Danielle Antalffy

Danielle Antalffy questioned Johnson & Johnson's long-term strategy for participating in high-growth markets. She asked if the projected 70% participation rate post-ortho separation is an aspirational peak and what other growth markets, in both Innovative Medicine and MedTech, the company plans to enter via organic or inorganic moves.

Answer

Joseph Wolk (CFO, Johnson & Johnson) stated that the aspiration is not to limit participation in high-growth markets, conservatively estimating 'at least 70%' post-ortho separation. He highlighted ongoing opportunities within MedTech (Cardiovascular, Surgery, Vision), emphasizing Ottava's unique De Novo pathway and global expansion plans. Jennifer Taubert (EVP and Worldwide Chairman of Innovative Medicine, Johnson & Johnson) listed potential future growth drivers in Innovative Medicine, including Rybrevant in head/neck/colorectal cancer, Amave in Sjögren's/SLE, atopic dermatitis assets, B-cell malignancies (BiCAR), and Milvexian (with BMS) for AFib/secondary stroke prevention.

Danielle Antalffy from UBS asked about Johnson & Johnson's "move to higher growth end markets" strategy, specifically if the 70% target for participation in such markets could increase further, and what new growth markets (in Innovative Medicine or MedTech) J&J aims to enter organically or inorganically.

Answer

CFO Joseph Wolk stated that J&J's aspiration is not to limit participation in high-growth markets, conservatively aiming for at least 70% post-ortho separation, with tremendous opportunities within Cardiovascular, Surgery, and Vision. He emphasized the potential of Ottava in surgical robotics, highlighting its unique De Novo regulatory pathway and planned global expansion. EVP and Worldwide Chairman of Innovative Medicine Jennifer Taubert added that Innovative Medicine is expanding into new areas with ongoing clinical work, including Rybrevant in head and neck/colorectal cancer, Amave in Sjögren's disease and SLE, atopic dermatitis assets, B-cell malignancies with BICAR, and Milvexian for atrial fibrillation and secondary stroke prevention.

Danielle Antalffy questioned whether the projected 75 basis points margin improvement for MedTech post-ortho spin felt conservative, given the higher-growth, higher-margin profile of the remaining cardiovascular surgery and vision businesses.

Answer

CFO Joe Wolk clarified that the 75 basis points margin improvement is a longer-term projection, and for 2025, the impact would be closer to 100 basis points. EVP, Worldwide Chairman, MedTech Tim Schmid emphasized that the separation is aimed at 'shrinking to grow faster' for MedTech, focusing on best-in-class performance in cardiovascular, surgery, and vision. Chairman and CEO Joaquin Duato reiterated the commitment to making the MedTech sector a leader in the industry.

Danielle Antalffy questioned the projected 75 basis point margin improvement for MedTech post-orthopedic spin, suggesting it might be conservative given the higher-growth, higher-margin profile of the remaining cardiovascular, surgery, and vision businesses.

Answer

CFO Joe Wolk acknowledged that the immediate impact on margins might be closer to 100 basis points, but the 75 basis point projection accounts for a longer-term view as higher-growth businesses mature. EVP, Worldwide Chairman, MedTech, Tim Schmid emphasized that the separation is about 'shrinking to grow faster' and focusing on best-in-class performance in the remaining MedTech priorities. Chairman and CEO Joaquin Duato reiterated his commitment to making MedTech the industry's best-in-class sector.

Danielle Antalffy sought clarification on whether Dexcom's preliminary 2026 guidance assumes no expanded coverage, and asked about the potential for expanded coverage in 2026 and how it would be reflected in future guidance.

Answer

Jake Leach, President and Interim CEO, clarified that the base case for the 2026 guide includes only current coverage. Jereme Sylvain, CFO, added that significant new coverage wins (e.g., non-insulin, basal, emerging markets) would be highlighted if they occur, but the base case will not incorporate them.

Danielle Antalffy followed up on 2026 guidance, seeking clarification on whether it assumes no expanded coverage, and asked about the latest thoughts on potential for expanded coverage in 2026 and how guidance will reflect it.

Answer

Jake Leach, President and Interim CEO, and Jereme Sylvain, CFO, clarified that their 2026 base case guidance will only include existing coverage across insulin and non-insulin use globally. They noted that significant new coverage wins, such as broader non-insulin or basal coverage, would be considered upside and highlighted separately if they materialize.

Danielle Antalffy from UBS asked about the cadence of growth in Boston Scientific's Cardiac Rhythm Management (CRM) business, which has been growing below market, especially with a competitor in a new product cycle. She sought insights into how upcoming new product launches, such as Denali and EMPOWER, are expected to impact the business's growth trajectory.

Answer

Chairman and CEO Mike Mahoney noted satisfaction with LUX ICM performance and highlighted multi-year investments in the Denali platform, a complete refresh of core pacemaker/defibrillator products launching in late H2 2026 and throughout the LRP. He also expressed enthusiasm for EMPOWER, their entry into the leadless pacemaker market, which will complement SICD. Mahoney stated that while unit growth has been at market, dollar growth has been below due to gaps in higher ASP leadless products. He is confident the CRM business will strengthen and contribute more significantly over the LRP. Chief Medical Officer Dr. Ken Stein added that EMPOWER is important for leadless and SICD growth, and the Elutia acquisition provides an important adjunctive technology. He also highlighted the generational opportunity with the implantable platform refresh and the disruptive potential of conduction system pacing technology.

Danielle Antalffy asked about the growth trend in the AtriClip business, questioning if the competitive impact had bottomed out and how centers are adopting multiple devices. She also inquired about the current market penetration of the EnCompass Clamp in CABG procedures.

Answer

CEO Michael H. Carrel attributed the accelerating AtriClip growth to broader market expansion driven by competition and innovation like the new FLEX-Mini. He noted that while some accounts use both AtriCure's and a competitor's device, no accounts have been lost. Regarding EnCompass, he estimated that penetration in cardiac surgery patients with Afib has increased to the 30-35% range, highlighting a substantial remaining growth opportunity based on global treatment guidelines.