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Speaker 1: We're joined now by this chief financial officer of Johnson Johnson.

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Speaker 1: He's Joe walk Jo. Thank you so much for joining us.

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Speaker 1: So you did do a bit better than what most

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Speaker 1: people expected you would do going backwards. There's some guidance

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Speaker 1: going forward. Give us your sense, as the CFO of

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Speaker 1: Johnson and Johnson, what do these numbers tell us about

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Speaker 1: where Johnson and Johnson is in where it's headed.

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Speaker 2: Sure, Good morning, David, great to be with you today.

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Speaker 3: You know, Johnson and Johnson had a tremendous year in

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Speaker 3: twenty twenty three, and I think it was really capped

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Speaker 3: off by a very strong fourth quarter, whether you're looking

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Speaker 3: at our innovative medicine what our pharmaceutical group is called now,

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Speaker 3: or medtech, with nine percent growth in each of those

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Speaker 3: segments in the fourth quarter really capped off a really

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Speaker 3: prolific year and where we solidified our foundation. You know,

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Speaker 3: as I look forward to twenty twenty four, that positions

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Speaker 3: us very well. We had the opportunity to deploy capital,

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Speaker 3: not only with an acquisition of Abiomed, a heart pump manufacturer,

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Speaker 3: thirteen months ago for seventeen billion dollars. Throughout the course

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Speaker 3: of twenty twenty three, we deployed or announced capital commitments

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Speaker 3: for another three billion dollars more than three billion dollars

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Speaker 3: for more than fifty licensing deals or smaller acquisitions. Now,

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Speaker 3: those typically aren't headlines when we sign them, but they

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Speaker 3: often become headlines for patients when we launched products through them.

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Speaker 2: So we fortified our pipeline.

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Speaker 3: We surpassed all expectations we had this time last year

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Speaker 3: for twenty twenty three, and we feel very comfortable with

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Speaker 3: the guidance that we've provided for twenty twenty four.

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Speaker 2: I know in the tea up there was a little.

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Speaker 3: Bit of an inferment of that sales in for Forma

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Speaker 3: in the second half of this year, it might be

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Speaker 3: a little bit softer. That is not a surprise to us.

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Speaker 3: That is a loss of exclusivity on Jillian and Jay's

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Speaker 3: largest product ever, Stillara. But we are so well positioned

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Speaker 3: with our pipeline of products across oncology, immunology, and neuroscience

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Speaker 3: to position not only to just digest it, but to

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Speaker 3: actually grow through the loss of that largest product.

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Speaker 1: Oh, you took me straight to it, sat Stilara was

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Speaker 1: going to be my question, as that comes off of patent,

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Speaker 1: You're going to have to replace that in the pipeline.

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Speaker 1: As you've heard at the pipeline, Can you do that

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Speaker 1: without buying some other company.

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Speaker 2: We certainly can.

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Speaker 3: David, Again, we had the chance to speak with investors

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Speaker 3: in December at the New York Stock Exchange with our

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Speaker 3: Analyst Day, and what we highlighted to them was ten

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Speaker 3: assets within our portfolio that have the opportunity and really

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Speaker 3: the potential to be more than five billion dollars in

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Speaker 3: peak your sales. So that doesn't only bode well for

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Speaker 3: the short term here of twenty twenty four and twenty

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Speaker 3: twenty five, as we digest the Laura, it really bodes

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Speaker 3: well for the second half of this decade and into

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Speaker 3: the next decade. We also shouldn't overlook the fact that

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Speaker 3: our medtech performance has quite frankly been stellar. We had

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Speaker 3: nine percent growth in the fourth quarter. We've been on

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Speaker 3: a i'll say a cadence of annual improvement in terms

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Speaker 3: of the growth out of that segment, and we are

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Speaker 3: now playing in the upper echelon of our peer set there.

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Speaker 3: So we feel very confident about not just what lies

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Speaker 3: ahead in the near term, but also the long term.

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Speaker 1: Joe, help those of us who are not scientists understand

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Speaker 1: what your clinical trials are doing right now as you're

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Speaker 1: developing new drugs to try to replace the loans you're losing.

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Speaker 1: Which are the ones that you think hold the greatest

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Speaker 1: promise and I guess by mean bay that both probability

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Speaker 1: of success and also magnitude.

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Speaker 2: Yeah.

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Speaker 3: So the ones we identified cover a number of areas,

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Speaker 3: such as bladder cancer that has a very nice feature

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Speaker 3: in that it's not only a therapeutic, but it also

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Speaker 3: is a pretzel like device that sits on the tumor itself,

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Speaker 3: which really minimizes I would say, side effects that are

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Speaker 3: typically come with cancer treatment. We're also in lung cancer,

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Speaker 3: are multiple myeloma portfolio. It's a very heterogeneous disease. You

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Speaker 3: need therapeutics for all levels of the disease. We have

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Speaker 3: a strong player in Darzalex. We also have Carvicti, Talve

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Speaker 3: and tech Valley, so we are very well positioned on

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Speaker 3: that front. I would say we have some about five

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Speaker 3: readouts this year of phase three data. Some of that

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Speaker 3: will be in IBD the immunology space for all sort

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Speaker 3: of colitis and Crohn's disease. We've got psoriasis with an

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Speaker 3: oral targeted oral peptide which holds the promise should it

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Speaker 3: be successful of biological efficacy, but in the convenience of

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Speaker 3: a pill.

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Speaker 2: So there's a number of elements.

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Speaker 3: That we're in right now, David, that I think position

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Speaker 3: us very well, and usually when we speak about them

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Speaker 3: a J and J.

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Speaker 2: We feel very confident about the science.

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Speaker 3: You can never be one hundred percent sure, but we're

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Speaker 3: very bullish on all of these assets.

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Speaker 1: Joe, I can't talk to anybody in your industry talking

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Speaker 1: about weight loss or you can call diabetes if you like.

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Speaker 1: You can take your pick there. But do you have

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Speaker 1: a dog in that hunt? Do you have a prospect

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Speaker 1: of it surely cashing in on what some of your

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Speaker 1: competitors really have done extraordinarily well with.

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Speaker 2: Yeah.

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Speaker 3: No, And really that's a testament to the industry itself

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Speaker 3: how we continue to come up with innovative medicines to

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Speaker 3: address serious on medical need. Johnson and Johnson currently does

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Speaker 3: not have a GLP one or a play in obesity.

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Speaker 3: We tend to focus and do really well in areas

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Speaker 3: like oncology, neuroscience, immunology, those areas where we have deep

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Speaker 3: scientific expertise. Clinical insights is proven to be best for us.

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Speaker 3: I would never say never, but right now that's not

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Speaker 3: one of our focus areas.

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Speaker 2: But the good news is there's probably upwards.

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Speaker 3: Of eight to ten companies currently in that space, so

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Speaker 3: we can probably expect to see improvements there well.

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Speaker 1: Last quick one Joe AI Jenner as all the talk

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Speaker 1: is that going to help you in medtech?

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Speaker 2: Yeah, you know, David, it's kind of funny.

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Speaker 3: We have about two to three thousand data scientists within

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Speaker 3: our employee workforce today. It is helping medtech, as our

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Speaker 3: very distinguished Chief Technology Officer Jim Swanson says, it's more

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Speaker 3: of a productivity play for us right now, so we're

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Speaker 3: getting better predictive analytics. It is helping with surgeries as

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Speaker 3: you can have prototypes as to what a patient may

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Speaker 3: how they may interact to.

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Speaker 2: Certain surgical procedures.

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Speaker 3: I would say there's promise, however, with insights about clinical

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Speaker 3: data and how can we develop outcomes that are much

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Speaker 3: more insightful than what maybe even a human congress. So

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Speaker 3: potentially going through reams of data, millions of algorithms to

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Speaker 3: find a biomarker or a certain string of essays through

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Speaker 3: the jenicode that may work specifically well all right.

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Speaker 2: Our thanks to Joe Well Johnson and Johnson CFO,