Johnson & Johnson · NYSE:JNJ
Johnson & Johnson — Investor Day (December 2023)
69 slides from Johnson & Johnson's investor day presentation, Dec 5, 2023
Slide 1: Cautionary Note on Forward-Looking Statements
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 st
Slide 2: Strategic Partnerships, Collaborations & Licensing Arrangements
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:
Slide 3: Strategic Partnerships, Collaborations & Licensing Arrangements
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:
Slide 4: J&J MedTech Business Overview
J&J MedTech Business Overview Tim Schmid Executive Vice President, Worldwide Chairman, MedTech 4
Slide 5: The world is expecting more from medical intervention
Market opportunity The world is expecting more from medical intervention
Slide 6: We compete in a robust market
Market opportunity We compete in a robust market Market size Market growth 2022 ($B) 2022-2027 Market size1 $100B+ Interventional $13 12-14% Solutions2 Orthopaedics $50 3-5% MedTech market WAMGR 2022-20271 5-7% Surgery $28 5-7% Vision $16 5-7% J&J MedTech Markets $107 5-7% 1. Market Size and Weighte
Slide 7: We are a market leader driving competitive sales growth
Our market position We are a market leader driving competitive sales growth Interventional Solutions Orthopaedics Surgery Vision Market position1 #1 #1 #1 #2 >$2B platforms Electrophysiology Trauma Wound Closure Contact Lens Hips Biosurgery >$1B Heart recovery Knees Energy Surgical Vision platforms
Slide 8: We've delivered one point of sales growth annually since 2017 on average
Our accelerated performance We’ve delivered one point of sales growth annually since 2017 on average Sales growth acceleration1 7.4% Growth driven by: 6.1% adjusted operational sales Investments in innovation growth Q3’23 YTD Strong commercial execution 1.5% 12.0% Geographic expansion operational gr
Slide 9: Organic innovation has driven our growth
Our accelerated performance Organic innovation has driven our growth $10.9B invested in R&D in R&D spend as a percentage of sales the last five years 8.8% 9.1% 7.8% 9.5% 6.5% ~100 first-time major launches since 2018 $2.5B $2.4B $2.0B $2.2B $1.8B 1/3 of our 2027 sales is expected 2018 2019 20201 202
Slide 10: We continue to shift our portfolio to high-growth, high-innovation markets
Our accelerated performance We continue to shift our portfolio to high-growth, high-innovation markets JJMT sales by end-market growth $22B invested in M&A 20% between 2018 and 2022 50% 66% ~40 46% VC investments1 14% 4% 2018 2023 ■ >5% growth ■ 3-5% growth ■ <3% growth 1. Based on current portfolio
Slide 11: Our path forward
Our path forward Growth drivers Differentiated Global Operational pipeline expansion resilience 5-7% Value for J&J Operational sales growth in the upper 1 range of our markets growing at: 1. Weighted Average Market Growth Rate (WAMGR) reflect the following sources: Internal estimates, Fitch, HRI, Gl
Slide 12: Our robust pipeline of market-shaping innovation
Our accelerated performance Our robust pipeline of market-shaping innovation Growth-driving innovations: 2024+ Surgery Antimicrobial ETHIZIA™ MONARCH™ Next OTTAVA™ STRATAFIX™ Hemostatic Generation and PDS™ Sutures Sealing Patch Energy Tower Orthopaedics Biomaterials – TriALTIS™ Extremities – Partial
Slide 13: Global expansion will propel our growth
Our path forward | Global expansion Global expansion will propel our growth Our global footprint Further market penetration of our premium products driven by: 50% of sales coming from OUS1 Global network of trusted relationships #1 MedTech company in Asia Pacific Highly trained clinical sales expert
Slide 14: Resilient operations will enhance competitiveness
Our path forward | Operational resilience Resilient Simplifying operations for speed will enhance competitiveness Reimagining supply chain Digitalization
Slide 15: We expect to consistently deliver operational growth in the upper range of our markets
MedTech market WAMGR 2022-20271 5-7% Differentiated pipeline We expect to Differentiated consistently innovation deliver operational Global expansion growth in the Global expansion upper range of our markets through: Operational resilience Operational resilience 1. Market Size and Weighted Average M
Slide 16: J&J MedTech R&D Overview
J&J MedTech R&D Overview Ahmet Tezel, Ph.D. Company Group Chairman, MedTech R&D 16
Slide 17: MedTech is fundamental to a new era in healthcare
MedTech is fundamental to a new era in healthcare Johnson & Johnson MedTech is drawing on a century of working alongside physicians, healthcare institutions, communities, and big thinkers to save lives and redefine the patient experience
Slide 18: We are tackling the most pervasive and complex health challenges
OPT 2 We are tackling 10M Create an option cancer is a2top here causethat only has of death the most pervasive worldwide, accounting for nearly 10photography million deaths in 2020, or nearly one in six deaths.2 and complex 37.5M health challenges people affected by Atrial Fibrillation globally. By
Slide 19: Our capabilities are the foundation of differentiated innovation
Our capabilities are the foundation of differentiated innovation R&D investment metrics $2.5B Global & local reach Complex product Innovating in hotspots development around the world: Europe Successfully developing & Middle East, China, Class III devices and large invested in R&D1, second Silicon Va
Slide 20: J&J MedTech is increasing R&D productivity for better patient outcomes
J&J MedTech is 2x increasing R&D pipeline value and growing R&D productivity for better investment faster than sales over patient outcomes the last 5 years1 1. 2018 - 2022 ~100 1/3 of our 2027 first-time major sales is expected launches since 2018 to be generated by new products2 2. Products launche
Slide 21: Our robust pipeline of market-shaping innovation
Our robust pipeline of market-shaping innovation Growth-driving innovations: 2024+ Surgery Antimicrobial ETHIZIA™ MONARCH™ Next OTTAVA™ STRATAFIX™ Hemostatic Generation and PDS™ Sutures Sealing Patch Energy Tower Orthopaedics Biomaterials – TriALTIS™ Extremities – Partial Knee Spine FIBERGRAFT™ Spin
Slide 22: Delivering smarter, less invasive and more personalized solutions
Connected MedTech Delivering smarter, less invasive and more personalized solutions CARTO™ 3 System Sophisticated 3D Mapping Researchers used data from 75,000+ software system enabling treatments cloud-based cases to predict and identify of different cardiac arrythmias successful factors for AFib ab
Slide 23: Our robust pipeline of market-shaping innovation
Our robust pipeline of market-shaping innovation Growth-driving innovations: 2024+ Surgery Antimicrobial ETHIZIA™ MONARCH™ Next OTTAVA™ STRATAFIX™ Hemostatic Generation and PDS™ Sutures Sealing Patch Energy Tower Orthopaedics Biomaterials – TriALTIS™ Extremities – Partial Knee Spine FIBERGRAFT™ Spin
Slide 24: OTTAVA Robotic System
OTTAVA™ Robotic System 24
Slide 25: Our robust pipeline of market-shaping innovation
Our robust pipeline of market-shaping innovation Growth-driving innovations: 2024+ Surgery Antimicrobial ETHIZIA™ MONARCH™ Next OTTAVA™ STRATAFIX™ Hemostatic Generation and PDS™ Sutures Sealing Patch Energy Tower Orthopaedics Biomaterials – TriALTIS™ Extremities – Partial Knee Spine FIBERGRAFT™ Spin
Slide 26: Enabling new levels of visibility for surgeons
Future big bet innovation Enabling new levels of visibility for surgeons Advanced Visualization Scientific expertise providing exceptional procedural control and economic value across Clarity and visibility of patient specific our surgical and orthopaedics portfolio anatomy, precisely localize and d
Slide 27: Leading the way in smarter, less invasive, more personalized solutions
Our path forward | Operational resilience J&J brings a mix of clinical capabilities, regulatory Leading the way in know-how, and technical expertise at scale smarter, less invasive, more personalized Differentiated portfolio solutions that of market-shaping technologies is going after the biggest un
Slide 28: Electrophysiology
Electrophysiology Celine Martin Company Group Chairman, Cardiovascular & Specialty Solutions 28
Slide 29: Cure atrial fibrillation
Accelerating our impact in cardiology Our mission in electrophysiology Cure atrial fibrillation
Slide 30: Our electrophysiology business is positioned to deliver double-digit growth
Our electrophysiology business is positioned to deliver double-digit growth #1 market leader in electrophysiology 11-13% Market CAGR1 $13B 10+ years of double- digit growth2 $7B $7B market1 2022 2027 1. J&J MedTech Internal data; market size and growth triangulated from competitor earnings, analyst
Slide 31: AFib is a growing epidemic, and few patients receive cardiac ablation
AFib is a growing epidemic, and few patients receive the gold standard of care—cardiac ablation Rapidly growing 37.5M people are affected 5M new patients will be diagnosed 1 in 4 adults over the age of 40 market worldwide1 each year by 20501 are at risk to develop2 Left untreated, AFib can have Unde
Slide 32: Elevating standards of care
Elevating standards of care Enabled by decades of breakthrough innovation Success Efficiency Fluoro 1995 2000 2006 2009 2011 CARTO® LASSO® CARTOSOUND® CARTO® 3 THERMOCOOL® System Catheter Module System SF Catheter 2013 66% 3.5 hours 49 mins 2017 2016 2015 2011 2019 CARTO VIZIGO® THERMOCOOL CONFIDENS
Slide 33: Increasing patient access to ablation
Increasing patient access to ablation AFib is a progressive disease, which becomes harder to treat over time ER2EP Speeding up time from emergency room to ablation treatment1 • World’s largest online community for AFib patients and caregivers 127 70% • Educates on signs and symptoms of AFib days sho
Slide 34: Uniquely positioned to continue to lead in AFib
Uniquely positioned to continue to lead in AFib Focused innovation Unmatched scale We partner closely with EPs to develop the best We have the largest reach with: technology. Our focus is: • World’s largest mapping • Largest professional • Locate where to ablate • Simplify the procedure install base
Slide 35: Delivering a best-in-class PFA ecosystem
Delivering a best-in-class PFA ecosystem The next chapter in elevating standards of care What sets us apart CARTO is the only system with tissue proximity indicators, contact force measurement, and ablation indexes. EPs know where to ablate, and if treatment was successful in real-time. single shot
Slide 36: Helping patients with AFib live the lives they want
Our path forward | Operational resilience Rapidly growing and underpenetrated category • Large opportunity to bring ablation to more AFib patients Differentiated Helping patients innovation #1 in electrophysiology with AFib live the • Focused approach to innovation lives they want • Delivering best
Slide 37: Abiomed
Abiomed Michael Bodner Global Head, Heart Recovery 37
Slide 38: Abiomed: the world leader in heart recovery
Abiomed: the world leader in heart recovery Jim Hoag Earl Cooper Yoshitsugi Kobayashi Seppi Grasser Tim Deits Grand Rapids, MI St. Louis, MO Kyoto, Japan Lucerne, Switzerland Huntington Beach, CA High-risk PCI High-risk PCI Cardiogenic shock Cardiogenic shock Cardiogenic shock & Impella 2.5® Impella
Slide 39: Treating <3% of TAM in core markets
Treating <3% of TAM in core markets1 Total addressable market 2.1 million patients 846K Cardiogenic shock 771K High-risk PCI 348K Advanced heart failure 122K Right heart failure 43K High-risk surgery 1. Internal data on file; core markets are: United States, Germany, Japan, Spain, Italy
Slide 40: Like other muscles, the heart needs to rest and recover
Like other muscles, the heart needs to rest and recover
Slide 41: Impella CP, Impella 5.5, Impella RP
Impella CP® Impella 5.5® Impella RP®
Slide 42: Meet two types of Impella patients
Meet two types of Impella patients 1 Chronic coronary artery disease 2 Cardiogenic shock
Slide 43: Impella associated with improvement in cardiogenic shock survival
Impella associated with improvement in cardiogenic shock survival ~50% to >80% 82% 81% 71% 50% 52% 52% 49% % Survival 17% N=87 N=83 N=302 N=48 N=685 N=82 N=406 N=293 1973 1988 1999 2017 2017 2019 2021 2022 Sch eidt Lee Hoch man Ouweneel Thiele Inova6 NCSI Stu dy 8 J-P VAD Registry 9 et a l. 1 et a l
Slide 44: Making Impella available to more patients
Making Impella available to more patients by: Indication Geographic Physician New product expansion expansion training introductions
Slide 45: Driving adoption by making Impella the standard of care
Driving adoption by making Impella the standard of care
Slide 46: Significant expansion opportunities
Significant expansion opportunities Abiomed core markets
Slide 47: New product introductions
New product introductions Impella ECP™ Impella RP Flex™ Impella BTR™ preCARDIA™
Slide 48: New product introductions: Impella ECP
New product introductions Impella ECP TM • 35% smaller than Impella CP® • FDA submission anticipated next year
Slide 49: New product introductions: Impella RP Flex
New product introductions Impella RP Flex TM • Designed for easier insertion • Full commercial launch planned next year
Slide 50: New product introductions: Impella BTR
New product introductions Impella BTR TM • Potential to disrupt LVAD market • FDA early feasibility study underway
Slide 51: New product introductions: preCARDIA System
New product introductions Abiomed preCARDIA System TM • FDA breakthrough device designation • FDA early feasibility study underway
Slide 52: Making heart recovery the global standard of care
Our path forward | Operational resilience Robust product pipeline Making heart recovery the global Clinical studies powered standard of care for Class I indications Addressing a large, global unmet need
Slide 53: Vision
Vision Peter Menziuso Company Group Chairman, Vision 53
Slide 54: Vision Made Possible
Vision Made Possible TM Our vision The leader in eye health for a patient’s lifetime journey Our mission To help every human see their world clearly
Slide 55: 2.2 billion people in need of vision correction
2.2 billion people in need of vision correction 1 Opportunity to advance standards of care and drive lifetime value Pediatric sight Developed sight Mature sight Myopia management New wearers Experienced wearers Presbyopia Cataract Key growth Widespread digital trends Aging population drivers enablin
Slide 56: Undisputed world leader in contact lens with ACUVUE
Undisputed world leader in contact lens with ACUVUE® $3.4B FY 2022 sales >50% higher than nearest competitor1 2.2B $10B contact lens market4 ACUVUE® family of lenses driving growth in category5 people in need of An unprecedented combination of vision correction2 5-7% innovative technologies designed
Slide 57: Latest innovation ACUVUE OASYS MAX 1-Day
Latest innovation ACUVUE® OASYS MAX 1-Day Successfully launched in U.S. and EMEA; expansion to APAC in 2024 Superior performance in clinical trials vs competitor1 2x more likely to be satisfied with end of day comfort1 OptiBlue™ Light Filter 2x more likely to be able to wear lenses comfortably as lo
Slide 58: Shaping standards of care with industry first IOLs
Shaping standards of care with industry first IOLs +180 bps market share gain vs 2022* 90% $3B IOL market today3 TECNIS® family of IOLs Best in category low-light4 of people will 1% develop cataracts Widest range of continuous vision5 by the age of 651 28M 62% 5-7% 88% cataracts procedures 10% IOL C
Slide 59: Next generation premium IOLs
Next generation premium IOLs Improved quantity and quality of vision for patients TECNIS Odyssey™ 1,2 TECNIS PureSee™ 3,4 Received PMA approval in 2023 Received CE mark in 2023 Launch in U.S. H2 2024 Launch in EMEA and APAC H1 2024 • For patients wanting to be free from glasses • For patients who de
Slide 60: Uniquely positioned to win and lead in eye health
Uniquely positioned to win and lead in eye health Brand trust, Leading-edge Deep equity heritage & scale optical science with partners 40 years of expertise hallmarked by Expertise in optical & material science Preferential relationships with partners delivery of differentiated value with series of
Slide 61: #1 in contact lens, #2 in surgical vision
“ Hi beautiful people, Eye health category is large and growing Unmet needs continuing to rise due to lifestyle choices and aging population I can see again… I can actually see again and I’m so happy. Thank #1 in contact lens #2 in surgical vision Winning in our core portfolio today you, Johnson & J
Slide 62: Digital
Digital Hani Abouhalka Company Group Chairman, Robotics and Digital 62
Slide 63: The future of MedTech is connected & open
The future of MedTech is connected & open 3D modeling image/software interface Robotics & software are the key to this connected future
Slide 64: What we heard from surgeons
What we Increase availability & flexibility heard from 40% of surgical teams sometimes experience challenges in completing surgeons clinical tasks in robotic ORs1 Lighten the physical & mental load 35% of general surgeons suffer from symptoms of burnout2 Harness the power of data 1. Based on a Septe
Slide 65: Introducing OTTAVA
Introducing OTTAVA Planning to submit FDA IDE application in the second half of 2024 to initiate US clinical trials
Slide 66: OTTAVA is designed for new experiences
OTTAVA is designed for new experiences Unified architecture Twin motion Ethicon instruments Four robotic arms incorporated Unified movement of table only on OTTAVA into a standard size OR bed, and arms for intraoperative Clinically-backed, surgeon creating space and restoring repositioning without t
Slide 67: High growth and low penetration in robotic surgery
High growth and low penetration in robotic surgery 40M potential to address 5% of procedures today 2 in 3 robotic procedures 2x conventional ORs 40M surgeries globally1 are robotic1 are done in the US1 have an average of 2x the procedure volume of robotic ORs1 1. Internal data on file
Slide 68: MONARCH
MONARCH <1% of procedures today using flexible robotics1 >65% of U.S. lung cancer patients not diagnosed until stages III-IV2 1 in 11 Americans experience kidney stones at some point in their life3 MONARCHTM Platform for Bronchoscopy MONARCHTM Platform for Urology 7M lung biopsy and kidney stone pro
Slide 69: Committed to innovating for what's NEXT in surgery
OTTAVA will help deliver what’s next in surgery New experiences delivered through unique architecture, system features, Ethicon Committed to instruments only on OTTAVA, and J&J’s global scale and expertise in surgery innovating for what’s NEXT in surgery… Robotics market is an early opportunity read