Johnson & Johnson Q2 2024 Earnings Call Transcript

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

Question: Chris Schott - JPMorgan Chase & Co. - Analyst : Great. Thanks so much. Appreciate the question. Maybe just a question on RYBREVANT. I know, Joaquin, you mentioned that is one of the key upcoming milestones for the company, but this does seem like a product where there's a disconnect between J&J's enthusiasm and the Street. So maybe just enlighten us with some of the data we recently saw at ASCO on subcutaneous dosing, et cetera, the upcoming label expansion? Can you just talk about how you see RYBREVANT evolving overtime and your confidence that this product can take share in the frontline setting? Thank you. 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. JULY 17, 2024 / 12:30PM, JNJ.N - Q2 2024 Johnson & Johnson Earnings Call

Question: Larry Biegelsen - Wells Fargo Securities, LLC - Analyst : Good morning. Thanks for taking the question. Tim, maybe we can do a deeper dive into MedTech. Just talk about what drove the reduction in the expected growth for MedTech in 2024? And how are you thinking about the Medtech end-markets in the second half and which J&J businesses do you see improving in the second half and why? Thank you.

Question: Louise Chen - Cantor Fitzgerald & Co. - Analyst : Hi, thank you for taking my question. Wanted to ask you about your Phase 3 nipocalimab data that you presented recently. And how do you compare and contrast the efficacy and durability of your product versus other FcRns and mechanisms of actions on the market? Thank you.

Question: Rick Wise - Stifel, Nicolaus & Company, Incorporated - Analyst : Good morning, everybody. If I could talk a little bit about the EP business. Obviously, this is the first full quarter where we're really seeing a broader launch of a competitive PFA system. You updated us on your system. But maybe if you could give us more color broadly on the impact you're seeing on EP growth and the outlook for the second-half, and help us better understand how this launch and the launch of CARTO 3 Version 8 launch is being affected here. I'm assuming mapping growth was strong, but maybe -- I don't know, maybe the catheter business was pressured by the competitive system. Can you help give us that macro color and maybe the specific impact on Biosense Webster. Thank you.

Question: Terence Flynn - Morgan Stanley - Analyst : Great. Thanks for taking the question. Two parts for me on IRA. Was just wondering if you can offer any perspective on the impact of IRA negotiation for STELARA and XARELTO as we're getting close to the disclosure of the pricing decision. And then also Part D redesign in 2025, just some high-level thoughts? And the second part of the question relates to your confidence that DARZALEX FASPRO will be looked at separately than DARZALEX just given the hyaluronidase component there. Thank you.

Question: Josh Jennings - TD Cowen - Analyst : Hi, good morning. Thanks for taking the questions. I was hoping to just touch on MedTech and outlook for procedure volume trends in the back half. There have been some concerns that there's some tough comps on the utilization side and particularly for the Orthopaedic sector. But I was hoping to just hear your outlook and how that's blended into the acceleration in the back half, and then maybe also, if you could just touch on the pricing environment and your outlook for device pricing and where pricing stands for the MedTech portfolio? Thanks for taking the question.

Question: David Risinger - Leerink Partners LLC - Analyst : Yes, thanks very much. Could you please comment on the J&J US pharma exposure to efforts by plans to extract greater rebates in 2025 than in typical years in order to offset Part D plan losses in 2025? Thanks very much.

Question: Danielle Antalffy - UBS Investment Bank - Analyst : Hey, good morning, everyone. Thanks so much for taking the question. Just a quick MedTech question on China. So China, it sounds like things are evolving in China. I mean this is no surprise to anyone. But just curious about how you guys are thinking about China as a contributor going forward, given all the evolution in that market and some of the issues, VBP, things like that. How meaningful, I mean, it's been a big growth driver for you guys historically, how do we think about China going forward? And is the strategy for J&J, does it have to change to adapt to the evolving market there? Thanks so much.

Question: Chris Shibutani - Goldman Sachs Group, Inc. - Analyst : Thank you. Good morning. Together with my colleague, David Roman, a genuine question that we had related to the MedTech market dynamics and outlook. Can you help us better understand comments that were made about a fair amount of inventory destocking that's been happening and juxtapose that and perhaps reconcile with your expectation that the demand outlook would strengthen. We're just trying to put together this notion of inventory stocking, destocking ahead of an anticipated acceleration versus a potential deceleration or a tougher demand environment going forward? That would be helpful. Thank you.

Question: Joanne Wuensch - Citigroup Inc. - Analyst : Thank you very much for taking the question. I'd like to wrap up with the Orthopaedics question. Hips and knees are growing faster than the historic rates, could you sort of unpack that a little bit and give us an idea of how much of that is patient volume, price, new products, or maybe something else? And have a great day. 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. JULY 17, 2024 / 12:30PM, JNJ.N - Q2 2024 Johnson & Johnson Earnings Call