Johnson & Johnson (JNJ) 15 Oct 242024 Q3 Earnings call transcript

Good morning, and welcome to Johnson & Johnson's Third 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 call over to Johnson & Johnson.

You may begin.

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

before into we A few the logistics details. get

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

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

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

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

Innovative ensure to webcast provide XXXX. and will Q&A. the XXXX XX considerations and joining leaders, allocation position, well as our Wolk, with businesses. Moving will key questions, anticipate as X an overview as as Tim Medicine Joaquin CEO, Jennifer will address agenda. results the Duato, our us we capital P&L third our for To quarter will off MedTech of John the CFO, for highlights we to Joe and for enterprise review well cash be Taubert, advancements, approximately time to for within then and kick last us Reed the minutes. opening today's will highlight and enough your I related remarks Chairman catalysts priorities our Schmid, our segments. provide sales pipeline qualitative guidance and

turn now call Joaquin. will I the to over

and you, Jessica, hello, everyone. Thank

sales hear, the strong you operational results growth. we X.X% with As in will delivered third quarter

again reflects wave business performance health patients commitment the our Our unique next to care the around to innovation the world. of of breadth our once and delivering

It also and progress we to we markets. shift with the which Ambrx, and the you and portfolio we high high That innovation pleased pipeline antibody to the Medicine, our and work are work and Proteologix growth V-Wave done of and acquisitions Innovative in with recently have MedTech in continues, reflects the NMXX bispecific saw Shockwave are making. completed

consecutive digits. billion second of brands $X with the In to sales growing reach quarter. single in $XX in first our key Innovative a we sales exceeding portfolio Medicine, billion XX a quarter double reported DARZALEX in became product

increasingly trajectory. our for of in and come major reviews to as for approval quarter. includes high-innovation, of from $X our Johnson, significant bowel generate billion And peak Johnson growth that STELARA today we and inflammatory long-term filings XX% represents opportunity a which potential in & the of near- many sales, colitis, medicines disease. sales have in underway for year with innovative given our approvals And approval patients and are FDA of cancer, with treatment confident EGFR FDA you This pipeline hear, [indiscernible] assets high-growth mutated for rapidly LAZCLUZE U.S. active X advanced step for TREMFYA advancing forward and RYBREVANT of a ulcerative transformational plus is will first-line potential lung the as

high-innovation, impact in can shift of markets, our to high-growth Cardiovascular. you MedTech, the see portfolio In particularly

the seeing Cardiovascular Shockwave market growth E peripheral an the highest MedTech the acquisition. leaders And recent acquisitions we largest catheter, of we X Shockwave across With are of portfolio. X quarter launch now are to another with in intervention, of Cardiovascular, Abiomed, in markets, the which full growth and and IVL QX Shockwave double-digit of the impact immediate category of translated

X-Day growth In TECNIS and that Odyssey is OASYS expect accelerating, the in release MAX market recent lenses. U.S. and ACUVUE of continue with the Vision, contact to full we

also future are excited We about the of business. surgery our

As submitting in the robotic OTTAVA you application investigational system with or U.S. November an exemption trials. initiate have IDE for clinical that the pleased to to we half the that will I'm the XXXX device XXXX, surgical committed FDA in second QX. to we recall, in to announce milestone IDE of met submitted

enterprise, the strategy high-innovation across Looking working. high-growth is our

to this the commercial quarter capabilities. innovation strength speaks of progress Our our and

quarter guidance a EPS third row. We pre-M&A for have increased in adjusted operational the

invested M&A year. through beyond. in And the expectations have XXXX confident in results, and the based are for end this $XX of We this high-growth our we decade billion on high-innovation, quarter's

And to with back that, I call will Jess. turn the

you, Joaquin. Thank

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

in U.S. $XX.X the of impacted Worldwide and were growth divestitures basis the sales X.X% quarter XXXX. outside billion Sales third Acquisitions by with X.X% for of of increased worldwide positively growth U.S. X.X% XX the points. and

Turning now to earnings.

as earnings billion. ago. $X.XX the the quarter with litigation IPR&D in talc were a by And quarter, antibody. Results settlement earnings net expense versus NMXX per of diluted associated the year was For updated $X.XX earnings share the proposal bispecific as diluted acquired $X.X per were share well impacted

billion. share net amortization earnings periods, adjusted expense were the special representing antibody. IPR&D compared third Results diluted and billion adjusted $X.XX, approximately Excluding $X.XX were quarter NMXX associated XX.X% was the of after-tax $X.X X%, for decreases impacted quarter with of earnings asset acquired or XXXX. both X,XXX to basis points And by intangible and for the expense items of bispecific respectively, the per

the growth. X.X% comment growth business X.X% our $XX.X of and of continued recently Worldwide now from delivering increased was launched with Beginning X.X% and assets Medicine in key U.S. by growth of uptake on with with sales billion quarter. brands the driven sales performance Innovative in U.S. will products the I Innovative Medicine. outside XX double-digit

positively price impacted by market consistent be increases to associated practice. hyperinflation, continue Argentina portfolio the across with Results with

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

CARVYKTI million aligned of and our achieved year. the continued of $XXX sequential XX.X%, in growth reflects share by growth gains, with of half efficiencies. expansion of accelerating manufacturing capacity of XX.X% expectations sales with back driven This the growth

was TECVAYLI setting. intervals. of the sales to longer sequential were growth the due strong, adoption launch of strong flat while $XXX Demand duration quarter with reflecting in million in dosing XX.X%, growth relapsed/refractory continued a remained

within with the disclosing oncology. reported of We anticipate of strong which our portfolio, quarter growth. trajectory are quarter currently other continued launch its XXXX, Finally, sales another in in multiple myeloma first TALVEY TALVEY

ERLEADA deliver XX.X% in prostate primarily growth gains continues inventory strong metastatic castrate-sensitive favorable to of share driven and dynamics. cancer by

nonsmall for contributed oncology we cancer, in expand RYBREVANT, cell lung as our to indications. approved other bispecific growth antibody

We XXXX. also sales anticipate quarter first disclosing RYBREVANT of in the

growth saw in net in offset strong driven driven XX.X% partially STELARA by declined share share patient market and sales growth growth. and Within of PSO market patient offset PSA, mix partially and unfavorable X.X% by loss, TREMFYA we immunology, gains by unfavorable mix. by

we entered U.S. As entry Europe a reminder, XXXX. biosimilar biosimilar January competition in as anticipate of July, has and

Hypertension, of increased OPSUMIT physician driven growth, XX.X% In by share continues Pulmonary patient driven and be In by respectively, confidence. and mix. neuroscience, XX.X%, XX.X% to gains market and patient and SPRAVATO UPTRAVI grew growth

of sales as SIMPONI As distribution in we Europe QX. return in mentioned for limited the last rights quarter, REMICADE prepare and realized

worldwide was growth, by of points China. the continued Worldwide headwinds on MedTech driven strength of positive XXX basis attention in of commercial X.X% outside Overall, U.S. XXX U.S. increased and specifically now execution points XXX and the of of basis and in had Pacific, introductions, new X% offset product to I'll growth growth basis MedTech. the of net points your billion Acquisitions Asia and partially the in turn U.S. sales impact divestitures $X.X in by X.X% with outside U.S. a

new was VBP Cardiovascular, In growth competitive dynamics in partially XX.X%. product trade by Performance of China. global delivered by of as uptake ablation commercial in offset well double-digit PFA uptake driven execution, inventory the U.S. prior year growth, and electrophysiology as catheter procedure

and and results RP of of strong in Impella also the Abiomed XX.X% regions acquisition Cardiovascular with technology. included million delivered by growth Shockwave. all adoption Impella driven associated continued X.X of growth $XXX

performance OASYS year prior impacts change performance U.S. a improved worth strong a lenses in approximately to driven sanctions. lapping X.X% actions, continued ACUVUE from price other XXX family from benefit terms onetime shipping products, strategic as Contact contract of in X-Day well and basis Russia by as points

price negatively Surgical impacting approximately Surgery competitive vision our China was the by divestiture X.X% by by partially with driven TECNIS driven grew PureSee TECNIS by new China. and increases offset campaign pressures This with and and as results in VBP wound in market points. anticorruption softness Acclarent closure primarily as of products the with X.X% the Performance energy basis commercial XXX declined Eyhance, and U.S. was VBP execution, hyperinflation and and biosurgery Argentina well continued practice. in partially consistent offset across associated by endocutters strength

driven was and disruption success by of China X.X% and product pressures, growth from Orthopaedics VBP of recent by execution, previously offset of the commercial Orthopedics partially revenue impacts competitive transformation. announced primarily launches

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

XX at global continue a and excluding bispecific $X.XX Even sales, of investment, as billion when basis research rights in XX% nearly to NMXX R&D secure levels, includes to to of development billion points. strategically which increased sales the competitive or invest payment investing a percent We antibody. $X this

marketing the by administrative the a acquisition. of financing last a the year $XX of as points and sales following of Shockwave to realization income primarily Interest million higher debt impacts Selling, $XXX to position optimization net by was expense the percent was basis leveraged separation. compared as related driven of efforts driven XXX income Kenvue million

an was the Other unrealized billion litigation $X.X by monetization losses compared as offset on securities higher prior in charge billion related by prior year. public year income net talc expense settlement $X.X driven proposal, expense billion was mark-to-market to of The royalty of the rights. as increase partially of expense a to the in a well expense and $X.XX

our was increase effective tax the NMXX II. taxes treatment last antibody XX.X% tax and the the XX.X% was of driven same primarily OECD acquisition versus rate in Regarding bispecific the by in Pillar period year. This quarter,

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

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

by let's antibody, of tax partially royalty Now NMXX billion at offset rights. global the driven look XX.X% from for Innovative bispecific acquired rights secure [indiscernible]. income XX.X% $X.XX primarily monetization to the IPR&D the declined expense to adjusted before by Medicine margin

partially offset from and XX.X% supply lapping MedTech margin a R&D year chain to gain, efficiencies. declined by investment XX.X% by increased divestiture of prior driven

result, a recent XXX Starting as by providing for from in before enterprise As results XXXX, aligned points. percentage with with will to details segment. adjusted of FASB IPR&D expense a decreased impacting acquired sales XX.X% begin additional P&L the by income tax we requirements, XX.X% disclosure reporting our basis

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

Jessica. consistently Medicine beat financial Johnson delivered of that In not Johnson on revenue half breadth you, & build our the quarter, business, expectations. the Innovative results to the to Thank only continued but strong third first momentum. illustrate ability

therapeutic our advancing pipeline, areas. and clinical key regulatory across are pharmaceutical achieving milestones We significant

Our MedTech of the of the region. did Asia operational Pacific quarter addition in Shockwave, but in experience growth headwinds delivered business, the with X.X%

use system surgery VELYS to intraocular advancing robotic continue OTTAVA our We to IDE, launching lenses. expanding fortify future and the new

are in business last a for we to be the conservative full material dynamics such, we Asia to no X% referenced the approach as X% part growth in assuming year China, remainder expect to And XXXX for we that MedTech closer region, taking Pacific of Due specifically of [indiscernible] in adjusted sales by operational responsibly the year. the this quarter. improvement the

a of enables the position offset part yet business than to XXXX be for diversified but to business, enterprise. in us volatility of more once in strength The increase a guidance one our again

a moment to on updates the quarter. take from enterprise-wide diving the I'll Before some into touch results,

progress making are talc to resolving litigation. We

claimants received representative. overwhelming future as of the plan the bankruptcy support claimants well as from Our prepackaged roughly current XX%

Thursday, a court. be while And will we last announced be matter it on Texas As to the heard would in premature remain case committed to the to resolution, bankruptcy this timing. speculate bringing

are adults cancer. EGFR FDA for data with as received building there reduce advancements combination we advanced additional regulatory approval highlights In treatment the the review underway chemotherapy of for priority In for a a Joaquin throughout best-in-class portfolio. a pipeline RYBREVANT, subcutaneous events, some EU RYBREVANT oncology, mentioned, treatment are to EGFR-mutated we With quarter. notable U.S. second-line a and non-small cell in adverse along formulation regimen with lung to supporting with addition

beyond chemotherapy presented the RYBREVANT We asset's for extending data cancer colorectal cancer. patients, with I potential Phase in metastatic also lung

myeloma, diagnosed DARZALEX, FDA Gent announced multiple with gained CARVYKTI, regimens approval follow-up X we quad-based position patients. capacity. commercial expanding and of leadership In FASPRO for our extended With we significantly and data advanced showing approval our filing further X-year supply overall facility, for newly production at survival

Finally, for bladder TARIS data to our Phase in cancer. platform positive bladder growing non-muscle cancer with oncology, with in added patients IIb evidence and II data Phase patients invasive interim in we positive base the high-risk with muscle-invasive

gravis. U.S. and what of nipocalimab regulatory would for the first European In generalized in living for neuroscience, we global treatment be to approval bodies submitted the with people myasthenia the of

data we psoriasis major coantibody ulcerative JNJ-XXXX, readouts and of For nipocalimab year, for therapeutic rheumatoid the arthritis. TREMFYA for bowel disease our JNJ-XXXX, disease; oral the aticaprant peptide for expect for inflammatory for disorder; subcu depressive of and colitis; adjunctive targeted our and on approval remainder Crohn's

In trial the ablation approval for and the in enrollment IRE in the evaluate mapping Also of Impella MedTech, and ECB anticipated are in during U.S. approval. effectiveness we submission procedures. of for fibrillation we the cardiovascular, VARIPULSE paroxysmal to OMNI completed standard atrial treating clinical preparing regulatory symptomatic safety of and

The Orthopaedics, products our In we Spine plating robot VELYS Vault progress in several U.S., continued plentiful the businesses success. our system. launched ensure exciting will across and new pipeline including

Consumer year, billion business. to Let's We cash approximately for $XX and included contribution $XX compared months' flow the Health allocation. net billion. cash of to billion year-to-date $XX from $XX now X $XX the debt third marketable with capital last turn ended of quarter billion was cash approximately Free and securities billion and a which of position

unchanged. capital Our priorities remain allocation

balance to to Our strategically capital us our grow strong enables shareholders. our simultaneously invest to returning while sheet business

our remains Innovation core strategy. to

over invested levels we and after nearly in even This XXXX acquired expense. is quarter, development. increase in-process the R&D billion excluding During research $X an

which has acquisitions week. Thus far which of $XX approximately includes failure, in XXXX, innovative strategic deployed last in billion closed for acquisition the treatment agreements, Johnson licensing recent Johnson another & V-Wave, heart and

Turning to our full year XXXX guidance.

the guidance. now Excluding a operational X.X% sales with to from of expect range increasing growth in are divestitures, of and we We adjusted the acquisitions X.X% impact our midpoint X%.

operational increasing X.X% a midpoint sales or $XXX by of We million are also growth of a X.X%, to to with range $XX.X billion X.X%.

future on speculate movements. currency don't we know, you As

quarter's of results the reducing positive a rate This incremental slightly euro in impact $XXX impact X.XX, relative an negative For to we today's utilizing call, are foreign spot currency estimated to our year U.S. of $X dollar last above guidance. billion. million, previous full

sales a reported expect between X.X% we X.X%. X.X% $XX.X such, to As of growth midpoint with or billion

Regarding rest the of P&L. the

addition pretax by transaction, V-Wave XXX margin decline our the XXXX adjusted we of approximately now to the With operating basis points. anticipate

at consistent on asset impact track to margins Excluding operating basis and guided R&D of acquisition the of beginning we related improve the by to which investment, would be is XX points, year. what accounting the we with

levels of million, $XXX can accelerate interest is now As and anticipate projected greater between previous $XXX elevated income to our investment to than you guidance. million fourth quarter. our Net and be $XXX in strive pipeline, advance million we the

an billion $X.X investment income the of be Other previous rights referenced onetime ago. that to be driven for a versus royalty anticipated range is $X.X increase in Jessica by QX to higher moment referenced of utilized will the that I guidance monetization billion,

between be for we XX.X% to quarter, full bridge consistent an from rate, the activity expected Similar provided impact the to year. last outline throughout with and tax previous is the acquisition to effective EPS guidance, Our XX.X% year. have

performance outlook for V-Wave the impact operational of again the EPS once is acquisition, increasing. adjusted Before our

$X.XX operational $X.XX per increase year. reflects, our a on schedule for for increase expecting share an are the total share As performance incremental per the of we

throughout basically basis, absorbing [indiscernible] and share activity. Combined, On the fourth disclosed, includes of an adjusted when despite per activity the XXXX $X.XX yields XXXX. the $X.XX acquisition dilution of now approximately guidance year-on-year transaction, V-Wave $X.XX acquisition share midpoint guidance this the EPS EPS as excluding previously per year, at range, of completion in this of our in operational quarter operational updated adjusted the $X.XX of flat

recent movements, the $X.XX full share. rates positive the estimates currency the just per earnings share now our exchange referenced, reported year predicting a utilizing of adjusted for not year impact per While of impact

we earnings the midpoint. such, reported share expect As at per $X.XX of adjusted

for finalizing inform but preliminary to still commentary our qualitative me are let your provide plans We for year, some XXXX. next you modeling

be commitment RYBREVANT and recently For Innovative in remain to will we cell we XXXX. non-small products, significant This our despite our driven Medicine, very continued deliver lung ability including by progress the from $XX confident cancer. in our in TREMFYA billion a in in-market resulting growth IBD in brands launched and above sales LOE, stated

we LOE, U.S. that the good in in curve erosion January, STELARA the your for for proxy models. Regarding relatively entries biosimilar HUMIRA's a planning are assuming is

redesign. We continue associated a to impact Part D negative with the expect

In bladder anticipated our disease, subcu all myasthenia cancer RYBREVANT aticaprant TREMFYA potential depressive our as platforms: cancer nipocalimab filings and anticipate in TARIS pipeline, subcu across data well we generalized for readouts priority approvals and major in of as for in gravis in lung disorder. Crohn's

As a largest of back X assets what the decade. in terms reminder, for be revenue our and TARIS projections this are of analysts RYBREVANT the continue half estimating TREMFYA, to underappreciated versus

XXXX deliver on to of operational weighted X%. MedTech, business at the For sales growth last upper review average market in continue objective to of of year's our expect identified enterprise long-term the we rate to XXXX end X% through

newer MedTech Shockwave and PureSee integration. and products enabling also continued our all technology businesses of vision Orthopaedics, Abiomed surgical We VELYS in across VARIPULSE Odyssey electrophysiology, as and such expect across adoption in from contributions

anticipate and expanding in the the provinces to expect in China, XXXX VBP products. tenders impacts lenses of intraocular rollout sports and Specific from pricing volume-based across and continued to Orthopaedics we continue

an continued separation. year-over-year, expense pluses about there rest the the IPR&D reduction of of acquired thinking are OpEx minuses. Tailwinds When focus operating margin, continued and to MedTech post include the and optimization on margin improvement anticipated Moving benefits P&L.

Part STELARA we With Working is complete a unreasonable, unfavorable last in brief the look our further plan. once driven we'll clarity provide at margin does consensus models biosimilar and by week, redesign. appear January against us not and entrants D product mix your XXXX

We due from do related to interest acquisition and of debt expect activity. income in in experienced not levels reduction rates heightened to maintain to XXXX impact a interest the

a lower nature loss lower rights other on income income well as employee expect Kenvue to the other we royalty related rate expense, QX, experienced and to discount on nonrecurring income monetization the benefit due as in assumptions Regarding programs benefit of the based net of dividend.

what anticipate on we today, based under slightly our rate Lastly, tax we to be law, than know XXXX current XXXX our tax rate. lower tax anticipated

To we are simultaneously that wrap XXXX. performance XXXX Q&A, underlying for fortified up prior foundation success with a strong continued pleased into to our heading

now over to questions. Kevin I'll your that, for to turn With call the it open

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

next bit Maybe obviously have you for to in into here? on but just I limited from And level talc the watch this it some near term this seems this story? key terms has J&J's organization. just Maybe us to relative from the what made that one confidence is here. a a resolve behind know your is path overall steps advancements you of can little company the comments, still perspective, here getting help of, the in

as resolution And meaningful progress And to Thank and comprehensive Chris. the are with that. our to me Yes. intention before, talc we litigation these is have claims. responsible, to do to final just you, making a bring heard respect you

support of with the the reorganization Houston. of in XX% plan of keep decision prepackaged had the claimants. a court We have to also, filing have we the And filed our

progress this making I said, in So refer. we resolution I that as are

steps, As Erik? next far as

ordered Haas, to case. remain on confer properly Litigation. agreed expeditious to This week case the Texas, of schedule that last and and and should parties ruling Worldwide Lopez Thursday the Head after for in a meet appropriately is Erik of resolution Judge the the

procedure, that, issues it And by votes. that the those hearing parties year. to resolve are the the a motions, year or a putting to schedule in to setting And the through next dismiss of contemplate at relating beginning a motions forth confirmation that of means ancillary the confirmation the the sometime any get end through to process. schedule whether We issues addressing for forth

schedule the that's on. So we're

question from Wells Next Biegelsen from is coming Larry Fargo.

items Tim, X% on such next the how deliver hurricanes QX? the end QX ortho impact impact of year? as the in thinking high the you of that gives the MedTech, X% us maybe And you're the what onetime can you help about from to in understand confidence rationalization,

for results especially question. Larry, the categories, thank in I quarter for X.X% of talked full the into for deliberate X.X% growth operational we're about space. the And And you proud higher-growth, the move Cardiovascular the the our -- higher-margin of success really year. sorry, think

you'll recently, acquisition, last the and expectations even we've of us opportunities recall, Laminar $XXX and into from announced portfolio acquisition from closure more results, perform more fourth once year to which see in been also added does You'll V-Wave, of added that Shockwave Abiomed. the takes to the the which almost high-margin our quarter has continues to acquisition of within then million of as Cardiovascular. the again exciting high-growth, And

is going solid did year. slightly we Specifically growth Orthopaedics, result, the your this of for restructure a which was believe the for quarter, softer point, year X.X% within Orthopedics, a third to be We Orthopaedics. to to have another

in fourth and full within a seeing Orthopaedics, knees And X%. which a return stronger as X% look performance categories and typically especially to hips a tremendous significantly better expect quarter. performance, we growing the the we to are has we year, specifically And

also, really [indiscernible] way, the in that's hip navigation within which enabled the by think indication and in added I enabling as And VELYS hips. of by well knee, the technologies knees, as our our been we've [indiscernible] systems success of

the in half the I'd think addressing And are performance, Orthopaedics I gaps the significantly portfolio back with add portfolio our year. [indiscernible] within and we launch to trauma the of of also received portfolio and that of which new our TELIGEN, challenged, the just launch system been addressing spine lumbar our thoracal new you and know has we're we the spine with for. approval robot, Vault

impacted those continue is storms. weeks quarter coming see impact Thank certainly impact they Milton announced the the and Larry. of did of you, I of see in IV days shortages, over the Helene, in the impact, potentially the areas need do the watch we sale surgical As to which last the procedures especially across to watch out carefully impact the we recently the think it do most that final portfolio. all our relates persist, certainly could by the of hurricanes, if third Hurricane

is question Louise Cantor Chen coming Next from from Fitzgerald.

I from ask sales how other you wanted and and of to some entrenched your products share pipeline you together to replace JNJ-XXXX competitors? TREMFYA, then coming to take loss see STELARA

And really LAZCLUZE Jennifer. achieving and XX cell RYBREVANT of asset in Phase in atopic and wanted And third we to plus notably TREMFYA chance ulcerative against strategy acquisition is double-digit to also milestones, growth first-line cancer. with around to a Medicine II-ready also it's recognize and approval I Louise, key start quarter for off launch continue in colleagues by completed the having the few dermatitis. colitis, non-small which brands my world notable lung NMXX, a really having really fabulous quarter. all the Innovative for deliver a our the thank We

strong proposition -- a to nice So in ahead. as at excited mentioned we look what TREMFYA, that the see the community. have prospects a quarter a truly during off about we a good among we take asset start really for really for a believe IBD. And that that medical product portfolio, with we're I in approval ulcerative just we We got as the winning it's immunology reception colitis. really

act a that only because IL-XX. see strength of it's of having product the we lot And dual

It CDXX really bar cells. normalization. sets what blocks we terms a and new of believe the of the IL-XX it both with efficacy endoscopic receptor highest rate is in So

disease. flexibility what subcu maintenance induction And we've head-to-head think dose a STELARA TREMFYA. got for and showing we we've ultimately in unrivaled will be that rigorous got versus and data both And Crohn's superiority

So And TREMFYA really quarter. on psoriatic for psoriasis sales the arthritis alone. billion was in and $X that was

bigger we we STELARA size that STELARA is a definitely the potential, that and take in what the asset is better. of think or we strength going seen look had TREMFYA terms in IBD forward and an and When with

exciting for of a lot So us ahead. opportunity

is really of For colleague, actually And oral why excited to John data Reed, -- and about data asset we're think that great XXXX, earlier efficacy that great but market we're upcoming we But oral we're excited as a in some John? that appropriate our have about expansion being of a I'll there. opportunity my lines it therapy existing developing. it the and so Reed, biologics' let profile well. gives advanced into only tablet John for able not think to safety about simple talk moving we known be going us do the patients,

Yes. moving The XXXX really Thanks. along nicely. is

As targeted exquisite, to binds the it oral that a designed you receptor, dosing. elegantly very molecule our orally know, blocks once-daily IL-XX is this with peptide, and and is available

quite The of now, is enrolled scalp parts X areas, Phase are that fully III psoriasis indication hard-to-treat studies, other can the difficult anatomy which and broad, be very to typically. clear

next and few there, So be rolling months. the the in looking comprehensively out will quite we're really data

look the time. So at appropriate those sharing forward to we

but in disease. this pathway ulcerative TREMFYA, inflammatory II In confident given there. IL-XX Phase inflammatory the us, we're before moving we're exploring how later we'll we're is colitis data year validated into signal-seeking in that bowel that disease, advanced more where is doses quite studies, study well those different bowel oral studies through Thanks come wait for those that see will medication to for faring to STELARA and a

The And the more other call disease the have and we middle side. studies inflammatory on in combined there year. we're maybe is out in next where coantibody that XXXX RTNF patients bowel TREMFYA be are just gold, your tend also on and approach, case of to a for it refractory inhibitor it's not we mention radar thing I'd gas will read

as well. antibody about that excited So really combination

where the immunology the bowel portfolio disease really inflammatory quite in particularly in altogether, is So strengths. and had of we've traditional robust areas dermatology

on the think got know inflammatory addition in do this because we've bowel portfolio past just we've one really XXXX. had maybe that diseases. questions winning on And a for We I

really that well spectrum, across developing disease. colitis as the be to so ulcerative going both We're Crohn's as

So we're to as have well. it starting plans off in ulcerative in colitis, but develop Crohn's absolutely

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

quarter. I the this Obviously, point? multiple some know of if drivers, Maybe wondering can you're was just at on nice the what but very seeing you CARVYKTI in portfolio. setting in you elaborate the this on spoke to myeloma just growth second-line

lines year TECVAYLI growth product? year, And -- until treatment do franchise? acceleration see to have we as again rest growth Or get to this this wait you or of going through we next to in then to in into an really here the that look at take see this earlier is what's to it in of

a And for in worth but much more had on frontline, to quite myeloma. that growth. to into than we lot patients. DARZALEX particularly eligible thanks as us we transplant $X noting for ineligible both and detail DARZALEX, Terence, share, grow multiple I in sales, it's won't continue go so the perform continues XX% question of strongly in And on billion

really appreciate question CARVYKTI. the I on

million $XXX XX% And growth number seeing year-over-year quarter-over-quarter. and that for XX% we're continued really growth sales, in a of So reasons.

demand the So second strong approval first, that beyond. for on based line very CARTITUDE-X and we're seeing

with presented importance was to for addition, further which CARVYKTI survival medicine just In for line, data overall very, patients in significant multiple the this this myeloma. very adds of and was

day. United approval the underway for In Europe now really States and other continued serve in in number on per well terms of is the is with we end. is site manufacturing to That gained and our the nicely commercial in patients, our Gant continue for CMO our both able [indiscernible], as progress producing production. aspect we And of to slots capacity expansion, clinical

a growth complete before, from product to see from as see all that in because know works don't stair-step of capacity the capacity as the CARVYKTI. as fashion. I continue [indiscernible] so for performance the expansion, bit that strong very as around of discussed exact expansion simply we And well we a more curve continued linear we will And quarter-to-quarter a performance way

have the than us robust quarter about for But that's if definitely half, you as more And discussed, being playing lot we I of that forward, through. that second think going a makes sense. first think

all asked And successful across and is Then -- the now we're you talquetamab. patients X,XXX throughout across over launch for CAR-Ts. the about TECVAYLI CARVYKTI, most it industry with last, and

also flat for sequentially. market we TEC, longer durations. We're but take quarter, at physicians were TEC dynamic seeing new with with basically and are start in the look was terms nice $XXX really of treating if a patients. So uptake XX% so growth off There's million a where it in the -- sales treatment

current think and a for but and and not the for performing in taking in product. well its that continued DARZALEX, whether combinations, with lot [indiscernible]. do growth of only we lines also of with there's patients whether we're a it expansion look therapy, very So It's studying

do we that there's of so there. on believe growth potential a lot And

not out sales we're TALVEY, For yet. reporting the

also year. and the we'll to that next we community continue expand both academic with but on into think the not start I only probably out setting. TEC, But TAL

we so lot ahead. And there's of growth a think

showed to that Maybe engager, really that is just a things not data highlight in the of -- well. that best-in-class as couple BCMA type. the but first-in-class also targeting T-cell to of With molecules TEC, is only other relative

really dosing optimize response years The about where we deepest discontinuation it's responses really out complete rates low less can the X%, X nearly there. very showing Duration -- half patients. XX%, is are playing for weight-adjusted of and of the approaching patients, response than rates,

Very lines have we're who Phase in in to know. That as prior the high in we're story TEC when with seeing similar rates tau. early now III dara, response been B-cell seeing X excited X is about patients patients we a preserving studies where really and with multiply then treated data target, with you and combine

infections fewer tau. are of severe risks there with So

in has engager shown late overall the highest line, the T-cell rates it any response bispecific for of And myeloma.

lot a there's of upside think opportunity we there. So

impressive. the combo again, dara really data with in And are

can that CDXX along to the is where with combination cell J&J of T only the and both we positioned the really have class. marching with together do that. And So we're engager benefits

Our is coming UBS. with from next Antalffy question Danielle

that's on obviously, quick topical. mean, business. EP a had very I question the Just

EP J&J's about arguably look of market that I also haven't PFA I to is a just think how curious quarter really guess versus was had a what the the for and seen appreciate QX we where a VARIPULSE, probably slowdown. business. changes -- You growing much launching. PFA full RF? is quarter of we underlying you more And where dynamics ahead and as XXXX I'm

said, really for electrophysiology. exciting And of we've you category position it And Danielle. more time XX held be more years. in you, be is than the this significant Thank to we as a leadership proud in couldn't

in performance third our is put the XX% business which to XX% just context, year-to-date. quarter our $X grew billion And a business, in and

still against in We are launches. actively are EMEA Japan, soft we had progressing in our cases. successful executing our where launch of We've over VARIPULSE and XXX

XX% data got meeting recent will the we've a at showing really the shared that study We HRS we from portfolio and product our that ADMIRE in hunt. that primary effectiveness product. believe And

can given right, currently of next the in having of in are this we're we EP or I couple quarter As the spent ablation for PA tell in continued VARIPULSE, have we excited it a of expect the a availability to relates labs incredibly sometime space, of we But year. have lot QX product. especially over later you seeing approval the don't which last to that competition, that timing you're U.S., weeks,

majority in see still, those we not while XX% are is portfolio, are people may more than That's most We the cases. of that cases, what the way, that by we of don't product Danielle. the competitive mapping have mapping

procedures Carto reflect software for perform fact, give taking specific market, ablation what data, we've on can't with I a seen to of market-leading updated to PFA. our And the in procedures the in increase EPs products. and In actually significant competitive we've you time but visualization

today, PFA that have And by from volume don't benefiting the the way, though from even increase catheter. we're we

us and mapping installed mappers, And to PFA positions the is so advantage base well a when trained of that believe, combination comes Carto significant highly Systems' market. and X,XXX of we best-in-class extremely

XX% still to catheter a similar we QDOT, with primary that best-in-class has believe strategy play by say a effectiveness. RF in winning full This also within RF, the which RF the we portfolio. will has way, have I portfolio, been the

with first VARIPULSE, our of large energy CE dual a And for shot the launch energy already catheter. similarly, dual PFA, single By you catheters. full for will focal in portfolio and see our applied focal, beyond way, we marking

differentiation confident position leadership and for we're sources our future. EP in Danielle. so in the our Thank you, of And

coming Shagun from Singh Markets. from Capital RBC today Question is

has seeing when China the expect elaborate headwind, MedTech, did you're the you specifically on And hoping and talk to VBP, dynamics about do could it was provinces into expanded that normalize? I Could you in the you additional that in and products. Asia you quantify China. region Pacific

just and should we how in 'XX. on there the you impact could elaborate think about So it

issues Shagun. of hitting us yes, late. question in on couple, me Thank to And you, Pacific highlight had myriad the And Asia and a region we've just let your of China. a I'll get certainly

know community. initiated was end Unfortunately, among February see that. any the we least this Firstly, to healthcare you of strike sight year in may Korea, the or a at in professional don't initiated that in government

that a so has certainly been And headwind.

the right support And the We're seeing and your in ongoing long by been impact companies importantly, by And while thing to products. ours, campaign. and is which Japan. to of macroeconomic procurement, we then pressures way, the this it the professionals we for believe also by exacerbated like more volume-based the anticorruption impacting question, is the it with absolutely procedures term, engagement on health especially premium do care has

a have We leadership position.

MedTech in given We we seeing have positions, leadership disproportionate the the a VBP. largest company And are high from impact China.

a and be and into electrophysiology, tenders believe through remainder 'XX impacted endocutters energy recently, through the categories We our headwind and trauma, in business. do major XXXX will sports in X of 'XX. this spine, more that and have IOLs We Orthopaedics in

continue and important Even the That be deliver shareholders. with for China said, to we confident are that tremendous can impact we our we of VBP, portfolio. continues returns believe an will and of our absolutely part growth

MedTech, performance geography strength the this we of our think the U.S. talks places And with fact can really better and offset one like Europe the in headwinds portfolio I to that global in across

rest let be assured, especially Pacific, me world, tell growth Asia why. also you that of this we believe opportunity. in Please will to a And continue part the

fact And many, live expect do to in these of world. many that we've part continue we're markets many been to XX% of and the of world's patients the years in that proud so. the of

The let's Johnson. less our X% in is our Johnson this MedTech, a final this for at of & Johnson, Johnson material remember, is is you is to & look I'll across again. not Thank we headwind point make while, China. global than When business sales

coming from question Securities. Divan Vamil Next Guggenheim is from

on Great. STELARA. and I on have TREMFYA immunology question side a just the

mentioned So and those expecting were a mix you impact we products the quarter. the little both And lighter. U.S. you patient mentioned sales for unfavorable were in bit

it it in So it And broader I'm detail just just adjustments is is Johnson? patient Johnson market? something can a quarter? of seeing this And specific curious Is to the to maybe mix what you're those little this in from U.S. prior issue more is specifically. for if something products go the sort on & you Or quarters? immunology

Yes, Vamil.

we be mix, is would do. patient with specific this of about the to that talk some true-ups something you If that

an As in, get assessment bills up you to are on we aware, as true-up. reduction. to we gross some end always net make all final are our having And there

positive, for negative they're is Sometimes a reduction. the sometimes it

the U.S. So to that coming the different and when we STELARA to I refer to commercial is and patients accounting channels well performance Jennifer over TREMFYA we final talk in as true-ups patient perspective specifically this hand about mix, Then it the the will of payments the different as for of through some make.

think at issue patient the was growth I X% Jess U.S., specifically over nice U.S., little TREMFYA for XX%. mix And a about. so the just -- if that In we look that it really for outside spoke

the what around growth well. continued on before that very are think launches prospects do in that upcoming for colitis the we're strong the I as and ulcerative We launches planning based articulated TREMFYA Crohn's for in disease

we the decline for biosimilar think piece -- also STELARA, sort again, did in a competition. see due and mix U.S. that, ex also U.S., similar the noted decline in patient I EMEA we've and particularly We've of to

products that at portfolio, got growth. and with our pretty We know is significant a end we've life of and stable across its really that very robust TREMFYA the rest [indiscernible] near of of

Raymond coming Jayson is today James. question final Our Bedford from from

in appreciate tougher XQ comp. a MedTech, just for XQ? decent X% the either better acceleration still in Maybe the color [indiscernible] of or on the gets Tim for Joe, but implies a What year

The Carolina then outside volumes just clarification. an impact a you from IV dynamic seeing North on Western and quick solutions of Florida? And are Helene,

storm. one you thank me areas hit let majority for the the last the in the we Jason, No, first. of impacted And question. have impact the by seen that

impact monitor may fluid, carefully. think which potential additional the procedures. certainly, shortage out IV to from of that And we're As I I impact continuing very is mentioned watch an earlier,

we're Asia As the for strong operational X% in of We our Joe mentioned, winning mentioned on into those absolute Shockwave. portfolio momentum are, in Cardiovascular electrophysiology, businesses mean see as growth carrying of to the year. around adjusted quarter, X% north you on home in we runs. of expect growth the operational in the an especially believe I double-digit we basis that headwinds Pacific the and back from the now performance, deliver fourth with our can earlier

as to is delivered growth. see We we second really business, single here dynamic quarter, our us in typically solid confidence gives third in quarter, and other -- signaled vision mid-single-digit even which a tremendous stronger had within has expected The important that improvement which we the first fourth.

delivered by This performance, our in better much lens was especially contact business.

most fact, important the double-digit here growth for U.S., our contact market, in quarter. the in In lenses

wearer supply, share delivered really now the to this have And back been inventory get distributor the taking U.S., unconstrained our our within that a able from has in we're of just fact new stabilization portfolio. to that especially we

do so [indiscernible] very And vision that we quarter has a ahead. strong

one performance the Abiomed launches, of our peripheral surgery add a for across fourth portfolio, stronger the within within as with portfolio both then And as within Shockwave, as new tremendous well to from quarter cardiovascular, pumps. tremendous within mentioned, catheter typically, product business earlier, then I continued differentiation new we're to And benefiting Orthopaedics, the is portfolio. products And our us. that also

X% adjusted performance again, very X% in confident an at around and basis of on So once north operationally. our

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

joining for everyone, you, the today. call Thank

delivered results you the in strong As heard, have we quarter. third

XXXX confident the Enjoy beyond. our Our advancing and in for high-growth portfolio day. high-innovation and are expectations and of are your pipelines rest increasingly we rapidly,

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

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