IRA Impacts and Growth Guidance
Q: What's the impact of IRA and Part D redesign on growth?
A: J&J anticipates a net unfavorable impact in 2025 due to the IRA and Part D redesign but remains confident in their previous guidance of 3%+ growth in 2025 and 5–7% growth through 2030, as outlined in their Enterprise Business Review last year. These impacts have been included in their projections. They are still working with payers for 2025 and 2026 formularies. DARZALEX FASPRO is expected to be treated separately from DARZALEX IV, reinforcing their confidence in its position. Over the past six years, discounts and rebates have increased from about 25% to 60%, and they aim to ensure patients have access to their innovations through existing discounting. - -

MedTech Growth Outlook Amid Destocking
Q: How is MedTech growth outlook amid destocking and end markets?
A: J&J remains committed to delivering solid growth in MedTech for 2024, despite a tougher second quarter impacted by prior year comparisons and underperformance in Vision and China. They expect the Vision business to rebound in the second half, driven by innovation like ACUVUE OASYS 1-Day MAX. The destocking in contact lenses is seen as a temporary blip. Volumes have normalized, and they maintain confidence in 5%–7% growth for end markets, focusing on securing preferential pricing amid inflation pressures. - - -

China Market Challenges
Q: How is J&J adapting to China's evolving market conditions?
A: J&J recognizes the volatile market in China and the impact of factors like Volume-Based Procurement (VBP) and the anti-corruption campaign, which have affected procedural volumes and healthcare professional engagement. While these present short-term headwinds, they view the anti-corruption efforts positively and remain committed to China as an important growth driver for both their Innovative Medicine and MedTech businesses. They have robust business continuity plans and continue to navigate challenges with a long-term perspective. - -

Electrophysiology (EP) Business Competition
Q: Impact of competitive PFA systems on EP growth outlook?
A: J&J sees Pulsed Field Ablation (PFA) technology as positive for the Electrophysiology market and patients. While acknowledging increased competition in the U.S., they are confident due to their global presence and robust RF and PFA portfolios. Their PFA technology is already approved and commercialized in EMEA and Japan, with U.S. approval expected by year-end or early next. The admIRE study showed 86% effectiveness of their PFA technology, and their CARTO 3 Version 8 mapping system enhances competitiveness. -

Nipocalimab Potential in Autoimmune Diseases
Q: How does nipocalimab compare to other FcRns?
A: Nipocalimab has shown sustained disease control and consistent efficacy across endpoints in Sjogren's syndrome and other autoantibody-driven diseases. J&J is the only company with proof of concept in all three segments of autoantibody-driven diseases. They are confident that nipocalimab is a $5 billion-plus asset, potentially bringing the first advanced therapy to millions affected worldwide. -

RYBREVANT's Prospects in Lung Cancer
Q: How will RYBREVANT evolve and take frontline share?
A: J&J is excited about RYBREVANT plus lazertinib, believing it will significantly impact frontline non-small cell lung cancer due to high unmet needs, with about 25% of patients not reaching second-line therapy. Positive data on progression-free survival (PFS) and subcutaneous dosing support their confidence in capturing share in the frontline setting. -

Orthopaedics Growth Drivers
Q: What's driving growth in hips and knees?
A: Growth in Orthopaedics is driven by innovation. In hips, J&J achieved 6% growth and declared market leadership in the U.S., leveraging best-in-class implants and technologies like VELYS Hip Navigation and KINCISE. In knees, they saw almost 10% growth, powered by the VELYS system launched in over 20 markets with more than 70,000 procedures performed. They continue to build on success with approvals like the VELYS Uni Knee. -

DARZALEX Growth and Separate Treatment
Q: Is DARZALEX FASPRO treated separately, and what's its growth outlook?
A: J&J is confident that DARZALEX FASPRO will be treated separately from DARZALEX IV. DARZALEX delivered 21% growth, reaching $2.9 billion in sales, with positive Phase III studies across multiple indications, reinforcing its position as the company's single largest asset. -

Device Pricing Environment
Q: What's the outlook for MedTech device pricing?
A: Despite inflation pressures, J&J is focused on securing preferential pricing globally. They benefit from their international presence and aim for premium pricing where they have differentiated innovation, especially in areas like cardiovascular, electrophysiology, heart recovery with Abiomed, and Shockwave. -

Vision Segment Destocking
Q: How has destocking affected the vision business?
A: Destocking in the contact lens business, particularly in the U.S., impacted performance in the first and second quarters due to distributor inventory reductions. However, J&J saw sequential improvement throughout the second quarter, returning to historical levels by quarter-end. With strong market leadership and innovations like ACUVUE OASYS 1-Day MAX, they view this as a temporary issue and are confident in the business's rebound. - -