Johnson & Johnson at Goldman Sachs Global Healthcare Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : So an interesting portfolio that you spend your time professionally here, which makes me want to ask you some broad questions. And John, you can listen to these as well, because I'll be asking them to you. The company has undergone this transformation after many, many, many years. And now you are a pharma and medical device entity with a consumer running separately. Talk about the strategic advantages. I think at face value, it's always clear that there was a logic to having everything together, but it's become clear that you have an opportunity. How are you really trying to aim to capture that opportunity with the new structure going forward?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : That's very helpful. And the word global is very much part of your business card here. So if I can ask you to touch upon, let's start in the US. Inflation Reduction Act is very much a reality. Talk about how we should think about the impact to the industry. And in particular, a lot of us are sharpening pencils and thinking about Medicare Part D redesign 2025 revenues. Let's get that out of the way. Help us understand here?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : And again, I want to lean into your truly global footprint and your experience that are broad, help us a little bit understand what the forward-looking outlook is internationally. Let's start with Europe. And I partly bring this up because we had a DC panel the other day, and we're contemplating all the potential impacts of how the ecosystem could change as a function of who's sitting in the White House, acronyms. Most favored nations starts to come up here, which means that we should all be a little bit more aware of how that is playing out actually in parts of the world. So what's the outlook like in Europe and what should we know?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : And then can I talk to you both a little bit about China. Industry clearly threaded through, but exposures at the level of both the R&D side, just coming off of ASCO with a lot of China data. And so we'll turn to John after this, but on the commercial side, Jennifer, first, the geopolitics are complex. How are you thinking about China as an end market for your pharmaceutical products. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 6:00PM, JNJ.N - Johnson & Johnson at Goldman Sachs Global Healthcare Conference

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Let's start over to you John and use this question about China and the exposure by a Secure Act, et cetera. As a segue, I will ask you about broader questions as well. But thoughts there from the research perspective and how J&J in your group is thinking about this?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Absolutely.

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Right. No, I think certainly the research team at J&J talk and the commercial efforts of Jennifer's team are helping that company earn their name, Legend. And so from that standpoint, I think it's clear. John, a little bit more to you. I'll just reference some comments from some of your partners without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 6:00PM, JNJ.N - Johnson & Johnson at Goldman Sachs Global Healthcare Conference in the C-suite, Joaquin talked about the emphasis on, quotes, strength and innovation, growth and margins. And then Joe was also on stage, recently talked about the next 10 years of innovation will be more profound than the past 100. So no pressure.

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Absolutely.

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Yeah, I was going to bring that up.

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Yeah, I was going to bring that up. I think Joe talks about having like a headcount of 6,000 engineers, which is extraordinary from a headcount standpoint. We probably have that many people that Goldman who work on IT support, although I never seem to get my apps to function the same way. So hopefully, yours are being quite productive. Talk about the practical return. I think it's very logical to have the ability to interpolate through different data sets and bring them to bear. I have a hard time measuring the impact. It's more apparent and logical when you think about drug discovery and design. There you can see the chirality and the computers, doing their thing. More practically speaking, is there a good way to measure it? How are you guys measuring whether these 6000 people are, you're getting an ROI on them?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Let's get into some of the product verticals here. Certainly, one of the crown jewels, if not the crown jewel across the industry, is the multiple myeloma franchise. Last year, Biljana, Nanovic, just another one of your cadres, very impressive executives is able to really talk about wrapping end to end solutions cell therapies just thinking about even introducing the word cure into the vocabulary. I don't want to talk about that, though. Let's talk about the disconnect between where you guys envision peak sales and maybe what's underappreciated. And then maybe let's feel around and palpate and get to a nidus of concern, which is the immunology business. STELARA, fantastic product, right? Going to be facing some LOEs in Europe and in the US. The opportunity is there for the next string. TREMFYA, a legitimate growth product with some impressive data coming from DDW as well to really lead the charge there. And there's that transition. And I would argue that this is a very important and valuable use of the time that we have today, especially where the stock is sitting at right. It feels as if we can resolve some of these bull bear debates around this. And to me this is one of the niduses of concern. Let's talk about that a little bit. So Jennifer, how is TREMFYA going to soar amidst STELARA's maturation?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Yeah. No, just want to thank you. Very well. I knew you would get that in there, but let's get into it.

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Yeah. No, that's the practical aspect of it as well. The profile, the data that you have, that's what you walk in the door with. The contract is what you walk out the door with. Talk about the contracting environment here, and how you're feeling about that with the portfolio? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 6:00PM, JNJ.N - Johnson & Johnson at Goldman Sachs Global Healthcare Conference

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Right. And this next contracting season, we love the spring into the fall, and by 3Q, we're pestering you relentlessly. John, pull you in here. A couple of important pipeline assets to again address the maturation of STELARA. You have 2113 advanced oral agent and then I'm going to ask you potentially provocative question about cell therapy. But let's start with 2113 because certainly capture some headlines. You've had some data here. The premise in immunology that we all love as investors is that the product is the pipeline, right, and there's indication. But let's start with the lead data set, and how this could be positioned as an advanced oral therapy. And then take us on a journey in terms of where you would like to see additional opportunities.

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Great. without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 6:00PM, JNJ.N - Johnson & Johnson at Goldman Sachs Global Healthcare Conference

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : When can I put something on the calendar for IL-17? When we get a peek at the profile? Is that a 2024 or 2025 initial clinical stuff?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Okay, terrific, recognized mechanism. Cell therapies for immune-mediated disease, quite the buzz from since the start of the year. You guys know your way around in the oncology group with cell therapies. We always think about manufacturing supply constraints. I was just talking to a small cap player that's going the allogeneic route. How do you see a solution? Do you see a commercial opportunity? Maybe we'll start with the research side and then Jennifer, how excited are you?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : I'll pivot to neuroscience, watching the clock here a little bit if I could. SPRAVATO was actually quietly done quite nicely. It's become disclosed. What's driving that growth, and you know, where do you see that going? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 12, 2024 / 6:00PM, JNJ.N - Johnson & Johnson at Goldman Sachs Global Healthcare Conference

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Yeah. No, it's intriguing that that is the tip of the spear, CNS, the group got together at December Enterprise Day and talked about the ambition of being the number one neuroscience company by the end of this decade. And certainly we're going to be looking to be equipped with opportunity here. John, Alzheimer's disease, it seems if I take a look at the portfolio of pipeline prospects, there's kind of a "Tau-ist" bent. There's almost sort of like a religion. Are you a believer in Tau? Are you a believer in b amyloid? Are you a "Tau-ist" and, and when are we going to learn more about your efforts in Alzheimer?

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Then I'm over time a little bit, but I do have to ask you a question, almost obligatory, and you guys are doing a great job looking like -- you're looking at us. I know you can't see us. I'm practically lying on the floor because the next question is about obesity. And it's specifically relevant to the fact that I think you guys have said you will not go into obesity. June, what's the day, 13. Can you reiterate if that continues to be the case and how you're feeling about it? She is pointing to you, John. Go first.

Question: Chris Shibutani - Goldman Sachs & Co. LLC - Analyst : Okay. Now, that makes sense.