Johnson & Johnson (JNJ) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Growth outlook and performance

• Confident in achieving over 3% growth in 2025 and 5–7% annual growth in innovative medicine from 2025–2030, supported by strong 2024 results and robust performance in multiple franchises.

• Innovative medicine growth in 2024 driven by multiple myeloma, prostate cancer, neuroscience, and pulmonary arterial hypertension franchises.

• Key 2025 growth drivers include the launch of Rybrevant plus Lazcluze for EGFR-mutated lung cancer and anticipated approval of Tremfya in IBD.

• MedTech growth supported by vision franchise launches, cardiovascular approvals, and expansion in orthopedics and robotics.

• Margin growth expected to be commensurate with revenue, with periods of tempered margins due to product mix and investments, followed by expansion post-Stelara biosimilar entry.

M&A and innovation strategy

• Invested $18 billion in M&A in the first half of 2024, acquiring assets in both MedTech and innovative medicine, with a focus on early-stage and bolt-on deals.

• M&A criteria include strategic fit, scientific differentiation, and financial discipline, with a preference for areas where established capabilities exist.

• Open to differentiated obesity assets if they offer clear scientific advantages; not interested in me-too products.

• Ongoing exploration in psychiatry and metabolic disease, leveraging expertise in brain pharmacology and patient needs.

Regulatory and market environment

• IRA (Inflation Reduction Act) seen as negative for innovation and R&D investment, with its impact already embedded in revenue guidance.

• Adapting development strategy by pursuing multiple parallel indications and innovative delivery methods to mitigate IRA impact.

• Oncology and small molecule development particularly challenged by IRA, affecting investment decisions.