Johnson & Johnson (JNJ) 23 Jan 242023 Q4 Earnings call transcript

Good morning, and welcome to Johnson & Johnson's Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] This call is being recorded. If anyone has any objections, you may disconnect at this time. [Operator Instructions] I would now like to turn the conference call over to Johnson & Johnson.

You may begin.

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

Officer; today's on President, Duato, Chief Executive are Joining and Officer. me Wolk, call Joe Financial Chairman Joaquin and Executive Chief Vice

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

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

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

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

for questions, will anticipate guidance time minutes. address and sales business of year enough will I Joe by on with key ensure position, close allocation cash XX enterprise little the comments will highlights your for last the we XXXX enterprise. will Moving and priorities your to today's then agenda. results we Joaquin To The P&L XXXX review. then over to quarter our an well provide as XXXX. webcast fourth our overview remaining open and time as questions. the from a performance our a as will sharing few for milestones be well review available capital results as full

call over turn to I Joaquin. pleased the to am now

Medicine we XXXX as everyone. innovation In morning, our and MedTech, and company Johnson Jess, was Thank Innovative you, for powerhouse. & Johnson. X-sector position a strengthened a on becoming year good remarkable an focused

innovate our a With breakthrough science at review, see and results. company pathway and entire enterprise we shared patient is can. technology, and ways growth which other as are business you And transformative and we today's what margin agile have in ever no focused stronger across more than with profile before, the we

COVID-XX I'm of particularly QX sales vaccine, by proud operational results a adjusted Innovative growing X.X%, the sales, with X.X%. impressive our an Medicine metric operational excluding growing by

with we breadth and the operational of adjusted year, sales performance full These growth. the our portfolio. vaccine, competitiveness COVID-XX and growth, strong per delivered X% sustained operational reflect excluding the results XX.X% For earnings share and

the we guidance confidence I And XXXX beyond. achieved our when our I and milestones look in and in of have pipeline, promise the at XXXX for

a deeper business let's we the So look at and take what year. achieved last

Medicine X.X%, full with the growth year, above-market COVID-XX we Starting delivered sales for excluding Innovative the vaccine. operational of

the of to Our be new of by business from products. acceleration and continues key brands Innovative Medicine sales growth fueled

products, launched a and myeloma with CARVYKTI, including significant TALVEY. recently multiple contribution portfolio is example from Our good TECVAYLI

positive in lung in myeloma, CARVYKTI the medicines, pipeline TREMFYA DARZALEX plus RYBREVANT lines multiple X therapy chemotherapy of in Turning trials. monotherapy myeloma to our prior combination lazertinib in-line in finally, RYBREVANT ulcerative included from to Key and cancer Phase of and in with for results clinical and colitis. multiple transplant-eligible cell XX patients, than including readouts more frontline X year III in nonsmall

milvexian oral I readouts III and Phase Phase and peptide targeted and development and And addition, II saw for we TAR-XXX. JNJ-XXXX. nipocalimab clinical TAR-XXX Phase we for initiated positive In our programs our

U.S. acute treatment high ahead. the TAR-XXX and coronary for EU fibrillation, designations track for with across fast atrial for designation breakthrough of FDA received bladder and milvexian Innovative have XX year we Medicine in and business XXXX, we in that, filings for stroke expectations Beyond the syndrome. our cancer And

a definitive Ambrx next-generation Oncology announcement acquire recent Our our agreement to conjugates to of pipeline. develop further antibody strengthens drug

XXXX, of operational delivered sales to XX.X% full operational we year MedTech. X.X%. sales adjusted full growth year and Now growth In moving of

For the billion than a continue MedTech we team business. to sales in first as our more build time, delivered best-in-class $XX

left We of are saw in successful recent atrial higher-growth moving execution, with Laminar, nonvalvular atrial patients commercial eliminating accelerating as fibrillation. growth which our and of through differentiated focused you and acquisition markets integration our into Abiomed on innovation with the appendage

the continued China are surgical in robot, strong making expansion in Ottava total Mark in bronchoscopy approval including our VELYS, same robotic-assisted XXXX. we solution at time, CE for knee And for and market for advancing approval replacement MONARCH progress our our pipeline, with

we Mark In lot Japan announced post-field the in for ablation regulatory VARIPULSE ago few We only in momentum approval CE a EU. we a approval approval fluorocopy cardiac portfolio. ablation. U.S. our [indiscernible] workflow for the approval platform electrophysiology, and in submitted first have EU. received and weeks The for of the from has have generator in PFA And [indiscernible] FDA received for the

our catheter fourth duration high And Q improved patients. of quality health ablations findings study care showed micro short quarter, from Q power, and life utilization in fibrillation DOT atrial very efficiency for the reduced that

X-day has performance X-Day, clarity lenses, than and superiority strong ACUVUE lens, which TECNIS we contact competition. our our proven across Vision, premium of comfort in IOLs including OASYS In family are most the MAX OASYS driving and

our trial. Turning Recover our we ECP in enrolled to Abiomed patient pivotal trial. the QX, also controlled Abiomed. We randomized, first recently In IV clinical Impella completed

As pipeline by XXXX review, that have XXXX billion have to grow we that look business our $X X% XX enterprise expect from potential generate portfolio to never sales industry-leading more over to excited been delivering Medicine Innovative assets the the business. shared future and peak our with our more in I about we year business X% of to our than XXXX. ahead, we At

cancer, expect data disorder. ERLEADA a assets, to peptide, readouts prostate in we stage We IBD, XXXX, seltorexant as nipocalimab further oral JNJ-XXXX $X [indiscernible] for the TREMFYA these have Phase major well and potential in our billion myasthenia $X aticaprant heavy for in many as sales. also to year of in psoriasis, for targeted gravis peak trials assets In III expect in in XX including billion

also upper range invasive that revenue therapy, by in in II guselkumab grow of Phase for cancer. the [indiscernible] shared be TAR-XXX JNJ-XXXX anticipated in bladder at nonmuscle grow new X/X X% are combination and to disease And expect to and expect XXXX. golimumab, X% markets, between and arthritis, XXXX, psoriatic We our generated of to our XXXX we In expect which products. to our readouts we nipocalimab MedTech, that by by we

in full for in in DOT Q includes we ablation of the approval progress release the CE exemption in strong catheter. of plan the XXXX, Europe Ottava Mark FDA goals submit the for U.S. In XXXX. half market to of electrophysiology we that catheter see an to device these my And first post-field We expecting towards XXXX. second investigational our VARIPULSE are half

And in commercial assist in launch smart ECP XXXX. and Flex Impella Abiomed, expect we U.S. submission RP an of Impella with

can see, our you is advancing. pipeline As

transforming. business Our is

teams Before turn everything want help to do I I the our call patients. the our they Jess around Joe, to for world and thank

of position our ability health of have XXXX in strength, wave lead confident I'm to next the innovation. We from and entered a

With that, I'll Jess. the to call turn over

guidance results reflects stated, otherwise the of the & Johnson. operations continuing highlighted Johnson and financial Thanks, Unless Joaquin.

translation. and as represent currency We operational operations. Furthermore, Health the exclude percentages discontinued therefore, results quoted will report results impact the Consumer of the financial

sales Starting $XX.X Sales sales in with the increased U.S. outside were QX XXXX quarter X.X%, fourth U.S. XX% results. and of for Worldwide the X.X% billion with XXXX. the of

important X.X% ZYTIGA growth and impact of negatively by adjusted acquisitions the outside X,XXX was operationally. and points note to in X.X% and impacted U.S. sales of It sales vaccine divestitures, basis approximately Excluding is Europe worldwide, the U.S. operational exclusivity by COVID-XX that of in the net X.X% loss were the

Turning now to earnings.

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

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

X.X%, year of the outside U.S. X.X% full billion. with $XX.X in For U.S. sales Sales grew XX.X% and XXXX, the the were

of impact the U.S. was Europe COVID-XX X.X% U.S. and vaccine worldwide, and outside Sales of in approximately by ZYTIGA the growth operational loss sales X.X% divestitures, in net of X.X% points exclusivity and the Excluding operationally. by adjusted the basis were acquisitions negatively impacted X,XXX

full of $X.XX the year earnings share ago. were for year earnings earnings a Net was share diluted billion. versus And $X.XX per per XXXX diluted $XX.X

earnings year XXXX year was versus basis, share $X.XX, adjusted adjusted were XXXX. by adjusted respectively, per increases and Full $XX.X increased diluted and X.X% full operational earnings diluted billion, XX.X%, representing per XX.X%. share of an net On earnings

X% $XX.X decline X.X% the in the performance Medicine comment I X.X% Innovative growth with business Worldwide in of of of of Beginning will sales increased Innovative a and sales Medicine. now U.S. on quarter. the with billion outside U.S.

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

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

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

as driven by and saw by favorable as well driven TREMFYA, mix, both growth STELARA in patient growth in This Growth gains and growth. XX.X% gains we of XX.X%, patient immunology, market growth TREMFYA. sales and Within favorable of increases was share hypertension in pulmonary was and share XX.X% market mix with respectively.

Turning to newly products. launched

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

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

As begin in a [indiscernible] disclosing XXXX. reminder, to QX expect sales we

in of offset and competitive in Medicine a [ pressures Perzista of decrease patient and due by exclusivity to was XARELTO, ]. unfavorable growth Innovative sales loss mix Total a IMBRUVICA ZYTIGA, sales partially REMICADE

XX.X% MedTech attention $X.X the Worldwide with your to turn to Growth and now MedTech. X.X% growth. billion the in Abiomed was XX.X% outside of I'll increased U.S. contributing of U.S. XX.X% sales

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

in strong Electrophysiology by QDOT our launched delivered and growth most including ablation sanctions approximately market-leading in and XX.X% worth catheters. growth MedTech including in recently all regions, driven basis RF primarily double-digit portfolio, was This Russia the international was Europe. Advanced global XX Surgery with negatively of by growth impacted OCTARAY points, Vision.

X.X volume-based Impella Growth strong of the surgery portfolios. China, procedure and offset contributed quarter by closure Abiomed was was primarily in million within $XXX continued primarily wound of X.X% endocutters. partially sales driven our of strength in recovery technology. and by Growth procurement driven biosurgery adoption by in in

launched growth of [indiscernible] year prior X% centers VBP our of such the VELYS products of as spine. ambulatory recently solutions lapping concessions in as price and digital reflects of growth, Orthopaedics surgical expansion success global as procedure expansion well in

strength offset as ACUVUE well in driven impacted [indiscernible] surgical divestiture Vision contact was Eyehance, price of Global dynamics. stocking of ocular contact family and was and of Growth X-Day in Vision as new vision. products X.X% basis the products XXX and lens lenses by actions points of was including by monofocal and Growth due by Blink lenses lenses partially TECNIS our OASYS to QX. growth U.S. negatively contact

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

patient Cost vaccine product cost by points lower Medicine. mix by XXX Innovative in COVID-XX commodity favorable partially exit unfavorable network-related of supply in margin mix sold products MedTech, inflation to deleveraged due basis offset and and

invested of research sales We sales in higher levels, being XX.X% in Innovative strategically increase with billion and competitive by or milestones, $X.X at continue portfolio development XX.X% We of Medicine in or partially the investment off to by prioritization. $X.X driven [indiscernible] this quarter. invest billion

or in of higher the was to million was by driven R&D investment quarter balances increase of in income $XXX rates $X.X lower billion investment cash in Interest primarily MedTech, was Laminar increase fourth on XX.X% compared debt quarter The with the million of income the In by the acquisition. earned income in interest of XXXX and balance. as a fourth XXXX. $XX driven average sales

in million of COVID-XX $XXX and higher in million XXXX was driven unrealized on quarter fourth by of income XXXX. and other fourth an of expense expense to of income compared exit the the primarily $XXX vaccine-related costs. quarter securities was This The gains line [indiscernible]

versus tax decrease the XX.X% the U.S. including This Regarding same XXXX taxes audit. rate last period driven of through of was in primarily year. in quarter, the by the was our effective the liabilities, net tax settlement XXXX decrease XX%

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

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

let's by for In favorable to our of percentage decreased from Innovative the R&D of a margins Medicine at XX.X% patient adjusted before partially primarily segment. enterprise XX.X% marketing Now milestones, quarter sales higher and leveraging adjusted income fourth and XX.X%. before by to selling mix as declined tax tax and XXXX, the expense. look income from by XX.X% offset driven

XX.X% from and Laminar XX.X% concludes unfavorable and call. portion the leverage. primarily partially the earnings from and driven by selling commodity in-process development to expense declined research inflation expense margins of product MedTech and This acquisition, mix, offset marketing the sale by

now over it I'm turn to pleased to Joe.

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

what last Johnson XXXX evidenced we time top a Jessica by and bottom notable year. this performance to commented, to guided beats line Joaquin As XXXX was relative year and Johnson at for strong &

to we particularly and We future success. portfolio development for investments are innovation made of continued our of proud advanced our pipelines, strengthen the the expansion

a All provides of enter us as strong with this XXXX. we foundation

call, far income and heard Thus about during in the XXXX. performance you've sales

So now capital some on let's dive allocation highlights. into detail

We year, approximately had we $XX generated than approximately debt billion billion $XX XXXX. marketable of billion. $XX cash in $X more securities cash of for of of At free and net debt end of and the position a the billion flow

We our & enables credit all end, of XXXX. Johnson's capital strength priorities robust and that maintained in rating, strategically allocation executed the and sheet a underscoring financial Johnson value. which unlock we To invest to us position, of healthy against capital deploy to balance

investment billion segment, more development moving information all-time sales, on as invested company we research for an remain or than basis top across and provided the all industries. we one $XX in R&D the we continue of will by of a R&D quarterly starters, XX.X% For in high forward. business to investors Jessica provide

and We marked this dividend to plan our the we of dividends, consecutive use annually. As know is for investors, far we in XXXX dividend. a to year priority continue increased capital which as XXst our our increase

last that also deployed, or Medicine and committed inorganic more strategic complement recent and growth MedTech over months. amount smaller Laminar announced deals value-creating as well This partnerships XX licensing than Innovative the our transactions and early-stage as in We XX billion $X in includes pipelines. the Ambrx opportunities current

and Finally, last year. share returned in XXXX, share to completed billion with program we our dividend, the late repurchases. combination $XX In early over repurchase $X in billion shareholders initiated XXXX

Johnson share shares in or Through the Kenvue million count without the & X% by outstanding separation, use we XXX further cash reduced approximately Johnson's the of and manner. a tax-free

XXXX, Johnson's flow continue already to robust ahead our solidify investment Johnson our strong returns and should & cash to for foundation or growth to to business generation further shareholders. leading financial Looking free fuel

December details. business guidance XXXX in XXXX Now early our to at we confirming of year review in for Today, full items those the guidance. turning our enterprise are by previewed the filling some

the $XX range We expect billion operational to full $XX.X to X% or sales to be growth in year of billion. for the X%

exclude to sales. impact guidance our from sales reminder, continues a any vaccine As COVID-XX

of from newer of DARZALEX, Medicine, well growth market XXXX a share ERLEADA such SPRAVATO. as and to products CARVYKTI, key by launched and brands Innovative TECVAYLI, year driven expect recently XXth TALVEY as deliver consecutive gains above-market such continued as we adoption In as TREMFYA

high-growth the Abiomed markets; MedTech, we pulse advancing our ablation, second, our world; such executing scale on focused third, in across as field portfolio. pipeline further portfolio reach drivers: key building In operational differentiated robotics, remain shifting and surgical into our first, and value our our resilience expanding around programs and

we U.S. of would last relative sales $XXX well slight the million future for as to dollar estimate X.X% major We on as currencies, unfavorable be at movements, week other negative as a a speculate there but growth rate reported euro don't impact currency or the year. spot of utilizing on the $X.XX

items Turning on to other our P&L.

primarily We operating our to efficiency approximately driven expect by margin programs XXXX XX by of the across a adjusted improve pretax organization. basis continuation points

this acquisition second our year P&L. a this associated inventory offset inflation will additional to of expect through half that This MedTech with We lingering as biosimilar anticipated which in combination. will planned of of business flow STELARA in partially be the Europe investment in encompasses improvement be dilution margin treated entrants Ambrx, and impact XXXX's some by

back the acknowledge XXXX we expected, for new models improvement your Now what basis us given assets. R&D investment point to do that QX the XX simply elevated gets pipeline

to $X.X income programs we lower less to billion rates. employee such amount and discount Regarding impact other billion on driven expense, assumptions anticipate XXXX. $X.X certain be actuarial This by is benefit income the as the XXXX for than of

net modeling you with levels. comfortable income XXXX $XXX between are $XXX million consistent interest We million, with and

based income in laws or businesses. X.X% XX% of an XXXX Pillar approximately enacted Finally, tax tax geographic account legislation. effective current into to to for rate XX% across This projecting recently we and the range on an points are our takes relative of rate the tax X XXX mix basis increase anticipated

on We U.S. reducing and revenue incentives U.S. continue believe in U.S.-based the governments. more tax to perspective foreign to harmful, companies Pillar for Treasury's paying resulting multinational current innovation X is

earnings share for million exchange offer. approximately the equal will per the net reduction Our count full following remaining adjusted in benefit XXXX share outstanding million year share in Kenvue XXX calculation approximately shares from J&J XXX the shares to include

week, we at Given spot per factors, all rate adjusted currency Based on to we euro earnings grow X.XX $XX.XX. X.X% per the share. earnings of midpoint a range on these to estimate the any operational $XX.XX of share for do impact from expect not last

quarterly I'll now your qualitative on considerations phasing for provide some models.

continued by of entry to the We be in towards half launched Europe the products. in be uptake year. This the recently biosimilars to second slightly the anticipated partially of the STELARA headwind the year expect of sales from growth our middle compared Innovative stronger offset first given will Medicine half,

throughout remain pre-COVID in expecting growth MedTech We consistent XXXX procedures above operational the relatively levels. year, to sales project be to

have continue the XXXX spine from to begin our VBP throughout from surgical Russia impact year for of to with to XXXX. modest energy, anniversary and IOLs in licenses will We half impacts first anticipate China VBP orthopedic are in XXXX approved. and endocutters, sanctions sports begin as electrophysiology, trauma to pricing The

important the being partial only million half of quarter quarter fourth in the it year offer benefit XXXX. the Regarding net the to EPS XXXX phasing, QX Kenvue benefit highlight versus the is QX XXX share a third first that exchange the with following versus will reduction from neutral and comparative full

and our numerous strengthened near- we across confident based financial XXXX both in to achieve ability on in in and outlined Joaquin long-term So the catalysts that our are XXXX, foundation business targets.

close commitment shareholders. to and to our like colleagues It sustainable value solutions creates effort around medical I'd their that by the and world. dedication their thanking enables deliver for and innovative for benefit to Johnson & is unmet patients address serious therapies that long-term needs Johnson

I that, With the the Q&A turn pleased of call begin to am over Kevin to to the portion now call.

[Operator first from Joanne from Our is Instructions] Citi. coming today question Wuensch

curious why and I'm With levels will you're my looking last? how volumes XXXX your expectations for to one question, remain pre-COVID for above that procedure long

Thank Joanne, everyone. and you, good morning,

the in all-time were which in First, in than -- business of is MedTech We of close in -- annually let sales, remark high quarter XXXX. the our with growth adjusted operational delivered X.X. strong operational more billion $XX company fourth me history our

orthopedics in across and board So recovery, very in surgery, strong vision. results in the electrophysiology, in in

think but fourth competitor quarter. in ahead competitor year XXXX, So in the our composite aligned about for composite results of our it's our we think going to the when be with we

challenges which than the impact, inflation, after view like, XXXX of from faster certainly, is out growth patients Now some COVID-XX, while point averages. a into to has market COVID-XX hospital of coming see of and made challenges, the macro historical staffing market there the we bolus continue

of being of There's into a trend procedures But into XXXX and at lot the we that. into part continuing amended XXXX. overall, the playing that of good factors continuing And least a a half see tailwind we XXXX. into therefore, see first

also the about have other a me tailwinds we number optimistic than of make our Now XXXX. that on side procedures

with heart Impella ECP, Impella for adoption of Impella our have the is smaller recovery, the very which strong of CP. in version file which X.X. We trajectory We the Abiomed is already of

expansion and We higher-growth continue In we launch business markets we in continue surgery, our a obtained move with of innovations to [indiscernible], to the into stapler. across expansion XXXX Europe. CE too. VELYS And orthopedics, our curve, in see Robotic-Assisted as we energy the Mark surgery of [indiscernible] Echelon plus good to continue our Solution. In with

TECNIS PFA of In and know into finally, family are IOLs. in Vision of interest we our And an portfolio the of our catheters. business, segment area premium this we to continue expanding is I electrophysiology, to our you expand

loop the at this our frequency global obtained to out catheter, launch We catheter continue catheter. we And radio of Micro, Japan approval roll in our of year. QDOT PFA the loop beginning for VARIPULSE, newest ablation

into number a our overall, XXXX. and of tailwinds So business catalysts into

upper business of in business we in at our enterprise competitor continue discussed a and best-in-class markets As MedTech see MedTech. end review, to becoming we our our the growing

next is Flynn from from Terence Stanley. coming Your Morgan question

meeting noticed if ODAC Great. label panel ] for of about confidence Maybe wondering I on-time to the upcoming for in I [ X data. me review parts that was on CARTITUDE-X. just expansion an an CARVYKTI. your just CARTITUDE-X you the can announced was and focus talk

the then of part the I that know facility ramping in now believe is and question you've Belgium, up is running. manufacturing, up in and I And second been

for we for should how CARVYKTI? about XXXX supply So think broadly

Terence. you, Thank

same both potential CARVYKTI, the really being pleased to confident the in benefit quarter-over-quarter CARVYKTI on And it's X market the continue and overall. to CARVYKTI more CAR-T patients growth risk that in year sequential the in treated with be studied of peak asset CARVYKTI. $X to is X,XXX at we at sales. fastest remain indication things, of billion-plus in launch the the we So overall, are see than And

with CARTITUDE-X that X of treatment the in III and patients very the Regarding myeloma. lines of CARVYKTI the efficacy safety our we study support of to relapsed/refractory X you ] on multiple [ ODAC prior that commented, are data confident Phase in

And the you data ODAC [ and results of the published the to safety future. as we with ] we results in forward the very know. much those at FDA presented ASCO, And look updated Medicine. also review Journal in the survival We England New

of bringing patients We to to therapy. CARVYKTI. immunotherapy development the with the of And continued FDA work in lines in to have the early on committed continue this in we focus are multiple myeloma

We the are an towards date first of a FDA indication XXXX. and CARTITUDE-X in the quarter working anticipated with opinion CHMP X our with April EMEA towards for PDUFA in

indication risk-benefit So the the future in of about the CARVYKTI. profile overall, we feel and confident about

Regarding your our question, the we've a progress capacity, manufacturing significant CARVYKTI. done a manufacturing in growth continuous driver major in of is which

we XXXX, our processing our On the capacity processing we cell Since to cell side, cell our doubled facility. making have progress are processing in in your point, European Terence, facilities.

the will We additional batches and for ability are contracted of already clinical And January. capacity we forward mid manufacturing have up to of increase external this moving year. CARVYKTI use first that also this month our start scale capacity, production

the and our internalization made lentivirus hand, of On progress the scale-up also we significant have in production. other

capacity We And our we Netherlands side. new additions, lentivirus. continue produce increased have the and U.S. in same Switzerland at to in our time, Switzerland, to with capacity progress

to U.S. expand tanks our our tanks from to capacity XX-liter XX-liter received approval we production of lentivirus facility. December, Late lentivirus in

overall, multiple And myeloma. So we we working paradigm treatment building that to continue to product quarter-over-quarter in XXXX. and good in billion-plus will feel we continue that towards transform the with CARVYKTI we $X are deliver this growth are progressing

of into As progression move to past, we cure the CARVYKTI moving therapy. treating in have discussed we to earlier lines to from as treating

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

just Joaquin, gateway month. general on a M&A about recent a earlier this being in comments expand your cardiovascular nice a to on commented appetite to update to the love or Abiomed your finish Joaquin, year Congrats devices, on hear and which Joe here. you, I'd

Yes.

turn Larry, So me let and I then to over it can start, Joaquin.

deals. we entertain are very to So many well of to types positioned continue

so that As are platforms. making got expertise proven you of space the our successful a they be insights, we've the know, has strategic and fit parameters have with scientific sure we a most familiarity to that

Street for behalf. return to the earning bearing their only to for acquisition. it we're make that prior that capital performing what a shareholders Abiomed. but has We're sure acquisition. internal very that Not fair for It it was our pleased we the want billion in $XX announcement to the deploy that compensate were beat called months risk business only better the XX also we're models, with to of than deal on ago, able We is had

been it's really nice So a fit.

say those usually would my announced, smaller have licensing we they while in products for than also not headlines in made are or when for capital as more said become deals. I they or billion deployed remarks, partnerships I is prepared headlines, over What patients. $X And XX

so that of And CARVYKTI it's one, you think that's when DARZALEX, track history -- about been our our of for kind record. IMBRUVICA,

Our appetite into whether portfolio, for long still, existing would complement in near that say, our spaces interested be the moving is I or that term.

preference the Thank And in to you. agnostic and clearly our the that go Joe point sector of look, have me as internal into a are is improving which say to of that, And we to current talking of care commented, represent first-in-class let and best-in-class. Larry, agnostic progress about from also are view capabilities and that in significant to know-how and size. and be areas products standard we

completed that we To be in would illustrate that, Ambrx Laminar the X this deals and direction. that year,

an example, know we is Laminar device a which area So first-in-class be to the that can fibrillation, atrial eliminate could and we left atrial a appendage. in deal believe is well, be for

prostate to it therapy. have cut-resistant conjugate under with in this gene medical When And a prostate patients a an in that could comes antibody drug order marketed Ambrx, cancer have failed in we address already. of products significant legacy like a area in a it's be number metastatic need strong deal to first-in-class a that cancer

in areas to that MedTech, based to orthopedics in excluding and your with like and neuroscience Webster immunology. Innovative context, to Medicine So very of Biosense and also and much to point, in And so in comes growing see when continue the now we of it [indiscernible]. that robotic or also it opportunities for when also other areas strength comes surgery have segments the on potential are that and other areas faster Abiomed we cardiology not

deliver approach. Joe's order and value for value able scientific lens overall, scientific that's also shareholders. in this to point, strategic, We try to to So our to for and put our patients be

from Next coming question from JPMorgan. Chris Schott is

few XXXX XQ. Just, like longer-term How think And for about we or did talked think about in seem but you it trend Joe, your result the you. over one-off operating we a when about gross gross should question I'm a P&L I kind of know if margins beyond? think you margins, wondering just that's adjusted about down came in as of and next the -- cadence a years? margins

question. for the Chris, thanks

for operating obviously in is specifically think as at of was you part margins the I have the quarter, Laminar transaction that our that look fourth mix. that what you

specifically our you by a on for details is represented of about IBT, the I full that would likely So reduction MedTech, saw X/X transaction. X the Laminar year. points X points, about of in quarterly slide say that

inventory we occur first levels You little also flow half quarter in P&L, in to is throughout performed [indiscernible] our higher least some obviously, I as probably specific fourth the have it throughout impact, the a at would had orthopedics bit then with on XXXX. occurring that of of And than that you quarters. balance inflationary XXXX. mix sheet have, through And expect say, the then better the it

in, inflation incremental any I'll current activity. seeing not call We're it,

but either. subsiding inventory, being it's also it's So not to additive not

going a new at half look be out of kind XXXX. should second we hurting not you forward level, say of will, if I'd the that water but we're So beyond as

Markets. from Singh Next Capital question coming is RBC from Shagun

impact thoughts presentation scores. could or I focus pain orthopedic of was osteoarthritis Novo's the WOMAC ] we the your utilization, on [ I could potential data get if the just on given latest soon. be here believe on wondering

have could your also curious scores not a thoughts and to what potential kind or Just hear impact. of may

to is So overall, that knee look, surgery. a contributor

context GLP-Xs, and the asked a osteoarthritis. in weight about is factor the in I'm osteoarthritis of not Sometimes

We an you early give and this it's us there. continue data, to to for at look answer

Now change what we we that COVID. to in we the And or see knee increased is can area tell see an that neither of segments of based any continue coming compete. out the orthopedics in of in you don't in we that on or the hips volume in procedures any

trajectory. we orthopedics So optimistic about are our

knee optimistic are we are with robotic Specifically our total how system we progressing about VELYS replacement. for

from surgeons, feedback the the XX,XXX especially procedures have ambulatory already in centers. have positive very surgical We with

a application. XXX(k) combination products We unique are navigation. VELYS and working a to ACTIS, for hip VELYS also our in And new business hip we seeing KINCISE with recovery knee submit like our strong of are our

to So markets. recovery orthopedics global most we see as our we feel procedure in business good about continue

continue that We part our succeed the China in products, also year. this and with new headwind of love we to had we during

business. So very orthopedics outlook our moving positive for forward

to to what It's very unit, we the provide very and being that's us quarter, what the actually looking are important be improving in what so of last at to maybe offered. -- we're as SKUs geographies orthopedics to we commented play and a reminder selective profitability going hard also

improved So of not should profile as an you but only will line, well. for outlined, see Joaquin you see margin strength the business top the some in that as

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

of maybe of spend just outperform expectations. on but area as So just franchise yours question, sort X-part respiratory continue don't an we the much But is sort side, a to on time PAH. of that

about talk there. can sort of you curious what's driving So if success

area of an you There's where a don't have of sort investment. longer-term lot also

going or away, the there your in going back question, to just be key have an going the do So to more infrastructure interest franchises sort your PAH respiratory focus curious already? are development area, of business of but generally in you I'm further sort as given

So growth was by the were working of as of mix, first, We teens in let at franchise area results COVID, an XXXX. out pulmonologists driven that COVID high patients. the diagnosing underline was had and not improved growth coming PAH heavily by me our market patient too. great This impacted COVID new in

a very So PAH XXXX. of confident about into and [indiscernible] short-term remain been of this we overall, future positive business, the business our it's

which towards will trademark Tadalafil, for macitentan, option that And the of another combination [indiscernible]. would be patients OPSUMIT with the working enhance be are to We there compliance.

And about it, and physicians talks pulmonary in combination an my in positive hypertension, with that they of we XXXX. expect approval seem treating very

the that's outlook franchise. for our pulmonary So

we be looking and at extend success our we see standard of future. And Are able there? There, we into to opportunities the are how to to if looking improve other the to see can continue care. potential are areas the we look continue to at pulmonary there franchise of space

this we of [indiscernible] a we're in in similar overall, trajectory with pulmonary And as established OPSUMIT area. care become macitentan, very happy XXXX. clearly the of expect franchise trajectory standard and our But

today Louise next Your from question Chen is from coming Cantor Fitzgerald.

respect autoimmune Do you And all? any wanted oncology just thoughts to CAR-Ts then ask have franchise. with for to on disease your I radiopharmaceutical? you at secondly,

of prostate a franchise the area. And you, oncology antibody we commented before. I data in Louise. I thank strong Ambrx that here have So that drug now with XXXX in ERLEADA see in and addition different We'll areas. in this cancer conjugate high-risk cancer in prostate localized with discussed

and very very, plus RYBREVANT of RYBREVANT are We excited the lazertinib. about combination

studies have completed. Phase III We

we in have We indications, X we that of all the approval and expect -- expect filed XXXX.

lazertinib are very HR-mutated in cell and lung plus cancer we first RYBREVANT about nonsmall in So of RYBREVANT the line. excited combination

cancer. Moving bladder into

see will designation And data TARIS-XXX nonmuscle with also received invasive TARIS-XXX, we for in localized FDA and XXXX. bladder in cancer. breakthrough You TARIS-XXX

our antibodies, with but growth franchise. to in diagnosed X presented TECVAYLI the we it's first-line are multiple myeloma our that myeloma newly talk continue our progress CARVYKTI, we transplant-eligible the well important impressive DARZALEX continued how marketplace then multiple in data of the We and bispecific recognize and patients. And in about per in sales TALVEY, performing

So we question, your in CAR-T at yes, diseases to data. it's are early autoimmune looking but

partner a know, X a you in we earlier ]. and XXXX deal As [ to CDXX/CDXX CDXX a did CAR-Ts, biCAR

at and it's looks It looking promising. are we So data. that, early

a this comes for when We the believe drug [indiscernible] deal did and neck cancer. it enhancer are important are been with And with radiopharmaceuticals, therapeutic that we in interested doing an conjugates, a We head radio option. that radiopharmaceuticals. earlier that developing antibody year avenue it's we to Nanobiotics still

our to the medical combine plan information provide another this you be in and we it in a [indiscernible], devices, broader pharmaceuticals. to expertise to which as at move. more continue us our we of technology be the We for our avenue about could year. we end rights of do radio we'll and And And could there medical in plan expanded development

we hematology. tumors in solid franchise, Innovative we and oncology see both in are our Medicine So of core progress group. in strength very our the overall, with that pleased And it a remains

from is Matt Miksic Next question from Barclays. coming

operating throughout year. the during and progression of that how described the negative mentioned lines those line up trends to you get mix. more margins. mix the the on to some Which kind progresses you MedTech love idea your of of were P&L about of terms wanted I And in ones headwinds Would of there business an in there of of of the I some and comments think year? made the that reflecting that patient you and the margin are follow middle of maybe kind

apologize, a tough hear but it bit Matt, I to was little entirely. question Yes, your

think I MedTech that specifically may in around year. progress the it was margins, and through how

be as our of in the profile and the So sheet say the piece as going I XXXX on flow XXXX, incurred inflationary is through stated earlier, to and pressures of corresponding impacted really that kind then were margin balance I P&L by a would XXXX. that inventory good probably throughout sit

in That said, MedTech of middle our pack to are improve the of overall whether portfolio team be profitability the magnificent terms doing on can bit peer artificial of MedTech now, that set. the peer doing orthopedics. margin, with the stand to terms ones upper little profile. quite Tim just further at point set highlighted we But frankly, one being end efficiencies how get for that by looking as the we're aided time, the across respect and above the opportunities a to of we this across Right work infrastructure in intelligence it in I and finding or we're, towards the entire of looking earlier business.

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

that I Great. XARELTO the patient to you wanted out. mix just called guys ask about you

with dynamics this and forward you of current us to looking help Just maybe whether trend kind expect continue.

one. answer I Yes, Geoff, that can

mix, onetime there's XARELTO It's a on is the items. So X in patient entry. say there specifically but quarter, we also would

do Moving that a expect in you we saw not will the that in QX. to be there but XXXX, extent decline forward

Your is next Danielle coming from question Antalffy UBS. from

QX in harp on look still adding appreciate going as things. side of for getting to everything quarter. I XXX sorry year-over-year we're Joe, back of the to you're just the down at forward. Laminar, margin basis But sort even we points MedTech saying specifically,

rolling is could of any component was price anything there. that just increases you little late you Or I in 'XX more. off? bridge And into there that a would highlight hoping of Is maybe sort us taken bit 'XX

Danielle. No,

the think really impact. I it's inflationary

out of points that Laminar. saw you QX, drop the So X in are really X%

our I bit The of the mix I the whereby that portfolio would chalk margin then X the within to spoke better. performed is a little other of overall, earlier up and balance which lowest MedTech -- points, impact component, the inflationary portfolio orthopedics,

our margin that nothing is in given Again, that specifically There's the happened or the at this nothing as -- balance profile best really through outlook to cost [indiscernible] around portfolio there's looking QX the has that or other than maybe XXXX. behind the already So year. way that calls nothing across move entire upcoming in initiatives, it. magical state are but call. But there's of for this were the about us improvement it we on happened we concerned EPS orthopedics,

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

Yes.

the than some you And mean M&A notwithstanding point, therapeutic I I the MedTech executed belabor years, know pharma got So to announced has area recently Ambrx specific M&A. acquisition, in that don't more recent J&J questions.

back just comment pharma But J&J deployment and pharma in at held to high long-term cash greater whether recent years in has a what revenue you should level accelerate we expect forward? could on growth M&A going

been And and David. been transformation. -- growth pharma a you, M&A has external thank of So M&A our and has innovation core portfolio

sector. are As I initially, we said agnostic to

mode In the case go assets to around that been has preferred were of pharma, of trying our concept. to proof

been partnerships. modalities like either it's speaking, a So or size about that generally have smaller or have been size been different of senses a client [ from perspective, deals ]

& deals. we completed headlines overall made are Johnson the the Just Johnson that M&A. XX more by The at year, ones thing that is than last are only

bias able go in capabilities enable to our transactions deals be our So to to to our value our more portfolio. create we've by existing And to strength, done side our us clinical pharmaceutical is leveraging commercial reach. manufacturing going our in development and order are multiple for enhance that

we mainly, why But create stage. hence, earlier more at that? than earlier majority see find opportunities the that broader our value an side at do. Yes, we So in deals you Are an are looking we of the stage. to pharmaceutical

publicized. CDXX which best-in-class be CDXX, we We in the believe deal end the deal drug of CAR-T conjugates a or year, was in [ called antibody with For a CAR-T deals that before, did we with this number could a CMB ], called example, did, [indiscernible] a underreported. another year, launch this this in we as company could with also and did area which I at now decade of commented that LigoChem in less went Korean

source deals in work clinical and our in into to continue come identifying side, like that's we products significant our DARZALEX capabilities creation in of put know, been development that all in of that of enables able all from in development to manufacturing And in commercial. the But you the to earlier value us going on pharmaceutical process. be of that to or work the type very CARVYKTI that space approach

Our final question from Wise from today Stifel. is coming Rick

expand little could a you Maybe on your more comments. electrophysiology bit

us a the guessing helped. from on more could products new Maybe maybe VBP. I'm quarter. extraordinary impact an had color the quantify give China the You impact you little negative --

seemingly we've month device ahead coming not in we maybe. we ahead, franchise think U.S., EP in to as PFA looking we've or one X incorporating approved next the the 'XX? about And another got should thinking? look -- one are What How got your you

Great franchise question. EP the results franchise about in also year, a EP in you for franchise. and growth, a think of you And growth as for XXXX. another our our thank strong XXXX year should So strong strong of our EP

offset I in slight the recovery and EMEA. It but China. new some If was that -- and I it Asia product a U.S. to value-based XXXX, the mean the the it across in by at offset board. by growth the performance was point of your was driven procedure also, of in also in procurement Pacific, look drivers

[indiscernible] U.S. OCTARAY result micro catheter XX% than our new and and globally, quarter has driven engine PFA XX% year our efficacy across our products in introduced are that frequency the has support board ablation The and importantly, higher QDOT that fourth growth the XX% the in with clinical mapping any electrophysiology U.S. also, in outside the execution And in we this together results growth broad the was commercial and this generator, that catheter. strong of catheters that

results. strong very So

strategies, So leadership fundamental multiple supports efficiency is And X to electrophysiology carto we understanding strategy cardiac one field. comes and it very is that XX a this our our years we have workflow. core our strong strategy but ablation That of when procedural have cardiac to ablation, mapping fluoroscopy of a and system. now pillar in in in strategy importantly, low

are real-time they and the to the are have electrophysiologist, the measurement system, give them they procedures. very carto of and blind it's important that feedback if what going flying outcomes going force be are an to and parameters very proximity, of it's to a don't what tissue contact durable where is electrophysiologist they to and ablation be the For anatomy. heart like providing they indexes know idea important are how the mapping doing deletion system. Otherwise, And the

integrated us suite that's fully used system. hence, our our radio type the it's that to been from a frequency be be is electrophysiologists day have in catheters, ablation. to have to key going enables all for progress with mapping already of of workflow able And that X to So

a carto we already to X,XXX extensive have When globally are portfolio full electrophysiologist. of network and of to developing We systems an deployed mappers it comes our support catheters, the options.

catheter was You Japan. multi-electrode commented on our that in VARIPULSE, approved

single shot and catheter focal large a one. and focal a developing are We also a

going more are and that are they to for to able their selecting. workflow choose appropriate the electrophysiologists is anatomy that for So the catheter be

to our X VARIPULSE CE clinical VARIPULSE for and plan in U.S. the catheter have submitting submitted them have completed. XXXX. And active, we Mark, have We we FDA catheter trials the of X

an having them And the Ultimately, depending having for to to That's future. as would it's the in anatomy important efficiency option, the from is change carto to RFA, simply dual we important our this is that like the and be the here to of a procedure used electrophysiologists deletion going help adopting going PFA of catheter widely it's plus PFA why gives stay. most but catheter is the believe to enable PFA on world. workflow energy that also you the catheter RF option that

XXXX ablation the on So moving in that positive our about growth of in business I'm this positive about we outlook strength the area. our very based have forward.

As the medical that in radio an we the PFA fibrilation, frequency have commented undertreated. significant likely, improvement of to most still occasions, is area atrial shown therapy. of ablation and compared multiple outcomes outcomes have it's even And

So atrial business. the about fibrillation and our the of -- very strength our positive outlook of

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

we in performance of gives great business. 'XX confidence the strong Thank trajectory in you, delivered Jess. our me The

As of to is I a forward you. XXXX sharing lead our the other Thank No progress growth. care strength, health and wave of we as ahead. position said next in & And earlier, we from have as are for catalysts to company look entering innovation. the multiple well positioned Johnson we Johnson year

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

disconnect. now may You