Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the growth outlook for Johnson & Johnson's multiple myeloma franchise, particularly regarding bispecifics and CAR-T therapies? A: Jennifer Taubert, Executive Vice President, Worldwide Chairman, Innovative Medicine, highlighted the strong performance of the multiple myeloma franchise, with DARZALEX achieving over $3 billion in quarterly sales. CARVYKTI also showed robust growth, nearing $1 billion annually. The company is expanding into community settings and exploring new combinations with bispecifics like TECVAYLI and TALVEY. John Reed, Executive Vice President, Innovative Medicine, R&D, emphasized the potential of these combinations to achieve minimal residual disease negativity, a key metric for accelerated approvals.
Q: What is Johnson & Johnson's strategy for acquisitions in the MedTech sector, particularly regarding pre-revenue companies versus established businesses? A: Joaquin Duato, Chairman and CEO, stated that external innovation is crucial for J&J's capital allocation strategy. The company completed over 40 business development transactions in 2024, focusing on smaller opportunities that complement their portfolio. Larger acquisitions like Shockwave and Intra-Cellular are considered outliers. The focus remains on smaller, strategic acquisitions to enhance their MedTech and Innovative Medicine portfolios.
Q: How should we think about the sales growth trajectory for CAPLYTA following the Intra-Cellular acquisition? A: Jennifer Taubert expressed excitement about the acquisition, noting CAPLYTA's strong growth trajectory in schizophrenia and bipolar depression. The anticipated approval for major depressive disorder (MDD) is expected to be a significant growth catalyst. The company believes CAPLYTA can become a $5 billion-plus asset, with additional potential from Intra-Cellular's pipeline.
Q: With STELARA facing biosimilar competition, do you expect TREMFYA to benefit from volume shifts similar to AbbVie's experience with Skyrizi? A: Jennifer Taubert noted that there is potential for patient shifts to newer therapies like TREMFYA, especially in the immunology market where patients seek better treatments. TREMFYA's recent launch in ulcerative colitis and upcoming launch in Crohn's disease are expected to drive growth. The company has invested in ensuring strong access for TREMFYA, with favorable coverage and a permanent J code.
Q: What is the outlook for Johnson & Johnson's MedTech market growth in 2025, particularly for the electrophysiology business and VARIPULSE? A: Joseph Wolk, CFO, stated that the MedTech market is expected to grow 5-7%, with procedures normalizing to pre-COVID levels. Despite a temporary pause in US VARIPULSE cases, the company remains confident in its global market leadership in electrophysiology. The MedTech segment is expected to see growth driven by new product introductions and recent acquisitions like Shockwave and Abiomed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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