J&J(JNJ) - 2025 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - The medical technology market is described as strong and resilient, driven by an aging population and continued access to care globally [5] - The company has performed over 30,000 cases with its Varipulse catheter since its relaunch, indicating strong momentum [22] Business Line Data and Key Metrics Changes - The company focuses on three core areas in its medtech business: cardiovascular, surgery, and vision, with significant investments in cardiovascular through acquisitions like Abiomed and Shockwave [6] - The CARTO system is a key strength in electrophysiology, with over 5,000 systems distributed worldwide [10][11] Market Data and Key Metrics Changes - In the U.S., approximately 70% of atrial fibrillation procedures have transitioned to pulsed field ablation (PFA), while the international market is lagging behind [31][32] - The company is launching Varipulse in multiple international markets, including China, Japan, and Europe, indicating a strategic push to expand its global footprint [65] Company Strategy and Development Direction - The company is committed to a super cycle of innovation, with plans for two major mapping releases per year and a new generation CARTO system [76] - The company is developing new materials science that will change the physics of ablation, indicating a focus on advanced technology and innovation [78][82] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in the safety and efficacy of Varipulse, with a focus on building additional evidence and momentum in the U.S. market [23][37] - The management acknowledges the competitive landscape in electrophysiology, noting the need for continuous innovation to maintain market leadership [76] Other Important Information - The company is expanding its neurovascular portfolio with new products like the Cereglide aspiration catheters and exploring new use cases for existing products like TRUFILL [66][67] - The integration of acquired companies like Abiomed and Shockwave has been successful, with key talent retained and ongoing development of next-generation products [71][72] Q&A Session All Questions and Answers Question: How do you think about the health of the medical technology market? - The market is strong and resilient, driven by an aging population and access to care [5] Question: What are the strengths and weaknesses of J&J's electrophysiology franchises? - The company is a clear leader in electrophysiology, anchored by the CARTO system, which provides a comprehensive ecosystem for cardiac procedures [7] Question: What is the uptake of the Varipulse catheter since its relaunch? - Over 30,000 cases have been performed, with strong momentum building week over week [22] Question: What percentage of the market has transitioned to PFA in the U.S.? - Approximately 70% of atrial fibrillation procedures have transitioned to PFA [31] Question: How does the company plan to bring new technology into other regions? - The company has a strong network in Europe and Asia, rapidly launching technologies in those markets [65]