Financial Data and Key Metrics Changes - CarVicti net trade sales reached approximately $439 million, representing a 136% increase year over year and a 19% increase from the first quarter [8][17] - Total revenues were RMB 255 million, driven by collaboration revenue growth of 136% year over year [30] - The company reported a net loss of RMB 10 million but achieved RMB 10 million in adjusted net income after excluding unrealized foreign exchange losses [30] - Operating loss improved from RMB 41 million to RMB 22 million year over year, indicating enhanced operational efficiency [30] Business Line Data and Key Metrics Changes - U.S. net trade sales of CarVicti were $358 million, growing 114% year over year and 13% quarter over quarter, with nearly 60% utilization in earlier line settings [18][21] - Outside the U.S., sales reached $81 million, a fourfold increase year over year and a 59% increase quarter over quarter, driven by expansion in Germany, Switzerland, Austria, and Brazil [19] Market Data and Key Metrics Changes - The company has treated over 7,500 patients with CarVicti, marking it as the strongest CAR T launch to date [8][16] - The number of authorized treatment centers in the U.S. has increased to 123, with significant expansion in community and regional hospitals [22][27] Company Strategy and Development Direction - The company aims to achieve operational breakeven for CarVicti by 2025 and company-wide profitability by 2026, excluding unrealized foreign exchange gains or losses [9][30] - The company is focused on solidifying its leadership in cell therapy and expanding into new indications, including solid tumor programs [14][15] - The company is investing in a new research facility in Philadelphia to enhance its capabilities in innovative therapies [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the FDA's decision to remove risk evaluation and mitigation strategies for CAR T therapies, which is expected to improve patient experience and access [9] - The company anticipates continued strong performance for CarVicti, supported by recent long-term survival data presented at ASCO [21][30] Other Important Information - The company maintains a strong cash position of approximately $1 billion, allowing for continued investment in its core differentiators in cell therapy [16][32] - The manufacturing success rate remains at 97%, which is believed to be the highest in the CAR T industry [20] Q&A Session Summary Question: Update on interim readouts from CARDISUDE V and VI - Management is monitoring events closely and is in discussions with the FDA about using MRD as a dual primary endpoint [36] Question: Community oncology expansion efforts - Approximately 70% of patients come from the community setting, and over half of patients are administered in outpatient settings [41][43] Question: Breakdown of treated patients in early line settings - Nearly 60% of orders are from the second through fourth line population, indicating significant growth potential [47] Question: Impact of recent efficacy data from a competitor - Management emphasized that CarVicti is best in class with demonstrated overall survival benefits, differentiating it from competitors [63] Question: Enrollment progress for CAR T2 VI - Enrollment is progressing well, with global completion expected soon, and confidence in driving capacity expansion remains high [68][70] Question: Future demand and supply dynamics - The company plans to drive both supply and demand simultaneously, with increasing contributions expected from Europe [83] Question: Community adoption and FACT accreditation - Efforts are underway to lift the requirement for FACT accreditation, facilitating broader access to CAR T therapies [90][91]

Financial Data and Key Metrics Changes - In Q2 2025, worldwide sales reached $23.7 billion, reflecting a 4.6% increase despite a headwind from Stellara [24][25] - Net earnings for the quarter were $5.5 billion, with diluted earnings per share of $2.29, up from $1.93 a year ago [25][26] - Adjusted net earnings were $6.7 billion, with adjusted diluted earnings per share of $2.77, representing a decrease of 2.1% [26][34] Business Line Data and Key Metrics Changes - Innovative Medicine reported worldwide sales of $15.2 billion, increasing by 3.8% despite a headwind from Stellara [26][27] - MedTech achieved worldwide sales of $8.5 billion, reflecting a 6.1% increase, driven by strong performance in cardiovascular, surgery, and vision [30][31] - In oncology, DARZALEX grew by 21.5%, while CARVICTI saw over 100% growth [27][28] Market Data and Key Metrics Changes - U.S. sales growth was 7.6%, while international sales experienced a decline of 1.6% due to Stellara biosimilars and COVID-19 vaccine impacts [26][27] - The cardiovascular segment in MedTech delivered over 22% operational sales growth, driven by new product performance [18][30] Company Strategy and Development Direction - The company aims to become the number one oncology company by 2030, targeting over $50 billion in sales [11][72] - Focus areas include oncology, immunology, neuroscience, cardiovascular, surgery, and vision, with a commitment to innovation and addressing unmet medical needs [10][21] - The company plans to launch several new products and therapies in the second half of 2025, including TAR200 for bladder cancer and subcutaneous Ribrovant for lung cancer [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and potentially exceeding growth targets for 2025, driven by strong performance in both Innovative Medicine and MedTech [39][42] - The company anticipates an acceleration in operational sales growth in the second half of the year, supported by new product launches and market share gains [42][60] - Management highlighted the importance of navigating external challenges while maintaining financial commitments and delivering shareholder value [51][52] Other Important Information - The company raised its full-year sales guidance by $2 billion and EPS guidance by $0.25, reflecting strong Q2 performance [9][42] - The effective tax rate for the quarter was 14.7%, down from 18.5% in the previous year [35][36] - The company ended Q2 with $19 billion in cash and marketable securities and $51 billion in debt, resulting in a net debt position of $32 billion [40] Q&A Session Summary Question: Drivers of upside to guidance for the year - Management indicated that both Innovative Medicine and MedTech contributed to strong performance, with notable growth in brands like DARZALEX and CARVICTI [54][55] Question: Oncology target of $50 billion by the end of the decade - Management expressed confidence in achieving the target, citing strong growth in multiple myeloma and the potential of TAR200 for bladder cancer [70][72] Question: Guidance for top-line growth acceleration - Management expects 2026 to show better growth rates than 2025, driven by new product introductions and market dynamics [84][86]

Financial Data and Key Metrics Changes - In Q2 2025, worldwide sales reached $23.7 billion, reflecting a 4.6% increase despite a headwind from Stellara [23][24] - Net earnings for the quarter were $5.5 billion, with diluted earnings per share of $2.29, compared to $1.93 a year ago [24] - Adjusted net earnings were $6.7 billion, with adjusted diluted earnings per share of $2.77, representing a decrease of 2.1% year-over-year [25][32] Business Line Data and Key Metrics Changes - Innovative Medicine reported worldwide sales of $15.2 billion, increasing by 3.8% despite an 11.7% headwind from Stellara [25][26] - MedTech achieved worldwide sales of $8.5 billion, growing by 6.1%, with strong performance in cardiovascular, surgery, and vision [29][30] - In oncology, DARZALEX grew by 21.5%, while CARVICTI saw over 100% growth [26][27] - Tremfya in immunology grew by 30.1%, while Stellara declined by 43.2% due to biosimilar competition [28] Market Data and Key Metrics Changes - U.S. sales growth was 7.6%, while international sales saw a decline of 1.6% due to Stellara biosimilars and COVID-19 vaccine impacts [25][26] - Cardiovascular segment delivered over 22% operational sales growth, driven by new product performance [17][29] - Surgical vision grew by 8.9%, supported by strong performance in contact lenses and intraocular lenses [21][30] Company Strategy and Development Direction - The company aims to become the number one oncology company by 2030, targeting over $50 billion in sales [10][11] - Focus areas for growth include oncology, immunology, neuroscience, cardiovascular, surgery, and vision, with a commitment to innovation [8][12] - The company plans to launch several new products and expand its pipeline, including TAR200 for bladder cancer and icotrokinra for psoriasis [47][48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving and potentially exceeding growth targets for 2025, driven by strong performance in both Innovative Medicine and MedTech [36][39] - The company anticipates an acceleration in operational sales growth in the second half of the year, supported by new product launches and market share gains [40][46] - Management highlighted the importance of navigating external challenges, including tariffs and competition, while maintaining a focus on innovation and market leadership [88] Other Important Information - The company ended Q2 with $19 billion in cash and marketable securities and $51 billion in debt, resulting in a net debt position of $32 billion [38] - The effective tax rate for the quarter was 14.7%, down from 18.5% in the previous year [33] - The company is committed to investing $55 billion in the U.S. over the next four years, driven by favorable tax policies [39] Q&A Session Summary Question: Drivers of upside to guidance for the year - Management indicated that both Innovative Medicine and MedTech contributed to strong performance, with notable growth in oncology and cardiovascular segments [52][53] Question: Oncology target of $50 billion by the end of the decade - Management expressed confidence in achieving this target, citing strong growth in multiple myeloma and the potential of TAR200 for bladder cancer [68][71] Question: Guidance for operational growth and operating margin improvement - Management expects 2026 to show better growth rates than 2025, with ongoing efforts to improve operating margins [81][83] Question: Impact of pharma tariffs and manufacturing capacity - Management acknowledged uncertainty regarding tariffs but emphasized ongoing investments in U.S. manufacturing and job creation [88]

Financial Data and Key Metrics Changes - The overall growth in the first quarter was 4.1%, with the pharmaceutical group growing by 4.2% and the med tech group by 4% [10] - The company has delivered consistent results, meeting or exceeding analyst expectations in earnings for 28 consecutive quarters over the past seven years [9] - The company has committed to a growth target of 5% to 7% from 2025 to 2030, with confidence in achieving this based on current results [11] Business Line Data and Key Metrics Changes - The pharmaceutical group showed a growth of 4.2% despite facing headwinds from biosimilars for its major product, Stellara [10] - The med tech group also reported a growth of 4%, indicating stability across both segments [10] - The company has invested $50 billion in M&A and R&D over the last two years, with an additional $55 billion planned for R&D manufacturing and technology in the U.S. over the next four years [11] Market Data and Key Metrics Changes - The company is optimistic about the biopharmaceutical and medical technology industries, citing significant medical innovation opportunities [5][22] - The U.S. market is seen as a key area for growth, with the administration's support for American businesses and manufacturing jobs [6] Company Strategy and Development Direction - Johnson & Johnson emphasizes its unique position as a healthcare company that spans the entire patient journey, with unmatched breadth in capabilities [7] - The company is focused on maintaining leadership in cardiac ablation and investing in new technologies to enhance its med tech offerings [56] - The strategy includes moving into higher growth markets, particularly in cardiovascular and robotics [85] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the industry despite macro uncertainties, highlighting a combination of headwinds and tailwinds [5][22] - The company is actively engaging with the administration to ensure continued innovation while making medicines affordable [23] - Management believes there are significant disconnects between market expectations and the company's potential, particularly in new product launches [12][14] Other Important Information - The company has a strong track record of dividend increases for 63 consecutive years, reflecting its financial stability [9] - The company is committed to improving gross margins and has various efficiency programs in place [51][54] Q&A Session Summary Question: How does the company view the current macro environment and its impact? - Management expressed optimism about the biopharmaceutical and medical technology industries, noting the potential for innovation despite uncertainties [22] Question: What is the company's strategy regarding drug pricing reforms? - Management highlighted the need for dialogue with the administration to balance innovation and affordability in medicines [24][30] Question: Can you provide an update on the talc litigation? - The company is back in the tort system and is confident in its position, having won 16 out of 17 cases related to ovarian cancer [37][38] Question: What are the expectations for financial performance in 2025? - The company is guiding for organic sales growth of 2% to 3% and EPS growth of 5% to 7%, with optimism about pharmaceutical product performance [43] Question: How does the company plan to address competitive pressures in the med tech space? - Management emphasized a commitment to innovation in cardiac ablation and plans to enhance its product offerings in electrophysiology [56][65]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported net trade sales of approximately $369 million, representing a 135% year-over-year increase [9][17] - Total revenues reached $195 million, driven by a 137% year-over-year growth in collaboration revenue [21] - The adjusted net loss was EUR 27 million, significantly improved from an operating loss of EUR 118 million in the same period last year [21][22] Business Line Data and Key Metrics Changes - CARVICTI's U.S. net trade sales were $318 million, growing 127% year-over-year and 5% quarter-over-quarter [17] - The company has treated over 6,000 patients with CARVICTI, marking it as the strongest CAR T launch to date [10] - Out-of-U.S. (OUS) sales reached $51 million, more than double compared to the same period last year, driven by expansion in several countries [18] Market Data and Key Metrics Changes - In the U.S., more than half of CARVICTI's utilization is now in the earlier line setting, with a significant increase in physician preference for CARVICTI in early line multiple myeloma [10] - The company is expanding its market presence in Europe, with recent launches in Spain, the UK, Denmark, Belgium, and Israel [18] Company Strategy and Development Direction - The company aims to achieve operational breakeven for CARVICTI by the end of 2025 and overall profitability in 2026, excluding unrealized foreign exchange gains or losses [9][21] - The focus remains on building out pipeline programs and investing in research and development, particularly in in vivo CAR T delivery [12][13] - The company is also expanding manufacturing capacity in Belgium and New Jersey to meet increasing demand [14][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving FDA approval for the Raritan facility expansion and expects no delays in the approval process [32][46] - The company remains optimistic about its future, with a strong cash position of approximately $1 billion, allowing for continued investment in core differentiators [15][23] Other Important Information - The company has a 97% manufacturing success rate, which is considered the highest in the CAR T industry [19] - The gross margin on net product sales improved to 63%, up from 59% in the previous quarter [22] Q&A Session Summary Question: Price differences between U.S. and ex-U.S. - The price differential is approximately 30%, varying by country [28] Question: Raritan facility approval process - The company is confident in achieving FDA approval based on the CB30 pathway [32] Question: Pipeline asset updates - The first patient dosing for the in vivo CAR T platform is expected in June or July, with preliminary results anticipated by the end of the year [29] Question: Community penetration for CARVICTI - There is high demand for CARVICTI in earlier lines, and efforts are being made to educate community physicians [38] Question: Capacity expectations for Q2 - Modest growth is expected in Q2, with more significant growth anticipated in the latter half of the year [46] Question: High-risk patient definitions - High-risk patients are defined by cytogenetic factors, while functional high-risk patients progress quickly after frontline therapy [48] Question: Outpatient volume trends - Outpatient volume is expected to grow steadily, currently comprising over half of all CARVICTI treatments [93] Question: Community-based CAR T accreditation - Discussions are ongoing to provide a streamlined accreditation process for community centers [89]