Johnson & Johnson (JNJ) 17 Oct 232023 Q3 Earnings call transcript

Good morning, and welcome to Johnson & Johnson's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] This call is being recorded. [Operator Instructions]

I would now like to turn the call over to Johnson & Johnson.

You may begin.

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

get A before into the few we details. logistics

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

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

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

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

cash I financial and commentary today's two before sharing corporation and will capital reviewing to XXXX. overview quarter Wolk, priorities by position, our our sales allocation guidance Joe businesses. for agenda. Moving highlights related third provide then P&L business additional the the for and our results start and to CFO, updated of will an

Innovative ensure Erik us will VP MedTech leaders; enough webcast joining remaining anticipate your Litigation, for Duato, Tezel, John approximately questions, questions. to address and our provide and Joaquin will we be Q&A. the Chairman R&D for our CEO; available as Reed; of Haas, time To your well last will minutes. The and we XX Ahmet as our time be Medicine

separation the operations of August financial guidance final exchange stated, otherwise and Kenvue the & the the on today Johnson results Johnson. Johnson Inc. & results XX, offer continuing reminder, reflect completion of a the of of Unless As XXXX, and Johnson announced highlighted

financial the We Health will Consumer as report discontinued results operations.

the referred to will forward, as going Innovative Pharmaceuticals Additionally, Medicine. be segment

currency QX with XXXX, of of as the X.X% growth, XXXX. effect third Operational reported of currency increase growth for X.X% Worldwide Operational our the third XXXX sales a points. Starting U.S., X.X%. sales which In increased of OUS excludes U.S., were an In quarter was billion U.S. increased reported positive X.X the versus quarter translational outside by $XX.X sales sales XX.X%. regions X.X of results our results. outside had sales positively currency, growth impacting X.X%, with points. the impact was the the

It that by operational is impacted of important COVID-XX exclusivity note loss negatively in and Europe vaccine of the sales ZYTIGA. to were

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

earnings. to now Turning

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

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

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

currency X.X of increased X.X% impact Beginning X.X% the the with and Medicine. $XX.X a a U.S. of points. of XX.X% growth billion positive growth Operational Innovative increased Worldwide had sales decline of Innovative of with X.X% as in U.S. Medicine outside sales

Sales exclusivity growth of loss to XXX ZYTIGA outside growth basis XX.X% the of were in the Excluding excluding U.S. due COVID-XX approximately the U.S., sales growth with outside X.X% the COVID-XX operational and was points of the by vaccine sales, Europe. U.S. negatively in of of vaccine, worldwide impacted X.X%

with Innovative our Medicine delivering growth products, from assets growth. double-digit was driven by our XX and continued key launched brands recently uptake

to ERLEADA and and with and TREMFYA We increases by sales we drive favorable gains of due and STELARA predominantly for This growth in both continued mix market respectively, respectively. growth of strong growth. XX%, driven market patient and continue growth growth. DARZALEX XX.X% saw Within to Immunology, share was with increases XX.X% and XX.X%,

products. launched newly to Turning

We launches continue SPRAVATO. CARVYKTI and of to on our make progress

other driving We success are launches early of and of growth encouraged in oncology. of our also the are by TECVAYLI sales which the TALVEY,

to XXXX. expect TECVAYLI QX begin sales in We disclosing

offset Total to Innovative in due competitive was along exclusive pressures. and with REMICADE, ZYTIGA sales of growth decrease of sales IMBRUVICA partially Medicine by loss the a

your to now X.X% increased of turn MedTech. and points. Worldwide sales the billion Abiomed to of the sales MedTech had of X.X U.S. attention with impact XX% growth XX.X% a operational as XX.X% I'll X.X% negative currency contributed increased of Operational to $X.X U.S. growth. outside growth in

the MedTech's and impact the acquisition quarter be X.X%. would utilizing X%. from growth the forma growth Excluding On divestitures, for sales adjusted operational year basis, Abiomed worldwide prior in pro a as sales a was of stand-alone company,

MedTech and was volume-based Russia platforms trauma, China, Spine, in electrophysiology. platforms: in by energy X negatively endocutters, sanctions impacted worth and XX international procurement approximately basis MedTech all across in primarily points

more the communicated quarter. we third deceleration normalized As return to the last moderate with in seasonality saw quarter,

RF Surgery China to global portfolio, procedure The launched and portfolios. most growth of of and Growth in wound major This of market-leading and This in impacts including the Interventional was biosurgery XX.X%, recently delivered and the reflects challenges. and supply Abiomed with Impella X.X% of Solutions which volume-based double-digit procedures in is procurement X.X Europe, by in ablation million of this including technology patient franchise strong closure reflects all increase mapping adoption teens surgery. recovery offset related regions, growth growth strong XX.X%. Abiomed. high growth includes QDOT was OPTRELL of operational in the by catheters. Operational primarily continued a driven our partially driven our strength a to $XXX contributor growth in by Electrophysiology

lens lenses in products, family other and including lenses contact contact products of by vision. growth Eyehance, as Global basis Blink Vision offset Global was partially of in X-Day and portfolio these new by XXX well actions and lenses our the in strategic improve. X.X% OASYS ACUVUE TECNIS of monofocal Growth price supply growth was as contact driven strength of in to interocular was Vision to choices impacted divestiture. surgical challenges, by although points due continue negatively

partly growth; impacts in of of solutions; surgical digital China spine our of and by volume-based procedure Orthopedics global operational expansion trauma. success as and growth offset in the the of procurement launched VELYS in X.X% ambulatory centers; such reflects products, recently expansion

lower related to to highlight due was few for of exit changed consolidated mix mix costs and our COVID-XX turning noteworthy supply I'd sold patient to XXXX. excess of earnings Now to by in in compared business, of favorable inflation, vaccine products Medicine that unfavorable the costs and flat the quarter have the product Cost quarter Innovative to MedTech offset margin third inventory a statement restructuring same of network-related commodity partially business. year. the items last like

points, marketing and increased driven by deleveraged margins Selling, enterprise. across basis XX administrative expenses

milestone by or in by Innovative this strategically billion invest XXX continue payments prioritization, XX.X% R&D at higher in $X.X of was Medicine levels, We portfolio primarily quarter. and by partially research basis business. competitive sales offset investing the driven to leveraged development points,

were IP third in Additionally, XXXX. the impairments R&D $XXX of million quarter

was compared Interest by interest increase higher of million cash offset higher was The income million as in XXXX. third balances. the partially driven by the of on quarter quarter income of in $XXX in XXXX rates to income on interest debt earned rates $XX third balances,

The expense by This the costs unrealized partially public of and the quarter $XXX line XXXX million in primarily third securities, expense lower the expense. lower third losses driven vaccine-related was higher of was other to by of COVID-XX mark-to-market an on litigation compared in income an of XXXX. million offset and exit $XXX expense quarter

the was announced the the to million, first in in related third Medicine Restructuring quarter. program quarter $XXX restructuring Innovative primarily

in Regarding the quarter. taxes

by year. charge non-deductible, Our the occurred was XX.X% same in a effective tax pretax last non-recurring XX.X% was current period increase that rate primarily versus This driven the quarter. in

items, special in year. Excluding XX.X% effective the same the XX.X% was rate versus tax last period

& of operations, $XX XX-Q Health billion. including upcoming business the specific third matters. I discontinuing results Johnson additional approximately of review As separation-related you and encourage quarter presenting gain filing the on as is a the details completion financial of Consumer a exchange our offer, result for Johnson to tax

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

sales in MedTech. Medicine income the increased of MedTech before driven by before tax by segment. enterprise and inflation partially product declined divestiture by Innovative inflation at a the Innovative margins XX.X% percentage portfolio commodity to offset by partially as patient of mix commodity from unfavorable from offset mix look by our mix XX.X%, driven income prioritization. and XX.X%, improved favorable let's XX.X%, by XXXX, to R&D XX% primarily a driven margins third to Medicine, and for favorable tax adjusted primarily primarily patient Now in adjusted from quarter unfavorable product XX.X% mix, gain. In

portion the results. the quarter to the Joe Johnson call now turn of concludes earnings pleased over & sales third to Joe? This and I'm Johnson Wolk.

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

on Innovative era for with patients. Medicine Johnson is MedTech. remained What Johnson call focus quarter's consistent This new and our a credo sharpened & our a marks commitment to and has

serious upon of tackling care challenges with patients most privileged around complex unmet XXX-year and world. We to build the helping health needs are health legacy world's our the

are business positioned of the we care. well we look innovate to our spectrum As health across forward, grow and

about we what's what achieve can future. in excited are We and the ahead

other want our dive to touch to performance, items briefly our we into upon Before important business. I

time under during while for The recap was The within executed our cash significant and and shareholders. value of Kenvue which generating completed formally separation first transaction our quarter. the frame the targeted brief is was a budget

separation, manner. million through share this dividend our quarterly shares current and or and $XX.X cash cash in in provides stock of retained proceeds share, the proceeds we outstanding approximately count XXX future cash the raised that tax-free Kenvue XXX million use approximately per a shares Johnson's we flexibility. maintained by IPO. & of debt for We We X% Through and Kenvue Johnson offering reduced billion without

reduction full will We the XXXX. see impact to EPS the share of in

Act. Inflation is comment warranting Reduction item the Another

innovation believe of to the provisions price-setting cures to delivery prevent patients. are IRA's transformative therapies to damaging and will continue and We the

await did price-setting in proceedings longer. all healthy access submit information to us medicines help continue we by initiated and our patients' adjudication that requested live drug As others, legal and supporting compliance CMS' to with we of them stay scheme

in segment the to highlights quarter. Moving

third enhance teams our advance to strong shared, continuing while to our As Jessica previously pipeline delivered growth. quarter in results the future

important Innovative Medicine two regulatory during announced the the business, were Within milestones quarter.

approval for and U.S. frequency for bispecific Commission European patients for refractory European myeloma, eligible the multiple for a reduced with pretreated myeloma. Specifically, with relapsed treatment a of first-in-class and biweekly Commission received approval we the heavily of dosing patients TECVAYLI and therapy TALVEY, multiple FDA

data, at in lung the an presented have three all clinical cancer, including unprecedented will the MARIPOSA, Phase Presidential MARIPOSA-X excited Highlights European this and Society the Oncology featured abstracts, three in we PAPILLON. III meeting being results studies weekend. Regarding including are Medical include seven from RYBREVANT Symposium to late-breaking of of

of Additionally, study be from in first-ever well mutations. will data shared, non-muscle-invasive in bladder the FGFR patients TAR-XXX data with as updated cancer TAR-XXX of SunRISe-X the as

and Phase look have RA. II a of for nipocalimab at also Phase College We the in Rheumatology November American to study rheumatoid data in arthritis combination meeting Annual already II launched forward in presenting

and programs clinical plan our will begin expected study the to we IIb ulcerative initiate III This in initiation targeted adults begin the severe Phase development colitis, psoriasis, oral plaque with peptide includes program to multiple in the for which JNJ-XXXX. Phase November. titled month; for ICONIC, ANTHEM Lastly, clinical this to of moderate

care electrophysiology workflow exposed include not indication allows in and our for to FDA unique Johnson where of MedTech. FDA our We advancement during without platform. It equipment ablation portfolio received are cardiac across also may to heavy This and to & the orthopedic the fibrillation products to clearance a radiation Johnson for used harmful highlights for lead that procedures. caregivers their fluoroscopy-related quarter ablation in to fluoroscopy. removal cardiac lead Notable ablation Moving in atrial protective significant complications a in is significant multiple teams. be is patients advancements

completed our ablation, in CE and have VARIPULSE In pulse Europe catheter. for we clinical for field submitted Mark trial our

our for completion to occur the quarter. study in expect We U.S. fourth VARIPULSE the

a through large-tip simultaneously also the PF of device; advancing OMNYPULSE, same the ablation are energy additional STSF for clinical and focal pulse studies We energy dual catheter catheters, two RF delivering and field catheter. both capable

high-risk safety Beyond Impella closure designed only the to have Impella the Abiomed and trial ECP pivotal access with during and enrollment the world's completed the compatible pump procedures. pump electrophysiology, study, in efficacy Impella demonstrate of heart smallest clinical landmark the and we is techniques. ECP a small-bore ECP PCI heart

to While business. a clinical we have Orthopedic not quarter also and future to restructuring program of operations improve advancement, designed implementing the the MedTech's a steps margin in profile, our simplify taken focus

to of part expect of end to improve in next estimated with given the program, profitability. meet million. actions product and exit approximately We is markets between and The believe short-term but product million expected our As years, $XXX modest program across $XXX resulting market Orthopedics to and enhanced this total will exits, completed certain revenue program deduction X in to X-year business. ability be we that the costs million these and of anticipate lines the growth be demand, $XXX total over some accelerated line XXXX by in

and debt $X turn of position third we the second of through cash in a billion third debt cash quarter billion was Free approximately allocation. approximately Let's and from billion. up and net year-to-date now for $X $XX of We the with the quarter to cash the year-to-date approximately flow reported billion $XX of securities quarter billion, capital ended XXXX. marketable $XX

priorities allocation remain capital Our unchanged.

executing when our our continue flow business disciplined initiatives an growth robust approach, investment on repurchases will and a share We credit for business, executing execute strategic to annual increasing development cash appropriate. basis, and and strategic profile prioritize continued to dividends inorganic utilizing in generation free strong

in full operational sales the sales of to raising for $XX.X quarter million at in $XX.X of $XXX billion and growth on to to billion constant sales now to investments We year with results of fourth are year, the range basis, update. Based guidance X.X%. ranges be the months this XXXX expect in year adjusted quarter, for planned X.X% on the of currency and Moving delivered balanced to in midpoint the XXXX guidance. up or in and our the operational range X.X% we a on strong EPS first growth X.X% the the the range full X the

a Just continues to any guidance our reminder, exclude revenue. vaccine COVID-XX sales

While now negative last speculate in of X% an million. future $XXX incremental we week year rate movements, the as negative of currency do full at $X.XX, utilizing we or impact resulting not a on euro of $XXX anticipate spot currency impact million,

approximately XXXX Looking for based $XXX cash, by other and earned still tax is income XX.X%. finally, rates interest range being net in for driven the our million. And our higher $XXX interest on margin billion. now rate we across million the from Due points XX P&L. Adjusted to of and effective year, on tax between Net pretax expect current business XX.X% will operating estimate maintained, law, to be $X.X the ranging basis also prior is to $X.X margin profile expected to stronger mix. improve by versus billion income

earnings adjusted share at in guidance $X.XX translate revised an our increase These per operational the estimates by midpoint. to

and the XX.X% growth Our per share is earnings $XX.XX at midpoint. range XX% $XX.XX, or or $XX.XX new midpoint; at to to the and adjusted range growth of $XX.XX, the reported in

per deal share, January, operational $X.XX on absorbing year which Since with for impact our our Biomedicine and of the on quarter increase a sales $X.XX been XXXX. earnings Group of the announced we've throughout billion for operational able $X adjusted to cumulative includes second in licensing guidance Cellular

to and actively next perspectives appreciate me for context, attention With I consider. that our for turning finalizing you our allow provide to many your is that some year. are team preliminary to of XXXX, Now you plans

the For deliver newly anticipate data This Innovative and robust remain ability confident exciting and growth brands States of our prostate of pipeline from our our we trials from data III and in products, advancing to early nipocalimab continued presentation Phase cancer. progress not key of from us. regulatory Phase ahead ERLEADA in and data submissions from approvals while our presenting III readouts, biosimilars during includes IBD, Medicine, entry launched TREMFYA study myasthenia many in filings gravis do all with We United in for STELARA two XXXX. expect in stage readouts

STELARA However, of in as Europe. does in a composition matter reminder, patent have a mid-XXXX expiry

ablation, capabilities robotics. expect continue adoption all to will improve For businesses including our MedTech pipeline recently pulse we of to launched commercial MedTech, Abiomed surgical our continued continuing across growth in and and while products drive our field advance innovation competitiveness and programs,

remain to procedures elevated with levels. XXXX in expect XXXX We consistent

With respect to tax.

As Union Two XX% rate the the provides as enacting you Pillar a generally Two by minimum which framework. the of in member Pillar OECD states aware, may established for be EU's process are directive, the tax European

EU law is January for certain effective X, first aspects date The XXXX. of the

a result, XXXX. estimated As currently to tax a rate in increase X% we up

U.S. to Two U.S. the addition, tax multinational in result incentives harmful and will companies as foreign the U.S.-based on current to In revenue governments. of Treasury's paying Pillar more be relates perspective it for will treatment innovation

the million Regarding shares separation. Johnson Kenvue the share XXX Johnson offer share XXXX given from & benefit outstanding the reflected The exchange will be in full approximately count in of financials. our reduction net

would current we speculate while impact finally, spot per yield adjusted an share. negative impact, earnings rate on future year XXXX currency utilizing $X.XX approximate currency full the don't And on euro

X shortly. day's the pleased Enterprise in at us of Review December New the sharing move including to available will our look Exchange. of Medicine strategy we Johnson Stock shared with are our the at of Innovative and an & into We York to strength have hope on of long-term promise MedTech our or momentum first you webcast. business, this during the about join and upcoming forward be pipelines information, schedule, We months XXXX. our either able person strong performance will more on the of positive as the and X We Johnson Business be overview More year

remarks our for world the by I want excellence their around on of behalf continued teams conclude commitment to hard patients. to my our thanking and unwavering work

that us shareholders. for our long-term confident will position and value to growth are our deliver We significant create strategy

that, the Q&A it's of With turn my portion the Kevin to to call. pleasure and begin

[Operator Partners. from question is from first David Leerink coming Risinger Instructions] Our

financial on performance. the strong Congrats

key So benefit? results, Could MARIPOSA my results, recent FLAURAX on your which X-month please. benchmarking thoughts question is a PFS included share you considerations, including AstraZeneca's on

This being question, join a impressed new of is really inspired to like a before answer John people culture Reed with enjoying by I you, our here. with just talent, here David, would the I J&J. the pipeline. It's your time member performance to as been with I've say call. I the great of the our first J&J at the my newcomer J&J, and And really team. to I'm strong tell to of caliber really our the credo, have

our We've now those tradition XXXX. already and myeloma, for this new year, agents. of the and launched two two per between NMEs for bringing of cancer continuing positioned And close AKEEGA the to deliver an therapies than prostate we're NMEs TALVEY average decade, year in more

pipeline be to it's here a part exciting of and to be So is the robust, and very it.

the So Presidential well on at Abstracts embargoed question. so will available be only will that then. head-to-head a osimertinib. in can we're to I session, your be on against perform data did Wednesday. combo presented The say RYBREVANT-lazertinib until ESMO

a think data those regimen is for option Our and present which is ESMO. important, chemo-free at we'll patients, we

Miksic coming today Next from Matt from question Barclays.

being of look of little folks for a not softer medical orthopedic and by But for most kind QX, I that your bit realignment could and as the devices Joe, and a well divestiture given seasonality bit thoughts continued results described. of that a the talk shot than of J&J. think know may strength I that's plan, as on if sort more traditional expected, on maybe the were maybe strength, into everything you sort expectations at long as in you little about sustainability heading comment

part X.X% And So is it, our driven overall. results as mentioned, thank yes, in you Orthopedics the question. mean, of And you for I growth by seasonality. were

compete. journey As but are are every we the by #X commented, be by improvements growing to in a segment is And not there confident we place we that we are that we want continue to improvement Orthopedics. investing of #X yet, a highest-growth and where in are segments. have going in in We to we very and make

in We our have made portfolio. improvements

we For example, the [ a now. side, complete on ] have ME portfolio

the that And total already VELYS side, Orthopedics the on in knee have side, launching XX,XXX On Europe. system. surgery our robotic revision procedures with cementless our have are replacement about we VELYS we been performed now

in already also also [ the we a Overall, we and impact of the this particular U.S. is of due the Russia was had And impact quarter, prepared because some remarks. continue fast-growing the the ] we and are to globally. value-based increasing our our In which in that mentioned sanctions improve segment. impact see China in penetration performance to procurement of the also in ASCs,

Orthopedics, we determined improvement. our overall, in to continue of journey So are

We having are in the portfolio. right focusing

the to as Joe We have Orthopedics. our a able plan margins And very has in a strong comment that to field. be team can Joe have continue we to announced, and in improve

Yes.

the question. the looking Orthopedics, those Matt. Just announced quickly, in for specifically product lines. Thanks program and less-profitable restructuring we that exit markets With respect we're very to to

actions the disruption. do not going we'll some, these of inventory actually modest a X only write-downs will think as forward, clearly, over that improve But profitability. growth but be accelerate some next So we There revenue years. have result will

is Your Sachs. Chris from Shibutani Goldman question next from

into with the us updates on you Can talc litigation provide some process? insight

opportunities. then if appetite that forward? How word you And Joe, in the could comment, your you terms time does of on used development for secondly, just your still, word appetite voracious business with stand, last the

Erik, don't matter? the to it question. over to come turn litigation I'll talc then And back answer and why Chris' you I second So discuss

strategy the in pursue Great. four-pronged that back communicated short is we continue July. that Thanks, The we Joe. to answer

four follow-up talc. questions quickly some and perhaps salient highlight me those let the and summarize about development prongs So anticipate

public by claimants. Court the vast the Court first prong, appeal the United and Also bankruptcy case for appeal appeal the of would the because States that bankruptcy the of that materially the to direct that we significant New the a pursuing the we of of Court the Notably, certified by Circuit, ruling our was found the bypassing Jersey agree majority counsel joined the District representing Supreme the thereafter, advance talc interest, the Bankruptcy court of case. which the dismissed So the assessment. are recently matters resolution of raises fully court Third with progress July case, the bankruptcy to appeal LTL's

On the was that the merit, the of the the financial validity nowhere we immediate which Third That the application Bankruptcy as appeal define, under asserted as other of of both talc a were Third contrary is distress" case. novel well specifically by that challenges distress Circuit showing due requirement, requires "immediate the financial the in standard the is that did imposed the that the employed distress claims with volume the financial bankruptcy by to Circuit circuits. reasonable not immediate of proceed are faced Code established record fully that has believe Moreover, LTL to and any interpretation to it. that standards large standard, against

to its to But do an at We the think first of application terms second standard resolve deciding is. in next of a appropriate will the Third And rule will and approach decision standards, dismiss. do split for thereafter Court We if any direct affirm it the If Third in to take term. hope novel place the it immediately squeeze motion early the the not, we Court request the the whether months decide moment circuit it not or over Circuit XXXX XXXX. time because will briefing in term In Third with the Supreme expect into we not. will it is we raise Supreme served the timing. appeal of the does, we to petition couple could to frame. if take Circuit's a anticipate summarily The the Circuit

And along bankruptcy. that talc those of New exactly The its the And counsel New with were having more involves Jersey urged second and case. the we resolution And Court, the counsel Court progress towards claims and what representatives, representatives. strongly that than efficient the and had representing that of the future do found another we're working payments, prong and Bankruptcy majority to with bankruptcy future the decision an the in with remarkable the us, vast we to resolution -- made the LTL with a previously addition Jersey claims that talc of in along the our together the strategy dismissed court, consensual pursuing the had claims actually date. made through recommended equitable recommendations is that

So we process. in are on that continuing

X to In the second the in prong. the timing whether trajectory terms claimants the vote of a resolution is consensual with expected the requisite of plan plan. initial same on on as bankruptcy The next support months determine the supermajority

Third.

tort vigorously are While negotiations talc proceeding, the in system. meritless to those we will the continue defend claims

case, reversing $XXX against the may Court Appellate in significant Barden you week, a just seen As New have million verdict last this we that regard with the the had a favorable company. ruling Jersey's in

why nature have been the it the date. court that unscientific we those that were of The to in the were the experts leading appellate determines and majority is opinions of were plaintiff's cases because unsubstantiated. And baseless reversed vast opinions of it prevailed have tried unsound, expert

two cases of expect will In of the mesothelioma be tried There this come timing terms with year, are additional litigation. in we more that XXXX. to

As that choose. place often and at that is not with those the the Barden is the plaintiff which lawyers case, mind important to of in level, resolution forms the it's appellate the ultimate level, trial at the the in occur determined which keep matters

tort publications of bar's talc affirmative with with lead products moving and the bar the mentioned abuses system mass premised experts, by judicial matters those plaintiff's Court the respect challenge District They've our litigation. two And against may its on whether aggressively the will to actions we the ruling with the our terms discovery We case timing, last proceed own experts we knowingly in claims forward. New Finally, from for in briefed shortly brought Jersey false expect time defaming the propositions. phase. been And Federal of those to initial are we motions. fully that

regarding have any the happy quick a So answer to summary. that's strategy. be follow-up may you I'd questions

Thank Great. your a And was up If had question. while earnings, quarter. time quoted the very nickel more. term with little second could wanting to meant since where the associated we definition construct even a Chris, that's second for voracious bit the really often or guidance having in every eager you, back an second have I to that taken Erik. quarter regarding me great activity, J&J in devouring second the think which in quantities, I a probably Webster's, approach it's

ago, weekly, that. could routinely, both have the pipeline our almost is XX future existing no -- opportunities Innovative moment and MedTech meet have years different. our years We complement My could that and X or said portfolio may in on said current that I Medicines, So we new ago. predecessors

In priorities, low very position, familiar to of a the in fact, in net this our of with at debt, time. we're probably the to fulfill able very levels one raise, we which allocation were capital point given very, cash good you're

principles we're making not sure that to But our strategic compromise in a going it's fit.

we're that's reach ensuring risk the in we're So we're to that disciplined behalf commercial shareholders. approach into or financially scientific to on value versus our a asset we else. the by in global make capabilities that hands add going of will it commensurate that expertise, with fits someone return And that the have bearing that the that sure

rather credit a rating live given had big, cash There's annual much kind make okay deal and great of you pass deals our strength we'd smaller as And no So well. generation. deal as flow that's have than doing success well the principles as into. that's that we've our But as we'll deal. an earlier-stage by financial know, too us bad

the Innovative respect next being to whether or with agnostic We're one MedTech -- be Medicines. it

strategic that looking parameters. simply both are deal financial meets and the qualified for best We

So answers your question. hopefully, that

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

with stick one. I'll

about with So centers related commercial the talk that you And when constraints on to any relieved? on the or manufacturing, vector and CARVYKTI, have can new maybe could guys update just backdrop prescribers? be respect you on

eventually, hand, came continue and also of we by And our of hand, medicine encouraged therapy. we We're manufacturing. demand; have, as seen in Thank very one with in progress you earlier CARVYKTI the you, the data make progression the to out in that Geoff. other CARVYKTI, quarter-over-quarter that a also have lines strong on CARTITUDE-X on

going that what to able what So comes supply to Geoff, will today. doing the are demand John continue in order see quarter-over-quarter progress, you is we improvement in we you strong can that our -- into seeing to to Overall, I'm when it XXXX to we expect, explain XXXX. are let CARVYKTI manufacturing be also in

using by Yes, more more that having have and our site to close in site capacity. in but Novartis Jersey, can original capacity to in manufacturing and included New we're the been at bolster Europe some to an of and adding comments. capacity our Joaquin's up launch increased slots rolling number had excess follow-up on Belgium, further we that also progressively recently additional We've accommodate. That's

made the in-house in components lentivirus in the And lentivirus Netherlands in the traditionally of rate-limiting therapy we've the Switzerland. -- component. mastering And One building, the of the technology, one be to there, we're it year, scale has really been the support rate-limiting our been available outstanding increasing sometimes the next we're another has component, of progress which that and think factory at process aspects. I factory will

that will continues the qualified available. of I also to would number capacity thing the of ramp with be centers up, perfect and countries altogether, therapy, to number are CARVYKTI making administer and the we So to where on continue the progress we're a say. Same technology,

the obviously, therapy. best-in-class that. with excited, about momentum very CAR Really So

durable cytokine The benefit, X.XX, CARTITUDE-X Grade X.X%. Very one-and-done tolerated. know therapy unprecedented that response progression-free of above well response. data, survival for of XX% was The XX%, as release you a hazard rate only or syndrome showed overall a ratio complete X was

really, possible do such bringing line to now to think, alternative as to front cell the we transplant. more, second-line this as So as hope a therapy. stem emerging I preferred And is

and care Geoff, And our TECVAYLI and have your professionals point, administer progression approval to TECVAYLI launches, ] the of already also new in also very be is expectations. multiple recent in the are product of about that these REMS-certified to U.S. encouraged TALVEY. TALVEY. exceeding [ medicines able The we of X,XXX health internal are And to launch by the myeloma we

in progress And multiple we TECVAYLI sales So in beginning break able these medicines very two in expect to be XXXX. encouraging out myeloma. to

coming Your TD Josh Jennings next Cowen. from question from is

from just the and share for take the arthritis wanted unit? the pharma target psoriasis hit on beneficial check focusing shift now revenue Medicine and for competition how bowel I business' for psoriatic provide in to to inflammatory to biosimilar set the TREMFYA potential constant new defense ask currency for But XXXX expected U.S. in timing potential and the STELARA hoping on extra in And the does disease news. strategy? guess, That's Was Innovative year XXXX. indications. confidence the more not to in on STELARA in is

being the for billion confident hit pharma. to have you XXXX able in been in $XX target question. for Thank our we always very Certainly,

there before, explained number have I are. factors As a are there of

growth first is most especially in our The ERLEADA; long-acting which key we're share and line. our TREMFYA; DARZALEX, injectables; the a have first trajectory assets: having tremendous gaining one to UPTRAVI; continue important that and in

TECVAYLI of encouraged, also I launches myeloma too, the multiple just launches, the the as by SPRAVATO; are CARVYKTI; and We progression and recent also of of commented, in TALVEY.

we exciting of And very pipeline. looking into XXXX, year, also the XXXX, have the news in and some remainder into our

Some of commented. already been them have

the EGFR-mutated example, first-line regimen cancer. as For in chemo-free non-small lung first

of presenting be an XXXX. therapy a MARIPOSA important a very be patients. and -- for new will filing this at standard need that in and in line the This will potentially of We in would in data be ESMO, this therapy approval of

platform. We also in by the be progress continue to encouraged drug TARIS our delivery

in two products, in represents potential driver that into ESMO. You us, case, for the on IBD being and in see sales. a consideration data at approval significant a IBD, important in presenting for very in Very the in data are Take colitis, existing for ulcerative both to will Crohn's XXXX. also TREMFYA going we TREMFYA. be STELARA growth later presented XX% to going That's be of

So we to we TREMFYA growth end year. cancer. will myasthenia nipocalimab lot in some us of this to in do going ERLEADA, with as present of which in we high-risk front also We're be localized still of in a have gravis, in able data prostate present data of also

XXXX. very news in all good So and all, for our pipeline in XXXX

that of another XXXX Certainly, the U.S. that be entrance the billion. confidence factor in biosimilars to are able is going in our the we to $XX meet builds the

thing important the Innovative Medicine our most decade. profile half growth the now into to think to forward group the look of of is and the me, about For second

are that what strong the We have strength growth that as business immunology, that looking the I've profiles a but profile with be upcoming already focusing is number be you will what discussing there pipeline, second in that's also described, the of in decade. part to growth in decade. of oncology company growth the our enterprise a a of both our into forward strong the drivers profile and half has in going neuroscience, review, second And in of to we the us half

Chris question Schott coming from from Next is JPMorgan.

this some the initiatives, of of little color I'm margin these, of bottom line of details can get of I line. line kind on on directional like think But provided, bit dis-synergies Maybe, kind some and there progression dropping year growth of about just year? give you to the healthy you of XXXX. you year. Kenvue balance a know next us these to just Joe, pipeline growth. seems a sense some color kind as the how top you just more I are some trying versus top that a appreciate margins another opportunities with here

be So would just appreciated. any directional color

the Yes. for Thanks Sure, Chris. question.

with in So that the first very we're off, progress we've been margin XXXX. pleased able make to

by year company. the the a efforts lot flat at directly versus organization attributable to company infrastructure that people of really in our started took has to the improving the basis we who to roughly XX of -- really points. many two-segment to think gone A -- I is a three-segment now as look

manifest. early Kenvue really the haven't we separation process and warned that the So about dis-synergies talked in about on come to

we impact see separation. to the from dis-synergies from to XXXX, we as almost fact, minimal out look In no

the in of plans to the business bit better for process what our XXXX. clinical are little is of assessment investments I'd development get there. the like are pipeline how finalizing a up, We shaping required

a each opportunity year larger efficiencies. We to we're every company. the and look take But at

not R&D the And a Again, be this we margin we're forth. on to I it's next depend give would in both to to investments we we'll sooner the right teams if position bringing a Medicines obviously for that would So accelerate expect year. bad started guidance great that products now, and you starting point have something can going where year opportunity. some not that bring but to to MedTech patients similar from look Innovative

Your Wells next Larry is coming question from from Biegelsen Fargo.

can does meant 'XX by in -- growth? MedTech? -- could Joe, procedures you my business, And especially bariatrics? just that the how flat what talk flat just And you about in in mean Are question, MedTech across you potential is. assuming for just seeing in you you're For with and you're device GLP-Xs thinking about long this ortho? GLP-X, of your cardio what term, impact clarify

clarifying the give question question Joaquin, second So growth. of that to thanks I'll half with but market the to respect for

not same X% X% maybe is to are overall based that today, in now, to year. We X% X%. flat we X% flat levels, What the we to on MedTech suggesting are what market been foreseeing do We has -- market elevated X% right being is market see what know next -- the or traditionally year. versus next

Joaquin?

see a And Thank back, in evolution business step way. taking MedTech a we the very positive you, our Larry. of

in is results for grower our are a key When at One we this on of MedTech. us year, to goals the that. top-tier look MedTech delivering I of be

when Abiomed forma Our growth look pro growth in X.X% pro the a year-to-date MedTech, compare stand-alone our with you you was it's And X.X%. in as at forma when quarter company.

new and very launch with the by we also part our and see continued that So XXXX, procedural improvement of the products. have And growth MedTech our our performance by into pleased in business. of our the continue progression in expectations we execution to fueled

later. discuss of Some we them can

For into example, launching in catheter first will PFA we be Europe our XXXX.

reconsidering obesity, patients comes which not GLP-Xs, it's for patients has treatment especially looking commented, some impact treatment, we're disease in were new at due to seeing some that. stigmatized to in business the our in short times, for as good to Certainly, it term have patients expecting bariatric a get When treatment. surgery, you which, in for as stigmatization options are the to been of

them these that of obesity, and about going medications, complementary so not are on business. about bariatric tailwind of awareness another patients many many to a increased the more funnel they talk of tolerating down the the could we what a of our surgery treatment. nature, role when the would road is patients, GLP-Xs for And see complementary be comment they this overall, seeking surgery for and be XX% to them, bariatric bariatric But surgeons, given surgeons, fact

that the In robust rest foreseeable changing in that this change that at future. we see of anticipate procedure increase, MedTech to continue don't our -- point, think we the and business, then

Flynn Morgan Terence from coming from Stanley. is question Next

working see John, data was elaborate I to just could here potentially likely biomarker respond? about know population? in a RA. ACR. see I in indication? a at subset, III nipocalimab here wondering thinking this Or a Phase is a group, on to plans there you more, But are broad that more is full going if drug in bit then the you you And we're that's how little this

underway agent. mechanisms anti-TNF is study, two now, that either looking complementary, November then look being levels see as nipo, Yes. test combined autoantibodies monotherapy, of San those at -- mechanisms with population combination. a And we Thanks those precision as or and and broad where we in Diego. as very inhibiting II, for so-called to the forward the in combination the with That the to at reducing sharing aim strategy, question, we're TNF. we with ACR for the and a data inflammatory combine medicine an Phase a with nipo The we'll a DAISY

a synergistic has the that nipo, for mechanisms are or other at together targeted RA, safe in general, in can medicine that see monotherapies future looking that, combos way a precision So where are being way. agents therapies pipeline, been way that but in we're broad bring in not our the only we

hoping And DAISY together. the be we're excited those durable will launching new combo. remissions to as mechanisms we deeper, more program We're that that at that, patients for bring to look bring

Citibank. from coming from is Joanne question Wuensch Next

on us headwinds same possible way mentioned give a, or worse quantify better as the couple it's the way it? in if if You VBP. a least little say just Is a b, a things? bit at more to to of to couple quarters? I'm it curious there's, it last from of been detail And a And or has

been we've cetera. anti-corruption And lot et a then policies, aspects similarly about other of in hearing China,

on you be If would could comment great. that that,

are Thank let into we strong and for to say now, a is delivering growth that growth XXXX. you, we And us in a key market first, deliver which and are me continue China Joanne. to market going

So it's a us. growth driver key for

on So into an the quality headwind you price. on technologies one it And more hand, expand certainly, a also in medical represents hand, VBP other represents as products, opportunity patients. can

during of effects number a there and MedTech platforms energy. trauma, headwinds, endocutters So are will And part XXXX these currently last spine, now undergoing of and VBP electrophysiology, XXXX.

have by China growth We a remaining VBP. of VBP, have about a to we we point, have part platforms our deliver at been and strong continue expect growth. Again, into key joints large already so this China anniversary we already of that affected in XX% our our XXXX, as look

compliance you I any And that are in physician we we Overall, seeing related asking any innovation the surgeon continue key into to comes said, as situation. in to some it see question and anti-corruption to may continue that, business we'll driver as see China our of key also a a When business. point, at due to part future. our moving monitor not the access, this in as we to but of material limitations were source of culture and strong we our a of and have growth impact side,

Vamil Your Securities. Divan Guggenheim next coming from is question from

for little products to some the you on But very the Great. a want of I dive side. comments was strong the several maybe made performance your already. immunology for there. deeper just quarter, of Appreciate there the

I'm we can look should into future you on. should onetime It account were aware were of just of. market there a onetime as any items just sort like major curious we pricing quarters. stocking be sort mix that growth if lot of about you patient it commenting So sounded that or guys we that there and I'm was curious take if at highlight any adjustments

Thank you.

growth of quarter, performance growth performance pleased business. shows pleased the We immunology to the of we're our there. with very in Especially, are with which drive our the TREMFYA XX.X% ability with

and As is in indicated I psoriasis. said now arthritis psoriatic before, TREMFYA currently

sales. of analog, XX% of the As STELARA, in the that an about case represents

$X and Analyst So disease, and growth upcoming earlier as colitis talk approvals in readouts, the We in product significant a potential XXXX. billion about with of filing TREMFYA. our ulcerative to Crohn's in Day expect we TREMFYA have

to Now see that going clearly that that, you TREMFYA. exceed can we're not for meet to clearly only but benchmark

year XX%. very case, close to a it the also comes a ago when points. that had of period robust basis that adjustment to is STELARA, a about there in represents So prior quarter In XXX we growth

So into about you STELARA you that when the growth. take think should consideration

REMICADE I Overall, that We our biosimilars. in are headwinds immunology which with XX.X%, very grew we of there portfolio. strong quarter as is pleased have overall, considering portfolio our very also the said, immunology

very we for immunology as J&J. about portfolio a And key excited remain the driver

we presenting IBD, to And Our TREMFYA, target going IBD are combination presented in as some have we golimumab improvements I already recall. also, bringing of which oral with data Innovative there, to in But staying data Medicines presented the in groundbreaking. is also have and be significant our soon, that we psoriasis. also has which peptide going be guselkumab

seen immunology the to our in portfolio drive second our the be growth the More of about and the ability in encouraged in very decade. later to year. half EBR So

next UBS. Your coming from is question from Antalffy Danielle

not we And front-run have an you robotics most of and landscape sort bring and guys specifically, of to a, into continued where innovation see? Obviously, some higher here the actually appreciating get what probably Ahmet, about penetration? fitting Day MedTech. you you're what to in Ottava importantly, curious the and to into ultimately and day. you in the a b, I see And can about, totally kimono contribute ask robotics the open But say coming up. going to helping just Ottava you conversation wanted move the

of for John, well. you all, the call question. this thank first as So Similar to first is my

to we So physicians leading be team solutions equally a as patients. of do really our here, smarter, talented personalized scientists, be excited more and and less for to excited engineers invasive

architecture, team high its And we software a based differentiated and So going from combining focused day architecture combination believe we X. on progress value really a instruments. on enable is of with The great hardware, is really have our on to with respect instruments with that made together the to to best-in-class us have Ottava, platform. differentiated

at will we in on Ottava will one lot mentioned. digits. more you I'll is provide we point surgery a And the that, is time, robotic-assisted make Now next today, more have that detail. as updates penetration But single even month,

a still lot growth brings Ottava differentiation. So left lot And there's that in segment. a of of really because excited we're

we're in very a as that So excited our we path. and can big can that growth make kind of We segment open path there well.

to they the advanced space. accustomed grown. have want I've be support service been instruments the that utilize business, our have that want to Ottava. the they surgical one into able robotic & and around and Johnson decades whom I on in they doing the all common Johnson with want, here interject have are may to They come comment Ethicon also is find I the And that if world. for with rooting all multiple they Danielle, surgeons with they touch to

an is robotic what to I important surgeons alternatives, play the having space the forward role see Johnson and want surgical all So looking surgery. have in that Johnson & are to in they

Danielle. you, Thank

last one We have question. time for

Cantor question Fitzgerald. Chen final Our is coming today from Louise from

or I why And wanted to your impacted all ask the they opportunity you if your why thinking at not? for on market MARIPOSA? on results, FLAURAX

only of the because think I the the influences second overall well to as don't progression-free really on survival, PFS therapy. to survival it's to pay as No, also important survival attention but line it not

will almost relapse, the failed reserved has line think Unfortunately, now a eventually they therapies, targeted therapies. we where therapy. that circumstance, chemo all with best today's patient second was lung the cancer for will frontline patients And need

progression-free long-term the are attention that of really pay terms attention endpoint that patients to with receptor So survival, EGF overall matter say, to too, outcome these survival, things think, mutant for because I really to going lung is pay cancer. would I what be, in

is the present indication, become ESMO, patients that we that oral ever solid -- for we'll molecule frontline data the regimen. that as In small receptor, durable offer well chemo-free based mutant of achieved third-generation will first our a combination believe RYBREVANT, EGF antibody, the a which incidentally, of our care that, bispecific The human; as believe, fully the session lung mind, approved we at tumor Presidential bispecific the brain-penetrant. on in in receptor cancer standard are new the and EGF for remissions lazertinib,

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

you, for continue innovation, This all you J&J, decades. next report and the Pharmaceuticals. joining today to in foundation MedTech better to the proud company's Thank health J&J thank of drive us in a And today. focused is the we this first performance. for has you new Jess, in believe to I growth that as to I'm a quarter present care and new

that in second adjusted beat with We raise into that we are strong row well XXXX, quarter. to the we're for too. our reads X.X% very going have our to we growth and a continue believe guidance. a of It's operational in achieving strong the a And results a have XXXX, strong in quarter and that a XXXX finish

as the to Innovative said, And in dedicated we you very MedTech. and seeing we We into are well think have carry positioned, both are a I in XXXX. that momentum team, XXXX Medicines in

forward Enterprise December on at and of your to Thank rest you of X. enjoy we looking Finally, our very engaging day. Business the Review all much you are

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

may You now disconnect.