Johnson & Johnson (JNJ) 18 Apr 232023 Q1 Earnings call transcript

Good morning, and welcome to Johnson & Johnson's First Quarter 2023 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. If anyone has any objections, you may disconnect at this time. [Operator Instructions]

the over turn Johnson. Johnson now will conference to call & I

may You begin.

is President review Moore, for morning. and Jessica Good This outlook. financial Vice first business Johnson. to full year XXXX Johnson Welcome of our the company's of quarter results & Relations Investor

me call MedTech. of Wolk, are Joining Executive Financial Chief Chairman President, on President, Ashley and Worldwide today's Officer; McEvoy, Joe Vice Executive Vice

us is today. of Taubert, few Pharmaceuticals Worldwide is unable Executive to well feeling Jennifer we join Unfortunately, before Chairman and A details. logistics get Vice not the President, into

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

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

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

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

questions. of allocation The minutes. anticipate updated cash XX will the corporation We our the related today's commentary for business your and the quarter be will results will Moving priorities three then for sharing sales and additional XXXX. and available will webcast approximately to capital agenda, financial for the overview last an first remaining highlights provide before I to time guidance segments. Joe review and P&L position,

were sales, XXXX. results. currency, as versus of first of $XX.X effect billion of to translational the quarter currency of Worldwide excludes for first turn sales XXXX, a Operational our an which let's points. X% Now X.X had quarter negative impact quarter X.X% first increased of increase the the

U.S., the X.X% our sales the our currency Operational reported negatively sales reported U.S. X.X%. increased regions In the U.S., X.X%. outside outside sales with X.X by OUS In increased increased impacting points. results

Excluding sales growth X.X% worldwide, the over divestitures, quarter. and operational in three outside sequentially fourth growing net X.X% all the of acquisitions impact U.S. the the adjusted and X.X% with U.S. segments was

earnings. to now Turning

For ago per diluted the quarter, of earnings by versus related $X.XX and billion the Talc share charge net Settlement loss proposal. to share loss was $XX the was basic per $X.XX one-year million primarily driven $X.X

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

represent the of now first performance segment in therefore, sales stated, quarter. the quoted exclude currency operational impact the otherwise sales will for I quarter Unless business percentages change and on the to comparison translation. highlights comment XXXX

XX.X% sales U.S. in U.S., $X.X Worldwide and increased increases of Consumer were the X.X% of franchises. an operational Health. Results with sales of operational increase and global XX.X%. by price Worldwide billion sales the outside across increased Health primarily X.X% the driven with Beginning Consumer outside increase all XX.X% strategic an U.S. increased

to U.S. inventory club as strong and strong due an channel to double-digit tripledemic retailer was levels year low performance related primarily constraints restocking flu e-commerce restocking pronounced and supply prior Volume by and product one-time as lapping season exceptionally and growth Skin due current OTC growth cough, coupled quarter new driven Europe, demand. and most actions, innovations. the well in delivered AVEENO Health/Beauty in price NEUTROGENA cold with in to

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

Excluding outside the COVID-XX U.S., vaccine increased operational increased sales operational sales, X.X%, U.S. sales increased operational worldwide X.X%, sales and the X.X%.

Pharmaceutical double-digit COVID-XX in assets our and recently growth. driven was products the launched brands growth excluding with delivering by vaccine our uptake eight key continued

with and ERLEADA continue sales XX.X%, for We DARZALEX strong to XX.X% respectively. both drive growth increases and of

by driven grew Crohn's U.S., mix and in by points XX% disease the X.X% points in gains respectively, patient and and X.X colitis, in with growth offset partially share U.S., points unfavorable growth offset the patient gains driven gains by share mix. X.X in STELARA points of X.X and price. TREMFYA arthritis, X.X unfavorable of partially and and psoriasis gains ulcerative market with grew respectively, market psoriatic and by

launched Turning newly to products.

We are sales excited to the disclose and quarter. first-time CARVYKTI for this SPRAVATO

access thoughtful expand to reimbursement SPRAVATO. phased CARVYKTI of our and to and continue progress We launch on and for make continue

sales its worldwide. exclusivity encouraged Also, launch success ZYTIGA, with a along sales other sales partially the and included due in of of pressures. by REMICADE oncology. we are was in competitive offset TECVAYLI, market growth IMBRUVICA This are the by of which leadership early our decrease IMBRUVICA to position loss maintains in of

and growth of the XX% X.X%. increased the attention the of with I'll and outside U.S., segment. billion of now operational operational in of decline by to increased turn X.X% Worldwide $X.X sales MedTech X.X% sales the U.S. a U.S. sales XX.X% MedTech outside Worldwide increased your

operational Abiomed contributed X.X% to growth.

impact divestitures, by recently of driven from quarter of and businesses, all growth, for was the acquisition adjusted MedTech four procedure commercial the execution. continued first and products, sequentially uptake global operational worldwide in launched sales QX growth Excluding X.X%. accelerated Sales

quarter in delivered progressed. includes $XXX Partially The to of the procurement Interventional as as was Solutions well anticipated, offsetting supply volumes the of as growth improved franchise China, in quarter related China in procedure the growth XX.X%, As operational volume-based impact million constraints. Abiomed. which

integration Joe the which to progress will provide of context. the about excited are additional We

of XX.X%. at growth of another double-digit franchise impact worldwide Excluding the the acquisition, delivered quarter this

to sales regions all this continue impacts transparency, procurement reporting beginning with sales. of to to providing the are China. increase exception visibility in reflects we electrophysiology our to growth related quarter, we Asia-Pacific, deliver in volume-based which Electrophysiology continued As double-digit

Orthopaedics sales operational driving of hips procurement strong technologies reflects growth areas digital the success based like hips spine. in offset especially in impact pull-through procedure recovery and knees. and primarily was enabling launched recently the by and of of X.X% volume partially products in China, and Growth

strong growth U.S. vision supply penetration surgical Global by contact price X-Day our recent lens family lens products, ACUVUE and actions. of X-Day, in challenges. Growth execution continued tempered and launch and including other continued of reflects strategic MAX was of contact of ACUVUE commercial in OASYS OASYS the X.X%

have to turning quarter compared few last I'd like earnings of of to consolidated our Now statement for same a items first that highlight noteworthy quarter of year. the to changed the commodity exit Cost vaccine the and of products sold by items costs MedTech Pharmaceutical and one-time by in deleveraged business manufacturing related basis business. the COVID-XX in acquisition-related XXX points inflation XXXX. driven

Selling, XX by by costs marketing of inflationary and points management leveraged given environment. current basis margins administrative the proactive driven

the of to continue $X.X competitive was in invested at We this increase XX.X% strategically X.X% invest a billion research year. sales prior versus development levels, The quarter. and investing

first line related the to result recorded quarter The expense billion first proposal $XXX previously as first in of the The of the Talc an charge billion was XXXX. quarter in other of and disclosed. expense of $X.X million of expense was the the income to of in net increase XXXX Settlement income XXXX the compared $X.X in quarter

the accrual Regarding rate the for taxes primarily year, tax quarter, $X.X same by billion the in in effective the versus XX.X% our proposal. Talc driven XX.X% was last period Settlement

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

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

Now adjusted declined driven segment. quarter before decreased percentage sales XX.X%. for management before enterprise income as of margins our from of In XXXX, XX.X% by let's primarily a Pharmaceutical offset look the of from partially income the proactive XX.X% XX.X% the to tax first tax mix, to adjusted costs. by at by

by MedTech offset margins primarily management XX% costs. driven of at inflationary remained impacts, proactive flat by

margins actions, inflation. partially XX.X% cost by Health to Consumer Finally, input XX.X% strategic offset from price by driven primarily improved

Johnson over to call sales portion the the earnings concludes results. the of Wolk. and XXXX quarter I turn & Joe? first Johnson This Joe pleased to now am

you, all Thank you for and Jess, thank joining call. today's

Johnson We XXXX and has reflect of strong around The many are of Johnson operational meaningful commitment care and Johnson pleased our drive can report to versatility shareholders. important and quarter performance to improving long-term & business. catalysts another world. for & the that near- the value our outcomes across Johnson strength results health

both position competitive. be companies on which our focused Consumer agile, of remain Kenvue, the focused We business, will Health separation more successful and to

will of expecting We provide our and increased confidence businesses. that are number in also Pharmaceutical a advancements pipeline MedTech

a Growth and DARZALEX, ERLEADA, such quarter. from Our from portfolio, strong continues Pharmaceutical SPRAVATO, new in Pharmaceutical INVEGA first including delivered our key be TECVAYLI. and as by uptake launches existing SUSTENNA to as driven TREMFYA, our assets well UPTRAVI as segment CARVYKTI business

medical innovation Pharmaceutical patients in results trial therapy. look therapy, our primary to three we important these to We BCMA lines CARVYKTI, announced myeloma major one met an upcoming have is presenting XXXX cell that its X And for an meeting. prior year in the of Phase study, endpoint a our CARTITUDE-X scientific received business. in who QX, in multiple of forward

partners an psoriasis. and in our our at IL-XX this results medical forward Protagonist from FRONTIER plans Phase data Oral upcoming the with Therapeutics meeting. X moderate-to-severe Additionally, patients We at look line top study positive sharing to announced development of future Xb plaque

with potential This to effort and strategic its decision portfolio the made vaccine landscape, focus for to to Finally, greatest adult our transformational the make and patients. ongoing of part RSV broader our for RSV discontinue of investigational the as on an a program. most we company investment to the choices the R&D medicines continually pipeline vaccine decision review prioritize investments assets to is assessment benefit

such and rest Talquetamab. at data assets Looking the potential TREMFYA Nipocalimab expect as of as key the the approval important from well as pipeline year, of we

Importantly, additional I highlights. want two to mention

Lazertinib study cell with of non-small frontline on potential this the in First, the year. final lung remains for MARIPOSA track later cancer RYBREVANT analysis plus

complete to SunRISe-X Urological Association's cancer are Annual TAR-XXX this American which promising and muscle bladder at a demonstrated safety excited also the profile. present We the data invasive study in from month, response Meeting of

reiterate and at related I'd XXXX made March the I during goal the strengthening like XXXX of Investor Cowen business, the Day. the recently U.S. to impact Pharmaceutical forth to our the in the some Pharmaceutical Investor put sales Regarding Conference on team comments the dollar

on of speculate we currency $XX rates, current billion currency, XXXX basis. a While approximately on based $XX is the the constant on billion sales don't target

of Pharmaceuticals. In in XXXX billion $X alone, FX had a roughly negative impact

the in is our a that qualitatively XXXX, math While changed since have things portfolio. of number

potential and we've on current the seen side, some On also launches competitive in and experienced plus we've like was (ph) to anticipated TECVAYLI what But above balanced, upcoming be of acceleration Talquetamab. XXXX. pressure IMBRUVICA

but attain push we to many goals. pulls, our operational So striving and are

to are confident today XXXX $XX in The of out ability We exceed Street billion. our estimates there approximately has

growth. MedTech delivered a quarter strong sales of

pipeline We programs. continued to advance key

For milestones and few related ablation our business, this pipeline including safety a pulse success example, the our meeting European which reached field early study we quarter achieved programs, primary within efficacy inspIRE, endpoints. electrophysiology by to both clinical

combines announced radio Additionally, the catheter, field dual in the and European evaluating which SmartfIRE capabilities. procedures ablation completion frequency effectiveness clinical both of we and our safety of the investigational study first energy pulse

past we December. investment this demonstrated as which areas, by in acquisition of Abiomed, know, our you to continue high prioritize closed growth As

over Abiomed, now XX billion in With with platforms MedTech annual has $X sales.

Japan. still are in Patient and the technologies pleased utilization United it performance States integration over of early mid Abiomed. we Europe grew and of Abiomed high-teens is the both in and to with XX% While days,

newer in Class STEMI-DTU of we see quarterly such X.X of advance We I strong efforts both to technologies, and as and PROTECT pivotal achieved in continue trials guidelines. continue to the we IV adoption record Impella enrollment as pursuit

perspective, to sales last company XX%. the compared reported standalone same as growth year operational For was by a Abiomed quarter

international us Solution, solution Orthopaedics, this knee. just expand this total footprint our differentiated In positioning month, VELYS Robotic-Assisted the Mark to we in with for CE obtained

progress to on and to the the by we the the in half Ottava made team general year. this remain MedTech Finally, second of solution, excited more information surgery robotic regards being is in share track

quarter sales demand Our strategic Consumer the remain track XXXX, actions, to conditions. of price We some on complete assuming replenishment. stock strong separation this delivered double-digit first by business in Health market driven growth accommodative and business

as business opportunity start and a potential have the separation. costs the what Exchange offering stranded Securities Standup us the first to we with pursue Since a operating Health our an reduce an year, cost program to continue stated the we Form filing a been of underway update S-X step active Consumer to as stranded with company within costs. company in the Commission, our and public giving well have the remain initial consistent with previously and

events. touch an enterprise briefly powder has LTL's safe. long-standing indication filing April like on wrongdoing nor for its to nor Turning are re-filing its original is to Neither position re-filing X. this that that of products changed notable I'd on company the LTL's an talcum bankruptcy acknowledgment

be litigation and cosmetic of we talc for to efficient that the progress towards resolution the continues goal Our refiling company, equitable an believe against this represents goal. and

As Johnson. reminder, separation, States Johnson with in an remain and have liabilities not talc upon bankruptcy Kenvue LTL's will a the filing will the and & United the impact Canada

LTL the in billion period. bankruptcy through had continue the value As reorganization support we court expects present to set the plan part payment of by to will the plan to from a that and re-filing, over forth significant and process proposed a XX-year in includes $X.X a Claimants work mid-May. court of present reorganization have the

Our marking on know our Board investors consistent. morning the and successfully of in dividend creation. long-term announce increase, and pleased Directors of driver has capital XXXX, were our year our dividend, allocation increases. place of we We one a our value growth we against number R&D to and priorities authorized consecutive that remains all executed XXst value priority our And investment this X.X% remain pillars.

strategic Johnson for to In that addition, Johnson we & business value customers opportunities evaluate and continuously shareholders. development patients, create enable

programs priority final when Our repurchase share appropriate. is

program last late repurchase year. completed the billion fact, share this $X we announced quarter, past In

confident in success. to & Johnson strategic including to strength pull We long-term the AAA-rated ability our and position, to financial and are us appropriate balance deploy our us this enables priorities. capital our up across We levers strong all sheet believe for set differentiates Johnson

pleased in to billion $XX.X XXXX the of for the the on X.X% raise point the We to to full our enterprise. range year, and operational to in or on year to strong of up growth constant XXXX sales operational of a start Moving our percentage X up Based are full guidance X.X%, on year range in now to for point growth expect guidance. X a percentage our we billion the X.X% $X range up basis X.X%. $XX.X currency adjusted billion sales

to Our continues vaccine. from sales guidance contribution exclude the COVID-XX

spot we the speculate U.S. don't on movements. rate you X.XX. future quarter, relative euro last utilized spot week X.XX. that rate at As we late currency know, the we dollar as Last noted euro was of to The

from estimate has year translation to sales the continue currency We foreign there would be select minimal the dollar strengthened other impact on as for versus reported currencies.

We in operating for expense, income pre-tax our and and rate. the guidance tax we adjusted expense interest other are January maintaining provided margin,

midpoint. constant constant at the or to guidance increasing the or to share or tightening also are earnings X% operational $XX.XX, share of on currency growth We by $X.XX per X.X%, range the our per X.X% and $XX.XX to $XX.XX adjusted at approximately basis, a reflecting midpoint currency

X% the be with per operational exchange in the favorable an at X.X%, I not earnings share at reflecting our per recent share. the $X.XX by $XX.XX, for per approximately per results favorably of impact $XX.XX $X.XX range earnings growth While approximately to rates year our tightening or our and adjusted to or to year referenced, reported This midpoint, previously $XX.XX assuming outlook, would adjusted predicting impact, X.X% the share reported currency midpoint. currency increase coupled of for share impacted the to strong movements, by the

delivering provide growth for I'd we launched STELARA, of considers matter our driven provide Pharmaceuticals, like expiry some growth above expectation do composition maintain potential of of newly uptake in modeling. will by your our qualitative This XXXX products. we market we segment States. key basis, a and While of guidance the currently by on quarterly considerations or assume not in United to which XXXX the assets occur patent late continued In in

well and across as Further, REMICADE, impact XEPLION we ZYTIGA measures Europe. from as XXXX continue to other including post-LOE products, increased austerity expect

not competitive in health continued relatively with normal remainder of by the were expect the seasonality. quarter care levels of staffing beyond COVID-XX In commitments volumes commercial Regarding material procedure and We our fueled complete. as we growth anticipate recently are the that we procedures for which and products. our launched sales increased do recorded uptake MedTech, anticipate vaccine, contractual first stable year

given Regarding first modeling as first the take as to and cough, of performance the important we from that quarter is comparisons it cold well MedTech in our occurred prior Health our quarterly strength expect results, robust phasing, year consistent flu Pharmaceutical one-time quarter. relatively XXXX, rates the and year growth and When Consumer now throughout in businesses. consideration season the the restocking into

a As supply by first constraints. half XXXX was impacted reminder, of the

your U.S. A quarter. post to few the our Continuing table, investor we a assist pharmaceutical take brief we your patent to transparency to increase questions. patents, before modeling, website planning and are announcements our with efforts including our in

as please York December addition, new your on the our will be businesses. business New Johnson and Stock the focused In both hosting highlighting & an Exchange mark at enterprise review for MedTech calendars we X, Johnson, Pharmaceutical

We months. event in the the will about details coming provide additional

we to hard how our questions, unwavering let continued turn regarding me work team's we your Before state are and commitment. proud

competitive on sights Johnson for focused & the the growth set Johnson. Our on are delivering new future,

growth position creation that current for We for long-term success, plans us near-term our shareholders. and are confident value our

to to discussion instructions provide I'll Q&A call. for now portion turn the a question? Kevin, the wishing those can the ask of please you

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

now line live. Your is

Thank Great. much. you so

on side. the pharma a maybe two-parter Just

billion that target you very comments of in Are for confidence kind consensus pushes that though as on still there? outlined about your $XX billion. we $XX terms $XX just think billion your and of target pharma, of pulls you of exceeding the First, the I clear in think are confident

on a RYBREVANT. then specific And question maybe just

there. sure comments Just correctly the make want to

of analysis think year. you a mean interim And to in the to need mentioned final share show you. point? put passed I TAGRISSO. at maybe dislodge has there's Thank you MARIPOSA think later of from context Does you just this this some that study that what

Hey. the Thanks, appreciate questions. Chris. I

clear I respect that it. everybody understood a that billion. wanted feel ago pipeline. first, math the do $XX component make that since around had I was the about We on the our about I sure month message So to opportunity of with good record to very the the

talk myeloma, We continue good came out to around work multiple quarter minute. we'll towards really that some in data which a MARIPOSA, this about

to Exchange, is products still our of much us. uptake probably a XX direction. for I maybe comfortable Stock to we goal at that continue you'll much newer X and that. unclarity I occurred the created right timely see out that and posted meeting so last do some We once take we're informed update the stay is December the better in that of the the York months. was some over certainly that currency and feel the movements by But the have more New on What moving though wanted hit dramatic and

study for track. on and So frontline in non-small TAGRISSO Lazertinib of say cancer event-driven would cell much very It's trial. MARIPOSA, lung an versus RYBREVANT remains the I

XXXX. the there's the had So potential originally than of what originally is expected be is was say was later ahead second which can actually quarter for we there we The very final accrual year, to rapid interest. as to quarters study analysis tremendous this expected, two

far analysis. protocol we And dictate, show, quickly as enrolled. now at pleased out. study. we the But and the trial were how think to the results pretty a come and need what continuation that the specified to with comfortable we’re science the supported just with as going interim to follow-up the I interim the we’re analysis where let trial feel of We And limited significantly was in blinded let

Thank you.

Miksic from Next Barclays. question Matt coming from is

is live. line Your now

I on I question one on kind Great. Thanks much. a knees STELARA if I general of question and if and could, pharma follow-up, so have, a quick just could. strategy

the expectations maybe give could, obviously, So I been And just I just could strong QX. on very wondering throughout if product the bit robot? U.S., growth. that if have that think follow-up on knees in launches of I to that and strong is then maybe is as a and quick was you wondering How little you what's How much of if on one pharma, other of driving may. color strength? much

the to in I STELARA, question. before thank nice Joe Matt, really for it the see it's turn And growth knees. U.S. to you XX% for on

in an recovery I like maybe strong quarter. and and quarter. are specifically that growing. performance well Abiomed. knees, X.X mode. seen quarter just first remain ops frame haven't think It I the while. on adjusted see Procedures a to XX% was into We with a industry in Obviously, before quick first, But first the continues get operational our It's the for to awesome

XX% look it's So you growth. periods, standalone a if like-for-like of at on them

the And But about I quarter, the what is at look up for business math, really most will, our of I all think we you XX%. pleased when balanced had if I'm BWI the growth.

growing X% Our you vision, fueled really And of United quarter. surgery grew in but up global U.S. double-digit this the the $X north six as business, our platform, X% in And up billion those market, States X%. hear X%. up us largest XX of the about well as talk ortho performance, by

a three then in is strong, ablation. specific I'll bit procedures and a Asia softer China. One would Obviously, March I go innovations, softer. deeper was Jan little But encouraged our Feb March. call it and field bit and pulse with was were knees. recovered by again into We EMEA was

pleased the So with that data we're that it's promising. an very AFib

the trials where trial we four from out the INSPIRE have the the met Two enrollment, efficacy. ongoing. We primary shared of and both endpoint and safety data completed clinical we for four, we've

indications to talked And we things I Matt, innovation would say, Our products we're are in continue XX expand They're pipeline. about clinic the in we've expand get all days Abiomed, in. clinical and last, in four designation. new advance trials about to to to robotics. They as

in States. now received CE But to the now, positioning about five. knee global expansion Mark robotic fastest the we're it growing markets. We in talk let's more for VELYS. United So that pleased say it's system just I'm Right to

to hips procedures. we're approach taking and business spine. in And shoulders a the XX,XXX to over systems our completed We've

flexible Monarch in endo-urology. as procedures the XX,XXX robotics and multispecialty the combining treatment new navigation wave. clearance as with only first now completed platform FDA with solution right technology ablation Our in Endoluminal well clinic We've is Monarch bronchoscopy and on are

we stone the standard received patient year a than kidney of update just a rate to higher of February, care. looking as the team back -- removal get clearance really in And And were first about we is recently, significantly, stone. of trying the half kidney our in really Ottava We're robotic-assisted last, talked progressing forward to with the team.

is access the really stabilized of with bearing a both you. the world. VELYS revision, robotic the platform, knee the implant on introduction in So Thank combination new rotating having coupled most not and to knees importantly, VELYS, fixed system, cementless, most but our coupled modern medial just of with and

for overview. and the innovation across and all all significant was those a that fantastic in on that change Thanks congrats momentum Well, the businesses.

turn expect I question, on the have pipeline about Just was of launch take organic, and comes think of think think lot a I if through, and as a new it's into big it's you on you mean, get STELARA, to about end that guess, investors' whether these you of bigger. and of question, actions some the a year products the sort and it that and you quick minds -- we and I pharma I had is the

you you of expect manage then action we a of And LOE sort of if whether next should goals and are give months maybe sense you as to mix your take that? what XX of sort XX what that Thanks. through over strategic, to of kind could months, the

fourth will for in there. in assumption, question. which Sure. has lot Thanks, let me But our STELARA the to assumption early quarter, the point, that currently the guidance, first say there approved. the we're are assumption maybe year third base underlying quarter unpack of possibly start this exclusivity that's Matt that A U.S., lose with on. is that's the this What fluid. of no somewhat At I kind late biosimilars the and would going

expecting of market product. years curve affordability on the our we're experienced be There self-administered have was at planning, what last few despite terms is learning point, REMICADE, over may there a -- competitors expecting we will they erosion lot the the some a a steeper interchangeability. this and subcutaneous multiple because with of In than are

may we growing through committed remain exploration. patent the But to

revenue. within our One annual businesses, that generate the or portfolio, great about $X XX got we're products billion of the, or we've Pharmaceuticals over the things talking whether broader across platforms in

So dependent may one on the have. not product others way we're

going our portfolio. to look returns frankly the to on going based risk behalf. not we're of in terms of bearing question sense a got the that anything were the I quite and look product deploy out to there's we But compensate before for of bit always maybe we're little making capital at them, your strategic breadth then way a remain a that to we to their strategic unpacking Certainly, towards there's you fit further, fit, vigilant do shareholders opportunities, If we're desperation act. of heading In the a sure on M&A. number

got strategic we'd are strong we good it makes We like, sure sense. we've and but to want to balance in make that a whatever sheet lucky do financial

through way those goals. may best positions the as committed pipeline I Jennifer that the loss well whenever to really data in generating success occur. STELARA that newer growing think, probably I very to are these that's team products, the to as and us meet the some answer well we’re of of the know early now And we’re So that. having

you. Thank

Next from is Morgan Terence question from coming today Stanley. Flynn

live. Your line now is

program litigation, I update so about and me specifically denominator the talc you just Great. on for for kind if could questions. well. towards any two-part comment threshold, a the at of Thanks XX% Joe. all one for as the that was wondering Thanks Maybe taking where much guys have there, on in advance progress the additional positioned can seen confirm going And based to and Thank that the Oral on IL-XX treatment where if ultimately paradigm you. drug the that's you you then Phase shaking far. you're out? might be wondering just thus X data into the if

Great. Thanks Terence. for question, the

Phase with X me announced at partners where for Oral the our very to encouraging some, first one FRONTIER of start Let with second the Protagonist data respect the IL-XX, study. X out

pre-clinical do the asset an be compound we our beginning present this clinical second important underappreciated on at believe data year. much studies various plan this and very in from medical quarter conferences this could of to portfolio. within So and We immunology

With the as up we this a could come respect to that question. litigation, thought

the White, today. you pleased little here the say we're independent clean institutions from to have up important well Andrew But more talc. Andrew groups specifics. cosmetic can couple as agencies, with it us safety then by some research seat, me note to things give we of government either a very safety product, maybe Assistant stand conducted of of it academic advocacy is and So there's a our or patient these my But the that cases decades General support Counsel, let that we as qualitative by and have of reputable

Furthermore, use in [indiscernible] supposedly (ph) the it point. scientific that years pundits the were where case many being hearing signs judge classified junk at two really made this only of ago, by attorneys claims of claims, the many as it that was restricted plaintiff the even and

don't number the vote. give to would the it's of support have a XX,XXX XX,XXX vote even curiously, as got for claimants But plaintiff's attorneys their claimants, presented. currently of right that to to who we proposal want small Here, the we've

asking that simply we're vote. right get to the they So

unfortunate frankly, Now that my is put to scientific it CFO, chair quite towards, got from as we've claims. dollars baseless

in when to probably for something to inherently really otherwise take is uncertain. a resolve. that would when protracted costly efficient certainty inherently litigation and bring decades proposal And very (ph) involved, it's all it's court However, aims really also manner

Andrew So of of in let you the me turn that to can terms add. specifics maybe it over any

Joe. Good Yeah. Thanks, morning, Terence.

in position of plan. support we mentioned, in are the Joe the we As for very today that stand confident terms

days we'll a expressed have XX,XXX vocal and hope that with say, plan from over well will the support this vote I move a vote. the a forward the that attorneys. a to a once next to reorganization move have quickly plan. to put And And for out we desire gain but more small, minority for that expectation we even would we to believe to is court We vote, of XX plan within present

to to vote. a look and that So going reach we believe out getting we're XX% that to plan threshold forward

you, Andrew. Thank

Thank you.

is today from question Biegelsen Fargo. Larry from Next coming Wells

now Your line live. is

I the two you cautious Good for guidance. now optimistic about Joe, said on January on morning, this morning. CNBC taking from XXXX. Thanks you to you the you and in heard turned for question.

you year? I to what through better half half things. changed there? expected the be the MedTech because stable was of expect previously than growth so on on two drivers and the you be do you So more second first Pharma to One, in curious QX about guidance growth call, the Why the outlined

but XXXX QX -- QX up the basis points And about margins second, on as margin, Joe, expect the and margins. expect inflation year-over-year improve to XX was operating you in you through gross on wanes.

would So why full operating margin the for flat the for questions. year? the taking Thanks be

record want in I Responsibly cautious both bit first, Well, as Larry. the do of correct front was to as Thanks, well Yeah. a you. on little optimistic.

with effectively a So our could manage we we've responsibly that company optimistic. Why because dynamics some really team's resources some to It's to within ability P&L, really I lend responsibly from cautious that? backdrop moved see did great itself stranded to the costs. the our do separation of say

P&L. don't within extremely those well. I that say There we should inflation still it's now think us. managing the We're behind is

first results second with versus a half pleased with landed very first little we stronger maybe results. bit year have point I'm QX. We the more half why really a around quarter consistent quarter from data the throughout a of strength that approach from the is good we've moved first of and to and the a the respect where

full might -- see as Pacific we of still unfavorable terms too. respect And as came with data region. can respect positive was we know, a talk So the January, March not kind to And in to point maybe in in Ashley here, with then Asia to Ashley, did was of anticipated. blown unfavorable anything out there? in When very as I it but pricing, was pandemic there add expect we Pharmaceutical, Pharmaceutical specifically. the China don't you

It I procedures pre-COVID Yeah. January February is, China well and like, are the January with would was levels. I No, pre-COVID above below China. were December, up down levels. trending in until Larry, XX%. of December trending what In all say share (ph) exception would well that

bit are encouraged levels. in back of little March they pre-COVID So that, are up. up back ahead I am a see to They

of rebalancing year. why the we're so And that's kind

to half. year versus I think going stronger thinking stability that first to we go versus balance be more the second having we're a half that throughout have earlier would

fortify to to opportunities still that. the future, the great provide still down to If It's for the Yeah. opportunity that then And we'll the investment with early Larry look we respect further road year. margins, it's flexibility April. we for macroeconomic certainly that and with headwinds very operating have in only the manage do these the maybe ended year

investment my if us be opportunity know the future. that meaningful But secure for have guidance that both the to we’ll the find deploy down those and probably preference in guys up You well Pharmaceuticals road. we take opportunities that MedTech opportunities, to enough don’t first would

Thank you.

Next Chen is from Louise Fitzgerald. today from coming Cantor question

is line now live. Your

Thank you Hi. taking my for questions.

Pharmaceutical a had question I So for you.

be you oncology other unique can regimens create involved there you some take that additional not You've Thank you. that in you currently franchise oncology a and might you in? really what in like to companies? and any to built are involved are would available strong approaches combos not are now areas to think be that And

Yeah. Thanks Louise. the for question,

that this lung cell We're So forward combinations. with that's lung one now mutation. year one The today I is XX% respect certainly non-small most looking much about with we're really always point for later at the that's read-out that. impacts a cancer, looking at this of to cancer may think diagnosed to certain which prolific data very

of is would and the much. would myeloma the to out even that know In and disease cures some multiple that say I want of with I into know personalized say maybe respect multiple treatments new certainly options rounding new having looking of someday I We that be that itself terms some multiple the portfolio. that are to teams lends have. almost bispecific antibodies for with potentially areas, the coming we now how options we're very areas

myeloma, MedTech, could and out Pharma on be that eluting cancer of read multiple some the bladder to the very prostate device obviously, lung We're focused about data of with going excited drug cancer. cancer, We're -- BALVERSA. TARIS the on for the what combo I'll with call

franchise within of pharmaceutical with terms So biggest success. contribution immunology there's now sales is in multiple oncology, plays the our to which

about looking TECVAYLI, to that Louise trials myeloma rather is, to of is products at as as you soon extremely but add aspect CARVYKTI know, multiple hopefully well only some approved not sequences be then strong. our DARZALEX, between looking Talquetamab. multiple platform products, as and I'd clinical The those at cannibalizing And we're our those combination treatments

Thank you.

Jennings coming Josh Cowen. from TD from is question Next

is line live. Your now

[indiscernible] the bit just And segment? our in taking United update I for catheter within time [indiscernible] be just the questions. understand. of Ashley platform. Had question in be digging ablation percentage Thanks share and the a industry? then to [indiscernible] just expectation on maintain a [indiscernible] taking I Mark the mean, just that morning. Thanks for you Good terms little levered drives questions. us position catheter maintain segment in third the FDA approvals. able that Hi. on is was can will an commercial hoping market optimism And PFA that helping Anything CE maybe then States, will get -- the ablation deeper, lines. the but [indiscernible] what of revenues EP to are what for to then your

at (ph) which Listen, say lead Josh. advances. one managing cause could space. of a the to and it's disease always you, always this intercept atrial of And to leading Thank cardiac stroke. important it before example is J&J, really a we're arrhythmia And we is that trying unmanaged, Yeah. fibrillation,

and what of compete can kind of I'd would world leader a cardiac a gives a of the ablation. following. track So XX-year source and we in lead differentiation, that say, have we I being confidence say record one, have us

have promise We of PSA. X,XXX We the base. see plus installed do

engaged in actively are We four clinical trials.

INSPIRE in AFib The shared the as the you, tell endpoint. have Josh. symposium completed the European is trials met U.S. Two and really in differentiated, February And would data I international we We've of well that approach our as enrollment. those primary what's

of we're a insights ablation strategies. expertise So leveraging kind the into various the deep and

catheters, So of portfolio integrated by powered and fully kind true we it's a into PFA of our have which pulse the [indiscernible] generator. system are

anatomy. importance frequency, to safety important like coupled know newer is how electrophysiologists. to of in of radio doing are the the where And and the is is, winning generation mapping combo be PFA operators So we the efficacy years actually with going heart we the kind really really which for underscore to of of bottom and what us for line has think access they're XX-plus and vision

solution dual and PFA radio the offer of the in the think safety we relative frequency. It's of really why it energy we are because clinic now right with could durability proven the really

in specific that clinical enrollment two issuing you those four can completed not trials. we're So timelines, know but we've of

Thank you.

Next of question Bank from is coming from Geoff America. Meacham

live. is line now Your

question. Pharma. morning, everyone. the two related ones I Good Thanks have for in

follicular related is So guys or a this on withdrawal IMBRUVICA, you. update your view you a how Thank you to the being was from then risk other supply on of pulled? do do really CARVYKTI status after impact And and a indication good the quarter guys business, have like non-CLL quarter? there indications hematology

Geoff. for Yeah. the Thanks question,

would But been competitive competition is say -- on performance, It biggest at point. pressures. I IMBRUVICA, we're obviously to respect with that's encountering withdrawal in it's So based seeing driver frankly. quite that terms business the very really any withdrawals the not of this not was anticipate expecting more our to a our point. of this the part there, withdrawals But performance with, that other we don't the at but begin we're small it's

With recently respect the is up second and additional to production your on would moving question you probably supply did to that to read markets. CARVYKTI, I scale supply manufacturing ramping capacity for did say and sign up we on increase availability The that some forward. announcement

network CARVYKTI, as just Johnson. chain for the to demand to our We And the but serve & We abilities will some to doing an have not meet in work again Johnson important data to demand. given committed it can our and our of that future. for CAR-T manufacturing tremendous of therapies everything we continues supply this in And part cell accelerate really progress. this facility we’re the supports other that

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

Thank you.

final today UBS. from Antalffy is Our from question coming Danielle

line Your is live. now

be question to you much all. talking Hey. the for and Good it's morning, everyone. Thanks good back so taking to

say is I Orthopaedics just the does on from -- this for you know very you Thanks I what's question much. hard backlog share J&J on a and/or happening the now how to so good to real out, A what but work wondering, about quick to really Anything Orthopaedics parse number. more just right U.S.? Ashley, in versus sense, down think the is your underlying was what specific growth can quarter. gain? in market

an China, both. you, as the Thank voice. as like recently It's backlog. great hear combination as a U.S. Procedures really No. March are Listen, your in of some example, accelerating, through to particularly of Danielle. it's working even

think portfolio. huge same have to team, Orthopaedics the Orthopaedics market has And in the within built I segments the the to the really our growing now I So acknowledgment category. do participating very who they give at time, a differentiated But is favor. that are in fastest

to with It's So if are our areas around the sites It's of is And going in and a take in that Thank I'm that what [indiscernible], well are competing you advantage ankle. robotics. we needs four, and demand. category we the areas? segments It's are new extremities. faster-growing Those what the question. all of foot high-single they're needs. ASCs. about of around talked to care acquisition those like, It's around Orthopaedics, very and three for digit. cementless recent really are pleased revision things positioned

continued Relations may time, your Danielle, hesitate rest and interest We our to to Thank to remaining Investor but Enjoy you couldn't your questions and thanks get don't out you, apologize that to that reach those the any because to team have. day. we for the your everyone company. in of with questions of

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

disconnect. now may You