The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Terence Flynn - Morgan Stanley - Analyst
: Great. Thanks so much for taking the questions. Appreciate it. Obviously, myeloma franchise is a very important growth driver as we think about
history, but also 2025. So just wondering if you can kind of frame for us how you're thinking about that, both from the bispecifics as well as CAR-T
and maybe a broadening into the community setting and the pace of growth here as we think about the ramp in '25. Thank you.
Question: Josh Jennings - TD Cowen - Analyst
: Hi. Good morning. Thank you for taking the questions. I was hoping to just ask about the medical device or the sector, the business, excuse me.
And just the acquisition strategy, you've had a couple of pre-revenue swings with Laminar and V-Wave and some other more established more
established businesses under the roof. Can you just talk about the strategy on a go-forward basis? I mean, is it going to continue to be a mix between
pre-revenue companies and formally more fully established businesses? Or are you going to be -- is there going to be a shift in that strategy? Thanks
for taking the question.
Question: Alexandria Hammond - Wolfe Research - Analyst
: Thanks so much for taking the question and congrats on the Intra-Cellular deal last week. For CAPLYTA, how should we be thinking about the
cadence of sales growth to the forecasted sales of $5 billion? And I guess on the acquisition, should we expect a deprioritization of seltorexant and
aticaprant? Thank you so much.
Question: Tim Anderson - BofA Global Research - Analyst
: Thank you very much. I have a question on immunology franchise and TREMFYA. So with STELARA facing biosimilars, I'm wondering if it might
play out like how it has with AbbVie. So in the case of AbbVie, they said that biosimilar Humira has actually driven the volume shifts in favor of
other brands like Skyrizi. I'm wondering if you expect that could occur with TREMFYA on the volume side. And then on the price side, can you talk
about incremental price erosion in 2025 to maintain access relative to whatever the price erosion was in 2024.
Question: Larry Biegelsen - Wells Fargo Securities, LLC - Analyst
: Good morning. Thanks for taking the question. Tim, how are you thinking about the growth of the med tech market in 2025 and J&J relative to the
market? And what are you assuming for the EP business and VARIPULSE. Thanks for taking the question.
Question: Chris Schott - JPMorgan - Analyst
: Great. Thanks so much. I just had a two-parter on operating margins. I think you mentioned in the remarks about 150 basis points of improvement
this year in process R&D. Can you just elaborate a little bit more on what's enabling that despite the lower top line growth and some of the negative
product mix from STELARA. I guess, I'm trying to get at, should we be expecting OpEx to be down this year embedded in that guide?
And the second part was just beyond this year. Just help us think about the cadence of margin expansion as we think about 26 and beyond and
top line reaccelerates. Thank you.
Question: David Roman - Goldman Sachs - Analyst
: Thank you. Good morning, everybody. It's on behalf of Chris Shibutani and myself here. I wanted to come back to just the overall MedTech strategy.
And I appreciate that you exited the year over the 7% number that you had previously communicated as the high end of the range. But when you
pick that apart a little bit, clearly, a big percentage of that does come from M&A, I think with ex M&A, the organic number being below the 5% to
7%.
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JANUARY 22, 2025 / 1:30PM, JNJ.N - Q4 2024 Johnson & Johnson Earnings Call
So can you maybe just walk through a little bit how you think about the organic investment in the business versus inorganic contribution to that
number long term, especially when you start to look at some of the more established franchises of that surgery or orthopedics on your end market?
And then if I just speak in accounting one on one here. I just want to confirm there is no revenue recognition reversal charges in the EP numbers
this quarter for VARIPULSE.
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