Johnson & Johnson (JNJ) 16 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to Johnson & Johnson's First Quarter 2024 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 over to Johnson & Johnson.

You may begin.

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

details. before get logistics few A into the we

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

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

on available these to the this projected. rely differ statements, the You which future may on are to are certain cautioned of based forward-looking current that to uncertainties materially events cause are not from subject date and and recording using as the those of risks results expectations company's the information of actual

these risks, Form our including and and on website. uncertainties SEC can the available investor.jnj.com other XXXX our in be at description SEC's A of found filings, XX-K, is which factors

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

will be our by Moving related and agenda. will I our provide available highlights allocation our cash for priorities sharing questions. well the then position, business financial Joe time an your additional sales corporation results start capital to The as as quarter reviewing XXXX. and the businesses. to X before CFO, commentary and today's will P&L Wolk, overview remaining of guidance first for for

leaders joining for we time we Jennifer our webcast your medicine and to Schmid, anticipate ensure our Chairman innovative be provide last Taubert, well XX and us tech John med address Duato, approximately CEO; minutes. Reed To will enough questions, as Joaquin as the Q&A. and Tim will

reflect otherwise translation. impact represent the guidance therefore, the Johnson. & results results Furthermore, stated, today operational continuing the of percentages highlighted currency quoted financial of the operations and, Johnson and Unless exclude

billion decline and $XX.X of quarter XXXX. sales of first U.S. results. U.S. outside of with our X.X% sales quarter for Turning Sales a the increased of Worldwide were the to growth in the X.X%, first X.X%

of COVID-XX impact and X.X% the X%. the the X.X% in excluding vaccine, operational growth was Excluding sales U.S. was COVID-XX Sales outside Europe, worldwide the growth of vaccine,

earnings. Turning to now

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

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

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

from Excluding our the delivering Innovative worldwide X.X%, continued both with and and growth. growth uptake outside brands by impact driven key products, U.S. of the COVID-XX double-digit the growth was was vaccine, Medicine recently assets operational X of launched sales

XX%, sales therapy setting. strong points in XX across myeloma of and drive was across by our to frontline points driven We of growth gains lines multiple DARZALEX X continue the all growth primarily portfolio. share

quarter to the $XXX a in launch reflecting the TECVAYLI As are quarter, in million $XX first sales, achieved oncology. of other in disclosing refractory of setting. we Sales the this million year, in last were reported now which compared previously relapsed quarter strong

the of in CARVYKTI to compared $XX of quarter year achieved efficiencies manufacturing by strong first continued last driven demand. expansion, million sales capacity million and $XXX

half in anticipate quarter-over-quarter phasing, the to with growth, growth was back the sequential we While due of to acceleration roughly year. flat continue

cancer. our driven by was GPRCXD bispecific primarily in Also our ERLEADA RYBREVANT, gains. TALVEY, oncology, XX.X%, strong share growth deliver of cell and driven bispecific, lung strong of growth uptake to continues non-small by continued oncology antibody Other for

mix, market favorable in was by driven gains share Growth and hypertension growth of and for pulmonary XX.X% patient UPTRAVI. both OPSUMIT

As through XXXX. to still we in we in lap while XXXX a this dynamic QX patient was anticipate growth, mix QX Therefore, XXXX. a reminder, driver beginning QX expect favorable

we immunology, growth share partially growth driven TREMFYA driven in of and growth volume Within XX.X% offset sales in share was by growth of market IBD, by gains. STELARA saw and market X.X% gains share growth, by declines we biosimilar in unfavorable entry. by and, as price anticipate We U.S. PsA. mix in loss and as move largely expected, patient towards the PsO offset continued

additional unfavorable In patient partially anticipate the by and market be share due XARELTO, driven mix competitive launches. decrease a neuroscience, IMBRUVICA XX% stocking pressures, Medicine by in offset growth year, to growth as continuing Innovative which the well in throughout continues in Total gains partially U.S. sales was as SPRAVATO of by to offset dynamics we

noting rights is returned worth for REMICADE Europe distribution Finally, in it in QX. will and SIMPONI be

MedTech impacting driven previously Interventional the negatively by X.X%, to Worldwide disproportionately new product in execution billion growth approximately of strong by commercial growth was days, as the and your of increased of impacted inventory global build sales outside of turn referred X.X% U.S. with now Solutions, points. X.X% U.S. XX Cardiovascular, XXX I'll impacting due basis worldwide onetime points growth selling the in Pacific, $X.X regions. with electrophysiology Asia by fewer growth to all Orthopaedics. In worldwide growth Performance MedTech MedTech. and uptake, basis approximately In attention quarter, procedure in double-digit delivered XX.X%, to a was growth,

addition, driven strong continued Impella In and delivered Impella of by XX%, of technology. X.X Abiomed adoption growth RP

by timing certain basis positively a includes points. growth in impacting all growth U.S., the to approximately onetime related worldwide change Orthopaedics XXX recognition across products platforms of revenue X.X%

in by the was impact of reduced over-indexed quarter. days reminder, selling a the As Orthopaedics

trauma Strong by wound recovery performance procedure driven in by trauma impacted competitive products by energy further softness spine was and pressures, weather-related impacted was hips growth were and in and and and in in and recovery, driven by in endocutters. pressures procurement and procedure primarily strength China competitive new the while knees volume-based offset our commercial Surgery X.X% of biosurgery execution, of by of partially negatively core U.S. portfolios, Growth was closure

X.X%, driven by divestiture Contact of impacted QX monofocal our Blink partially lens, offset negatively OASYS was dynamics, X-Day X.X%, performance strong VBP. offset partially by by China growth due in ACUVUE TECNIS basis XXX products. to Surgical vision Lenses stocking Eyhance, the Worldwide XXXX. family in by declined points U.S. driven grew intraocular by

like primarily basis by exit of driven to of supply leveraged margin a year. for products our to changed first highlight Cost the quarter XXXX. costs. of to turning COVID-XX noteworthy statement of items last few network-related I'd that Now sold lower compared have earnings quarter consolidated same points, by XXX the

and marketing by Medicine marketing investment basis timing XXX in margins administrative Selling, deleveraged points, Innovative primarily the business. driven of

research Medicine, in in competitive or of was driven decrease at continued or with $X.X We sales and increase of continue slight R&D of a development by XX.X% billion levels, sales X.X% this quarter. the progression. We in to XX.X% sales, billion $X.X or strategically investing investment phasing. billion Innovative investment invested invest driven pipeline $X.X MedTech, being In by

was average million income earned expense rates income XXXX. interest quarter first million of was of quarter increase debt $XX as compared cash on to a driven XXXX Interest in first the lower of in balances. by and The $XXX balance the higher in

compared was first primarily This billion of talc quarter $X.X in an recorded to income related and charge of was settlement of to million the in due change the expense Other the expense first the $XXX the XXXX. of of quarter income $X.X first billion XXXX proposal to quarter in XXXX.

the same in in tax by was XXXX. quarter the quarter, period last settlement XX.X% talc in XX.X% versus of rate our benefit recorded Regarding was on primarily the driven tax proposal effective the year, which taxes first the

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

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

remaining tax of a an the before increased of increase quarter full before Medicine tax When adjusted Now and year-over-year. the to MedTech segment. margins income, for income in adjusted at Medicine income have quarter improved. flat MedTech nonallocated as Innovative enterprise let's margins Innovative by and look from first interest our by driven percentage against primarily adjusted income XXXX, fourth tax with XX.X%, the before XX.X% and XXXX, In year comparing sales both relatively

of to This it call. concludes earnings I'm and the now the sales turn portion Joe. to pleased over

Thank you, everyone. Jessica. Hello,

complemented a financial marked solid we you XXXX, Innovative in our sustained regulatory start MedTech just pipelines, Medicine As momentum milestones. by and clinical and by within off significant are to heard,

positioning. competitive announcements definitive acquire into delve from Earlier upon made announced highlights quarter, we will that touch month, Before Medical. important enhance to segment agreement I further our we want that we this to Shockwave a some the

& only best-in-class coronary cardiovascular of MedTech segments businesses. becoming disease has of technology, within lithotripsy, but of of and addressing through The our our cardiovascular with long IVL intravascular X impact innovation-oriented businesses, MedTech the Medicine intervention. artery highest-growth, a is a our us company. to its will acquisition Johnson unique addition or with artery Shockwave and strategy adjacent peripheral leading Johnson with provide disease, also to This opportunity history a not other cardiovascular Innovative consistent both

oncology promising ADC also acquisition. the expanded will platform, with cancer. and Medicine quarter, the strengthen portfolio our to treat of Ambrx Ambrx precision portfolio enhanced and our deliver ability biologics the we further During Innovative first its completion With pipeline that

segment to the highlights move quarter. from I'll Now

adoption in previously momentum from the and Innovative Jessica Medicine of driven key be shared, to brands products. new our by As growth continues

that longer-term regulatory and the several clinical are quarter, targets delivering hit During key we to growth.

we In second-line for making with for patients at and opinion who treatment available one approval the for setting. BCMA-targeting Starting only least therapy, in positive received prior a have FDA Oncology. received patients it the myeloma, CARVYKTI CHMP multiple

approved received We flexibility. for dosing patients that approval antibody BCMA-targeting also with FDA the the bispecific only dosing biweekly TECVAYLI, provides from

therapy the an And were by and for the regulatory quadruple U.S. application finally, submitted review EMA approval priority granted DARZALEX-based FDA. for to we

the significant non-small In lung cancer. treatment cell steps with in we made addition, patients EGFR-mutated of forward

the from or of chemotherapy received PAPILLON exon on insertion metastatic non-small in Phase first-line XX cell the During The locally data approval for combination study. III we the treatment with with RYBREVANT quarter, EGFR advanced patients lung with FDA approval was cancer for based mutations.

combination the option with lung received from first-line EGFR from MARIPOSA The supported also as filing to FDA to the We mutation adult III review lazertinib metastatic landmark a RYBREVANT filing advanced cancer. by study. locally treatment and or for in the and patients are non-small for Phase the review priority EMA with a EMA submitted cell priority data

FDA for to moderate with TREMFYA severe We Turning ulcerative to the our seeking submitted immunology license of in biologics a adults application colitis. treatment supplemental portfolio. approval to the

ulcerative with are at We colitis Week presenting patients looking data study Phase the III TREMFYA from evaluating forward May. to Digestive QUASAR Disease in in

We clearance oral only from demonstrating that advanced readouts, psoriasis pipeline including positive first our with year. line investigational also top JNJ-XXXX important in peptide X one maintain as targeted skin study data significantly FRONTIER and results to through moderate severe plaque the the

adults line in II gravis, and Nipocalimab also and Phase in with top studies delivered Sjogren's III disease positive Phase results respectively. myasthenia

received a blood rare and of hemolytic We breakthrough and also and fetus in designation infants. the newborn, treatment potentially of HDFN, fatal in designation FNAIT, Fast FDA Track disorder disease the for

cancer Looking ahead, aticaprant ERLEADA in prostate depressive readouts and upcoming disorder. as major seltorexant we in for well expect as data localized

be combination psoriatic will non-muscle presented well data Urological for from We Association results the as in Meeting as therapy, American Phase invasive II in TAR-XXX our arthritis expect at JNJ-XXXX cancer, bladder in pivotal which May. Annual also

we're TREMFYA disease data Crohn's meetings. to our for data at Phase as well subcu our Lastly, as medical upcoming present III excited RYBREVANT

first VARIPULSE one for of remaining from zero across field study, significant highlights ablation, all XX% on which year. admIRE of study, received free demonstrated based showed notable freedom include the advancements We for from the the adverse acute and pilot quarter on pulsed arrhythmia our phase recurrence cardiovascular success MedTech, reoccurrence patients In filed VARIPULSE XX-month primary and events. inspIRE In achieved based CE achieved portfolio. Mark we U.S. the approval after which XX% patients in atrial approval

a fibrillation. Dual risk CE for and optionality evaluating a to physicians Catheter, stroke pivotal in atrial reduce one Energy provide left We trial for nonvalvular elimination submitted with patients Mark enrollment of also the will which began catheter. Laminar's filing energy sources We SMARTTOUCH of in our SF atrial device patients in the PsA appendage RF

in XXX-day the shock And the the reduced STEMI and Cardiology CP Journal XX.X%. late-breaking of use study had of who presented at attack American Conference of in Abiomed's mortality by published England College Impella patients confirmed cardiogenic routine a Shock simultaneously DanGer heart New have with Medicine

a PureSee, presbyopia-correcting TECNIS lens EMEA. next-generation we Vision, in for In launched cataract patients

Cataract data April. XXXX American IOL, of We Odyssey, and Surgery also our the correcting at Society for presented new Refractive presbyopia in TECNIS

catheter, advance ECP. as our robotic commercial an submit the the SmartAssist to surgery will Looking U.S. release ahead, track well the pipeline second market our in launch exemption of XXXX. submission of Abiomed's pipeline, U.S. continue to on FDA with of for Flex the Within Impella OTTAVA we with Impella to investigational are electrophysiology MICRO RP the we as QDOT the device full half of

financials, to billion capital Turning ended and quarter of position a with net with $XX.X first starting billion of for billion. marketable allocation. the debt of cash $XX.X and debt We $X.X securities cash and

in health we the flow in the litigation. billion. first above with XXXX, generation approximately furtherance This responsible, achieving elevated final free first talc cash the comprehensive levels a of was flow. which resolution our consumer Also of quarter included payment We the incurred $X pleased of cash the are of in quarter business quarter and first XXXX, made of

allocation maintain continue strong and ability our to execute healthy of strength Johnson's balance capital against priorities. to We credit a position underscoring and sheet financial Johnson & rating, the

by main be priority as company, R&D to a spend. continues industry-leading the our Innovation for demonstrated

first or quarter, more invested we than billion of development in sales. and $X.X the During research XX.X%

of remain XXnd shareholders the value appreciate our We announce of to increase, X.X% increases. that pleased year to also Directors through consecutive morning our dividend. a committed capital this marking our Board our dividend the investors directly on dividend, authorized were place we has and to We returning

pipeline. we stated markets a we as profitable strategically pending the long-term are Shockwave high-growth evidenced inorganic opportunities. which disciplined well portfolio that prioritize we in Technologies approach our as acquisitions fit commercialized growth is robust and growth to present are previously, As in meaningful and of a This transaction adding by in

acquisition recently now XXXX announced the guidance, full discuss Shockwave. year of our I'll which excludes

we assume guidance $X.XX XXXX, per expected earnings midyear our by at As of financing which driven adjusted previously communicated, will we approximately XXXX the the of transaction the to in reflect place costs. share to time closing by will take update share dilution per

adjusted results in increasing full ranges the our our guidance. operational quarter, the EPS on operational are midpoints first delivered the and for tightening we and Based year sales

billion, or the As such, or operational billion X.X%. we in range to for $XX.X to the by expect the to midpoint full be growth year million sales X.X% $XX.X X.X% of increasing $XXX

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

don't dollar on spot quarter, X.XX. relative speculate currency future Last you we utilized we As know, of movements. the rate euro to U.S. the

X.XX, As by of was dollar last a week, of spot experienced the modest strengthening the currencies. also euro of other handful U.S. rate a

we X.X% billion of an a As to reported midpoint million, consistent in guidance. compared $XX.X foreign estimate currency of with XXXX, with midpoint, a X.X% impact negative at between a estimated full resulting now result, to or the quarter's $XXX X% last sales growth year

other items. exception of the maintaining X are call We January's provided guidance earnings with elements of our on

a to $XXX million. of income $XXX interest increasing are range to We million

per tightening guidance to also the of $XX.XX, $XX.XX, adjusted to midpoint $XX.XX of our earnings growth by to are the reflecting operational share range year-on-year $X.XX X.X%. increasing We

rates movements, While recent predicting referenced, the for the estimates per reported impact earnings $X.XX the a previously utilizing not negative impact per I foreign currency share. adjusted of of exchange year our exchange share

remains X.X% reported reflecting per As growth versus share XXXX. the a adjusted result, unchanged at $XX.XX, earnings

in midyear. by compared given the half in we guidance Europe of We quarterly call slightly during the second the same segment be provide Innovative of the or entry basis, While earnings intact. not anticipated to provided STELARA to to we Medicine January's expect to half the biosimilars continue growth remain that do year first sales a stronger anticipate considerations on qualitative

For consistent MedTech, operational be sales throughout to expect the relatively year. growth we

look important complex ahead, Looking health drive catalysts pipeline solving that across innovative our Innovative We Medicine in forward and have near- we challenges. will to to both in both the most the pipelines of long-term growth segments treatments, advancing many meaningful deliver some and MedTech.

dedication possible around hard world, be wouldn't we so and only This for turning thank before your the patients. commitment our questions, continued recognize that and to colleagues to appropriate, our work, it's their without employees

joined Kevin initiate and to by instructions pleased Jennifer, the provide that to of I'm be the to John Tim Q&A ask call. kindly and for portion Joaquin,

question first Stanley. Terence Our from today coming Instructions] Morgan [Operator is from Flynn

on just Maybe X-part a Great. myeloma.

if could in CARVYKTI, was sales impacted on that on comments First, the phasing just you elaborate wondering the quarter.

had of And we then impact secondly, this TALVEY TECVAYLI, quarters, wondering on if should how growth product? somewhat like think last the for just It couple looks about been over there. flattish an it's but

you So we about commentary. this high-level as provide maybe think some back of franchises those half year, could

your TECVAYLI into this question. on myeloma question go you, reflections and on some our the of me for of we franchise, share multiple Thank Terence, all specifics let with before your TALVEY, you And and quarter. CARVYKTI

on are We performance in in going in have on also indications the to specifically Digestive ones strength, half at presented entering all of of be our STELARA. decade. Crohn's Medicines, ERLEADA this on grew particularly with weeks the second a encouraged strategic growth arthritic data Week high Innovative for expectations And over also And data TREMFYA, have from are the DARZALEX, just position now with year. psoriasis disease and I'm XXXX psoriatic sales TREMFYA, In than and presented platforms, the Disease our do of a we XX%. we drive be now few the that to ulcerative the colitis more we to brand and

weeks line approval with our into We CARVYKTI SPRAVATO, CARVYKTI, continue second product a move new TECVAYLI, just demand the to few FDA ago from setting. to see launches, TALVEY, increased receiving

me into MedTech. let move Now

significant progress made have Abiomed, performance with we in our across strong a cardiovascular, demonstrated and portfolio. PsA have and We electrophysiology

raising the closing and investing Ambrx XXnd for important several milestones acquisition announcing allocation delivered Medical. consecutive acquisition of planned the in the have our heavily dividend also R&D, Shockwave QX, capital in We year,

As final in remarks, from you prepared have we responsible, make continue talc the litigation. on and achieving comprehensive heard his to Joe of resolution progress

the performance is growth in in of XXXX. Overall, in compounded the strength both for confidence financial, goals a operational X% progress gives solid the the of to but I'm puts XXXX quarter, XXXX. year growth also of start advancements. And solid me position the from of in of us proud a It terms give long-term to great the numerous annual of achieving sales our also, sustained pipeline that X% us rate

of me gives confidence future it the Overall, in great & Johnson Johnson.

to TALVEY. on CARVYKTI, question, Jennifer Terence, your TECVAYLI Now and on

thanks, Well, Joaquin.

as you quick and big that launch of our world, our ADC. colleagues to -- brands, Medicine a adjusted in and pipeline really announcement of also double-digit if with thanks a that another definitely our the XX achieving and brands, to X and really operational well core as Ambrx actually, closing growth, key shout-out strong X.X% progress pipeline the key growth for being key Just us a mix, Innovative us include help quarter, core can the that strength launch across our also in delivering asset acquisition TALVEY around for growth, technology Joaquin noted add -- above-market

quarter strong around. all way really So the

quarter. and question across myeloma to and CARVYKTI had in to and your stronghold board assets respect specifically the growth then we With be myeloma a in multiple for performance those TALVEY, in us, multiple the during significant continues true

data with will frontline. been growth, I noted can growth with -- start XX% quickly expansion us predominantly coming filed, in DARZALEX in which the with that also has offer additional frontline PERSEUS that was and setting off an our real with

for we growth the have subsequent the and unanimous recommendation States, over first the the, think we approval quarter results of Very, very approval in line plus, well. United for in did XXXX. of of a demand. quarter, X which XXX% then We which that end the strong bodes the AdCom to CARVYKTI, versus very both had CARVYKTI For

how we of doubled I beginning we strengths doing we in know say, and additional since manufacturing expanding how the questions on through there's data real the our I'm capacity are have the that's XXXX. always of are capacity happy coming our and indications. to the given data

transformed work some so to rate-limiting our supply. we are that cell have brought expanded We that, For a lentivirus and that's secondary on contract of not on and processing, facility manufacturers, a continuing step production as us. source Ghent we completely for have to

So XQ. I know quarter-to-quarter flat we XQ to roughly were a -- from flat

just seeing, As half, anticipate to as for and particularly CARVYKTI was and timing we've our really really phasing of were to slots have to for when first performing. how lot growth optimism for and is continued expand they continue noted, second some everything nothing delivered see orders. data we versus that based capacity. more built anything we're asset, actually the that do of this and half there. -- And on And add a continued that We

France, U.S., around relates Austria, is Likewise, whether date. deep markets it first have really strong the launch Germany, offering is very going the as therapy TECVAYLI off-the-shelf we're Consistently, and and best-in-class we're seeing rapid major world. believe bispecific, really, very the well in that we we to that, BCMA believe the TECVAYLI, as And uptake adoption, the to launched that durable responses.

is And and continuing very The lot to so also competitive settings optimism from the performing product a there. launch later of line a for in the is well standpoint. performing well drive

out double-digit category, last only bispecific but strong is and actually least our although fully in And not XXth uptake other with as we're yet. very TALVEY, oncology GPRCXD breaking well. that so But by growth, all as off-the-shelf the product very, first is falls the that which not

and think believe I of is as agents, curing multiple really as opportunities lines what to combined towards truly what potential across these therapy work agents So of many are this got best-in-class we fabulous have have we be we means myeloma. well with

very for going significant a our positive and I'm us, So the on year outlook the for rest of forward. and business

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

Tim. for question A

on year? what QX, view? onetime your are there operational were seeing the of grew was items. onetime your of basis for are an a in from world rest impact the from items around what business What And MedTech And but the in net standpoint? you expectations those procedure number X.X% Your adjusted the a

just on the Larry. maybe And that a on. been little question, journey let we've for the you me reflect thank Well,

year important ourselves As when the operational that with last $XX we of we their size. our And X.X%. I billion majority note surpassed you competitive of it's composite, are the adjusted within growth against to think competitors know, we double compare

we proud that that particularly So are of. is performance

that solid quarter followed now growth the We've another of in quarter. up X.X% with first

your some has that. been there noise point, to in Larry, Now,

are proud particularly billion, this growth double-digit tremendous in the nearing $X put context, of XX%. is a And electrophysiology We our within to north business. that of growing business is that on

the continuing more think continue I leadership called will that PFA, about build And excited performance. to really position, which which we out that we're the believe on making to be and in couldn't we're progress drive also

has There grow rest in we health specifically underlying in assured, single-digit portfolio. is performance year, expect and been confident the to to in year. are some noise last relation X.X% But this business Vision of extremely high business. grew a Vision we This that our our it please

to this There once year. related performance the confident single-digit has very was you for that been remainder the again, some which to predominant of stocking that see of year. But performance we'll return driver issues the strong inventory, distributor see the

had of change single-digit to impacted a very XXXX. for strong points. that and business, for been which about our we selling then terms within a days mentioned of couple as in of earlier, There both revenue recognition basis remainder days, of one-timers, XX committed and But Orthopaedics growth in year XXX selling a business bps about remain all, the strong high Larry, the all we quarter,

to to number. was and there comments that one-timers, on add Tim's headwinds there. tailwinds The Larry, want in I good just maybe

a X.X% of sides true when you that seeing, you're both X.X%, the pretty So the is much the equation. consider number

Chris Our next is from Schott JPMorgan. from question coming

I tuck-in in further your Maybe appetite, for either acquisition, the guess, just have here. about guess, Shockwave BD like transactions, talk larger or MedTech business. what's the a away? question I following Pharma type I

in like if where over It few business I'm point portfolio past can we just pipeline evolved now about the pretty has think the you years. and the of is or some think earlier-stage smaller seems J&J Or at of the kind greater you these interested And as at a nicely focus a either going urgency for still bolt-on Pharma sense MedTech the maybe add do forward? primary to transactions type have BD. of assets

is M&A glad you the trajectory, our Thank and and that good. this recognize you, that's consistency And Chris, I'm of Joaquin. strategic

Our the not M&A strategy so long change. looks to it's term, going for

strength going be Our the critical for me strategy it's have disciplined. will flexibility to and to multiple underline sheet, that. balance of we flow M&A, And that our significant capital of as allocation be transactions, component our cash to to remain continue types you it's mentioned. And a -- consider important with of

what so far Abiomed, is now have Ambrx, we And Shockwave. of that demonstration of acquisition the Laminar, with done and planned a

the our are of of All examples we that studying outlined good them and consistency you. have principles to

So that is not going to change.

Our is M&A change. to not going strategy

of what there the continue To a and finally, a with so what compelling impact, it develop that areas does does very two, growth correlation And in-house? for for We'll shareholders? patient between capabilities are current it which and to is have technology agnostic evaluate opportunities for, the in in see extent financial which critical we looking to is Number markets, into growing we does to market? result we the can And to it One, is positive. us believe us. sector enable acquisitions. that knowledge to We continue deliver number and Number success are a important higher That's a three, enter -- size. for it's that us, components. that we care? it and this our improve does consistent the standard of the continue

in the value. that looking the think into to think it's opportunistically. When decades. our think a we cornerstone ability to of and I M&A not our consistency we that's future. strategy, glad am So you we that going M&A, change about have recognize been create We deployed, don't it's and

Joanne Our Wuensch Citibank. from next from question is coming

the we Can and back are positive parts different negatives lens And the unpack to please? that Vision can we and contact IOL the circle business? on Care,

this for Of bringing forward expect Thank is odd that it performance or that expectations up course, it does we isn't -- from look you certainly going because Joanne. and the business. with our consistent

grows consistently business in X.X% earlier, mentioned a this single I As in high that digit. grew actually and is XXXX

business in health continues We of strong to that remains market. Vision underlying and absolutely our above perform believe the and

by earlier, in was distributor U.S. mentioned I the QX As inventory driven predominantly of contact performance lens. a contraction

variability As the past, in distributor now we that. we our inventory. within have see of in We've some which to terms resulted started had mentioned in supply, changes

our contact are stabilized, normalization distributors started we've carrying a for see of has As our on the to that supply inventory hand. lenses

is in you that the results that the see And so big today. driver

know, time, of it's an gain annuity this the share you contact base. where protecting new business how in about you fair As lens, users the your same at is all while,

incredibly pleased ACUVUE of our in OASYS X-Day share with we multifocal. are the and are We performance seeing unprecedented gains premium family, ongoing

say that which for lens performance seeing of should the we the for if across are at look contact continued also will year. well sequential bode business, gains, the we remainder share I gains sequential

as are of to consecutive we are year we Asia-Pac Specifically share you IOL to gains, IOLs, market in not leader, driven our a expecting currently primarily performances of deliver fourth by in EMEA. global know, but tremendous the and business

PureSee the as a Jess remainder release We're TECNIS from also release Odyssey occur the of year. see by of next-gen multifocals, our you and full earlier, and the limited market excited, heard we'll through

growth and see single-digit will for once that of So that we in XXXX. improvement very for high you business, Vision the confident performance tremendous again, expect

Sachs. question is coming from Shibutani from Goldman next Your Chris

could I the Hypertension If Great. Pulmonary ask about business.

This quarter, strong. quite

particular, share You mix. favorable patient in mentioned, gains and

could understand a If us help little bit that you better.

of pulmonary anticipated segment will the that the comment the portfolio the arterial with market approved Merck, recently see shift? thinking you're you to introduction forward, WINREVAIR. what on product perform some disruption the to how this hypertension on respond will Can anticipated is from and then And

Chris, it's Jennifer.

a mix. mix the volume was our favorable market we to So of year out patients rounding continuing and That for performing first and and quarter, delivering some strong last Pulmonary the growth. both degree. the products yes, we're with don't both forward are very pleased patient same really in really piece, well for as with share the But well OPSUMIT patient favorable gains as UPTRAVI results Hypertension see PAH. with That to go

diagnosed, really, Importantly, the to them really we in and the in on patient of first a therapy. ERA. PDEX approval first with them is guidelines. is It's tablet got is the combination right is for which for choice start once an OPSYNVI, line combination This quarter,

this that And important introduction. an think so we is

take other of and that both are a good therapeutic with as despite believe strong got the portfolio, to coming well do have, that for OPSYNVI And really we area these even our OPSUMIT at we a as in, with what assets UPTRAVI, very competitors as continue and us. and launch we and look usage new productive they've will be

Antalffy question UBS. is from Danielle coming Next from

of exactly on sales changed Orthopaedics, revenue Tim, there. going sure Orthopaedic if taking specifically recognition, could out, about appreciate -- onetime U.S. get color provide on follow I not But you any MedTech growth sort talked also that forward. just you MedTech X% I up to can consistent you what the and backing growth. mean, and

Or Is that given onetime I for am about talk bit Ortho that quarter. the specific forward? the segment what right missing way guys some little a put going to you up think tailwinds? Maybe outlook about this

Thank you, Danielle.

market. are operating Firstly, very robust in a we

year, procedural least last first of at of the backlog in expect to continue half are XXXX. the our still to we that and business, that benefiting fourth quarter see of some communicated Orthopaedics remnants we we primarily As

related did you our And was performance that by As mentioned, overall only revenue basis this by impact of is X.X% about in impacted Orthopaedics business, but U.S. change it recognition timing. in XXX to onetime our business points. a

had Ortho disproportionately which days, the the mind, impact by business our we fewer also in selling impacted keep of bps. XX Now

hips within knees high in VELYS specifically the and Asia-Pac in knees, compete XX,XXX We of as single-digit are first expand proud tremendous of EMEA now progress performance seeing specifically VELYS we our we we're needed better. the year. quarter, the now provision X in areas markets, ongoing driven platform. as we where into saw that to constant of in tailwind by XX the a and specifically making, growth are and through in of procedures years remainder and We're the the And

and think our continue drive as I the globe. our portfolio across expansion expect can we And so of improvement the continued remainder business in for further you to the Orthopaedics build year,

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

timing have the of the for Can of the X us next of about of INVEGA questions, should kind kind This Yang I impact terms you steps? in there's news think terms of Charlie what kind about in know just or I potential of is recent we SUSTENNA/XEPLION Geoff. please. regarding tell the litigation.

data And In very in what CR terms then AUA? bladder expect just the of about we of rate? strong second, expectation, X-year the terms can cancer should kind talk benchmark you of

take the Well, I'll it the over take to Perfect. pass INVEGA next SUSTENNA and John, question, I'll my colleague, one. to

particularly excited about for in really, and a relapse-free, X INVEGA which is HAFYERA, shows which space we are And latest the LAI recent HAFYERA about reminder patients HUMIRA we XX% So our -- study with that leading long-acting really that portfolio, therapies HAFYERA if we SUSTENNA, excuse striking. INVEGA products. me, really really at everybody, a this are on our on INVEGA TRINZA just our years, injectables, have, we're as for data think

we of get on defend being intellectual confident we property the associated speculate continue So to SUSTENNA patents. of remain But our the patents, the INVEGA that impact we to with don't as going really litigation. really legal we're question, strength to these ongoing said, the and that's about

ruled to clear we're our deeper, X one a originally. April invalidate to the remanded that did Jersey Court, had Circuit's just the the decision District the back our favor case in not If It bit little go patent. New Federal

Likewise, this there was that company against did ruling also favor. a and in on case another our patent different go another

the strength remain see the So it's we have comes. -- what patents, of that, to that and in patents. but going won't our favor ruled the judge confident really on we'll back on speculate We to of on original

And as their clearly patients bladder diagnosed device of on for on vast need quality Thanks the with than are removed, who in has combo cancer. life. your have effect XXX,XXX early year for early bladder as which more platform every great bladders to majority Clearly, a cancer. there very people are have, go we the those a of detrimental Yes. unmet interest the much that drug in

which, that synergistic having presented together a rate were come meeting, of out the With has Those showed, had conference for patients, and in we MedTech system Pharma think, the can early example at think, I really, is I great our how again, September of a drug exciting last device and way, ESMO but data. to XX delivered, impressive of durability showed an complete response and a ongoing who nice XX% example, with radical over to still cystectomy. TAR-XXX XX at product with and patients that no progress we gemcitabine,

data see AUA, those with now of yet the I So to provide the expect the think can't I at are can But I same because details. more think you not disclosed, cohorts we've that that on And is nonresponsive which in more believe patients. BCG those and pivotal longer track to do deliver the with patients, follow-up. we're indication, expanded first data in

attenuated standard Recollect is bladder to cancer, has mycobacteria like And -- response. fewer achieve than feel tolerability problems, therapy is least, bladder a infection. care have they that the say in this patients where Unfortunately, chronic invasive early half urinary complete receive a tract patients the -- BCG. non-muscle

discontinuation The low. TAR-XXX with has very rate been

tolerability -- very we're delighted impressive as these So the efficacy. profile durable deep with well as excellent deep efficacy and

So please AUA that presentation. watch yes, so

forward that pivotal and look to based on Congress. I for results think a sharing track we remain on these data, year early those next at we filing

Barclays. Next Matt question from is coming from Miksic

of performance environment EP, one to the launches how of I just some cardio on then a U.S. follow-up if in the competitive on and as in so very affected And you color some provide trends. could. Ortho, if U.S. could has the product far. Wondering particular, or device driven kind strong of So the geographically some quarter. have either quick overseas In maybe one

Sure, Matt.

Firstly, let cardio. me on start

I made in in we've recently, cardiovascular, second. we a being only participated on out And until a progress which our in mentioned, one of that touch portfolio. and electrophysiology, Joaquin high-growth category performance building will lot As within

with on We business over built have the that in year had now made. are into the have acquisition of more Abiomed. a that we've lead be and and of and a now couldn't XX-year integrating We're proud cardiovascular electrophysiology position progress in

did continue to growth ahead quarter this of of excess deal perform We in model. again, And the once XX%. with so

That that where close our within to of is participate care. high-margin need grow. gives us Shockwave, only opportunity the cardiovascular third now X move be cardiovascular significant there and to acquisition in thoughtful high-growth, very us and we tremendous Once deliberate for areas positions leadership will unmet

one each high-margin businesses fact the within that and growth the excited very by strategics in out only growing we're of we be of category will market, so incremental roughly that only every X%, the high year. category coming $XX billion billion $X largest And of growth, MedTech, with

So very excited by those moves.

and think seen And that customers have both of our on growth trust I the questions the today. EP, ex-U.S. really in talks your technology our we've board across to excess it U.S. Specifically the in XX%, in to

as the also experience. progress the most can RF tested are And we miss for EU we're on of in approval. and XX with our that we've that with in way, our of years presence the ensuring made RF to products as portfolio the We've products submitted category the going build by PFA, well and Japan. in approval not FDA

don't by year early of come we control this to expect while timings, the next And through or that end year. approval the we

there confident a EP. specific in leadership very build Was our our so in position And to question ability on to Ortho?

Yes.

like category. digits. in of the Just just you're kind really chart the at mid-single of was day It knees, and to I But comment that back digits. Add hips sort in sounded X%-ish. low think, growth, a Ortho on and generally double selling off is

about should wondering, year, down that How just ramping some that of rate particular I'm the in sustainability rest And knees? or you we rate? in and of can hips help the think see of us

of we building Well, Matt, within testament in to it's some a to I that more is really enjoying today, and expect VELYS the we're with progress the the that now gaps, then in We portfolio. and out what do our robot team our think even those and continue. filling had in also past launch in gaps both the our knees of notably is tailwind creating hips

do every Can quarter? high of Not expect of going this those Now see strong we both out was growth forward. single sort single-digit growth we that categories a sure, but absolutely quarter. of

drive It's the that just also could where the focused say And isn't we focusing improving I also that about been you for know and for our on the work hasn't shareholders. will business in done really major portfolio in patients we've quarter Orthopaedics second of greatest is 'XX, the a impact -- simplifying restructuring, about we which our and growth. profile. announced our margin on here

reduction our within That implants business. And XX% our resulting effort Orthopaedics that in context, we in put in a implants. today is have XXX,XXX to

testament the also the performance, line again, margins. but group only drive evolve you, to And so to improve a Matt. to real Thank portfolio of effort top that not

have time we Kevin, Matt. Thanks, more for question. one

Our coming Guggenheim Securities. Divan final from Vamil today question is from

where One, was quarter. strong I and again just on -- of growth and sort SPRAVATO curious very this

on what the get there that If what can a patients just a is sorts be that trend. given context sense growth to -- product are the hopefully little that practices, more of from, where you of provide coming

Is with And I'm expected? the is sort the anything sort what curious plays in if from through different the progress price just out? some thoughts other discussions you on get don't negotiations how lot it on drug process question drugs you the can just the into for what want specifics, share then those a you investors much get as XX but line I to IRA. the year's we this too going. of high-level are there program from know are of with you is that expected of And Medicare probably on selected very

Well, the for and question, about thanks SPRAVATO. asking thanks for

continue really be product We of as we SPRAVATO, uptake the continue pleased to globally. with to that launch

as quarter, growth for You saw treatment-resistant the with depression. to that it well in there's patients over perform continues XX%

we to in outlook into setting that there. a bold And community of markets SPRAVATO to we're a launch and got more as we the able more existing it for continue even so into we've bit penetrate the are as further markets

-- our just -- immunology Neuroscience also for so in also area oncology We a is put key -- about good business business. outlook. We're us. a talk plug terms for neuroscience. our really In a and good really, to lot

aticaprant also So long-acting SPRAVATO got earlier. mentioned the and seltorexant coming, INVEGA SUSTENNA had and the We've platform. with key is we a therapies franchise

that care the to IRA -- of to the making next not that these treatments is help that really tremendous system. been think going reinforce clear are do develop types So IRA, is back we're the to that in it setting R&D damaging provisions just on health drug -- and something innovative the we investments we've It cures.

them. trying the available who on That being our focus are patient products do are access to and said, sure to patients that make need we

And with start forth government so the to and back in process line will we're around appropriately what with going be. ultimate price working and the the

round a two back been has forth. and of there or going So

future. products so we're have the end at is Those growth the can't are more products going any life. And that our in that say provide really we of are middle process. our that. not drivers the are that are I still for the details of on What more -- that that I they will process, they through are

the they're the the be really decade. in both so through us, for And the key coming not out that as ones end as are of years going well to

And annual clear December business from commitment 'XX, every years back market what our to made X% growth review all I'd love rate, $XX to as that beyond that achieving in as we've XXXX that. got with well year, to as with of delivering to also reinforce is billion the growth 'XX enterprise our path we do compounded and a at in that that being we X% well above remain confident as growth

a in, look I feel take when pipeline at our growth So of how our business. state the and coming about IRA, irrespective drivers is the our of we confident real

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

closing some turn I remarks. over call will to the for brief Joaquin now

Thank sharpened our focus And Johnson's and quarter portfolio & solid in progress our pipeline. and performance reflects first you, the Johnson Jess.

spectrum health and industry. innovation Our And in powerhouse. an commercial, reinforce position achieved full milestones as the our our across the impact clinical capital is of in care QX unique allocation

our quarter of this of was position One strengthen acquisition our the milestones most planned of Shockwave will cardiovascular. significant that in the further leadership announcement

forward we to to review, progress enterprise looking through our goals continue remainder of that the the we will business all that towards December XXXX. set make I'm strong at achieve and out We

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

now disconnect. may You