Johnson & Johnson at Stifel Healthcare Conference Summary

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

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : So Michael, I was at TCT, and I just thought we'd start off with some post-TCT reflections. J&J spent $30 billion to bring both Shockwave and Abiomed under the J&J umbrella. With these two companies inside, I noticed that J&J had a huge presence at TCT on the floor and at clinical sessions. Just wondered, just since we didn't get a chance to meet there, what were your impressions of the meeting and the customer interactions and clinical data takeaways? What were your high-level impressions from this year?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : And it strikes me -- hard not to strike me that when I think about Abiomed; Shockwave; and most recently, V-Wave, you really are getting back into the field of interventional cardiology under that broad umbrella. But as you said, Michael, you have a long history here, but it's in and out history as we know it. Do you feel like you're being welcomed back? And maybe as you talk about that silly question, let's address a more serious one. It's hard for me -- let's just hit it right up front. The dream, the J&J dream, that we were talking about, where are we going with all this? What's your aspiration?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : No, that makes a lot of sense. I'm sure you're tired of being asked about integration. I mean, it feels like the companies are well integrated and you're cranking along. But I had an interesting conversation with a KOL interventional cardiologist last week or a week or so ago. And I said, what's changed from your perspective as a customer since you acquired it? In his response, nothing has changed, which I thought was the ultimate complement really. Is that -- do you feel like that's how your customers are seeing it and experiencing it? And maybe just as you answer it, what do you hope they'll see different, in a good sense, looking ahead over the next year or two or five?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : Hard for me to let that go. In what sense, Michael? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2024 / 3:55PM, JNJ.N - Johnson & Johnson at Stifel Healthcare Conference

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : No, it makes sense. And just thinking -- again, we're starting off with high-level questions here. How should we think about your M&A strategy? Rockets, I heard you. That will stick with me for sure. That's easy, even I can remember that. But I mean, again, all under this umbrella of interventional cardiology, and it's a big umbrella, as you've just said. Is this -- should we imagine larger or smaller now that you've got the big rockets, a bunch of smaller ones or?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : You must have been reading my next question. Because I was wondering, are there early stage companies in your VC portfolio already that potentially could find its way into your world? Or the reverse that -- now that in the future, there's going to be more attention paid internally to help you and support your long-term growth or technology goals?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : And this is totally unfair. I can't help myself, sorry. But I got 50 texts from buy-siders saying, ask him if he is interested in structural heart, TAVR, mitral, tricuspid. I'm lying, but it's a productive ask.

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : Got you. So let's dig into the businesses a little bit. Abiomed -- just thinking about Abiomed performance since the acquisition. Every J&J earnings call I've listened to, I hear Tim Schmidt, the Head of MedTech; and Joaquin Duato, Chairman and CEO, talk about how Abiomed is tracking above your deal models and expectations. Help us appreciate what's gone so right. Is it just leaving as simple as leaving to their -- what are you doing there if they're just leaving it alone after all? But what are the key drivers here? And help us understand the sustainability of what you're seeing, what we're seeing?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : I mean, all those are very rich and fertile topics. I was going to ask you a little later, but let's go ahead and ask about worldwide market access and these access teams and the opportunity. Because that was really one of the big promises going in, you just knew it. Where are you in that process? Are we just beginning? Are you in full throttle?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : And tying that in to growth -- I mean, I don't know if I have perfect numbers. But pre-COVID, I seem to recall that Abiomed is growing something like 30% a year off a $700 million revenue base. Now, the revenue base has nearly doubled and growth, I believe, is in the 15% range. Is Abiomed a 15% grower, thinking about all the things you're talking about off this large number? I mean, is it theoretically possible over time to work back toward that pre-COVID 30% growth? I mean, how would you have us think about Abiomed growth over the next three to five years?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : This is exciting stuff, and I see why you're feeling so good. I feel like I better turn to Shockwave here. I told you we needed two hours with him, Tracy. Just obviously, an amazing story you're going to expand. I feel like there are many elements in Shockwave story that mirror or a companion to Abiomed. Talk to us about the recently launched new E8 peripheral catheter and the pipeline at Shockwave. And how are you feeling about the future pipeline there?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : And over the next few years, I mean, it always seems like a platform technology, and that's what you're emphasizing here. What are the first up at bat, so to speak, that you're going to focus on or you're inspired to help the team focus on? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 18, 2024 / 3:55PM, JNJ.N - Johnson & Johnson at Stifel Healthcare Conference

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : And Shockwave globalization -- if I remember correctly, Shockwave also maybe had an 80-20 U.S.?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : And do you have a bigger push here in your mind? Is that -- are you focused here on building out the international more than at Abiomed or it's the same initiative or you leverage the two?

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : Got you. I mean, it's always amazing how fast the time goes. But let's touch on V-Wave. You just closed the acquisition on October 9, interventional heart failure treatment technology company. Just help us maybe better understand and appreciate your vision and where it fits into the exciting landscape you're articulating.

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : Interesting.

Question: Rick Wise - Stifel Nicolaus and Company, Incorporated - Analyst : Amazing. Unfortunately, we have to stop there. But I have to compliment you. I think in my 400 years as a MedTech analyst, I think these are some of the clearest explanations of technology and anatomy. I thought I understood HFrEF and HFpEF, but I think I understand it better now. Anyway, it's more exciting to see. Thank you so much for spending your time with us. We appreciate it.