Slides
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4th Quarter 2024 Earnings Call January 22, 2025
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Cautionary note on Forward-looking statements This presentation contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The viewer is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; and the Company’s ability to realize the anticipated benefits from the separation of Kenvue Inc. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this presentation speaks only as of the date of this presentation. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments. Cautionary note on Non-GAAP financial measures This presentation refers to certain non-GAAP financial measures. These non-GAAP financial measures should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the Company’s website. 3
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REMICADE and SIMPONI/ SIMPONI ARIA marketing partners are Schering-Plough (Ireland) Company, a subsidiary of Merck & Co., Inc. and Mitsubishi Tanabe Pharma Corporation; TREMFYA discovered using MorphoSys AG antibody technology; JNJ-2113 was discovered through a collaboration with Protagonist Therapeutics – Janssen retains exclusive rights to develop and commercialize for a broad range of indications Immunology INVEGA SUSTENNA/ XEPLION/ INVEGA TRINZA/ TREVICTA/ INVEGA HAFYERA/ BYANNLI are subject to a technology license agreement from Alkermes Pharma Ireland Limited, and RISPERDAL CONSTA developed in collaboration with Alkermes, Inc.Neuroscience PREZCOBIX / REZOLSTA fixed-dose combination, SYMTUZA and ODEFSEY developed in collaboration with Gilead Sciences, Inc., and JULUCA and CABENUVA developed in collaboration with ViiV Healthcare UK. Research and development activities for the Company’s COVID-19 vaccine, including the ENSEMBLE clinical trial and the delivery of doses for the U.S., have been funded in part with federal funds from the U.S. Department of Health and Human Services, Office of the Assistant Secretary for Preparedness and Response, Biomedical Advanced Research and Development Authority (BARDA), under Contract No. HHSO100201700018C, and in collaboration with the National Institute of Allergy and Infectious Diseases (NIAID), part of the National Institutes of Health (NIH) at the U.S. Department of Health and Human Services (HHS) Infectious Diseases INVOKANA/ INVOKAMET/ VOKANAMET/ INVOKAMET XR fixed-dose combination licensed from Mitsubishi Tanabe Pharma Corporation; XARELTO co-developed with Bayer HealthCare AG; PROCRIT/ EPREX licensed from Amgen Inc., and X-Linked Retinitis Pigmentosa: AAV-RPGR licensed from MeiraGTx Cardiovascular/ Metabolism/Other IMBRUVICA developed in collaboration and co-marketed in the U.S. with Pharmacyclics, LLC, an AbbVie company; ZYTIGA licensed from BTG International Ltd.; VELCADE developed in collaboration with Millennium: The Takeda Oncology Company; DARZALEX and DARZALEX FASPRO licensed from Genmab A/S, BALVERSA licensed and discovered in collaboration with Astex Pharmaceuticals, Inc.; ERLEADA licensed from Regents of California and Memorial Sloan Kettering; CARVYKTI licensed and developed in collaboration with Legend Biotech USA Inc. and Legend Biotech Ireland Limited, niraparib licensed from TESARO, Inc., an oncology-focused business within GSK, lazertinib licensed from Yuhan Corporation, DuoBody platform licensed from Genmab A/S relates to several bispecific antibody programs; ENHANZE platform licensed from Halozyme Therapeutics, Inc. Oncology UPTRAVI license and supply agreement with Nippon Shinyaku (co-promotion in Japan), and OPSUMIT co-promotion agreement with Nippon Shinyaku in JapanPulmonary Hypertension Janssen’s Monovalent Ebola Vaccine is developed in collaboration with Bavarian Nordic A/S, and MVA-BN-Filo® is licensed-in from Bavarian Nordic A/S. The program has benefited from funding and preclinical services from the National Institute of Allergy and Infectious Diseases (NIAID), part of NIH, NIAID support included 2 product development contracts starting in 2008 and 8 pre- clinical services contracts. This program is also receiving funding from the IMI2 Joint Undertaking under EBOVAC1 (grant nr. 115854), EBOVAC2 (grant nr. 115861), EBOVAC3 (grant nr. 800176), EBOMAN (grant nr. 115850) and EBODAC (grant nr. 115847). The IMI2 Joint Undertaking receives support from the European Union’s Horizon 2020 research and innovation program and the European Federation of Pharmaceutical Industries and Associations (EFPIA). Further funding for the Ebola vaccine regimen has been provided by BARDA, within the U.S. Department of Health and Human Services’ Office of the Assistant Secretary for Preparedness and Response, under Contract Numbers HHSO100201700013C and HHSO100201500008C. The initial work on Ebola was conducted which was extended from 2002 until 2011. 2002 and 2007 via a Cooperative Research and Development Agreement (CRADA is AI-0114) between Janssen/Crucell and the Vaccine Research Center (VRC)/NIAID, part of the NIH. Janssen/Crucell have licenses to much of VRC’s Ebola IP specific for human adenovirus under the Ad26/Ad35 Ebola vaccine CRADA invention. VAC69120 (Filovirus multivalent vaccine) developed in collaboration with Bavarian Nordic; funding: NIH Division of Microbiology and Infectious Diseases (DMID), under Contract Number HHSN272200800056C. Global Public Health Strategic partnerships, collaborations & licensing arrangements During the course of this presentation, we will discuss a number of products and compounds developed in collaboration with strategic partners or licensed from other companies. The following is an acknowledgement of those relationships: 4
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CEO Remarks Enterprise highlights Sales performance and earnings review Capital allocation and guidance Q&A Agenda 1 2 3 4 5 5 John Reed Executive Vice President, Innovative Medicine, R&D Joaquin Duato Chairman and Chief Executive Officer Joseph J. Wolk Executive Vice President, Chief Financial Officer Jessica Moore Vice President, Investor Relations Jennifer Taubert Executive Vice President, Worldwide Chairman, Innovative Medicine Tim Schmid Executive Vice President, Worldwide Chairman, MedTech
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Joaquin Duato Chairman and Chief Executive Officer
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~$50 billion1 invested in R&D and M&A Disciplined decisions to exit lower- priority businesses Operating in high-unmet need, high-growth, high-innovation segments Positioned for 5-7% 2,3 growth through 2030 and beyond 2024: Year of progress and continued transformation 1 Includes the announcement of the planned acquisition of Intra-Cellular Therapies Inc. on January 13, 2025 2 Represents operational sales; Non-GAAP financial measure; excludes the impact of translational currency 3 Based on risk-adjusted sales projections
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Innovating across the entire patient pathway 8 Multiple myeloma Heart recovery Mental health Inflammatory bowel disease Monoclonal antibody CAR-T Bi-specific antibodies Impella heart pumps Minimally invasive interatrial shunt Oral and long-acting injectables Once-daily oral* Nasal spray *Pending closing of Intra-Cellular Therapies Inc planned acquisition Targeted oral peptide Co-antibody therapeutic Monoclonal antibodies icotrokinra JNJ-4804
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Delivering on our commitments and fortifying our future
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Jessica Moore Vice President, Investor Relations
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% Change Q4 2023Q4 2024Regional sales results Operational1Reported 10.0%10.0%$12.0$13.2U.S. (0.2)(0.8)5.04.9Europe 17.6(2.7)1.21.1Western Hemisphere (ex U.S.) 0.90.13.33.3Asia-Pacific, Africa 2.5(0.7)9.49.3International 6.7% 5.3%$21.4$22.5Worldwide (WW) Dollars in billions 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliati on schedules on the Investor Relations section of the company's website Note: Values may be rounded 4th Quarter 2024 sales 11
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$22.5 $21.4 $4.9 $5.6 (10.9)%; (10.5)%1 $2.043 $2.29 Dollars in billions, except EPS Reported %; Operational %1 Sales Adjusted earnings2 Adjusted EPS2 5.3%; 6.7%1 (17.0)% GAAP earnings $3.4 $4.1 (11.1)% (17.1)% $1.413 $1.70 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliation schedules on the Investor Relations section of the company's website 2 Non-GAAP measure; excludes intangible amortization expense and special items; s ee reconciliation schedules on the Investor Rela tions section of the company's website 3 Includes $(0.22) due to acquired IPR&D charges related to V-Wave acquisition 4th Quarter 2024 financial highlights GAAP EPS 12
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% Change 20232024Regional sales results1 Operational2 ex COVID-19 VaccineOperational2Reported 8.3%8.3%8.3%$46.4$50.3U.S. 4.1(0.6)(1.0)20.420.2Europe 20.420.43.64.54.7Western Hemisphere (ex U.S.) 2.32.3(1.2)13.813.6Asia-Pacific, Africa 5.52.9(0.5)38.738.5International 7.0%5.9% 4.3%$85.2$88.8Worldwide (WW) Dollars in billions 1 Reflects continuing operations of Johnson & Johnson 2 Non-GAAP measure; excludes the impact of translational currency; see reconciliation schedules on the Investor Relations section of the company's website Note: Values may be rounded 13 Full year 2024 sales
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1 Results have been recast to reflect the continuing operations of Johnson & Johnson 4 Excluding COVID-19 Vaccine 2 Non-GAAP measure; excludes the impact of translational currency; see reconciliati on schedules on the Investor Relations section of the company's website 5 Includes $(0.67) due to acquired IPR&D charges on various transactions throughout the year 3 Non-GAAP measure; excludes intangible amortization expense and special items; s ee reconciliation schedules on the Investor Rela tions section of the company's website 0.6%; 0.7%2 $9.985 $9.92 Dollars in billions, except EPS Reported %; Operational %2 Sales Adjusted earnings3 Adjusted EPS3 4.3%; 5.9%2, 7.0%2,4 5.6% $14.1 $13.3 (4.6)% 11.3% $5.795 $5.20 2024 2023 $24.2 $25.4 2024 2023 2024 2023 $88.8 $85.2 2024 2023 2024 2023 Full year 2024 financial highlights 1 GAAP EPS 14 GAAP earnings
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Immunology $4,238 Infectious Diseases $774 Neuroscience $1,775 Oncology $5,497 CVM/Other $957 PH $1,092 ■ Reported growth ■ Operational growth1 $14,332 4.4%, 6.5%3 WW sales $MM Key drivers of operational performance1 • DARZALEX increase driven by continued strong share gains and market growth • ERLEADA increase driven by continued share gains and market growth • CARVYKTI increase driven by continued share gains and capacity expansion • TECVAYLI growth driven by ongoing launch • Growth in Other Oncology driven by launches of RYBREVANT and TALVEY • Growth partially offset by ZYTIGA loss of exclusivity and IMBRUVICA competitive pressures Oncology • TREMFYA increase due to market growth and share gains, partially offset by unfavorable patient mix and inventory dynamics • SIMPONI/SIMPONI ARIA driven by MSD5 return of rights, market growth, and favorable mix • STELARA decline driven by inventory dynamics and share loss primarily due to EU biosimilar entrants, partially offset by market growth and net patient mix • REMICADE decline due to biosimilar competition, partially offset by MSD5 return of rights Immunology • SPRAVATO growth driven by ongoing launch and increased physician and patient demand • Growth partially offset by declines in Other Neuroscience due to EU SPINRAZA tender loss Neuroscience • OPSUMIT growth driven by market growth and share gains, partially offset by inventory dynamics in the U.S. • UPTRAVI growth driven by market growth, favorable patient mix, and share gains • Growth in Other PH driven by OPSYNVI Pulmonary Hypertension (PH) • XARELTO growth driven by favorable patient mix Cardiovascular / Metabolism / Other (CVM/Other) • Declines across the portfolio including COVID-19 VaccineInfectious Diseases Adjusted operational sales2,3: WW: 6.7%, U.S. 11.2%, Int’l 0.0% Innovative Medicine highlights – 4th quarter 2024 WW 4.4%, U.S. 11.1%, Int’l (5.1)%Reported: WW 6.5%, U.S. 11.1%, Int’l (0.3)%Operational1,3: 14.3%, 14.8% 7.4%, 8.7% 19.0%, 21.3% (9.2)%, (8.4)%4 (7.8)%, (6.1)% Strong operational growth1 of 6.5%3 driven primarily by Oncology (1.5)%, (0.3)% 15 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliati on schedules on the Investor Relations section of the company's website 4 Including COVID-19 Vaccine 2 Non-GAAP measure; excludes acquisitions and divestitures and tr anslational currency; see reconciliation schedules on the Invest or Relations section of the company's website 5 MSD: Merck, Sharp, & Dohme 3 Excluding COVID-19 Vaccine Note: Values may be rounded
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Key drivers of operational performance1 • Electrophysiology: Driven by global procedure growth, new product performance (QDOT, NUVISION, OPTRELL, and OUS VARIPULSE), and commercial execution, partially offset by competitive PFA pressures in ablation catheters in the U.S. and volume-based procurement (VBP) in China • Abiomed: Strength from all major commercialized regions driven by continued strong adoption of Impella 5.5 and Impella RP, partially offset by near-term impacts related to the IV saline shortage • Shockwave: Acquired May 31, 2024 Cardiovascular3 All platforms impacted by the previously announced Orthopaedics Transformation • Hips: Reflects continued portfolio strength (primarily in the Anterior approach), OUS inventory dynamics, and go to market changes in EMEA • Trauma: Growth driven by continued adoption of recently launched products, procedure growth, commercial execution, and timing of capital placements in the U.S. • Knees: Strong growth driven by procedures, continued strength of the ATTUNE portfolio (Cementless & Medial Stabilized), pull through related to the VELYS Robotic assisted solution, go to market changes in EMEA, and OUS inventory dynamics, partially offset by OUS tender timing and timing of holidays in the U.S. • Spine, Sports & Other: Reflects competitive pressures and VBP, partially offset by growth in Craniomaxillofacial and Shoulders, and OUS market growth and inventory dynamics • Spine: ~ -1% WW, ~ -3% U.S., ~ +2% OUS Orthopaedics • Advanced • Biosurgery: ~ +8% Driven by continued strength of the portfolio (SURGIFLO, SURGICEL Powder, Evarrest, and VISTASEAL) and commercial execution, partially offset by U.S. supply challenges and VBP • Endocutters: ~ -5%, Primarily due to competitive pressures, Bariatric procedure softness, and VBP, partially offset by success of recently launched products (ECHELON 3000) • Energy: ~ -5%, Due to competitive pressures, Harmonic market decline in the U.S., and OUS tender timing • General: Growth primarily due to technology penetration and upgrades within our differentiated Wound Closure portfolio (Barbed & PLUS Sutures) and price adjustments associated with hyperinflation, partially offset by the Acclarent divestiture Surgery • Contact Lenses/Other: Growth driven by trade inventory dynamics, price actions, continued strong performance of the ACUVUE OASYS 1-Day family (including recent launch of OASYS MAX 1-Day), and lapping of prior year impacts from Russia sanctions • Surgical: Reflects continued strength of recent innovation (TECNIS PureSee & TECNIS Eyhance) and commercial execution, partially offset by competitive pressures in the U.S. Vision Adjusted operational sales2: WW 4.6%, U.S. 3.3%, Int’l 6.1% Orthopaedics $2,315 Surgery $2,507Vision $1,303 Cardiovascular3 $2,062 ■ Reported growth ■ Operational growth1 $8,188 6.7%, 7.6% WW sales $MM Strong operational growth1 of 7.6% due to commercial execution, innovation, and Shockwave WW 6.7%, U.S. 7.6%, Int’l 5.8%Reported: WW 7.6%, U.S. 7.6%, Int’l 7.6%Operational1: 23.6%, 24.2% 7.9%, 9.1% 2.1%, 2.5% (0.9)%, 0.4% MedTech highlights – 4th quarter 2024 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliati on schedules on the Investor Relations section of the company's website 2 Non-GAAP measure; excludes acquisitions and divestitures and tr anslational currency; see reconciliation schedules on the Invest or Relations section of the company's website 3 Previously referred to as Interventional Solutions Note: Values may be rounded 16
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% Increase (Decrease) 20232024 % to SalesAmount% to SalesAmount 5.3100.0$21,395100.0$22,520Sales to customers 4.931.86,79831.67,128Cost of products sold (COGS) 5.468.214,59768.415,392Gross Profit 11.127.15,81028.66,453Selling, marketing and administrative expenses (SM&A) 18.320.94,48023.55,298Research and development expense (R&D) 0.3580.117In-process research and development impairments (IPR&D) (1.0)(212)(0.6)(144)Interest (income) expense, net (2.0)(421)(0.7)(161)Other (income) expense, net 0.3560.242Restructuring (19.5)22.64,82617.33,887Earnings before provision for taxes on income (34.3)3.36942.1456Provision for taxes on income (17.0)19.3$4,13215.2$3,431Net Earnings from Continuing Operations (83)-Net Earnings / (loss) from Discontinued Operations, net of tax $4,049$3,431Net Earnings - (17.1)$1.70$1.41Net earnings per share (Diluted) from Continuing Operations ($0.03)-Net earnings / (loss) per share (Basic) from Discontinued Operations* 2,430.72,427.1Average shares outstanding (Diluted) 14.4%11.7%Effective tax rate from Continuing Operations . Adjusted earnings from Continuing Operations before provision for taxes and net earnings1 (13.1)29.2$6,23724.1$5,421Earnings before provision for taxes on income from Continuing Operations (11.1)26.0$5,56222.0$4,946Net earnings from Continuing Operations (10.9)$2.29$2.04Net earnings per share (Diluted) from Continuing Operations 10.8%8.8%Effective tax rate from continuing operations * Basic shares of 2,407.2 are used to calculate loss per share in the fourth quarter of 2023 as use of diluted shares when in a loss position would be anti-dilutive 1 Non-GAAP measure; excludes intangible amortization expense and special items; s ee reconciliation schedules on the Investor Rela tions section of the company's website 4th Quarter 2024 (Unaudited; Dollar and shares in millions except per share figures) Condensed consolidated statement of earnings 17
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$0.9 $1.2 $4.7 $5.1 2024 2023 Innovative Medicine MedTech Expenses not allocated to segments Q4 2023Q4 2024 37.4%32.5%Innovative Medicine 15.5%10.8%MedTech 29.2%24.1%Total % to sales Adjusted income before tax by segment 1 1 Non-GAAP measure; excludes amortization expense and special items; see reconciliation schedules on the Investor Relations secti on of the company's website 2 Estimated as of 1/22/2025 Note: Values may be rounded 4th Quarter 2024 $6.2B $5.4B ($0.1) 2 18 ($0.1) 3 Includes V-Wave acquired IPR&D expense worth (660) basis points and Laminar milestone expense worth (340) basis points 4 Includes Laminar acquired IPR&D expense worth (510) basis points 43
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$6.9 $7.2 $22.5 $23.0 2024 2023 Innovative Medicine MedTech Expenses not allocated to segments FY 2023FY 2024 42.0%39.4%Innovative Medicine 23.7%21.6%MedTech 35.0%32.6%Total % to sales Adjusted income before tax by segment 1,2 1 Reflects continuing operations of Johnson & Johnson 2 Non-GAAP measure; excludes amortization expense and special items; see reconciliation schedules on the Investor Relations secti on of the company's website 3 Estimated as of 1/22/2025 Note: Values may be rounded Full year 2024 $29.8B$29.0B ($0.4) 3 19 ($0.4) 4 Includes NM26 Bi-specific Antibody acquired IPR&D expense worth (220) basis points 5 Includes V-Wave acquired IPR&D expense worth (170) basis points and Laminar milestone expense worth (90) basis points 6 Includes Laminar acquired IPR&D expense worth (130) basis points and favorable intellectual property litigation settlement worth 80 basis points 5 4 6 Taking into consideration the items below, Adjusted income before tax for the enterprise is relatively flat
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Joseph J. Wolk Executive Vice President, Chief Financial Officer
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Capital allocation Organic growth business needs Free cash flow1 Priorities are clear and remain unchanged Competitive dividends Share repurchases Higher priority Lower priority Investment in M&A Q4 2024Dollars in billions $25Cash and marketable securities ($37)Debt ($12)Net debt ~$20Free cash flow1,2 Full year 2024: $17.2B invested in R&D $11.8B in dividends paid to shareholders; Note: Values may be rounded 1 Non-GAAP measure; defined as cash flow from operating activities, less additions to property, plant and equipment 2 Estimated as of January 22, 2025. Cash flow from operations, the most directly comparable GAAP financial measure, will be inclu ded in subsequent SEC filings 3 Includes announcement of the planned acquisition of Intra-Cellular Therapies Inc. on January 13, 2025, as well as acquired IPR& D expenses associated with the NM26 Bi-specific antibody and V-wave acquisitions Note: Values may be rounded Capital allocation strategy 21 ~$32B3 deployed, announced, or committed in strategic, inorganic growth opportunities
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Operational2 sales guidance of 3% and adjusted operational EPS2,4 of 8.7% (midpoints) CommentsJanuary 2025 Midpoint of 2.5%2.0% - 3.0%Adjusted operational sales1,2,6 Midpoint of $91.3B or 3.0%$90.9B - $91.7B 2.5% - 3.5%Operational sales2,6 Midpoint of $89.6B or 1.0% FX impact of ($1.7B) or (2.0%) $89.2B - $90.0B 0.5% - 1.5%Estimated reported sales 3,6 Operating spend management and reduced acquired IPR&D expensesIncrease of ~300 bpsAdjusted pre-tax operating margin4,5 Reduced employee benefit income, non-recurring monetization of royalty rights, and loss of Kenvue dividend$0.9 - $1.1 billionNet other income4 Higher debt levels and reduced interest rates on cash$0 - ($100) millionNet interest expense / (income) Based on current tax laws and anticipated geographic income mix16.5% - 17.0%Effective tax rate4 Midpoint of $10.85 or 8.7%$10.75 - $10.95 7.7% - 9.7%Adjusted EPS (operational)2,4 Midpoint of $10.60 or 6.2% FX impact of ($0.25) or (2.5%) $10.50 - $10.70 5.2% - 7.2%Adjusted EPS (reported)3,4 2025 P&L guidance 1 Non-GAAP measure; excludes acquisitions and divestitures 4 Non-GAAP measure; excludes intangible amortization expense and special items 2 Non-GAAP measure; excludes the impact of translational currency 5 Sales less: COGS, SM&A and R&D expenses 3 Euro Average Rate: January 2025 = $1.04; Euro Spot Rate: January 2025 = $1.04 6 Excludes COVID-19 Vaccine Note: Values may be rounded 22 Excludes impact from the recently announced acquisition of Intra-Cellular Therapies Inc. (ITCI)
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Anticipated impact from planned ITCI acquisitionJanuary 2025 excl. ITCI 2.0% - 3.0%Adjusted operational sales1,2,6 Approx. $0.7B or 0.8%$90.9B - $91.7B 2.5% - 3.5%Operational sales2,6 Approx. $0.7B or 0.8%$89.2B - $90.0B 0.5% - 1.5%Estimated reported sales 3,6 Increase of ~300 bpsAdjusted pre-tax operating margin4,5 $0.9 - $1.1 billionNet other income4 Approx. $500 million expense$0 - ($100) millionNet interest expense / (income) 16.5% - 17.0%Effective tax rate4 ($0.30) – ($0.35)$10.75 - $10.95 7.7% - 9.7%Adjusted EPS (operational)2,4 ($0.30) – ($0.35)$10.50 - $10.70 5.2% - 7.2%Adjusted EPS (reported)3,4 1 Non-GAAP measure; excludes acquisitions and divestitures 4 Non-GAAP measure; excludes intangible amortization expense and special items 2 Non-GAAP measure; excludes the impact of translational currency 5 Sales less: COGS, SM&A and R&D expenses 3 Euro Average Rate: January 2025 = $1.04; Euro Spot Rate: January 2025 = $1.04 6 Excludes COVID-19 Vaccine Note: Values may be rounded 23 Will be influenced by the transaction close date and borrowing rates; assumed to close early in the second quarter Intra-Cellular Therapies Acquisition Considerations
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Innovative Medicine • Expect more pronounced impact from newly launched products as the year progresses • STELARA biosimilar competition to accelerate; HUMIRA erosion curve remains the best proxy1 • Negative impact of Part D re-design, as a percent to sales, will be consistently applied throughout the year • Expect acceleration of newly launched products; full benefit of Shockwave acquisition through May • Lapping of prior year quarterly comparators to be considered • Normalized procedure volume and seasonality 2025 Phasing Considerations MedTech • One-time items impacting EPS last year: • Benefit of Kenvue dividend in the first two quarters • Higher interest income prior to Shockwave acquisition closure in May • Monetization of royalty rights experienced in Q3 • IPR&D expense associated with NM-26 Bi-specific antibody acquisition (Q3) and V-Wave acquisition (Q4) • Expect second half earnings per share growth higher than the first half P&L 24 Anticipate second half operational sales growth higher than the first half 1 Once faced with material biosimilar competition, with the additive impact of Part D re-design
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Innovative Medicine Anticipated 2025 milestones 1 driving long-term value creation MedTech 25 TREMFYA Sub-Q in CD nipocalimab in gMG RYBREVANT Sub-Q TAR-200 NMIBC icotrokinra in PsO and UC RYBREVANT OS Impella ECP OTTAVA progression Advancements across Cardiovascular (incl. Electrophysiology, Heart Recovery, and Circulatory Restoration) 1 List above is not inclusive of all 2025 anticipated milestones Sub-Q: Subcutaneous; CD: Crohn’s Disease; gMG: Generalized Myasthenia gravis; NMIBC: Non-muscle invasive bladder cancer; PsO: P soriasis; UC: Ulcerative colitis; OS: Overall survival
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Q&A John Reed Executive Vice President, Innovative Medicine, R&D Joaquin Duato Chairman and Chief Executive Officer Joseph J. Wolk Executive Vice President, Chief Financial Officer Jessica Moore Vice President, Investor Relations Jennifer Taubert Executive Vice President, Worldwide Chairman, Innovative Medicine Tim Schmid Executive Vice President, Worldwide Chairman, MedTech
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Immunology $17,828Infectious Diseases $3,396 Neuroscience $7,115 Oncology $20,781 CVM/Other $3,562 PH $4,282 ■ Reported growth ■ Operational growth1 $56,964 4.0%, 7.5%3 WW sales $MM WW 4.0%, U.S. 9.0%, Int’l (2.5)%Reported: WW 7.5%, U.S. 9.0%, Int’l 5.5%Operational1,3: Orthopaedics $9,158 Surgery $9,845Vision $5,146 Cardiovascular5 $7,707 ■ Reported growth ■ Operational growth1 $31,857 4.8%, 6.2% WW sales $MM Innovative Medicine and MedTech FY 2024 Sales (3.0)%, (2.6)% 12.3%, 14.1% 17.7%, 19.8% (23.1)%, (22.7)%4 (1.2)%, 0.4% Innovative Medicine (0.4)%, 1.3% 28 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliati on schedules on the Investor Relations section of the company's website 3 Excluding COVID-19 Vaccine 2 Non-GAAP measure; excludes acquisitions and divestitures and translational curre ncy; see reconciliation schedules on the Invest or Relations section of the company's website 4 Including COVID-19 Vaccine Note: Values may be rounded 5 Previously referred to as Interventional Solutions Adjusted operational sales2,3: WW: 7.6%, U.S. 9.1%, Int’l 5.7% MedTech Adjusted operational sales2: WW 4.7%, U.S. 4.8%, Int’l 4.7% 21.4%, 22.8% 1.5%, 3.0% 2.4%, 3.0% (1.9)%, 0.1% Strong full year 2024 operational sales growth1 across Innovative Medicine and MedTech WW 4.8%, U.S. 6.9%, Int’l 2.6%Reported: WW 6.2%, U.S. 6.9%, Int’l 5.4%Operational1:
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% Increase (Decrease) 20232024 % to SalesAmount% to SalesAmount 4.3100.0$85,159100.0$88,821Sales to customers 3.531.226,55330.927,471Cost of products sold (COGS) 4.768.858,60669.161,350Gross Profit 6.325.221,51225.722,869Selling, marketing and administrative expenses (SM&A) 14.217.715,08519.417,232Research and development expense (R&D) 0.43130.2211In-process research and development impairments (IPR&D) (0.6)(489)(0.6)(577)Interest (income) expense, net 7.86,6345.34,694Other (income) expense, net 0.64890.3234Restructuring 10.817.715,06218.816,687Earnings before provision for taxes on income 51.02.11,7363.02,621Provision for taxes on income 5.615.6$13,32615.8$14,066Net Earnings from Continuing Operations 21,827-Net Earnings from Discontinued Operations, net of tax $35,153$14,066Net Earnings - 11.3$5.20$5.79Net earnings per share (Diluted) from Continuing Operations $8.52-Net earnings per share (Diluted) from Discontinued Operations 2,560.42,429.4Average shares outstanding (Diluted) 11.5%15.7%Effective tax rate from Continuing Operations . Adjusted earnings from Continuing Operations before provision for taxes and net earnings2 (2.8)35.0$29,81132.6$28,979Earnings before provision for taxes on income from Continuing Operations (4.6)29.8$25,40927.3$24,242Net earnings from Continuing Operations 0.6$9.92$9.98Net earnings per share (Diluted) from Continuing Operations 14.8%16.3%Effective tax rate from continuing operations 1 Reflects continuing operations of Johnson & Johnson 2 Non-GAAP measure; excludes intangible amortization expense and special items; s ee reconciliation schedules on the Investor Rela tions section of the company's website Full year 2024 (Unaudited; Dollar and shares in millions except per share figures) Condensed consolidated statement of earnings 1 29
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POTENTIAL APPROVALS US/EU PLANNED SUBMISSIONS US/EU POTENTIAL CLINICAL DATA PRESENTATIONS¹ Phase III Phase I/ II OPSUMIT (macitentan) US DARZALEX (daratumumab) US TREMFYA (guselkumab) US RYBREVANT (amivantamab) nipocalimab nipocalimab EU Pediatric Pulmonary Arterial Hypertension (TOMORROW) EU Frontline multiple myeloma transplant eligible (PERSEUS) Pediatric Juvenile Psoriatic Arthritis EU Subcutaneous (PALOMA-3) Generalized Myasthenia Gravis Sjogren's Disease (DAHLIAS) US OPSYNVI/YVANCI (macitentan/tadalafil STCT) US CARVYKTI (ciltacabtagene autoleucel) US TREMFYA (guselkumab) US DARZALEX (daratumumab) seltorexant TAR-200 (RIS/gemcitabine plus cetrelimab) EU Pulmonary Arterial Hypertension EU Relapsed Refractory multiple myeloma w/1-3 PL (CARTITUDE- 4) EU Ulcerative Colitis (QUASAR) EU Frontline multiple myeloma transplant eligible (PERSEUS) Adjunctive treatment for major depressive disorder with insomnia symptoms Non Muscle Invasive Bladder Cancer (SunRISe-1) US EDURANT (rilpivirine) US RYBREVANT (amivantamab) US TREMFYA (guselkumab) US DARZALEX (daratumumab) SPRAVATO (esketamine) TECVAYLI (teclistamab) EU HIV pediatric 2-12 year old EU Frontline Non Small Cell Lung Cancer in combination with chemotherapy (PAPILLON) Ulcerative Colitis Subcutaneous Induction (ASTRO) EU Frontline multiple myeloma transplant ineligible (CEPHEUS) Treatment Resistant Depression monotherapy (TRD4005) Trasplant-eligible Newly Diagnosed Multiple Myeloma (MajesTEC-5) US^ BALVERSA (erdafitinib) US RYBREVANT US TREMFYA (guselkumab) US DARZALEX (daratumumab) TREMFYA (guselkumab) EU Urothelial Cancer (THOR) EU Non Small Cell Lung Cancer 2L (MARIPOSA-2) EU Crohn's Disease Subcutaneous Induction (GRAVITI) EU Smoldering Multiple Myeloma (AQUILA) Crohn's Disease Subcutaneous Induction (GRAVITI) US TREMFYA (guselkumab) US RYBREVANT / LAZCLUZE US SIMPONI (golimumab) IMBRUVICA (ibrutinib) TREMFYA (guselkumab) Ulcerative Colitis (QUASAR) EU Non Small Cell Lung Cancer (MARIPOSA) EU Pediatric Ulcerative Colitis EU Frontline MCL (Triangle) Crohn's Disease (GALAXI) STELARA (ustekinumab) US OPSUMIT (macitentan) TREMFYA (guselkumab) EU Pediatric Crohn's Disease Pediatric Pulmonary Arterial Hypertension (TOMORROW) Ulcerative Colitis (QUASAR) US TREMFYA (guselkumab) UPTRAVI (selexipag) DARZALEX (daratumumab) Pediatric Psoriasis EU Pediatric Pulmonary Arterial Hypertension (SALTO) Frontline multiple myeloma transplant ineligible (CEPHEUS) US TREMFYA (guselkumab) US SPRAVATO (esketamine) monotherapy DARZALEX (daratumumab) EU Crohn's Disease (GALAXI) Treatment Resistant Depression (TRD4005) Smoldering Multiple Myeloma (AQUILA) US nipocalimab DARZALEX (daratumumab) EU Generalized Myasthenia Gravis Amyloidosis (ANDROMEDA) REKAMBYS RYBREVANT (amivantamab) EU HIV Adolescents Subcutaneous (PALOMA-3) Johnson & Johnson Innovative Medicine Pipeline Key Events in 2024* 1. In order to be on key events clinical presentation, data must be presented at a major medical meeting. ^ BALVERSA US Full Approval *This is not a fully exhaustive list of all pipeline programs and assets. The pipeline includes assets currently progressing through clinical trials as well as those under review by regulatory bodies. Inclusion in the pipeline is based on the current status of these programs and assets and does not guarantee continued investment. This information is as of "&Date&" to the best of the Company's knowledge. Johnson & Johnson assumes no obligation to update this information. = Achieved 1 In order to be on key events clinical presentation, data must be presented at a major medical meeting. ^ BALVERSA US Full Approval *This is not a fully exhaustive list of all pipeline programs and assets. The pipeline includes assets currently progressing through clinical trials as well as those under review by regulatory bodies. Inclusion in the pipeline is based on the current status of these programs and assets and does not guarantee continued investments. This information is as of January 22, 2025 to the best of the Company’s knowledge. Johnson & Johnson assumes no obligation to update this information.
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POTENTIAL APPROVALS US/EU PLANNED SUBMISSIONS US/EU POTENTIAL CLINICAL DATA PRESENTATIONS¹ Phase III Phase I/ II US SIMPONI (golimumab) US nipocalimab US nipocalimab US TAR-200 (RIS/gemcitabine plus cetrelimab) AKEEGA (niraparib/abiraterone) TAR-200 (RIS/gemcitabine plus cetrelimab) EU Pediatric Ulcerative Colitis (PURSUIT 2) EU Generalized Myasthenia Gravis (Vivacity MG3) Warm Autoimmune Hemolytic Anemia (ENERGY) Non Muscle Invasive Bladder Cancer (SunRISe-1) M1 Metastatic Castration- Sensitive Prostate Cancer (AMPLITUDE) Non Muscle Invasive Bladder Cancer (SunRISe-1) US TREMFYA (guselkumab) US SPRAVATO (esketamine) TREMFYA (guselkumab) US aticaprant RYBREVANT / LAZCLUZE RYBREVANT (amivantamab) Ulcerative Colitis Subcutaneous Induction (ASTRO) Treatment Resistant Depression monothera py (TRD4005) EU Ulcerative Colitis Subcutaneous Induction (ASTRO) Adjunctive Treatment for Major De pressive Disorder with Non Small Cell Lung Cancer (MARIPOSA Final OS) Head and Neck Cancer (ORIGAMI-4) US TREMFYA (guselkumab) US DARZALEX (daratumumab) US TREMFYA (guselkumab) TREMFYA (guselkumab) TALVEY + TECVAYLI EU Crohn's Disease Subcutaneous Induction (GRAVITI) EU Smoldering Multiple Myeloma (AQUILA) Psoriatic Arthritis Structural Damage (APEX) Ulcerative Colitis Subcutaneous Induction (ASTRO) Multiple Myeloma Relapsed/Refractory (RedirecTT-1) US TREMFYA (guselkumab) US DARZALEX (daratumumab) TREMFYA (guselkumab) TREMFYA (guselkumab) RYBREVANT (amivantamab) Pediatric Psoriasis (PROTOSTAR) EU Frontline multiple myeloma transplant ineligible (CEPHEUS) EU Pediatric Psoriasis (PROTOSTAR) Psoriatic Arthritis Structural Damage (APEX) Colorectal Cancer (ORIGAMI-1 right- sided) US TREMFYA (guselkumab) US RYBREVANT (amivantamab) US STELARA (ustekinumab) TREMFYA (guselkumab) JNJ-4804 Co-antibody Therapeutic EU Crohn's Disease (GALAXI) EU Subcutaneous (PALOMA-3) EU Pediatric Ulcerative Colitis (UNIFY JR) Pediatric Psoriasis (PROTOSTAR) Psoriatic Arthritis (AFFINITY) US TREMFYA (guselkumab) IMBRUVICA (ibrutinib) US STELARA (ustekinumab) icotrokinra icotrokinra Pediatric Juvenile Psoriatic Arthritis EU Frontline MCL (Triangle) Pediatric Crohn's Disease (UNITI JR) Psoriasis (ICONIC-LEAD, ICONIC- TOTAL) Ulcerative Colitis (ANTHEM) TREMFYA (guselkumab) US icotrokinra icotrokinra nipocalimab Combination Therapy EU Ulcerative Colitis (QUASAR) EU Psoriasis (ICONIC) Psoriasis (ICONIC-Advance1/2) Rheumatoid Arthritis (DAISY) STELARA (ustekinumab) aticaprant EU Pediatric Crohn's Disease (UNITI JR) Adjunctive Treatment for Major Depressive Disorder with Anhedonia (Ventura 1) RPGR Gene Therapy Retinitis Pigmentosa (LUMEOS) Johnson & Johnson Innovative Medicine Pipeline Key Events in 2025* 1. In order to be on key events clinical presentation, data must be presented at a major medical meeting. *This is not a fully exhaustive list of all pipeline programs and assets. The pipeline includes assets currently progressing through clinical trials as well as those under review by regulatory bodies. Inclusion in the pipeline is based on the current status of these programs and assets and does not guarantee continued investment. This information is as of "&Date&" to the best of the Company's knowledge. Johnson & Johnson assumes no obligation to update this information. 1 In order to be on key events clinical presentation, data must be presented at a major medical meeting. *This is not a fully exhaustive list of all pipeline programs and assets. The pipeline includes assets currently progressing through clinical trials as well as those under review by regulatory bodies. Inclusion in the pipeline is based on the current status of these programs and assets and does not guarantee continued investments. This information is as of January 22, 2025 to the best of the Company’s knowledge. Johnson & Johnson assumes no obligation to update this information. = Achieved Anhedonia (Ventura)