Financial Data and Key Metrics Changes - In Q3 2025, worldwide sales reached $24 billion, reflecting a 5.4% increase despite a 640 basis point headwind from Stelara [22][23] - Net earnings were $5.2 billion, with diluted earnings per share of $2.12, compared to $1.11 a year ago, marking a significant increase [22][23] - Adjusted net earnings for the quarter were $6.8 billion, with adjusted diluted earnings per share of $2.00, representing a 15.7% increase compared to Q3 2024 [22][23] Business Line Data and Key Metrics Changes - Innovative Medicine reported worldwide sales of $15.6 billion, increasing by 5.3% despite a 1,070 basis point headwind from Stelara [23][24] - In oncology, Darzalex sales grew by 19.9%, while Carvykti achieved sales of $524 million with an 81.4% growth [24] - Tremfya in Immunology delivered strong growth of 40.1%, while Spravato in neuroscience grew by 60.8% [25][15] - MedTech sales reached $8.4 billion, increasing by 5.6%, driven by strong performance in cardiovascular and vision segments [26][27] Market Data and Key Metrics Changes - U.S. sales growth was 6.2%, while international sales grew by 4.4% [22] - In cardiovascular, operational sales increased by approximately 12%, with Shockwave's technology supporting over 1 million patients [15][16] - Vision segment grew more than 6%, with TECNIS intraocular lenses being the fastest growing in the market [18] Company Strategy and Development Direction - The planned separation of the orthopedics business aims to sharpen focus on high-growth areas and enhance market leadership [19][20] - Johnson & Johnson is committed to investing in six core growth areas: oncology, immunology, neuroscience, cardiovascular surgery, and vision [21] - The company is focused on innovation and expanding its portfolio through strategic acquisitions, such as Intra-Cellular Therapies [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, emphasizing strong performance despite the loss of exclusivity for Stelara [33][34] - The company anticipates continued growth in Innovative Medicine and MedTech, with a focus on high-margin markets [34][40] - Future guidance for 2025 has been increased, projecting operational sales growth of 4.8% to 5.3% [40][41] Other Important Information - The effective tax rate for the quarter was 31.2%, up from 19.3% in the previous year, primarily due to a one-time remeasurement of deferred tax balances [30] - The company plans to invest $55 billion in U.S.-based innovation and manufacturing over the next four years [42][66] Q&A Session Summary Question: Why is the orthopedic spin-out happening now, and will there be similar separations for other divisions? - Management indicated that the orthopedic separation is a strategic move to prioritize breakthrough innovation and focus on high-growth markets [49][50] Question: What are the expectations for margins post-orthopedic spin-out? - Management acknowledged that while initial margin improvements may be modest, they expect stronger growth profiles and margin enhancements over time [56][57] Question: How will capital allocation priorities balance between Innovative Medicine and MedTech? - Management emphasized that capital allocation will focus on significant opportunities within the pipeline, with a strong commitment to both Innovative Medicine and MedTech growth [74][76]

Core Insights - The recent clinical data presented at the European Society of Cardiology Congress indicates that the routine use of Impella CP in patients with heart attack and cardiogenic shock leads to a significant absolute mortality reduction of 16.3% over a period of up to 10 years compared to standard care [1][4] - Patients using Impella CP gained an average of 600 additional days alive when compared to the control group at the 10-year mark [1][4] - The survival benefit of Impella CP has been confirmed to increase year-over-year, validating the findings from the original DanGer Shock randomized controlled trial [2][3] Company and Product Insights - Impella CP is recognized as the first mechanical circulatory support device proven in a randomized controlled trial to provide both short-term and long-term survival benefits for patients experiencing cardiogenic shock due to ST-elevation myocardial infarction (STEMI) [4] - The American College of Cardiology and American Heart Association have upgraded Impella to a class 2a guideline based on the original trial data presented in May 2024 [4] - Approximately 750,000 individuals in the United States experience STEMI annually, with an incidence rate of cardiogenic shock in these patients reaching up to 10% [5] Technology and Market Position - Impella is described as the world's smallest heart pump, designed to temporarily take over the heart's pumping function, allowing the heart to rest and recover while ensuring the flow of oxygenated blood throughout the body [6] - Johnson & Johnson MedTech is committed to addressing significant health challenges through its cardiovascular portfolio, which includes advanced technologies for heart recovery and circulatory restoration [7] - The company positions itself as a leader in treating heart rhythm disorders and is focused on innovations that can profoundly impact global health, particularly in heart failure and stroke [8]

Core Insights - The article discusses the recent leadership changes at Johnson & Johnson (J&J) and GE Healthcare in China, highlighting the structural shifts in multinational companies' strategies in the region [2][17] - It emphasizes the importance of local talent in driving digital transformation and localization strategies within the medical device industry [18] Leadership Changes - J&J's Chief Digital Officer, Dai Ying, announced his departure effective June 30, 2025, after over three years in the role, with Joanna Wan temporarily taking over [1][16] - The article notes that since 2024, J&J has seen frequent changes in its Chinese executive team, including the resignation of former China President Song Weiqun, who was succeeded by Edward Zhou [1][2] - GE Healthcare is also undergoing leadership transitions, with Zhang Yihao retiring and being replaced by Song Weiqun [1][2] Dai Ying's Career Trajectory - Dai Ying spent 24 years at GE Healthcare, where he led localization strategies and digital tool implementations in China [4][6] - His roles included positions in engineering, supply chain, and innovation, culminating in his role as Vice President and Chief Innovation Officer [5][6] J&J's Q1 2025 Performance - J&J's medical technology sales reached $8.02 billion in Q1 2025, a 2.5% increase year-over-year, driven by products from Abiomed, Shockwave, and Vision [7] - The orthopedic segment reported sales of $2.241 billion, a 4.2% increase, while surgical sales were $2.396 billion, up 0.8% [10] - Cardiovascular sales reached $2.103 billion, showing a significant growth of 16.4% [13] Digital Transformation Initiatives - J&J is focusing on integrating AI-assisted diagnostic tools and remote patient management systems into its core business lines from 2023 to 2025 [12] - The Ottava™ surgical robot system is a key project, with Dai Ying playing a crucial role in its preparation for the Chinese market [14][15] Industry Observations - The article highlights the shift from a "global replication" model to a "local deconstruction" approach in multinational companies operating in China, emphasizing the need for local insights and coordination [18] - The departure of key strategic personnel can significantly impact project continuity and execution efficiency, making talent retention a critical challenge for companies like J&J [18]