third competitiveness. momentum new clearly, a enhanced our to XXXX with alone. new banner contributing are we products just

latest MAX HELIOSTAR and three, launched lens; balloon OptiBlue. lens; Catheter. quarter ablation the next-generation OCTARAY contact Symfony the our intraocular in our TECNIS ACUVUE we catheter; Mapping So It's OASYS presbyopia-correcting our

OASYS a ACUVUE have MAX. refresh just to quick X-Day So on

ranked the of intense digitally All and intensive really is meet builds category, upon clinical industry-leading us comfort the trials. It know, to portfolio. we in was OASYS live brand in those number and lens one. digitally our it's XX unbeaten It's designed largest this across lives, lifestyles. custom

Webster Biosense Moving our business. over to

PV in unique. integrated isolation balloon have catheter seconds mapping This We our a and solution. it ablation XX one enables HELIOSTAR customized It's catheter. XD energy with delivery our of balloon one-shop launch is technology, and a

freedom atrial resulted impact an So we already HELIOSTAR months. documented arrhythmia seeing XX the XX% at has are from in

ways needs. solutions science into focus is breakthrough is the focus team ablation. our the really on through single-shot and on delivering just entry critical this a consistent doctors' differentiated of a couple that Really our So a

to encouraged So on our even health personalized. we of of I'm about more focused and about when come. invasive future innovation pipeline very by the think care to more to-date make are And the start very our excited and to strong smarter, less potential the mission I XXXX,

heard You've can up how consistently say care. me show we this health is in

an are little bit really strengthening particularly mentioned, a and the the continue, of and times, the getting prioritize of the are our of continue we it's forefront to that competitiveness. purpose. times and improving a humility, hospital through macroeconomic of But new world. the today's many of frontiers that And us constraints our like of -- but some in nicely. to always They're overhang We're time. procedural amount also consistent will care core, health are quite going a we drumbeat volumes uncertain programs We amazing unbelievable in the medical dynamic to clearly know of has are shaping with as We that intervention Joe encouraged like very inflation, in has pandemic. recovering staffing, factors parts manage on like supply

continued still world the but in a the confident MedTech we agility and Some little our world. parts bit across are of the resiliency below and levels, are recovery industry of pre-COVID anticipated the

So thank you, and turn to it I'm Jennifer. pleased over to

operational Thank morning. to and with That growth strong really I'd off our was for Good X%. my start across hello, pharmaceutical portfolio based quarter colleagues you, of by like our and regions. broadly Ashley, thanking another everyone.

As XARELTO of we continue growth of also the to paliperidone value ERLEADA, key long-acting a Jess diverse our portfolio, TREMFYA, delivering and portfolio. maximize our STELARA, DARZALEX, leading UPTRAVI, number above-market drivers: with noted,

portfolio across the performance So, really and throughout globe. the great

the approvals new terms during data readouts. quarter, the strong performance, business of Pharmaceutical our to important addition In both achieved milestones some and in

to Separately, received adding in a our with quadruplet first, really myeloma shelf we from and for this patients is treatment DARZALEX are potential GRIFFIN diagnosed approval multiple on to for eligible to investigational European multiple was two the first approval regimen highlighting Also presented, was newly multiple of the myeloma, front-light we from particularly FDA transplant analysis X our antibody before the Phase population. This and refractory for globally And based really multiple patient of receive the announce relapsed this So in important addition our patients. portfolio, bispecific IMBRUVICA. we're final the really US benefit for is in treat off TECVAYLI. to TECVAYLI myeloma, year-end. pleased from myeloma to difficult Commission. approvals DARZALEX first-in-class a track approval regimen study our this

CLL. If So European venetoclax the the only approval combination host versus And turn Commission IMBRUVICA approved patients making data XX chronic first pediatric with tumors, approval approvals US at granted frontline with marking the lazertinib FDA our early-stage an all-oral disease, and to amivantamab in for BTKi fixed pediatric we duration treatment graft indications. our trials from FDA seven solid presented with IMBRUVICA combination across WCLC. were of from for plus

a complete demonstrated we of presented benefit data mutant forward in X data from these frontline look their which for the of with in rates patients Phase Phase EGFR the plaque in clearance course And treatment adult MARIPOSA were psoriasis demonstrated study Importantly, in study, TREMFYA we disease. non-small higher the immunology, to who in cell and future. severe lung skin moderate cancer, our even started Xb GUIDE to from last, of new data earlier

it for earlier So growth. bodes TREMFYA and well continued treatment for

finishing year and third accomplished the I and our really of I'm in the we what said, team pharmaceuticals forward I quarter, strong. to proud look As

$XX we ahead, expect medicines innovation, world-class that medical we the pharmaceutical be confident last look medicines, our expectations. in robust that company a outlined of on XXXX. our current new of including transformational November, growth we and review capabilities, The As ones pipeline to at our our business by we pipeline pharmaceutical remain with billion really fact our focus

you Jess, thank And you. very over I'll it much. So back to turn

for concludes line earnings prepared Question-and-Answer and This the Kevin, Q&A. provide remarks the Session Ashley. instructions please call. you portion open Thanks, our could Jennifer, of and Thibaut

from Certainly. Instructions] question JPMorgan. [Operator from coming first Chris Our Schott is

Your line live. is now

much. Great. Thanks so

maybe Can couple step this inflation. the some some you're seeing through we similar Should inflation Just to I second dynamics? in year? think And these operational just modest line, in think as about XXXX, some seeing to a and a just the from about reason is -- XXXX like you're we like Thanks segment is ability question, of as LOE, comments a in as a margin XXXX, be that a any the impacting guess to tying better these of to or operating XXXX pressures more down of we about of think little that, ease XXXX much. of need two-parter maybe and top operating some so a XXXX? or start a to you a It for together, due elaborate to deviation enough erosion assume is start specifically issue? you is to that guess just as there we out the bit trends there manage go And next a meaningful growth, look large we as margin Joe. STELARA just headwind thinking more beyond year growth a I year that seems that on about

what morning XXXX thanks I their point. at qualitative heads the I'll to is talk Chris, I'll maybe for margin. of give op in outlook do around might insights way for then questions. What Good XXXX this about is be think your each turn it And some to you productive a to it segment over

op that are that as to couple the I have all XXXX well. that industries macroeconomic of for dynamics is companies something a we think margins, pressures address facing. we're So Clearly, all you have and facing

good very, immune very than more a business it's is as not some to most, those healthcare if we're dynamics. resilient While and of

is plans finalize those for the XXXX, our we deliver projects, be our those turn resource So prioritizing our then will which in for that deployment as most for services value looking we healthy initiatives, patients, at to those business.

separation the in and our point that's why the we're Health you time, specific dynamic so guidance going give maybe plans at at through is some hesitant Chris, of of other a I'm Consumer business, to play, this bit little The now.

for rightsize a We historically. our company two-segment infrastructure company have calls, prior we've that the had a as on versus opportunity, said to we three-segment

there opportunities at looking we're so And well. as

matter both we our securing ensure that R&D. the I as precious on do mitigate long-term & to to those specifically that, track our think we success in at most. we'll management do And continue has when that's XXXX. innovation it future, dollar continue of proven those, And that that's that prioritize where of what to we'll have know take we goes responsibility in every record to those that and given the that few fronts, Johnson's when focus. pressures we focus specifically we projects here from Johnson we that, We a

on more but will next we're specifically turn give we're outlook manage an don't So effectively. to we obviously, going and the I on and Pharmaceuticals Why -- very over oblivious, op to to it impact the very, not world Jennifer for to those STELARA margins, maybe come year. address around to us,

Hi, Chris. Good morning.

UPTRAVI. anticipate brands we anticipate group. gains. a for as or our growth this another of of -- we Pharmaceuticals And penetration XXXX, above-market of our the we And and like of continue also key well for launches. SUSTENNA continued results, coming DARZALEX, to uptake INVEGA, year TREMFYA, share continued from ERLEADA, So These then market be growth really as by expect continued new increased combination driven

like CARVYKTI, cetera. like products that products TECVAYLI just Spravato, mentioned, I So et

that anticipate continue we while our of have late so really launches or to And end of the time above-market new a and another September XXXX. do towards year, STELARA to portfolio believe growth existing year got the we've LOE frame of we that with in our lot in tailwinds

outlook? Thibaut, want few a say to you may words consumers' on

extremely volatile, and that the of certain XXXX, to from pandemic world the Yes, will chain parts inflationary COVID environment expect pressure, supply absolutely. in continued disruption, be world. we impact geopolitical continue

mind, thanks innovation, we execution referenced around results. you our in environment, with brands, world. of in we strengthening a part the prepared the the this And to -- to that our capabilities continue So of to play certainly our are we as big quality navigate to

continue extremely that and bring the received to we Moving we in year are innovation by forward, market the we consumers this well around expect to see world, XXXX. this

Ashley?

just XXXX. momentum really say, would I consistent building on the No, in

at year, the three looking the growth. we're quarters near-X% first of for So

And number that and revenue momentum the cost demand a revenue year business our in next the doing keeping that around has Clearly, having generation from so, eyes a on today's beats up. market. of gone environment,

going benefited we those some competitive as much the through couple weathering to from And admin of efficiencies curve. VBP in in of realization years, we keep tenders that and -- can some actually in we're price/mix it's can very environment But like so, everything of through to we'd R&D We've earning of two typically, China and in really our commanding investment and realization. erosion. price price/mix the to the those we going one accelerating do supply mitigate some doing from see you are have manage efficiencies, downsides We chain points see today's past that because, from or been growth remain forward.

that very is, So, clearly, away the Chris, of hopefully, us presence answers our positions you take question. But our think breadth the reach should what portfolio, well. very, of your geographic I

While big STELARA is certainly a product.

Johnson its product Johnson's ever, not alone. on dependent & largest think product one we're I

exists that portfolio that, is the continued of breadth well to think, well as the have extremely today the come, expect. which for so that as I on bodes come And investors growth

you. Thank

Wells coming Fargo. Larry Our next question Biegelsen today from is from

now is Your live. line

Good question one I one Ashley, have for taking quarter on for nice the morning. for here. Joe. Thanks congratulations and a

how and Ashley, more thoughts And, Joe, I'd has you're playing anything Just the in changed love to J&J more bit XXXX? and QX some taking in little we on M&A. M&A steps regard from you so just XXXX? haven't Thank you've about macro those staffing your far and your on to a what And supply with shortages impacting in the bolder seen color Why constraints talking hear trends priorities? see MedTech, of in been you. out seeing China,

Sure. Thank Larry. you,

giving strong year-to-date. I'll world is So Joe alluded to -- just on have a and to, quarter to bit. the I team, maniacal go shout-out I really would and of X% we X% at was little you a MedTech around and really Larry, if And say what first, customer When competitiveness -- by focus the have they a centricity. this, look it

are seeing procedures recovering. We

quarter predominantly United see we I colonoscopies the tick benefiting a States, surgical three. see that, mid-single the digits, as started also but We September, the quarter of procedures posting diagnostic more In end think part to an up it in quarter. example X%. of strong we're do the very procedures at so did latter in

expecting we're So that to continue.

frame really slowdown surgeons but time so surge. up. Europe recovering but was in hitting a September season, be focused of we're that in should of the December, Omnicron also you'll Now, recall winter anniversarying little given in bit a holiday picked that kind a a the the very expect comp, micro healthy nicely. thanksgiving is August in

recovered would say, but three, levels. India two, fast in is still nicely versus Asia recovery, quarter is on in below And and pre-COVID Japan. still quarter I China they're

continue. to that So we expect bolus

We forward. moving are

in position strong a have China. We

We diversified have very China. a in position

on moving VBP to you for some business, due actually we volume-based through pricing the next Joints in procurement were but and wins that growth what quarter, up come That's our actions. are actions the We our through negative had we'll really knees States, United of the in saw in our XX% that in hips we year. the

the for you thank question, So Larry.

start Larry, our the able program, a billion M&A. first last we been to well let cash the regarding reiterating all, strong over billion, through $XX distribute of just year-to-date, month. also as free we've to that have Well, very was the Yes, proud dividend announced that nearly that program fact flow just of repurchase $XX the with me form of mid as shareholders

comments, noticed which we significant feel allocation forward. still front. that level we in But on really continue us that billion to So of as well good capital of or going collaborations acquisitions extremely likely today's $XX cash, positions around exercising you hold

our changed. So not priorities have

find – we're discounted to do you behalf. perspective the bearing the In answer great to on haphazardly. really of of But bringing We're financial short that their approach We're The something. we're help highs, shareholders little not fit, a risk as We're strategic have value respect know being quite distant highs, which, to market forward. something because analysis, from that to to M&A desperation. bullish all-time to a is the looking bit going volatility strong sellers to we're on changed. in you the us, portfolio returning it already to anything too But we assets is not then have a priorities do come of going not out for a the complement that The sense fact, aren't eager potential round maybe with to the have We're company do don't enjoyable anything make and we're even them compensates those for going to to bit – and folks this aspect that actually as XX-week a more make the right first have in heard is frankly, with little doesn't now, funny. rearview environment responses. to conducive sellers very sure mirror. flow holding or cash a fundamental your question our is CFO

Thank you.

is Chen Our coming from Louise from Fitzgerald. next Cantor question

Your line live. is now

for quarter. taking question, Hi. my congratulations on and Thanks the

updated in this to So, could of getting XXXX. you. all growth. it's pharma on organic opportunities billion I you ask sales areas any you if where you, go And And by that Thank what M&A? wanted And is with are the if sales to $XX best thoughts not, seeing M&A?

Hi, Louise, the thanks much question. so for

When double-digit growth X%, the the XXXX So, year, compound take $XX our believe of in We key includes have our current how did about rate by factored brands that and billion LOE. to gave current we at would a in right we're we'll able you that think through to be really got based pipeline, of eight growth actually have $X all which least through exceed additive. there, anything now terms so the which filed is we we've through that revenue we between combination, portfolio with auto really annual that of $X with pipeline and the of and projections for lung to at on potential a with exceed going we Anything which we acquisition. that's portfolio XX asset in doesn't every at look to billion, we get the got now that look And in from five and STELARA think M&A. there, in a so that then we've That's in we're growth therapies products be cell going which and to Bristol-Myers stages progressing the have we XXXX. our like post take cancer we've partnership non-small as Novavax data is is potential various billion, vaccine, clinical development. look antibody through; to novel we nipocalimab, brought Momenta that amivantamab got our mentioned and I Squibb; lazertinib good coming really nicely through

for and have have cancer, We platform we TARIS bladder is progressing our nicely that CARVYKTI.

the on data in early the While patients and going of the the of asset, with bullish really CARVYKTI clinical is the strength we're mean around myeloma what based to world. trials and launching still remain for multiple ramping stages that on

seeing posted growth well at And et as so a growth, our like if we assets as existing the cetera. just the and look with on think what DARZALEX I continued consistent ERLEADA, and XX% growth, been in you I take TREMFYA, quarter, mean that based results assets we've

do coming gives to a organically. of what the us with continue and in look Joe, through layer at That You said, portfolio, looking and line a can ways for so of position existing take further what's billion hit that out confidence being on in $XX that's of and build that we constantly pipeline, to strength. our the the augment we're pipeline to with you top that

as out. earlier access market things that well well. predominantly, things which is commercial sweet out in-market to doesn't machinery R&D But against bringing because our so stages, capabilities as our acquisitions usually engine and our we later-stage really innovation regulatory acquisitions spot going, or keep it our put build in in And and can we the terrific rule as

you. Thank

Jennings Our coming is today next Cowen. from question from Joshua

now live. line Your is

on of rationale being life-saving. franchise just a for thoughts and cardiology Thanks recession out your more to to division? during device be Joe with and could to cardiology Ashley in industry just on parse for device to add recession during Thanks ask could morning. just which maybe thoughts on taking Good your comment questions. Webster & resilient which be build the medical resilient, most questions. -- being thought less. them as medical franchises taking resiliency right. business be my updated Johnson out device particularly, And well, the quick partly of a and Wanted the Johnson's Biosense strategic All just maybe follow-up, and to more Any the the then related procedures

-- mean, macro. start Yes. Josh. I the let I think with Thank you, me

health vibrant. the markets MedTech quite think in of I the end-state are

team still to think And because Volumes that I near we insulated seeing a US, have XX% been bumpiness we're shout in experiencing continue that. more we've a talked, nicely. As cath lab that But the will have quite having BWI quarter that protected out in of we're to is been the three. you're in into are environment. that grew more and COVID quarter met. three, is the is in demand there there's XXXX. procedures like be that's going And what some huge really still of to patient growth hospital still yet give

So we're in cardiology. your to point, to -- continuing and invest,

continue XX% creating expand. looking field in things that lab. we patients and site becomes the like certain We clinical And combos joints grown of Tier a in those very population Johnson if XX-month you from actually this just through well trial years But States, have emerging point to a tend and past to we're a to cath our seeing China like ablation. industry more like billion areas a trauma really less for patients the surgery efficacy the spine ambulatory complementary a of Europe bit we two. pulse clearing which are move pulse grow seeing much about coupled kind quite that going file Johnson are as stroke, predominantly and like areas be -- And and also and on field X in are at that radio selective. the We're a in in on nature. quarter over more that's been behalf laggards patient procedures, bariatric to elective are demand, initiative in so We're channels. program ones the the cities are with think have be would surgery and pacesetters, those of backlog. ablation of two The that cataract we're say in I completed share May as really at with frequency, nature, States in a to a And will, United like huge trial enrolled Tier centers the United XXXX. in elective in safety preferring. less post-field in there's the ablation sports, to to And X.X market X areas and our in then active In clinical & are they've that year. of readout just We team care

some we that, sites to of up, the patients we're some I So kind the of a sense those pick can into shifts during think, can really get and hopefully, the diffuse that of right see of where going to, happened care. of scarcity start of comfort pandemic label

you. Thank

Our Citi. next question is coming from from Wuensch Joanne

now Your line live. is

you stocking with growth to strong. thank my growth, apart question. maybe Good Could quarter. comments to were make much Usually, is want picture better. a Quickly right big you price. to morning, Ashley's market bit your for or heard possibly price? has taking that then Nice here. those particularly erosion, then I the the of market do and we understand now discuss have of follow-up that electrophysiology, dealing pull numbers on on share it Thank maybe want comments it get question to and commanding to how points And I and mix right you're with, I you. and sure words one two of

actually cardiac always has the And Yes. getting a example, when love go thank BWI and completion, can health We think talk of leader, this XX% a stroke. ablation. penetration. patients you intercept eligible low prevent are still And category can think is than if of you love arhythmia of Less we because Joanne. yet we we because we care, No, you, it it to about cardiac disease manage very before sets cardiac kind really in. through market

they of generation how huge and world. just true a that to the really if innovation is How standard-of-care become -- their of ultimately cadence, competitiveness. just close team And it's first-in-kind, what many have is sense first-in-kind. second acknowledgment really will not around customers So the they've shown the a

we to capability XX% the better it. procedure, three, a a fluoro category in have quarters is electrophysiologists the it less of it's in deliver local take That kind shortage innovation, quite going but XX% we XX%, in about is that. that VBP on-the-ground Joanne, that, can, locate those. innovation, a bit lesion, we're go industry I about just from And in that a OUS, very healthy I So, better for some make innovation to and sure making differentiated of of Europe, BWI the is joint, single-minded building growth double XX% impact and penetration of through come, and to a safer to an quarter of and think like is all And it endure as growth a in safer, in up state through but make was mentioned, Asia. very penetration, scale very the the of when about lesions, focus healthy really US, There's and frankly, that from electrophysiologist.

on invest money So creation. a Joanne. you, lot we of market Thank

Thank you.

is Our of from Geoff coming next today Meacham America. Bank question from

is now live. Your line

Thanks Hey, much so guys. for question.

had Just few ones. pharma a

obviously on have indirect before? On launching expect would therapy disruption trying cell LOE the there second your portfolio. the the market year. I&I you of STELARA from be But to I'm next your is business. lot a guys the then biosimilars market, I know just of flood And of question you HUMIRA to on think the impact

one Any more out guys commercial could called You provide the update in? you. for there you Thank quarter CAR-T on that on comments And is rollout, CARVYKTI. for the us? an qualitative timing you have

question, Jeff. much so the for Thanks it. Got

through retain in that competitive that some assets. of we do off positions of and the we're launching. I'm in at to that anticipate asset. with feel able market that a We're products talking plug the good biosimilars we Also start mean and a Yes, cause be forward experiencing other face launching we regulatory will really that. with on Crohn's to disruption. can that TREMFYA is But that ulcerative coming TREMFYA data and more and to getting being also there bring if really bit in event, psoriatic on IL-XX this TREMFYA look while X our about a for arthritis, take product very, patients other the I for it. least anticipate disease process continued what So US immunology. the so put We will through against trials our delivering in and working there hopefully clinical is psoriasis how significant our a at when still Phase to for has that even excess TREMFYA, the look in biosimilars first even and confident for delivering strong colitis, business in the very at will that patients. growth to are think based about I focusing We with benefit and be

So and then the for we're how growth data start we back that CARVYKTI, patients pleased launch. on It's hopefully continued And with do performing really the on trial. then do anticipate reporting year-end. I'll event the off come we're if product driven and is see, CARTITUDE-X anticipate to an by there. continuing I on We CARTITUDE-X maybe

that have knows a is until and results. now, of that that’s therapy. so we three study lines takes what in all at we We're wait So currently looking But interested for we're events. to have one look the to those everyone CARVYKTI to of CARTITUDE-X planning our seeing really forward prior

always for CARVYKTI, this talked we've launch early the really at look planned a to approach being thoughtful about take we scaling if So and it.

we I in not to CARTITUDE-X, towards dependent, process that that as therapy. We've shortage. working on right what accommodate we're so great with both about And able be the clinical future. phases. is to also to in scale we this know to trials of a with in the a we're really initial really now, for we're hopefully really now. CARTITUDE-X, also We've We're factor well to rate-limiting what working product had being worldwide with work able good the the right which where the level line been sight broad closely being that be frontline seeing the good the demand not anticipate centers would and knows lentivirus progress everyone made something that at being through but have as done

of big reconfirm one lot $X really billion-plus brands. and this with potentially growth asset of we So a our as a potential

Geoff. Kevin, time you, we for Thank last one question. have

Thank you.

Stanley. question Morgan from final coming today Terence Our from is Flynn

Your live. line now is

wondering, the just couple think year? it Thanks TREMFYA combined and year, the nipocalimab STELARA me grow was on trial like this of next much. a for can for Maybe franchise clinicaltrials.gov, RA looks then that as ones I Phase pharma versus based completed. as about recently And Hi. X you well. so

you advance if if any that to into for trial Phase can a RA? color you. X wondering just So you're going Thank provide

Terry. Thanks,

So first question.

continued product provide and What we're we TREMFYA. STELARA that. don't robust or is do growth So by of TREMFYA, I can not combinations that guidance we say anticipate --

and as Crohn's strong in market disease I arthritis really Next STELARA market. and competes, has ulcerative psoriatic strong really is year, showing and psoriasis gains and its indicated, TREMFYA been in penetration in that growth colitis. very share

with be at yet look of meetings so those by a next two and September don't to really do quarters of different taken those a growth, as get then the finish building we've so biosimilars. And think nipocalimab first studies, look with an at in three a we processes potential our for there submit RA, continuing them both for confident across out including being could good to really nipocalimab. of ahead when and major nipocalimab, one. to we STELARA, medical that remain least we markets, I share go our you show year at impacted when And anticipate at, on take we published. big XX which the really asset, post then Consistent have all and or really indications, XX through them I

more definitely it. we as to So on can that come share

Joe get Q&A out to Relations it your apologize to like questions for I of for questions to team time, company. our the thanks remaining your to have. interest couldn't and Terence, would hand reach now and closing any hesitate End some but over in with you of to Investor may those to We remarks. everyone you, because don't we to Thank continued that

all Thank ability macroeconomic as look be performance, of be you Thanks, dollar. reliable, our quarter manage saw unfavorable participating call. Jess, you responsibility time stronger a as our take to great for Johnson as in impact Thibaut, conversation. We third across Jess you, strength even thanks Great. for to our Jess. & the headwinds US though and forward well to our and may day, our segments the of many and of to seriously in today. ways shareholders with for a a Jennifer said, certainly from we your collective uncertainty And all today's Johnson high. next Have strong Hopefully, Ashley, investment

earnings Thank third you. & This XXXX Johnson quarter conference concludes today's Johnson's call.

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