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1st Quarter 2025 Earnings Call April 15, 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 or changes to applicable laws and regulations; 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; and increased scrutiny of the health care industry by government agencies. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s most recent Annual Report on Form 10-K, 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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Immunology 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 Neuroscience 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. Infectious Diseases PREZCOBIX / REZOLSTA fixed-dose combination, SYMTUZA and ODEFSEY developed in collaboration with Gilead Sciences, Inc., and JULU CA 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 R esponse, Biomedical Advanced Research and Development Authority (BARDA), under Contract No. HHSO100201700018C, and in collaboration with the National Institute of Allergy and Infectious Dis eases (NIAID), part of the National Institutes of Health (NIH) at the U.S. Department of Health and Human Services (HHS) Cardiovascular/ Metabolism/Other 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 Oncology IMBRUVICA developed in collaboration and co-marketed in the U.S. with Pharmacyclics, LLC, an AbbVie company; ZYTIGA licensed fro m 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 disco vered in collaboration with Astex Pharmaceuticals, Inc.; ERLEADA licensed from Regents of California and Memorial Sloan Kettering; CARVYKTI licensed and developed in collaborat ion with Legend Biotech USA Inc. and Legend Biotech Ireland Limited; AKEEGA licensed from TESARO, Inc., an oncology -focused business within GSK, and from BTG International Ltd.; RYBREVANT developed under license with Genmab A/S; LAZCLUZE licensed from Yuhan Corporation; DuoBody platform licensed from Genmab A/S relates to several bispecific antibody programs; OMT animal pla tform licensed from OMT Inc. relates to several antibody programs; ENHANZE platform licensed from Halozyme Therapeutics, Inc. Pulmonary Hypertension UPTRAVI license and supply agreement with Nippon Shinyaku (co-promotion in Japan), and OPSUMIT co-promotion agreement with Nippon Shinyaku in Japan Global Public Health 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 prov ided 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 HHSO1 00201500008C. 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. Strategic partnerships, collaborations & licensing arrangements During the course of this presentation, we will discuss a number of products and compounds developed in collaboration with st rategic partners or licensed from other companies. The following is an acknowledgement of those relationships: 4
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CEO Remarks R&D 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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Innovative Medicine 4.2% 1,2 Operational sales growth 11 Key brands growing double digits Recent Milestones: 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliation schedules on the Investor Relations section of the company's website. 2 Includes an approximate (810) basis point headwind from STELARA.
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`` MedTech 4.1% 1 Operational sales growth Strong performance across Abiomed, Shockwave, Vision and Would Closure Recent Milestones: Impella CP® with SmartAssist® Shockwave Javelin Peripheral IVL ` VARIPULSE ` OTTAVA 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliation schedules on the Investor Relations section of the company's website
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Fortifying our leadership as an innovation powerhouse
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John Reed Executive Vice President, Innovative Medicine, R&D
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12 CAPLYTA® Adjunctive treatment for major depressive disorder, has the potential to become a new standard of care for most common depressive disorders First and only U.S. FDA-approved treatment for bipolar I and II depression as an adjunctive and monotherapy; also approved for the treatment of schizophrenia in adults Positive Phase 3 studies showed meaningful MADRS score improvements and reduced depression severity with a favorable safety and tolerability profile as an adjunctive therapy sNDA submitted to U.S. FDA for adjunctive treatment for major depressive disorder; expected potential approval later this year Study 501 (MADRS) Study 502 (MADRS) Note: supplemental New Drug Application pending review by U.S. Food and Drug Administration LS mean difference vs. placebo: -4.9 points p < 0.0001 Cohen’s d effect size: 0.61 LS Mean Change from Baseline Visit *** *** **** **** **** **** Baseline Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 -20 -15 -10 -5 -0 Placebo + ADT Lumateperone 42mg + ADT mITT population: Lumateperone N = 239, Placebo N = 242: ***p<0.001 ****p<0.0001 LS mean difference vs. placebo: -4.5 points p < 0.0001 Cohen’s d effect size: 0.56 MADRS: Montgomery-Åsberg Depression Rating Scale (MADRS) mITT population: Lumateperone N = 232, Placebo N = 237: *p<0.05 ****p<0.0001 LS mean difference vs. placebo: -4.5 points p < 0.0001 Cohen’s d effect size: 0.56 LS Mean (+/- SE) Change from Baseline Visit * **** **** **** **** Baseline Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 -20 -15 -10 -5 -0 Placebo + ADT Lumateperone 42mg + ADT 12
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Median OS (95% CI) Amivantamab + lazertinib Not reached (42.9–NR) Osimertinib 36.7 mo (33.4–41.0) HR, 0.75; (95% CI, 0.61–0.92); P<0.005a RYBREVANT® plus LAZCLUZE First and only regimen with a survival benefit over current standard of care in first-line treatment of EGFR-mutated non-small cell lung cancer Significant and unprecedented overall survival benefit vs standard of care in Phase 3 MARIPOSA study Changing the trajectory of survival, with projected median OS improvement of more than 1 year Triple mechanism of action is altering the natural history 1 of this type of lung cancer 1L RYBREVANT plus LAZCLUZE Overall Survival Note: Last participant was enrolled in May 2022. Clinical cutoff date was December 4, 2024. In total, 390 deaths had occurred in the amivantamab + lazertinib (173 deaths) and osimertinib (217 deaths) arms. aP-value was calculated from a log- rank test stratified by mutation type (Ex19del or L858R), race (Asian or Non- Asian), and history of brain metastasis (present or absent). Hazard ratio was calculated from a stratified Cox regression model. + Yang J, et al. Amivantamab Plus Lazertinib vs Osimertinib in First -line (1L) EGFR-mutant (EGFRm) Advanced NSCLC: Final Overall S urvival (OS) from the Phase 3 MARIPOSA Study. 2025 European Lung Cancer Congress. March 26, 2025. 1Besse B, et al. Presented at the European Society for Medical Oncology (ESMO) Congress; September 13 -17, 2024; Barcelona, Spain. *Based on an exponential distribution assumption of OS in both arms, the improvement in median OS is projected to exceed 1 year. 13
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14 TREMFYA® Only dual-acting IL-23 inhibitor* for adult patients with moderately to severely active Crohn’s disease Structurally and functionally different than other IL-23 inhibitors* – Potently blocks IL-23 while also binding to CD64, a receptor on cells that produce IL-23 Only IL-23i to show superiority versus STELARA® in endoscopic endpoints in Crohn’s disease (GALAXI 2/3) in a registrational trial. First and only biologic to achieve deep remission in 34% of patients at 1 year. 3 Only IL-23 inhibitor with flexibility of SC induction (GRAVITI), with results as rapid and robust as IV Overall population (Pooled GALAXI 2 & 3)1 * Based on in vitro studies in an inflammatory monocyte model. The clinical significance of these findings is unknown. "Only" based on approved selective IL-23 inhibitors for moderately to severely active Crohn's disease as of March 2025 IV, intravenous; q4w, every 4 weeks; q8w, every 8 weeks; SC, subcutaneous . 1. Rubin DT, et al. American College of Gastroenterology 2024. Oral Presentation #OP73. 2.. Hart A, et al. Gastroenterology. Published online March 18, 2025; doi:10.1053/j.gastro.2025.02.033 3. Data not shown, 200mg q4w dose TREMFYA® 200mg IV q4w 100mg SC q8w TREMFYA® 200mg IV q4w 200mg SC q4w STELARA® ~6mg/kg IV 90mg SC q8w* TREMFYA® 400mg SC q4w PBO GRAVITI - SC Induction2 33% 37% 25% 0 20 40 60 Endoscopic Remission, Wk 48 137/286 156/296 108/291 Δ12.3% P=0.001 Δ8.5% P=0.024 Proportion of Patients (%) 109/289 21% 56% 0 20 40 60Proportion of Patients (%)25/117 129/230 Δ35% P<0.001 Clinical Remission, Wk 12 14
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15 icotrokinra Demonstrating potential to transform treatment paradigm in plaque psoriasis Icotrokinra is the first targeted oral peptide that selectively blocks the IL-23R and shows potential to offer patients the combination of complete skin clearance and a favorable safety profile in a once daily pill Nearly half of patients (46%) achieved completely clear skin (IGA 0); among adolescents this rate was 75% These positive data build on the comprehensive Ph3 ICONIC program, which includes two H2H trials and the ANTHEM Ph2 trial in ulcerative colitis ICONIC-LEAD 1- Bissonette R. et al. Icotrokinra, a Targeted Oral Peptide That Selectively Blocks the Interleukin -23 Receptor, for the Treatment of Moderate-to-Severe Plaque Psoriasis: Results Through Week 24 of the Phase 3, Randomized, Double-Blind, Placebo-Controlled ICONIC-LEAD Trial. 2025 American Academy of Dermatology Association Annual Meeting. March 8, 2025. 2- Eichenfield, L., Icotrokinra, a Novel Targeted Oral Peptide (IL -23R-inhibitor), in Adolescents With Moderate-to-Severe Plaque Psoriasis. W orld Congress of Pediatric Dermatology; April 8 -11, 2025, Buenos Aires, Argentina The data presented relates to an investigational product that is not yet approved by the FDA. It is for informational purpose s only and should not be considered as a promotion or endorsement of the drug ***Multiplicity-adjusted P<0.001 vs PBO ICO=icotrokinra, IGA=Investigator’s Global Assessment, PASI=Psoriasis Area and Severity Index, PASI 100=reduction from baseline of 100% in the PASI score, PBO=placebo. Lesions graded based on induration, erythema and scaling and by body surface area over 4 body regions. *** IGA 0 (total population)1 IGA 0 (adolescents)2 Proportion of participants (95% CI) Week 0 20 40 60 80 0 2 4 8 12 16 20 24 40.9% 75% 40.9% 4.5% PBO PBO to ICO ICO 0 20 40 60 0 2 4 8 12 16 20 24 23% 1% 33% 46% *** Proportion of participants (95% CI) Week 15
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Jessica Moore Vice President, Investor Relations
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Regional sales results Q1 2025 Q1 2024 % Change Reported Operational1 U.S. $12.3 $11.6 5.9% 5.9% Europe 5.1 5.2 (1.0) 2.2 Western Hemisphere (ex U.S.) 1.2 1.2 (2.3) 9.2 Asia-Pacific, Africa 3.3 3.4 (2.8) (0.6) International 9.6 9.8 (1.8) 2.1 Worldwide (WW) $21.9 $21.4 2.4% 4.2% Dollars in billions 1 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 1st Quarter 2025 sales 17
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$21.9 $21.4 $6.7 $6.6 2.2%; 3.7%1 $2.77 $2.71 Dollars in billions, except EPS Reported %; Operational %1 Sales Adjusted earnings2 Adjusted EPS2 2.4%; 4.2%1 GAAP earnings $11.0 $3.3 1.9% Q1 2025 Q1 2024 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; see reconciliation schedules on the Investor Rela tions section of the company's website 1st Quarter 2025 financial highlights GAAP EPS 18 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 $4.54 $1.34 237.9% 238.8%
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Immunology $3,707Infectious Diseases $802 Neuroscience $1,647 Oncology $5,678 CVM/Other $1,013 PH $1,025 ■ Reported growth ■ Operational growth1 $13,873 2.3%, 4.2% WW sales $MM Key drivers of operational performance1 Oncology • DARZALEX increase driven by continued strong share gains and market growth • ERLEADA increase driven by continued share gains and market growth, partially offset by the impact of Part D redesign • CARVYKTI increase driven by continued share gains and capacity expansion • TECVAYLI and TALVEY growth driven by ongoing launches • RYBREVANT/LAZCLUZE growth driven by ongoing launch • Growth partially offset by ZYTIGA loss of exclusivity and IMBRUVICA due to competitive pressures and the impact of Part D redesign Immunology • TREMFYA increase due to share gains and market growth, partially offset by the impact of Part D redesign • SIMPONI/SIMPONI ARIA growth driven mainly by MSD 3 return of rights in Europe • REMICADE increase due to one-time favorable patient mix, market growth, and MSD3 return of rights in Europe, partially offset by biosimilar competition • STELARA decline driven by the impact of biosimilar competition and Part D redesign Neuroscience • SPRAVATO growth driven by ongoing launch and increased physician and patient demand • INVEGA SUSTENNA / XEPLION / INVEGA TRINZA / TREVICTA decline primarily driven by the impact of Part D redesign • Other Neuroscience decline primarily due to RISPERDAL/RISPERDAL CONSTA and PONVORY divestiture Pulmonary Hypertension (PH) • OPSUMIT/OPSYNVI growth driven by share gains and market growth, partially offset by the impact of Part D redesign • UPTRAVI decline driven by the impact of Part D redesign partially offset by market growth Infectious Diseases • Declines across the portfolio including COVID-19 Vaccine, partially offset by EDURANT growth Cardiovascular / Metabolism / Other (CVM/Other) • XARELTO growth driven by one-time favorable patient mix and the impact of Part D redesign Adjusted operational sales2: WW: 4.4%, U.S. 6.3%, Int’l 1.9% Innovative Medicine highlights – 1st quarter 2025 Reported: WW 2.3%, U.S. 6.3%, Int’l (2.9)% Operational1: WW 4.2%, U.S. 6.3%, Int’l 1.5% 22.3%, 23.4% (2.3)%, (1.2)% 17.9%, 20.4% (2.2)%, 0.1% (12.7)%, (10.9)% Strong operational growth1 of 4.2% driven primarily by Oncology (8.6)%, (7.0)% 19 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliation schedules on the Investor Relations section of the company's website 3 MSD: Merck, Sharp, & Dohme 2 Non-GAAP measure; excludes acquisitions and divestitures and translational currency; see reconciliation schedules on the Invest or Relations section of the company's website Note: Values may be rounded Stelara impacted results1 by ~(810) basis points
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Key drivers of operational performance1 Cardiovascular • Electrophysiology: Driven by competitive PFA pressures in ablation catheters and lapping of prior year inventory build in Asia, mostly offset by global procedure growth, new product performance (NUVISION, VARIPULSE, QDOT), and commercial execution • Abiomed: Double digit growth driven by continued strong adoption of Impella 5.5 and Impella CP • Shockwave: Acquired May 31, 2024 Orthopaedics All platforms impacted by one-time events: the lapping of the prior year one-time revenue recognition timing change related to certain products in the U.S., fewer selling days, and revenue disruption from the previously announced Orthopaedics Transformation • Hips: Reflects one-time events partially offset by continued portfolio strength (primarily in the Anterior approach) • Trauma: Growth primarily driven by continued adoption of recently launched products, procedure growth, and commercial execution, partially offset by one-time events • Knees: Driven by one-time events and OUS tender timing partially offset by procedure growth, strength of the ATTUNE portfolio (Cementless & Medial Stabilized), and pull through related to the VELYS Robotic assisted solution • Spine, Sports & Other: Reflects one-time events, competitive pressures, price pressures in the U.S. Early Interventional segment, and volume-based procurement (VBP) in China, partially offset by growth in Shoulders • Spine: ~ -13% WW, ~ -13% U.S., ~ -13% Int’l Surgery • Advanced • Biosurgery: ~ +3% Growth driven by continued strength of the portfolio (SURGIFLO, SURGICEL Powder, Evarrest, and VISTASEAL), commercial execution, and recovery from U.S. supply challenges, partially offset by VBP • Endocutters: ~ +2% Increase primarily due to commercial execution and strategic price actions, partially offset by VBP • Energy: ~ -3% Due to competitive pressures, Harmonic market decline in the U.S., and VBP, partially offset by OUS tender timing and go to market changes in EMEA • General: Growth primarily due to technology penetration and upgrades within our differentiated Wound Closure portfolio (Barbed & PLUS Sutures) and OUS tender timing, partially offset by divestitures Vision • Contact Lenses/Other: Growth driven by price actions and continued strong performance of the ACUVUE OASYS 1-Day family (including recent launch of OASYS MAX 1-Day) • Surgical: Increase reflects continued strength of recent innovation (TECNIS Odyssey, TECNIS PureSee, TECNIS Eyhance) and commercial execution, partially offset by competitive pressures in the U.S. Adjusted operational sales2: WW 1.3%, U.S. 0.9%, Int’l 1.8% Orthopaedics $2,241 Surgery $2,396 Vision $1,279 Cardiovascular $2,103 ■ Reported growth ■ Operational growth1 $8,020 2.5%, 4.1% WW sales $MM Solid operational growth1 of 4.1% due to Shockwave, commercial execution, and innovation Reported: WW 2.5%, U.S. 5.1%, Int’l (0.2)% Operational1: WW 4.1%, U.S. 5.1%, Int’l 3.0% 16.4%, 17.7% 1.7%, 3.7% (4.2)%, (3.1)% (0.8)%, 1.1% MedTech highlights – 1st quarter 2025 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 acquisitions and divestitures and translational currency; see reconciliation schedules on the Invest or Relations section of the company's website 3 One-time impacts include: the lapping of prior year Electrophysiology inventory dynamics in Asia and one -time revenue recognition timing change related to certain products in the U.S. in Orthopaedics, fewer selling days, and revenue disruption from the previously announced Orthopaedics Transformation Note: Values may be rounded 20 One-time3 events impacted WW MedTech results1 by ~(210) basis points, ~(240) in the U.S., and ~(180) Int’l
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One-time events include: lapping of a one-time revenue recognition timing change related to certain products across all platforms in the U.S., fewer selling days, and revenue disruption from the previously announced Orthopaedics transformation Approximate basis point impact of one-time events across all Orthopaedic platforms Q1 2025 Operational1 Growth WW US OUS Orthopaedics (3.1)% (4.4)% (0.9)% Hips (1.9)% (2.5)% (0.8)% Knees (1.7)% (4.3)% 2.1% Trauma 2.1% (0.5)% 7.2% Spine/Sports/Other (9.7)% (10.2)% (8.9)% Approximate basis point impact from one-time events WW US OUS (480) (650) (210) (420) (590) (130) (340) (510) (80) (520) (730) (120) (560) (680) (390) 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliation schedules on the Investor Relations section of the company's website Orthopaedics one-time events
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2025 2024 % Increase (Decrease)Amount % to Sales Amount % to Sales Sales to customers $21,893 100.0 $21,383 100.0 2.4 Cost of products sold 7,357 33.6 6,511 30.4 13.0 Gross Profit 14,536 66.4 14,872 69.6 (2.3) Selling, marketing and administrative expenses 5,112 23.3 5,257 24.6 (2.8) Research and development expense 3,225 14.7 3,542 16.6 (8.9) Interest (income) expense, net (128) (0.6) (209) (1.0) Other (income) expense, net (7,321) (33.4) 2,404 11.2 Restructuring 17 0.1 164 0.8 Earnings before provision for taxes on income 13,631 62.3 3,714 17.4 267.0 Provision for taxes on income 2,632 12.1 459 2.2 473.4 Net Earnings $10,999 50.2 $3,255 15.2 237.9 - Net earnings per share (Diluted) $4.54 $1.34 238.8 Average shares outstanding (Diluted) 2,423.8 2,430.1 Effective tax rate 19.3% 12.4% . Adjusted earnings before provision for taxes and net earnings1 Earnings before provision for taxes on income $8,011 36.6 $7,877 36.8 1.7 Net earnings $6,706 30.6 $6,580 30.8 1.9 Net earnings per share (Diluted) $2.77 $2.71 2.2 Effective tax rate 16.3% 16.5% 1 Non-GAAP measure; excludes intangible amortization expense and special items; see reconciliation schedules on the Investor Rela tions section of the company's website (Unaudited; Dollar and shares in millions except per share figures) 22 1st Quarter 2025 Condensed consolidated statement of earnings
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Innovative Medicine 2025 2024 % Increase (Decrease)Amount % to Sales Amount % to Sales Sales to customers $13,873 100.0 $13,562 100.0 2.3 Cost of products sold 3,371 24.3 2,670 19.7 26.3 Gross Profit $10,502 75.7 10,892 80.3 (3.5) Selling, marketing and administrative expenses 2,261 16.3 2,438 18.0 (7.3) Research and development expense 2,548 18.4 2,889 21.3 (11.8) Other segment items 1 (204) (1.5) (247) (1.9) Adjusted segment income before tax 2 $5,897 42.5 $5,812 42.9 1.5 1 Other segment items for each reportable segment include charges related to other income and expenses, restructuring activitie s and impairment charges related to in- process research and development 2 Non-GAAP measure; excludes intangible amortization expense and special items; see reconciliation schedules on the Investor Rela tions section of the company's website Note: For expenses not allocated to segments, see reconciliation schedules on the Investor Relations section of the company's website (Unaudited; Dollar in millions) Adjusted earnings before provision for taxes on income by segment 23 MedTech 2025 2024 % Increase (Decrease)Amount % to Sales Amount % to Sales Sales to customers $8,020 100.0 $7,821 100.0 2.5 Cost of products sold 2,795 34.8 2,713 34.7 3.0 Gross Profit $5,225 65.2 5,108 65.3 2.3 Selling, marketing and administrative expenses 2,656 33.1 2,578 33.0 3.0 Research and development expense 671 8.4 601 7.7 11.6 Other segment items 1 (182) (2.2) (132) (1.8) Adjusted segment income before tax 2 $2,080 25.9 $2,061 26.4 0.9 Enterprise 2025 2024 % Increase (Decrease)Amount % to Sales Amount % to Sales Adjusted segment income before tax 2 $8,011 36.6 $7,877 36.8 1.7 1st Quarter 2025
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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 flow2 Priorities are clear and remain unchanged Competitive dividends Share repurchases Higher priority Lower priority Investment in M&A Dollars in billions Q1 2025 Cash and marketable securities1 $38.8 Debt ($52.3) Net debt1 ($13.5) Free cash flow2,3 ~$3.4 Q1 2025: $3.2B invested in R&D $3.0B in dividends paid to shareholders Note: Values may be rounded 1 Cash and net debt position impacted by ~$14.0 billion held cash in anticipation of Intra -Cellular Therapies acquisition in Q2. Pro-forma net debt position would be ~$27.5 billion 2 Non-GAAP measure; defined as cash flow from operating activities, less additions to property, plant and equipment 3 Estimated as of April 15, 2025. Cash flow from operations, the most directly comparable GAAP financial measure, will be include d in subsequent SEC filings 4 Includes Intra-Cellular Therapies acquisition closed April 2, 2025 Note: Values may be rounded Capital allocation strategy 25 ~$14B4 deployed in strategic, inorganic growth opportunities
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Operational2 sales guidance of 3.8% and adjusted operational EPS2,4 of 6.2% (midpoints) April 2025 January 2025 Comments Adjusted operational sales1,2,6 2.0% - 3.0% 2.0% - 3.0% Maintaining Operational sales2,6 $91.6B - $92.4B 3.3% - 4.3% $90.9B - $91.7B 2.5% - 3.5% Increasing midpoint by $0.7B to 3.8% due to Intra-Cellular Therapies (ITCI) acquisition Estimated reported sales 3,6 $91.0B - $91.8B 2.6% - 3.6% $89.2B - $90.0B 0.5% - 1.5% Midpoint of $91.4B or 3.1% Incremental FX impact of $1.1B or 1.3% Adjusted pre-tax operating margin4,5 Increase of ~300 bps Increase of ~300 bps Maintaining Net other income4 $1.0 - $1.2 billion $0.9 - $1.1 billion Increasing due to performance Net interest expense / (income) $100 - $200 million $0 - ($100) million Decreasing due to ITCI financing costs partially offset by performance Effective tax rate4 16.5% - 17.0% 16.5% - 17.0% Maintaining Adjusted EPS (operational)2,4 $10.50 - $10.70 5.2% - 7.2% $10.75 - $10.95 7.7% - 9.7% Midpoint of $10.60 or 6.2% $0.25 dilution from ITCI acquisition Adjusted EPS (reported)3,4 $10.50 - $10.70 5.2% - 7.2% $10.50 - $10.70 5.2% - 7.2% Midpoint of $10.60 or 6.2% Incremental FX impact of $0.25 or 2.5% 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: April 2025 = $1.10; Euro Spot Rate: April 2025 = $1.11 6 Excludes COVID-19 Vaccine Note: Values may be rounded 26
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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 proxy2 • Negative impact of Part D re-design, as a percent to sales, will be consistently applied throughout the year3 • 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 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) P&L 27 Anticipate second half operational1 sales growth higher than the first half 1 Non-GAAP measure; excludes the impact of translational currency; see reconciliation schedules on the Investor Relations section of the company's website 2 Once faced with material biosimilar competition, with the additive impact of Part D re -design 3 Products negatively impacted include STELARA, INVEGA long acting injectables, ERLEADA, OPSUMIT, UPTRAVI, TREMFYA and IMBRUVIC A, partially offset by a favorable impact in XARELTO
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Innovative Medicine Anticipated 2025 milestones 1 driving long-term value creation MedTech 28 nipocalimab in gMG RYBREVANT Sub-Q in NSCLC TREMFYA Sub-Q in UC TAR-200 NMIBC icotrokinra in PsO and UC RYBREVANT in HNC CAPLYTA in aMDD OTTAVA progression Advancements across Cardiovascular (incl. Electrophysiology, Heart Recovery, and Circulatory Restoration) 1 List above is not inclusive of all 2025 anticipated milestones gMG: Generalized Myasthenia gravis; Sub- Q: Subcutaneous; NSCLC: Non-small cell lung cancer; UC: Ulcerative colitis; NMIBC: Non -muscle invasive bladder cancer; PsO: Psoriasis; HNC: head and neck cancer; aMDD: adjunctive major depressive disorder
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2027 / 2028 At-A-Glance In-market brands Current 2027 / 2028 market estimates for specific product sales1,2 Our internal forecast vs. current 2027 /2028 market estimates 1,2 ~$1.8B / ~$2.3B ~$2.1B / ~$2.3B ~$5.7B / ~$6.3B 2x higher 50% higher 25% higher 1 Market estimates based on analyst models as of April 9th, 2025 that identify product specific sales in 2027 2 Market estimates based on analyst models as of April 9th, 2025 that identify product specific sales in 2028 3 Previously referred to as TARIS platform Potential sales of select Innovative Medicine assets vs. current market estimates1 Pipeline Current 2028 market estimates for specific product sales2 Our internal forecast vs. current 2028 market estimates 2 Intravesical drug releasing system3 ~$0.7B icotrokinra ~$0.7B 3x higher 2x higher
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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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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) STELARA (ustekinumab) US SPRAVATO (esketamine) TREMFYA (guselkumab) RYBREVANT / LAZCLUZE RYBREVANT (amivantamab) EU Pediatric Crohn's Disease (UNITI JR) Treatment Resistant Depression monotherapy (TRD4005) EU Ulcerative Colitis Subcutaneous Induction (ASTRO) Non Small Cell Lung Cancer (MARIPOSA Final OS) Head and Neck Cancer (ORIGAMI-4) US TREMFYA (guselkumab) US CAPLYTA (lumateperone) US TREMFYA (guselkumab) TREMFYA (guselkumab) TALVEY + TECVAYLI Ulcerative Colitis Subcutaneous Induction (ASTRO) Adjunctive Treatment for Major Depressive Disorder 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) JNJ-4496 EU Crohn's Disease Subcutaneous Induction (GRAVITI) EU Smoldering Multiple Myeloma (AQUILA) EU Pediatric Psoriasis (PROTOSTAR) Psoriatic Arthritis Structural Damage (APEX) Hematological Malignancies (LYM1001) US TREMFYA (guselkumab) US DARZALEX (daratumumab) US STELARA (ustekinumab) TREMFYA (guselkumab) JNJ-5322 Pediatric Psoriasis (PROTOSTAR) EU Frontline multiple myeloma transplant ineligible (CEPHEUS) EU Pediatric Ulcerative Colitis (UNIFI JR) Pediatric Psoriasis (PROTOSTAR) Multiple Myeloma (MMY1001) US TREMFYA (guselkumab) US RYBREVANT (amivantamab) US STELARA (ustekinumab) icotrokinra RYBREVANT (amivantamab) Pediatric Juvenile Psoriatic Arthritis EU Subcutaneous (PALOMA-3) Pediatric Crohn's Disease (UNITI JR) Psoriasis (ICONIC-LEAD) Colorectal Cancer (ORIGAMI-1 right- sided) US TREMFYA (guselkumab) IMBRUVICA (ibrutinib) US icotrokinra icotrokinra JNJ-8343 EU Crohn's Disease (GALAXI) EU Frontline MCL (Triangle) EU Psoriasis (ICONIC) Psoriasis (ICONIC-TOTAL) Prostate Cancer (PCR1001) TREMFYA (guselkumab) icotrokinra JNJ-4804 Co-antibody Therapy EU Ulcerative Colitis (QUASAR) Psoriasis (ICONIC-Advance1/2) Psoriatic Arthritis (AFFINITY) aticaprant icotrokinra Adjunctive Treatment for Major Depressive Disorder with Anhedonia (Ventura 1) Ulcerative Colitis (ANTHEM) RPGR Gene Therapy nipocalimab Combination Therapy Retinitis Pigmentosa (LUMEOS) Rheumatoid Arthritis (DAISY) 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 April 15, 2025 to the best of the Company’s knowledge . Johnson & Johnson assumes no obligation to update this information. = Achieved