Johnson & Johnson Q1 2025 Earnings Call Transcript

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

Question: Larry Biegelsen - Wells Fargo Securities, LLC - Analyst : Good morning. Thanks for taking the question, and congrats on a nice quarter. Joe, you talked about $400 million in tariffs in the 2025 guidance or about $0.14 by our math. What is that on an annualized basis? And how are you thinking about being able to mitigate that over time? Can you pass along pass it along to customers? Or can you offset it by moving production? Thanks for taking the question.

Question: Chris Schott - JPMorgan Chase & Co. - Analyst : Great, thanks so much. Just had a question on gross margins in the quarter. It seems like these came in well below recent trends. I'm just trying to get a better understanding of the drivers there. And just the outlook going forward as we consider mix, tariffs, et cetera, on the gross margin line? Thank you.

Question: Asad Haider - Goldman Sachs - Analyst : Thanks for taking the question. Just going back to the STELARA biosimilar version and the acceleration of the trajectory that we're going to see over the course of the year. Are you able to provide any quantitative framing on your views as it relates to the extent to which you think this erosion gets smoothed out by the transition to other brands like TREMFYA and other products? Thank you.

Question: Danielle Antalffy - UBS Equities - Analyst : Hey, good morning everyone. Thanks so much for taking the question. Thanks so much to for all the color on tariffs and the ortho impact, that was super helpful. And Jess, we're really going to miss you. But congrats and good luck in your next role. Just a quick question on -- and maybe this isn't really a question, I don't know, but I think it's still on the table and that do we or don't we go into a recession? And I'd love some color as much as you can provide on how you guys think about your business and how recession proof it is reason and what areas might be most at risk of underperforming relative to where we are today in a recession? Thanks so much.

Question: Terence Flynn - Morgan Stanley - Analyst : Hi, good morning. Congrats on the quarter and thanks for taking the question. Joe, we heard your comments this morning on the Section 232 potential pharma tariffs being focused more towards generics API versus the complex branded biologics. So just wondering if that's based on your impression of the most likely outcome here or that's more just your speculation or hope for the outcome. Thank you.

Question: Joanne Wuensch - Citi - Analyst : Good morning, and thank you for taking the question and providing all of this information, very helpful. I do want to sort of just pause for a second on the orthopedic sales and try to unpack how much of that is which variable is there a way to quantify it? And how do we think about the recovery in the back half of the year and then into next year. Thank you.

Question: Vamil Divan - Guggenheim Securities LLC - Analyst : Great, thanks for taking the questions and for all the information. So I just wanted to maybe focus on that slide 29, Joe, that you touched about on this for you, Joe, or for Jennifer. I appreciate you sharing your perspectives on those products and how they differ your expectations are for consensus. There's three products that are not on there anymore that were there at the end of 2023, and that's CARVYKTI, TALVEY, and TECVAYLI. And I don't think the consensus expectations have changed for those very much since then. So maybe you can just talk about what has changed there why those aren't listed? Has there anything changed from your internal perspective or again externally that just had those come off of that list. Thank you.

Question: Matt Miksic - Barclays - Analyst : Great, thanks so much for taking the questions, and I appreciate all the color. I had a clarification and a question if I could. So the question first. Would be great if you could maybe flush out the way that the opportunities in TREMFYA, which is now kind of leaning into IBD and the emerging opportunities for icotrokinra in oral kind of -- and you see them coming together this year, next year, the year after as kind of a portfolio in immuno. And then clarification, if I could, just for Tim, it sounded like when you were describing the ortho impacts, you've got something like 2%. But if you look at the hip and knee math, I'm right, let's think about 2% US, I just want to make sure I understand. It sounded like your view was that's share, that's on else, and we're going to remedy that with the innovations and new products this year. Maybe just put to spine of a point on it, but like that's not market growth, like 2%, like you would say we're below market, and we should be doing better. Or do you think that that's kind of where the market's at is in, that like low single-digit range for US SMEs. Thanks so much. Apology for a long clarification, that will be super helpful. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 15, 2025 / 12:30PM, JNJ.N - Q1 2025 Johnson & Johnson Earnings Call

Question: Tim Anderson - Bank of America - Analyst : Thank you so much. Going back to tariffs, a big concern by investors is how that might ultimately wrap in transfer pricing structures? And every company I know is usually hesitant to talk about that. I'm wondering what J&J can offer up on that front that could include things like major products where you have transfer price structures in place as well as which geographies you have those in place as well.