Johnson & Johnson (JNJ) Morgan Stanley 22nd Annual Global Healthcare Conference (Transcript)

Company and Industry Overview * Company: Johnson & Johnson (NYSE: JNJ) * Industry: Healthcare, Pharmaceuticals, Medical Technology Key Points Growth Targets and Confidence * 2025 Revenue Growth: Johnson & Johnson aims for more than 3% revenue growth in 2025, with a focus on Innovative Medicine Group (IMG) growing 5% to 7% from 2025 to 2030. * Confidence Source: The company's strong performance in 2024, with total revenue growth of over 7% and EPS growth of 11%. * Growth Drivers: * Innovative Medicine: Multiple myeloma, prostate cancer, neuroscience, and pulmonary arterial hypertension franchises. * MedTech: Vision franchise (ACUVUE OASYS MAX), cardiovascular (PFA catheters, Impella, Shockwave), and orthopedic (VELYS robotics, OTTAVA robotic system). * Regulatory Milestones and Data Readouts: Nipocalimab in myasthenia gravis, TARIS in non-muscle invasive bladder cancer, oral IL-23 in psoriasis and IBD, and RYBREVANT plus LAZCLUZE in EGFR mutated NSCLC. Mergers and Acquisitions (M&A) * Focus: Growth MedTech assets and early-stage deals in innovative medicine. * Investment: Approximately $18 billion in M&A in the first half of 2024, including acquisitions of Shockwave, V-Wave, Ambrx, Proteologics, and yellow jacketing bispecific antibodies. * Criteria: Strategic, scientific, and financial considerations. IRA Medicare Part D Negotiations * Impact: Negative impact on innovation and R&D investment. * Adaptation: * Multiple parallel indication seeking. * Development of subcutaneous formulations for biologics. * Focus on first-in-class and best-in-class medicines. Pipeline Assets * Oral IL-23 Inhibitor: Phase II data in psoriasis showed impressive efficacy, with PASI 75 data around 70% and PASI 100 data around 40%. * TREMFYA: Phase II data in IBD showed high levels of endoscopy complete remission, with approximately 1/3 of patients showing no evidence of disease after one year. * TAR-200: Med device combo for bladder cancer, with unprecedented rates of complete response and breakthrough designation from the FDA. * RYBREVANT-lazertinib: Combination therapy for EGFR mutated NSCLC, with promising data in progression-free survival and overall survival. Other Important Points * Obesity: Interest in exploring differentiated assets in obesity, particularly those targeting hunger and satiation in the brain. * Talc Litigation: Prepackaged bankruptcy for ovarian cancer claims, with confidence in achieving the required 75% voting threshold. * Market Positioning: The oral IL-23 inhibitor is positioned as a treatment option for patients who do not want to use injectables or are not candidates for advanced therapies.