1 00:00:00,440 --> 00:00:03,920 Speaker 1: This is Bloomberg Best. Bloomberg Best is about the insight 2 00:00:04,120 --> 00:00:06,480 Speaker 1: and the context that we get from our guests. It's 3 00:00:06,519 --> 00:00:07,880 Speaker 1: a great way to catch up on some of the 4 00:00:07,920 --> 00:00:10,520 Speaker 1: stories you might have missed on the Bloomberg stories you're 5 00:00:10,560 --> 00:00:14,600 Speaker 1: not going to find in any other news organizations. Bloomberg 6 00:00:14,720 --> 00:00:18,440 Speaker 1: Best Bloomberg's Best stories of the week, powered by twenty 7 00:00:18,520 --> 00:00:21,320 Speaker 1: seven hundred journalists and endalysts in more than a hundred 8 00:00:21,320 --> 00:00:24,360 Speaker 1: twenty countries around the world. I'm at Baxter and I'm 9 00:00:24,400 --> 00:00:28,800 Speaker 1: Denise Pellegrini on this weekend edition of Bloomberg Best. By 10 00:00:28,960 --> 00:00:31,000 Speaker 1: late this year, early next year, we should be in 11 00:00:31,040 --> 00:00:35,640 Speaker 1: a position to begin reviews with regulatory authorities. Johnson and 12 00:00:35,720 --> 00:00:38,720 Speaker 1: Johnson on the race for a COVID nineteen vaccine. It's 13 00:00:38,720 --> 00:00:41,760 Speaker 1: going to be very important as we think about, you know, 14 00:00:41,840 --> 00:00:45,040 Speaker 1: returning to a new kind of normal. CEO Alex Skorski says, 15 00:00:45,200 --> 00:00:49,080 Speaker 1: resistance to a vaccine will paid. I had a bicycling 16 00:00:49,159 --> 00:00:51,120 Speaker 1: accident where I had to get some stitches in my hand, 17 00:00:51,200 --> 00:00:53,000 Speaker 1: and of course when I went to the local hospital, 18 00:00:53,320 --> 00:00:55,560 Speaker 1: I made sure that they were our teachers. And the 19 00:00:55,600 --> 00:00:59,600 Speaker 1: importance of product loyalty when you're CEO, all this and 20 00:00:59,720 --> 00:01:02,560 Speaker 1: more coming up in the next hour of Bloomberg Best 21 00:01:04,400 --> 00:01:06,360 Speaker 1: And of course, the race for a cure or a 22 00:01:06,440 --> 00:01:09,520 Speaker 1: vaccine for COVID nineteen is one of the biggest stories 23 00:01:09,600 --> 00:01:12,080 Speaker 1: we've been all over here at Bloomberg. Yeah, exactly, the 24 00:01:12,120 --> 00:01:14,319 Speaker 1: NAT We've had a chance to hear from the chairman 25 00:01:14,360 --> 00:01:16,800 Speaker 1: and CEO of Johnson and Johnson all about it, And 26 00:01:16,880 --> 00:01:20,200 Speaker 1: David Rubinstein spoke to Alex Gorsky on the David Rubinstein 27 00:01:20,240 --> 00:01:23,280 Speaker 1: Show Peer to peer conversations about it, And David begins 28 00:01:23,319 --> 00:01:27,120 Speaker 1: here by asking Gorsky about efforts to beat the pandemic. Now, 29 00:01:27,160 --> 00:01:29,840 Speaker 1: some people say the most commonly spoken words in the 30 00:01:29,880 --> 00:01:33,000 Speaker 1: English language today are can you hear me? Because of 31 00:01:33,480 --> 00:01:36,200 Speaker 1: the zoom phenomenon. But I assume in your case, the 32 00:01:36,240 --> 00:01:38,880 Speaker 1: most commonly asked question of you is when is the 33 00:01:38,959 --> 00:01:42,000 Speaker 1: vaccine coming? So you must get asked this about every 34 00:01:42,000 --> 00:01:44,440 Speaker 1: hour on the hour. So why don't I just do 35 00:01:44,520 --> 00:01:47,480 Speaker 1: this as well? When is your vaccine coming? Well, like, 36 00:01:47,600 --> 00:01:50,200 Speaker 1: it's usually about every fifteen minutes actually that I get 37 00:01:50,240 --> 00:01:53,120 Speaker 1: asked that, and uh, And let me start by saying 38 00:01:53,160 --> 00:01:56,720 Speaker 1: I could not be more proud of the incredible work 39 00:01:57,680 --> 00:02:01,600 Speaker 1: that our scientists and our engineers have been doing over 40 00:02:01,640 --> 00:02:04,120 Speaker 1: the past nine months to to put us into the 41 00:02:04,120 --> 00:02:06,920 Speaker 1: position that we are today with a vaccine. I mean 42 00:02:06,960 --> 00:02:09,560 Speaker 1: to think that, you know, what would ordinarily take five 43 00:02:09,680 --> 00:02:12,240 Speaker 1: or seven years, we've been able to do in you know, 44 00:02:12,240 --> 00:02:16,200 Speaker 1: a matter of months. Is quite remarkable. And uh, you know, 45 00:02:16,440 --> 00:02:19,520 Speaker 1: without the heart their hard work and dedication. You know, 46 00:02:19,880 --> 00:02:24,560 Speaker 1: probably forty thousand of our hundred fifty employees, mostly in 47 00:02:24,600 --> 00:02:28,840 Speaker 1: our factories and facilities and our laboratories have still been 48 00:02:28,840 --> 00:02:33,040 Speaker 1: working and um and they've been going literally around the 49 00:02:33,080 --> 00:02:36,000 Speaker 1: clock to make that possible. And look, we still have 50 00:02:36,040 --> 00:02:37,240 Speaker 1: a lot of work to do, but we made a 51 00:02:37,240 --> 00:02:39,639 Speaker 1: lot of progress and uh, and we'll be finding out 52 00:02:39,680 --> 00:02:41,440 Speaker 1: a lot more in the coming weeks and months. But 53 00:02:41,919 --> 00:02:44,480 Speaker 1: you know, consistent with what we talked about just recently 54 00:02:44,480 --> 00:02:46,639 Speaker 1: when we announced the start of our Phase three trial, 55 00:02:47,200 --> 00:02:49,960 Speaker 1: we would expect by late this year early next year, 56 00:02:50,000 --> 00:02:53,520 Speaker 1: we should be in a position to begin reviews with 57 00:02:53,600 --> 00:02:57,320 Speaker 1: regulatory authorities to see if our vaccine UH is in 58 00:02:57,400 --> 00:03:02,840 Speaker 1: fact safe, effective, and and something that could be considered 59 00:03:02,880 --> 00:03:06,000 Speaker 1: for an emergency use use authorization here in the United 60 00:03:06,040 --> 00:03:08,760 Speaker 1: States and more likely around the world. So even if 61 00:03:08,760 --> 00:03:12,520 Speaker 1: you have emergency use authorization to be realistic about it. 62 00:03:12,520 --> 00:03:14,799 Speaker 1: It's not going to be ready until next year, is 63 00:03:14,840 --> 00:03:17,680 Speaker 1: that right? I think I think that's a good time 64 00:03:17,720 --> 00:03:20,680 Speaker 1: frame to be planning on. Uh, you know, and and 65 00:03:20,720 --> 00:03:22,440 Speaker 1: again a lot of it's going to depend on what 66 00:03:22,480 --> 00:03:25,000 Speaker 1: we find in phase three and David, as you know, 67 00:03:25,120 --> 00:03:28,440 Speaker 1: that can depend on the incidence of the virus of course, 68 00:03:28,720 --> 00:03:31,640 Speaker 1: because that has an impact on the statistical analysis that 69 00:03:31,639 --> 00:03:34,200 Speaker 1: you'll be using in your study. It's going to depend 70 00:03:34,240 --> 00:03:36,600 Speaker 1: on how well our vaccine is actually doing in the 71 00:03:36,680 --> 00:03:40,040 Speaker 1: study and what kind of efficacy rates hit. But I 72 00:03:40,040 --> 00:03:44,280 Speaker 1: think for planning purposes, if you think about late and 73 00:03:44,360 --> 00:03:48,120 Speaker 1: early one, I think those are the kind of timelines 74 00:03:48,160 --> 00:03:51,480 Speaker 1: that are likely most realistic. Okay, now there, You and 75 00:03:51,520 --> 00:03:55,120 Speaker 1: a number of other CEOs of vaccine manufacturers have issued 76 00:03:55,160 --> 00:03:58,560 Speaker 1: a letter saying basically, you don't want to be politically 77 00:03:58,600 --> 00:04:01,520 Speaker 1: pressured to have a certain date and so forth. And 78 00:04:01,520 --> 00:04:05,440 Speaker 1: can you articulate why you felt the need for that letter. Well, look, 79 00:04:05,480 --> 00:04:08,160 Speaker 1: we think this is an incredibly important time for the 80 00:04:08,160 --> 00:04:12,920 Speaker 1: pharmaceutical industry, let alone each of our companies, and it's 81 00:04:12,960 --> 00:04:18,080 Speaker 1: absolutely critical during a time when unfortunately everything becomes politicized, 82 00:04:18,560 --> 00:04:22,160 Speaker 1: that we rely on data that we rely on science, 83 00:04:22,600 --> 00:04:26,880 Speaker 1: that we rely on well established regulatory guidelines to guide 84 00:04:26,920 --> 00:04:31,159 Speaker 1: all of our decisions regarding the development and the actual 85 00:04:31,279 --> 00:04:36,680 Speaker 1: utilization of these vaccines. And we thought that collectively making 86 00:04:36,680 --> 00:04:40,960 Speaker 1: a very explicit statement about our commitment are pledged to 87 00:04:41,120 --> 00:04:45,800 Speaker 1: following those established guidelines was very important to to maintain 88 00:04:45,839 --> 00:04:48,440 Speaker 1: the trust, to maintain the confidence of people around the 89 00:04:48,440 --> 00:04:52,680 Speaker 1: world regarding the safety and efvocacy and and actual accessibility 90 00:04:52,720 --> 00:04:56,200 Speaker 1: of these vaccines. In a recent survey, I read that 91 00:04:56,200 --> 00:04:59,800 Speaker 1: that was done of Americans that only are yet prepared 92 00:05:00,080 --> 00:05:02,719 Speaker 1: day to take a vaccine if it's available. Is that 93 00:05:02,800 --> 00:05:04,719 Speaker 1: a surprise to you that so many people are not 94 00:05:04,800 --> 00:05:06,320 Speaker 1: yet ready to take it? Is that because of the 95 00:05:06,640 --> 00:05:09,360 Speaker 1: perceived politalization of it? Well, they they have. Unfortunately, No, 96 00:05:09,480 --> 00:05:12,360 Speaker 1: it's not a surprise, and it's it's actually fairly consistent 97 00:05:12,600 --> 00:05:15,040 Speaker 1: in fact, with what you see with the annual flu 98 00:05:15,160 --> 00:05:18,799 Speaker 1: vaccine that can range from anywhere from about and perhaps 99 00:05:18,839 --> 00:05:20,640 Speaker 1: in some of the best states as high as forty 100 00:05:20,680 --> 00:05:25,160 Speaker 1: forty or and and I understand some of the skepticism 101 00:05:25,160 --> 00:05:28,320 Speaker 1: and cynicism. There's a lot of misinformation and there's a 102 00:05:28,360 --> 00:05:32,039 Speaker 1: lot of concern about that people genuinely have. Uh, you know, 103 00:05:32,080 --> 00:05:34,520 Speaker 1: based upon some of the readings that you can find 104 00:05:34,560 --> 00:05:37,159 Speaker 1: out there. But I think that demonstrates is just how 105 00:05:37,200 --> 00:05:41,080 Speaker 1: important it is for us to number one, to work 106 00:05:41,160 --> 00:05:44,719 Speaker 1: closely with health care authorities, whether it's the CDC, BARDA, 107 00:05:44,839 --> 00:05:48,120 Speaker 1: the n i H, the f d A agencies outside 108 00:05:48,120 --> 00:05:52,640 Speaker 1: the United States to follow those appropriate protocols. I think. Secondly, 109 00:05:52,680 --> 00:05:56,039 Speaker 1: it's going to take a lot of education. Uh. And 110 00:05:56,040 --> 00:05:58,840 Speaker 1: and that's by the way, not only the responsibility I 111 00:05:58,920 --> 00:06:01,480 Speaker 1: believe in the pharmaceutic coal industry, but it's going to 112 00:06:01,560 --> 00:06:05,440 Speaker 1: require the government. It's going to require perhaps even businesses 113 00:06:05,600 --> 00:06:11,120 Speaker 1: other stakeholders to make sure that we are sharing the facts. Look, 114 00:06:11,160 --> 00:06:16,760 Speaker 1: I'm cautiously optimistic that as we provide more data, more information, uh, 115 00:06:16,800 --> 00:06:20,920 Speaker 1: that as you know, people see the potential impact, positive 116 00:06:20,920 --> 00:06:24,160 Speaker 1: impact that this could have in terms of returning back 117 00:06:24,200 --> 00:06:28,000 Speaker 1: to a more normal state. Uh in some way that 118 00:06:28,440 --> 00:06:32,480 Speaker 1: you know, people will you know, find the comfort and 119 00:06:32,520 --> 00:06:36,840 Speaker 1: confidence uh to have a vaccine, because ultimately that it's 120 00:06:36,839 --> 00:06:39,880 Speaker 1: going to be very important as we think about, you know, 121 00:06:39,960 --> 00:06:42,400 Speaker 1: returning to a new kind of normal. Now, the federal 122 00:06:42,400 --> 00:06:46,000 Speaker 1: government has poured billions of dollars into getting the vaccine 123 00:06:46,000 --> 00:06:48,960 Speaker 1: developed and provided you and other companies with that money 124 00:06:49,279 --> 00:06:52,440 Speaker 1: to help you facilitate the production of this Uh. Do 125 00:06:52,480 --> 00:06:55,000 Speaker 1: you think that the taxpayers should get a benefit by 126 00:06:55,040 --> 00:06:59,160 Speaker 1: either getting very low cost vaccines or free vaccines? We have, David, Look, 127 00:06:59,320 --> 00:07:01,240 Speaker 1: I think it's in the bloks best interests that we're 128 00:07:01,240 --> 00:07:04,600 Speaker 1: seeing this kind of public private partnership. I mean, there 129 00:07:05,120 --> 00:07:08,839 Speaker 1: it would be very difficult for us to make the 130 00:07:09,080 --> 00:07:12,760 Speaker 1: kind of advancements and accelerate the timelines that we're doing 131 00:07:12,880 --> 00:07:16,080 Speaker 1: right now were it not for the partnership that we're saying, 132 00:07:16,640 --> 00:07:19,040 Speaker 1: not only in terms of funds being provided, but in 133 00:07:19,120 --> 00:07:21,840 Speaker 1: terms of literally the day to day interactions that are 134 00:07:21,880 --> 00:07:27,000 Speaker 1: taking place between regulators and scientists across many of these platforms. 135 00:07:27,440 --> 00:07:29,840 Speaker 1: You know, in our case, from the very beginning, we've 136 00:07:29,880 --> 00:07:31,560 Speaker 1: made a pledge that we would do this on a 137 00:07:31,640 --> 00:07:35,120 Speaker 1: not for profit basis. And uh, yes, we are working 138 00:07:35,120 --> 00:07:37,880 Speaker 1: with the government and we've accept the government funds, but 139 00:07:37,960 --> 00:07:40,720 Speaker 1: we also recognize that as Johnson and Johnson the world 140 00:07:40,840 --> 00:07:44,760 Speaker 1: largest healthcare company, that's important for us at this very 141 00:07:44,840 --> 00:07:47,600 Speaker 1: unique time to do it on a not for profit 142 00:07:47,640 --> 00:07:50,800 Speaker 1: basis so that we can give as many people access 143 00:07:50,840 --> 00:07:54,360 Speaker 1: around the world as possible. Uh. So that's the approach 144 00:07:54,400 --> 00:07:57,000 Speaker 1: that we're taking. Now, there's a fear in some circles 145 00:07:57,040 --> 00:08:00,800 Speaker 1: that wealthy people will get the vaccine quicker than people 146 00:08:00,840 --> 00:08:04,080 Speaker 1: that are not wealthy, And you have with other CEOs 147 00:08:04,120 --> 00:08:06,280 Speaker 1: and other health care officials and the Bill Millan, the 148 00:08:06,320 --> 00:08:09,840 Speaker 1: Gates Foundation signed a letter essentially saying, you're committed to 149 00:08:09,880 --> 00:08:12,600 Speaker 1: making certain that it doesn't go only to wealthy people 150 00:08:12,840 --> 00:08:14,560 Speaker 1: and only the people in the United States. Can you 151 00:08:14,600 --> 00:08:16,520 Speaker 1: explain why you wanted to have that letter and how 152 00:08:16,560 --> 00:08:18,720 Speaker 1: you're going to make sure that happens. Well, look, we're 153 00:08:19,400 --> 00:08:21,760 Speaker 1: the only way we're going to beat this virus is 154 00:08:21,800 --> 00:08:25,760 Speaker 1: if we have global distribution, and no one is safe, frankly, 155 00:08:26,240 --> 00:08:30,480 Speaker 1: if the entire world is not provided access. And so 156 00:08:30,520 --> 00:08:33,840 Speaker 1: we are absolutely committed to doing this in a very ethical, 157 00:08:33,960 --> 00:08:37,000 Speaker 1: in a very just way. Uh and uh. And we 158 00:08:37,160 --> 00:08:40,800 Speaker 1: worked very hard to make agreements clearly with governments like 159 00:08:40,840 --> 00:08:44,679 Speaker 1: the United States and Europe, Japan, the developed countries, but 160 00:08:44,760 --> 00:08:47,840 Speaker 1: we're also working hand in hand with other pharmaceutical companies, 161 00:08:47,880 --> 00:08:51,320 Speaker 1: the Bill and Milinda Gates Foundation to ensure the developing 162 00:08:51,559 --> 00:08:55,439 Speaker 1: countries also have got access. So, as we talked today, 163 00:08:55,840 --> 00:08:59,160 Speaker 1: the big news is that President Trump and the First 164 00:08:59,200 --> 00:09:03,679 Speaker 1: Lady have contracted the coronavirus. Uh. Is that a surprise 165 00:09:03,720 --> 00:09:06,679 Speaker 1: to you that that could possibly happen. Well, David, look, 166 00:09:06,720 --> 00:09:09,240 Speaker 1: I think it demonstrates that we're all vulnerable and we 167 00:09:09,280 --> 00:09:12,439 Speaker 1: still all need to be very vigilant and diligent and 168 00:09:12,559 --> 00:09:15,080 Speaker 1: the actions that we're taking to prevent this virus from 169 00:09:15,120 --> 00:09:18,120 Speaker 1: spreading any further. So, you, as the CEO of the 170 00:09:18,200 --> 00:09:20,719 Speaker 1: largest healthcare company in the United States, I think it's 171 00:09:20,720 --> 00:09:23,280 Speaker 1: the tenth largest company by market CAPP in the entire 172 00:09:23,360 --> 00:09:27,600 Speaker 1: United States, market value of about almost four billion dollars, 173 00:09:27,760 --> 00:09:30,520 Speaker 1: you have to be very careful because I think it 174 00:09:30,559 --> 00:09:32,719 Speaker 1: would look bad, wouldn't it if the CEO of the 175 00:09:32,800 --> 00:09:35,280 Speaker 1: largest health care company got the virus? So what do 176 00:09:35,320 --> 00:09:39,000 Speaker 1: you do to protect yourself? Well, David, look, I think 177 00:09:39,160 --> 00:09:41,839 Speaker 1: all of us have a huge responsibility to take care 178 00:09:41,840 --> 00:09:45,120 Speaker 1: of ourselves, and certainly those of us like myself fortunate 179 00:09:45,120 --> 00:09:46,680 Speaker 1: to be in this kind of a position where we 180 00:09:46,720 --> 00:09:49,320 Speaker 1: have responsibility for others, have got to make sure that 181 00:09:49,360 --> 00:09:51,600 Speaker 1: we put the safety of our employees, of our friends, 182 00:09:51,600 --> 00:09:54,840 Speaker 1: of our families first and everything that we do. And Uh, look, 183 00:09:54,880 --> 00:09:57,760 Speaker 1: that starts with the simple things. And I think one 184 00:09:57,800 --> 00:09:59,840 Speaker 1: of the things that we've learned most through this pan 185 00:10:00,000 --> 00:10:03,240 Speaker 1: emic is by making sure that we're using social distancing, 186 00:10:03,280 --> 00:10:06,320 Speaker 1: that we're wearing masks, that we're washing our hands, that 187 00:10:06,360 --> 00:10:08,719 Speaker 1: we're doing everything we can to prevent the spread of 188 00:10:08,760 --> 00:10:10,920 Speaker 1: the virus. Are the most important steps that we can 189 00:10:10,960 --> 00:10:14,719 Speaker 1: take to actually bringing an end of this pandemic and 190 00:10:15,000 --> 00:10:17,679 Speaker 1: in dealing with it for the long term. Now, vaccines 191 00:10:17,679 --> 00:10:20,840 Speaker 1: of what everybody has been focused on, but there's also therapeutics. 192 00:10:21,280 --> 00:10:24,480 Speaker 1: So for people might have already contracted the disease or 193 00:10:24,520 --> 00:10:27,520 Speaker 1: already have the virus, is there any progress being made 194 00:10:27,559 --> 00:10:32,079 Speaker 1: on therapeutics that might help people that already have the disease. Well, David, 195 00:10:32,120 --> 00:10:34,680 Speaker 1: that's that's a great point. There is no one silver 196 00:10:34,720 --> 00:10:37,480 Speaker 1: bullet here, And I think what is really important for 197 00:10:37,520 --> 00:10:40,240 Speaker 1: everyone to understand it's going to take a holistic approach. 198 00:10:40,920 --> 00:10:43,640 Speaker 1: Is likely we're gonna be dealing with this not only 199 00:10:43,720 --> 00:10:46,640 Speaker 1: is a pandemic, but it's going to be endemic for 200 00:10:47,040 --> 00:10:51,400 Speaker 1: several years going forward. So in all likelihood it's going 201 00:10:51,440 --> 00:10:54,160 Speaker 1: to take a combination of therapeutics for patients who are 202 00:10:54,200 --> 00:10:57,280 Speaker 1: actually sick, vaccines to present it, prevent it from happening 203 00:10:57,320 --> 00:10:59,680 Speaker 1: in the first place, and you know, last, but not 204 00:10:59,760 --> 00:11:03,320 Speaker 1: least hospital protocols that I think you've done a great job. 205 00:11:03,480 --> 00:11:06,439 Speaker 1: Still much more work to do in terms of reducing 206 00:11:06,559 --> 00:11:09,840 Speaker 1: actual mortality and morbidity. So things that have been talked 207 00:11:09,840 --> 00:11:16,719 Speaker 1: about our mdzevie hydrodroxy chloroquine and also um convalescent plasma. 208 00:11:16,800 --> 00:11:19,520 Speaker 1: But generally today you wouldn't say that those things are 209 00:11:19,600 --> 00:11:21,800 Speaker 1: therapeutics that are going to solve the problem. Is that right? 210 00:11:22,080 --> 00:11:24,920 Speaker 1: Not each and of themselves. I think there will be 211 00:11:25,040 --> 00:11:27,960 Speaker 1: various opportunities that use and look, we're going to learn, 212 00:11:28,040 --> 00:11:31,280 Speaker 1: for example, with commualiss and plasma, when and where are 213 00:11:31,320 --> 00:11:35,240 Speaker 1: they most effective in what patient population is? In an 214 00:11:35,240 --> 00:11:38,719 Speaker 1: older population? Could they be used, for example, in an 215 00:11:38,720 --> 00:11:42,160 Speaker 1: elder care facility where you're seeing an outbreak in a 216 00:11:42,360 --> 00:11:46,720 Speaker 1: more aggressive way? Uh? Should antivirals be used earlier in 217 00:11:46,720 --> 00:11:49,240 Speaker 1: the disease? And I think we're again we're developing a 218 00:11:49,280 --> 00:11:51,600 Speaker 1: lot of information as we speak, and we're gonna learn 219 00:11:51,640 --> 00:11:54,199 Speaker 1: a lot more in the coming weeks and months. Hindsight 220 00:11:54,360 --> 00:11:58,320 Speaker 1: is always, it is said, but looking back, what would 221 00:11:58,320 --> 00:12:00,800 Speaker 1: you say that the CDC or the f d A, 222 00:12:01,000 --> 00:12:04,240 Speaker 1: or the White House or HHS should have done differently? 223 00:12:04,679 --> 00:12:07,040 Speaker 1: Is there anything that you would recommend that somebody in 224 00:12:07,040 --> 00:12:09,360 Speaker 1: the future that they do differently if they were overseeing 225 00:12:09,440 --> 00:12:12,439 Speaker 1: this kind of pandemic response. Well, you know, you're right, 226 00:12:12,520 --> 00:12:16,360 Speaker 1: when we look backwards, things always seem clear, and uh, 227 00:12:16,400 --> 00:12:18,000 Speaker 1: you know, I think there's a few lessons. And I 228 00:12:18,040 --> 00:12:21,240 Speaker 1: would also say that almost all of us have underestimated 229 00:12:21,679 --> 00:12:24,280 Speaker 1: the dramatic impact of this outbreak. I mean, if you 230 00:12:24,320 --> 00:12:26,760 Speaker 1: would have asked most people eight or nine months ago 231 00:12:26,840 --> 00:12:29,480 Speaker 1: if you would ever see the kind of impact that 232 00:12:29,520 --> 00:12:32,400 Speaker 1: we're you know, seeing around the world right now, few 233 00:12:32,440 --> 00:12:35,160 Speaker 1: would have gotten it right. But I think there are 234 00:12:35,240 --> 00:12:37,959 Speaker 1: lessons to be learned. First and foremost, I think is 235 00:12:38,000 --> 00:12:40,920 Speaker 1: the importance David, of global public health. And I think 236 00:12:40,960 --> 00:12:44,480 Speaker 1: going forward, we're going to understand much better that you know, 237 00:12:44,520 --> 00:12:48,560 Speaker 1: if we don't have global public health security, we don't 238 00:12:48,600 --> 00:12:52,520 Speaker 1: have national security, we don't have economic security, and we 239 00:12:52,559 --> 00:12:55,000 Speaker 1: will not have security of society. So I think the 240 00:12:55,040 --> 00:12:59,720 Speaker 1: importance of being prepared, making sure that you know, we've 241 00:12:59,760 --> 00:13:02,960 Speaker 1: got the kind of protocols in place, that we have 242 00:13:03,040 --> 00:13:08,840 Speaker 1: certain products preposition and frankly, also move from a maniacal 243 00:13:08,920 --> 00:13:12,800 Speaker 1: focus on efficiency and effectiveness in certain cases to one 244 00:13:12,840 --> 00:13:17,120 Speaker 1: more of resiliency and sustainability. Particularly for these kind of 245 00:13:17,160 --> 00:13:21,880 Speaker 1: situations where even you surprise how dependent maybe Johnson Johnson 246 00:13:21,920 --> 00:13:25,280 Speaker 1: and the healthcare industry was on manufacturing things in China 247 00:13:25,559 --> 00:13:28,280 Speaker 1: and offshore, so that for ppe and other things, we 248 00:13:28,320 --> 00:13:30,880 Speaker 1: really had to almost beg the Chinese to get us 249 00:13:30,920 --> 00:13:33,280 Speaker 1: some material. Will that change in the future and we're 250 00:13:33,280 --> 00:13:35,360 Speaker 1: you're surprised at the extent that we were so dependent 251 00:13:35,440 --> 00:13:38,360 Speaker 1: on offshore production? Yes, and I look, I think there's 252 00:13:38,400 --> 00:13:41,600 Speaker 1: an important lesson for all industries, not only the healthcare industry, 253 00:13:41,640 --> 00:13:44,800 Speaker 1: but you know, every supply chain. And the good news is, 254 00:13:44,840 --> 00:13:48,679 Speaker 1: over the last several decades, the globally integrated supply chain 255 00:13:48,880 --> 00:13:52,119 Speaker 1: has reaped tremendous rewards and again in terms of efficiency 256 00:13:52,120 --> 00:13:55,920 Speaker 1: and effectiveness for so many different companies. However, I think 257 00:13:55,920 --> 00:13:58,840 Speaker 1: it's important for us to realize that we've got to 258 00:13:58,880 --> 00:14:01,200 Speaker 1: make sure that we've got the kind of redundancy and 259 00:14:01,240 --> 00:14:05,360 Speaker 1: resiliency when these types of situations arise. And so we're 260 00:14:05,679 --> 00:14:09,440 Speaker 1: looking hard across our supply chain as we speak, to say, look, 261 00:14:09,520 --> 00:14:12,559 Speaker 1: what are the things where we Yes, we can still 262 00:14:12,600 --> 00:14:16,439 Speaker 1: take advantage of so many of the efficiencies from what 263 00:14:16,480 --> 00:14:19,160 Speaker 1: we were doing before, but what other things do we 264 00:14:19,200 --> 00:14:22,880 Speaker 1: need to think about reshoring. UH. What other capabilities do 265 00:14:22,920 --> 00:14:26,160 Speaker 1: we need to think to have more local uh, to 266 00:14:26,280 --> 00:14:29,160 Speaker 1: ensure that, you know, in future pandemics were all better 267 00:14:29,200 --> 00:14:31,960 Speaker 1: positioned and better prepared. Let's talk about how you went 268 00:14:32,040 --> 00:14:34,960 Speaker 1: from a graduate of the West Point to becoming the 269 00:14:35,000 --> 00:14:38,960 Speaker 1: CEO of this company. So where did you grow up? Well, Uh, Dad, 270 00:14:39,040 --> 00:14:43,000 Speaker 1: I couldn't have imagined forty sixty years ago that I'd 271 00:14:43,000 --> 00:14:45,640 Speaker 1: ever be in this role of position. But I was 272 00:14:45,640 --> 00:14:49,240 Speaker 1: actually born in Kansas City, Kansas. My grandparents for the 273 00:14:49,280 --> 00:14:53,440 Speaker 1: most part, we're immigrants, uh, and opened up small stores, 274 00:14:53,520 --> 00:14:58,280 Speaker 1: worked in meat packing plants UH in Kansas City and 275 00:14:58,400 --> 00:15:00,520 Speaker 1: UH I was there through my early years. And then 276 00:15:00,560 --> 00:15:02,640 Speaker 1: my father was moved with his job when I was 277 00:15:02,680 --> 00:15:05,680 Speaker 1: about twelve years old, UH, to a little town the 278 00:15:05,680 --> 00:15:08,240 Speaker 1: lower peninsula of Michigan. What propelled you to say I 279 00:15:08,240 --> 00:15:09,920 Speaker 1: want to go to West Point? Well, look, I was. 280 00:15:10,000 --> 00:15:12,680 Speaker 1: I was very fortunate. And you know, both my mother 281 00:15:12,720 --> 00:15:15,640 Speaker 1: and father worked. My My father, UH started as a 282 00:15:15,680 --> 00:15:18,400 Speaker 1: salesman in a in a foods company group of baby food, 283 00:15:18,480 --> 00:15:21,200 Speaker 1: and kind of worked his way a bladder. But he 284 00:15:21,240 --> 00:15:23,600 Speaker 1: was also a Korean War veteran and UH and he 285 00:15:23,680 --> 00:15:27,480 Speaker 1: stayed in the Army reserves. Uh. And my mother taught 286 00:15:28,080 --> 00:15:31,040 Speaker 1: uh special education students. And so I thought it was 287 00:15:31,120 --> 00:15:32,960 Speaker 1: natural when you were growing up that your father not 288 00:15:33,000 --> 00:15:34,760 Speaker 1: only went to work and your mother went to work, 289 00:15:34,800 --> 00:15:36,920 Speaker 1: but also that you know, one weekend a month, that 290 00:15:36,960 --> 00:15:39,440 Speaker 1: he would put a uniform on to go service country 291 00:15:40,000 --> 00:15:42,720 Speaker 1: and um. And I was really inspired by that. And 292 00:15:43,000 --> 00:15:46,440 Speaker 1: I was one of six children, uh and uh. And 293 00:15:46,440 --> 00:15:49,480 Speaker 1: I also knew that going to a place like West 294 00:15:49,480 --> 00:15:52,840 Speaker 1: Point not only would afford me an opportunity for a 295 00:15:52,840 --> 00:15:56,560 Speaker 1: great education and a career, but it was also certainly 296 00:15:56,560 --> 00:15:58,680 Speaker 1: an economical way to do it, and you know, one 297 00:15:58,720 --> 00:16:01,280 Speaker 1: where I could pay my own ways. True. And and 298 00:16:01,320 --> 00:16:03,560 Speaker 1: so I put all that together and I found that 299 00:16:03,640 --> 00:16:06,840 Speaker 1: to be a really you know, attractive path and uh 300 00:16:06,840 --> 00:16:09,280 Speaker 1: and I was fortunately that's what I was able to follow. 301 00:16:09,440 --> 00:16:11,320 Speaker 1: And when you graduated, did you say, now I want 302 00:16:11,320 --> 00:16:13,360 Speaker 1: to be a healthcare executive or how long did you 303 00:16:13,400 --> 00:16:16,720 Speaker 1: stay in the military? No? No, I look, I graduated, 304 00:16:16,760 --> 00:16:19,840 Speaker 1: and like all of my classmates, I I went into 305 00:16:19,880 --> 00:16:23,080 Speaker 1: the army as a lieutenant. I had a I had 306 00:16:23,120 --> 00:16:26,640 Speaker 1: an assignment in Europe for my very first role, and 307 00:16:26,640 --> 00:16:29,080 Speaker 1: then I was stationed back in the United States, actually 308 00:16:29,080 --> 00:16:31,640 Speaker 1: out of for Doord, California in the seventh Infortory Division, 309 00:16:32,280 --> 00:16:35,640 Speaker 1: and I spent six years where I ended my service 310 00:16:35,680 --> 00:16:38,360 Speaker 1: as a as a captain. I was a battery commander 311 00:16:38,360 --> 00:16:41,200 Speaker 1: and a rapid deployment force unit. And that's when I 312 00:16:41,320 --> 00:16:44,200 Speaker 1: made my decision to, uh, you know, exit the Army 313 00:16:44,240 --> 00:16:46,640 Speaker 1: and join Johnson and Johnson. Now you also got an 314 00:16:46,720 --> 00:16:49,240 Speaker 1: MBA from Wharton. Yes, when do you have time to 315 00:16:49,280 --> 00:16:52,720 Speaker 1: do that? Well? You know, I I started when I 316 00:16:52,800 --> 00:16:55,480 Speaker 1: left the Army. I started as a sales representative at 317 00:16:55,560 --> 00:16:58,160 Speaker 1: Johnson and Johnson. It was part of a leadership development 318 00:16:58,240 --> 00:17:01,720 Speaker 1: program and I but I felt getting the skills understanding 319 00:17:01,720 --> 00:17:05,720 Speaker 1: the customers, really learning you know what doctors and surgeons 320 00:17:05,720 --> 00:17:08,720 Speaker 1: and nurses and people who were using our products on 321 00:17:08,760 --> 00:17:11,000 Speaker 1: a day to day basis, that was an important experience 322 00:17:11,000 --> 00:17:15,000 Speaker 1: to get uh and uh. And then I went into 323 00:17:15,000 --> 00:17:17,679 Speaker 1: sales management, later into marketing. But I also realized that 324 00:17:17,720 --> 00:17:20,879 Speaker 1: look I had I had studied engineering in college uh 325 00:17:20,920 --> 00:17:23,880 Speaker 1: and UM. And I realized that if I was going 326 00:17:23,920 --> 00:17:25,960 Speaker 1: to have the skills and business that I felt were 327 00:17:25,960 --> 00:17:30,119 Speaker 1: really necessary, UH, that you know, going back and getting 328 00:17:30,160 --> 00:17:33,240 Speaker 1: exposed and much more depth to accounting, to finance, to 329 00:17:33,359 --> 00:17:36,440 Speaker 1: strategy and other things I was going to be important 330 00:17:36,560 --> 00:17:39,160 Speaker 1: and I was. Uh. I was very fortunate that they 331 00:17:39,160 --> 00:17:43,000 Speaker 1: supported my attendance at the Executive NBA program at Wharton 332 00:17:43,680 --> 00:17:46,000 Speaker 1: where I went and completed that. Uh. You know, at 333 00:17:46,000 --> 00:17:48,400 Speaker 1: an early point in my career. So you started out 334 00:17:48,520 --> 00:17:52,400 Speaker 1: marketing with a subsidiary of Johnson and Johnson UM at 335 00:17:52,440 --> 00:17:54,320 Speaker 1: the time, and you did that, Did you say, well, 336 00:17:54,600 --> 00:17:56,840 Speaker 1: somebody who starts out as a marketing person for this 337 00:17:56,920 --> 00:18:00,000 Speaker 1: subsidiary surely should rise up to be the CEO someday 338 00:18:00,040 --> 00:18:02,399 Speaker 1: a UM. Did you ever imagine at that point that 339 00:18:02,480 --> 00:18:04,840 Speaker 1: you could rise up or you always had that as 340 00:18:04,840 --> 00:18:09,280 Speaker 1: your goal? No, you know, I did realize, however, that 341 00:18:09,680 --> 00:18:13,199 Speaker 1: getting exposure and experience with as many different aspects of 342 00:18:13,200 --> 00:18:16,160 Speaker 1: our business early on in my career is important. And 343 00:18:16,320 --> 00:18:19,159 Speaker 1: marketing was one place where you could interface with research 344 00:18:19,200 --> 00:18:22,760 Speaker 1: and development to really understand our products, where you would interview, 345 00:18:22,840 --> 00:18:26,159 Speaker 1: where you would engage with your finance counterparts, your supply 346 00:18:26,359 --> 00:18:29,119 Speaker 1: chain people, and so it was really the kind of 347 00:18:29,160 --> 00:18:33,360 Speaker 1: position that exposed you to almost all aspects of the organization. 348 00:18:33,920 --> 00:18:36,919 Speaker 1: And look, at that time, I aspired to perhaps be 349 00:18:37,040 --> 00:18:41,040 Speaker 1: able to run one of our our divisions, and uh 350 00:18:41,400 --> 00:18:44,080 Speaker 1: and and and from there things took on a life 351 00:18:44,080 --> 00:18:47,240 Speaker 1: of their own. So you've now been the CEO since 352 00:18:47,560 --> 00:18:51,040 Speaker 1: two thousand twelve, so about eight years or so. And 353 00:18:51,200 --> 00:18:54,320 Speaker 1: for most CEOs of fortune companies or less, they were 354 00:18:54,320 --> 00:18:58,200 Speaker 1: the founder of them. Generally five six years is fairly average. 355 00:18:58,359 --> 00:19:01,160 Speaker 1: So you're eight, um, but you're very young, and you're 356 00:19:01,160 --> 00:19:03,280 Speaker 1: obviously in good shape. So as your plan to do 357 00:19:03,359 --> 00:19:05,600 Speaker 1: this for a long time in the future, Well, look, David, 358 00:19:05,640 --> 00:19:08,520 Speaker 1: I'm I'm very fortunate to be the seven CEO Johnson 359 00:19:08,560 --> 00:19:11,720 Speaker 1: and Johnson. You're right, the I think one of the uh, 360 00:19:11,760 --> 00:19:16,119 Speaker 1: the great characteristics of the company is the long tenure 361 00:19:16,160 --> 00:19:19,080 Speaker 1: that my predecessors have have in the in the continuity, 362 00:19:19,160 --> 00:19:23,480 Speaker 1: the consistency, and the kind of long range thinking that 363 00:19:23,600 --> 00:19:27,240 Speaker 1: it imbued into the organization. And uh and I'm proud 364 00:19:27,280 --> 00:19:29,760 Speaker 1: to you know, have been part of that. And uh 365 00:19:29,800 --> 00:19:32,800 Speaker 1: and and look, I'm I'm as excited today about what 366 00:19:32,840 --> 00:19:35,200 Speaker 1: I'm seeing in terms of science and technology and the 367 00:19:35,240 --> 00:19:37,200 Speaker 1: potential of the patients. I mean, look what we're doing 368 00:19:37,200 --> 00:19:40,040 Speaker 1: with the vaccine. We couldn't have even imagined that, you know, 369 00:19:40,080 --> 00:19:44,399 Speaker 1: with about ten months ago. And uh, so that it's 370 00:19:45,080 --> 00:19:49,960 Speaker 1: you know, it's a constant stream of new opportunities challenges 371 00:19:50,000 --> 00:19:53,320 Speaker 1: that you're facing along the way. But look, you know, 372 00:19:53,400 --> 00:19:57,520 Speaker 1: like everybody, UM, I would always consider ways of how 373 00:19:57,520 --> 00:20:00,399 Speaker 1: could you continue to serve other stakeholders? How can you 374 00:20:00,400 --> 00:20:03,880 Speaker 1: continue to serve others? But you know what, I think 375 00:20:03,880 --> 00:20:06,440 Speaker 1: I've got the best job in the world most days. Now. 376 00:20:06,480 --> 00:20:09,720 Speaker 1: You are a fitness expert or a person who cares 377 00:20:09,760 --> 00:20:12,560 Speaker 1: a lot about fitness. You're always running or exercising, and 378 00:20:12,920 --> 00:20:14,760 Speaker 1: so I assumed during this period of time you're doing 379 00:20:14,760 --> 00:20:16,560 Speaker 1: it even more just to stay in shape. Is that right? 380 00:20:16,600 --> 00:20:18,960 Speaker 1: Do you run a lot or do you exercise a 381 00:20:19,000 --> 00:20:21,639 Speaker 1: lot every day? Yes? I do, David. And look, I 382 00:20:21,760 --> 00:20:24,399 Speaker 1: learned a long time ago, even during my time in 383 00:20:24,400 --> 00:20:26,639 Speaker 1: the military, that one of the most important things you 384 00:20:26,680 --> 00:20:30,800 Speaker 1: can do, uh, to ensure that if my chance, you know, 385 00:20:30,880 --> 00:20:33,080 Speaker 1: you were you were wounded, was to be healthy in 386 00:20:33,119 --> 00:20:35,919 Speaker 1: the first place. And it's interesting because I think one 387 00:20:35,960 --> 00:20:38,200 Speaker 1: of the things that we're learning about this disease, of course, 388 00:20:38,840 --> 00:20:41,719 Speaker 1: is that the healthier you are, if you in faction 389 00:20:41,840 --> 00:20:45,240 Speaker 1: contact the disease, likely the better prepared you're going to 390 00:20:45,280 --> 00:20:47,199 Speaker 1: be to be able to survive and get through it 391 00:20:47,200 --> 00:20:49,920 Speaker 1: in a much better manner. And uh, you know, look 392 00:20:50,000 --> 00:20:52,840 Speaker 1: like many others, I've been doing my best to to 393 00:20:52,920 --> 00:20:54,720 Speaker 1: deal with the situation, not only working out of the 394 00:20:54,760 --> 00:20:57,280 Speaker 1: house but taking care of myself. But yes, I I 395 00:20:57,320 --> 00:21:00,960 Speaker 1: always put a priority on, you know, trying to take 396 00:21:01,000 --> 00:21:03,440 Speaker 1: care of ourselves, stay healthy, get the kind of rest 397 00:21:03,520 --> 00:21:07,159 Speaker 1: that you need, eat the right way, and um, I 398 00:21:07,160 --> 00:21:10,040 Speaker 1: think doing all these things not only happen or help 399 00:21:10,320 --> 00:21:12,480 Speaker 1: in your daily life, but certainly are going to affect 400 00:21:12,520 --> 00:21:15,359 Speaker 1: in a situation like COVID nineteen as well. So when 401 00:21:15,359 --> 00:21:17,920 Speaker 1: you're running the biggest healthcare company United States, I guess 402 00:21:17,920 --> 00:21:19,919 Speaker 1: you're always worried that somebody might see you eating a 403 00:21:19,960 --> 00:21:23,280 Speaker 1: French fry or a big mac, or you know you're 404 00:21:23,359 --> 00:21:25,200 Speaker 1: you gained an extra pound or something. Do you feel 405 00:21:25,240 --> 00:21:27,679 Speaker 1: you've gotta be very careful because everybody's watching you of 406 00:21:27,680 --> 00:21:29,879 Speaker 1: who you are and the company you're running. No, No, 407 00:21:30,000 --> 00:21:32,320 Speaker 1: I don't worry about that, look. I think. I think 408 00:21:32,520 --> 00:21:34,960 Speaker 1: it's important about life and so many things. Is balanced 409 00:21:35,480 --> 00:21:37,520 Speaker 1: and uh, And I tend to follow an act some 410 00:21:37,640 --> 00:21:40,360 Speaker 1: that look During the week, especially given my travel schedule 411 00:21:40,400 --> 00:21:44,200 Speaker 1: and the demands is I tend to be pretty strict, uh, 412 00:21:44,240 --> 00:21:46,440 Speaker 1: you know about what I eat and and the kind 413 00:21:46,440 --> 00:21:48,520 Speaker 1: of rituals I put in place. It just keeps me 414 00:21:48,600 --> 00:21:51,600 Speaker 1: on pace, whether I'm here in New Brunswick or whether 415 00:21:51,640 --> 00:21:54,600 Speaker 1: I'm in China or traveling in other places around the world. 416 00:21:55,160 --> 00:21:57,720 Speaker 1: But hey, on the weekend, of course, I uh, I 417 00:21:57,840 --> 00:21:59,840 Speaker 1: like to I like to have a burger from time 418 00:21:59,840 --> 00:22:02,800 Speaker 1: to time, or or that steak. And that's why I 419 00:22:02,840 --> 00:22:05,359 Speaker 1: worked so hard, uh in trying to keep fit along 420 00:22:05,359 --> 00:22:08,360 Speaker 1: the way, and and I find by having that balance, say, 421 00:22:08,400 --> 00:22:10,760 Speaker 1: I can I can take care of myself, but I 422 00:22:10,760 --> 00:22:13,040 Speaker 1: can also have fun. So I'm you're in pretty good 423 00:22:13,080 --> 00:22:16,240 Speaker 1: shape obviously, so, but eventually I guess you have Uh. 424 00:22:16,440 --> 00:22:18,520 Speaker 1: You go to the doctor for annual physicals or something 425 00:22:18,600 --> 00:22:21,199 Speaker 1: like that. If the doctor says, uh, you need a 426 00:22:21,200 --> 00:22:22,920 Speaker 1: band aid. Here, I'll give you a shot and put 427 00:22:23,000 --> 00:22:25,000 Speaker 1: a band aid on. That's not a band aid, it's 428 00:22:25,040 --> 00:22:27,080 Speaker 1: some other company's product. You take it off, or you 429 00:22:27,480 --> 00:22:30,960 Speaker 1: say you can only use Johnson and Johnson products on me. Well, actually, 430 00:22:31,000 --> 00:22:33,720 Speaker 1: had that happened One time? I had a bicycling accident 431 00:22:33,760 --> 00:22:35,400 Speaker 1: where I had to get some stitches in my hand, 432 00:22:35,440 --> 00:22:37,240 Speaker 1: and of course when I went to the local hospital, 433 00:22:37,560 --> 00:22:40,520 Speaker 1: I made sure that they were our sutures. Uh. So 434 00:22:40,920 --> 00:22:44,679 Speaker 1: uh and look I've I've had my hip replaced. I 435 00:22:44,720 --> 00:22:48,040 Speaker 1: have one of our products in my hip, and uh 436 00:22:48,119 --> 00:22:50,840 Speaker 1: it feels great, and uh it was. It was a 437 00:22:50,880 --> 00:22:54,240 Speaker 1: life changer for me once I had that procedure done. Well. Listen, 438 00:22:54,680 --> 00:22:57,200 Speaker 1: I appreciate your giving us as much time. I hope 439 00:22:57,240 --> 00:22:59,880 Speaker 1: the vaccine comes as soon as possible and the health 440 00:23:00,160 --> 00:23:02,960 Speaker 1: and good way and safe for everybody. You can rest 441 00:23:02,960 --> 00:23:06,800 Speaker 1: assure that we're going to be working seven doing everything 442 00:23:06,880 --> 00:23:09,000 Speaker 1: we can to make that possible. Between now and then, 443 00:23:09,480 --> 00:23:12,440 Speaker 1: you've been listening to Alex Gorski, chairman and chief executive 444 00:23:12,480 --> 00:23:15,720 Speaker 1: officer at Johnson and Johnson on the David Rubinstein Show 445 00:23:15,840 --> 00:23:20,000 Speaker 1: Peer to peer Conversations. And that's it for this hour 446 00:23:20,160 --> 00:23:24,000 Speaker 1: of Bloomberg Best. I'm at Baxter and I'm Denise Pelly Green. 447 00:23:24,359 --> 00:23:26,359 Speaker 1: This is Bloomberg