Johnson & Johnson (JNJ) TD Cowen 46th Annual Health Care Conference summary

Strategic overview and growth outlook

• Overcame major loss of exclusivity events, notably STELARA, with strong pharmaceutical and MedTech performance.

• Achieved close to 15% growth in pharmaceuticals excluding STELARA impact; MedTech growth now more predictable after key acquisitions.

• Orthopaedics business separation aligns portfolio toward higher growth and margin sectors.

• 2025 described as a 'catapult year' with a clear path to double-digit enterprise growth in coming years.

• Investor day planned for December to provide more specifics on growth drivers and underappreciated assets.

MedTech franchise strategy and innovation

• Focused on cardiovascular, surgery, and vision subsectors, with recent innovation in contact lenses and cataract surgery products.

• Strategic acquisitions (Abiomed, Shockwave) strengthened cardiovascular portfolio; ongoing innovation in electrophysiology and mapping systems.

• Launched new surgical robotics platform (OTTAVA) with FDA submission, emphasizing a careful, phased market entry.

• Robotics and digital ecosystem (Polyphony) expected to drive long-term growth, but not heavily relied upon for near-term double-digit targets.

• MedTech unit expected to accelerate growth post-orthopaedics separation, targeting high single-digit rates.

Portfolio management and M&A approach

• Portfolio optimization includes both large and small acquisitions, with $56 billion deployed over three years.

• M&A is opportunistic, focusing on strategic fit and leveraging unique capabilities, not driven by market timing.

• Orthopaedics separation adds growth and margin, with expectation that the business will perform better independently.

• Ongoing review of portfolio for potential further optimization, but current structure is favored for growth and margin.

• Smaller, earlier-stage deals are seen as future growth platforms, even if not immediately headline-grabbing.