Johnson & Johnson Morgan Stanley 24th Annual Global Healthcare Conference

Yeah, thank you. There's been a lot of progress in Johnson & Johnson since 2023. First, we have a more focused portfolio today. We have three focus areas in Innovative Medicine, oncology, immunology, and neuroscience, and then three focus areas also in MedTech, vision, surgery, and cardiovascular. I think we have a very well-balanced portfolio that has a mix of innovation and growth that is driving a new cycle of accelerated growth for Johnson & Johnson. Since 2023, we have done what we said we were going to do. We said we were going to be able to grow through the STELARA biosimilar entry, and that's what we are doing. We did it in 2025, and we are also doing it in 2026.

In both quarters, in Q1 and Q2, we were able to beat analyst expectations in top and bottom line, and also to raise our guidance. Our guidance today for 2026 is 6.5% adjusted operational sales growth and 7.3% adjusted EPS growth. For the first time for the company, we're going to be ahead of $100 billion in total revenue. We also have said, and we said that in 2023, that this was going to be the beginning of a cycle of growth, and we see 2027 being a better year than 2026, and we have line of sight to double-digit growth by the end of the decade for total Johnson & Johnson. Together, combined, due to our existing portfolio, the new product launches, our pipeline, I believe today, Johnson & Johnson has one of the cleanest growth stories in our sector.

Thank you. We are looking forward to that. We do it every 3 years, so it is an important event. There are 2 main topics that we plan to cover there. One is providing more granularity to double-digit growth by the end of the decade, which is a frequent question that we get from investors. We will provide more granularity on the state of our portfolio, our new product launches, and also our pipeline. The second one is going to give you more confidence on the durability of our growth beyond 2030. We will provide more information on our earlier-stage pipeline in order to be able to give you more confidence that this cycle of growth is going to continue, is going to be durable into the next decade.

Okay. Looking forward. Maybe the preview on that, if you just look at our pipeline with molecules that have achieved POC, they are now in Phase III, de-risked, and moving forward.

There are 12 molecules that have those criteria in the pipeline today. We will give some insights into what we see as the opportunities there. On top of right now, in addition to DARZALEX, our top medicine right now, we have 10 in-market medicines that are still pretty early in their life cycle journeys and growing robustly.

Yeah. Compared to 2025, 2026 has been a more stable year from a policy perspective. I think we will agree all in that. It is likely that things may up before or after the midterms, although I do not see pharmaceutical pricing as the core theme of this election. I think all of you know that there are other topics that are more discussed than pharmaceutical pricing. I believe the things connected with affordability of medicines have been well-addressed with some of the changes that have been done in Medicare Part D that have addressed some of the tension that existed before. I do not anticipate that the midterms are going to create significant noise from a policy perspective, although there is always something going on in this space, but I do not think there is going to be anything that is going to constitute a major change.

Things may change again into 2028, as we may have different changes there. But as far as the midterms go, I think that you may see some different ideas, but I do not believe that pharmaceutical pricing and affordability is going to be one of the main topics going into this election.

A number of factors there. First, we have a strong balance sheet. We are only of one or two companies that have AAA credit rating, and we are proud of that because it's a reflection of our financial discipline. We are not married to that, but it's a reflection of the strength of our balance sheet and our financial discipline. Our cash flow generation is strong, and we foresee that cash flow generation even becoming stronger as we accelerate growth into the rest of the decade, because that will come with also improved margins. We are optimistic at our cash flow generation, which is at the basis of us being able to do M&A. When it comes to our capital allocation priorities, number one now is to fund our new product launches.

We are at the early innings of a number of new product launches, both in MedTech, and in Johnson & Johnson Innovative Medicine. Some of them, I'm sure we will discuss. Some of them are icotrokinra, our oral IL-23 peptide. We are launching also Inlexzo, our intravesical drug release system for bladder cancer. We are launching RYBREVANT in lung cancer and pretty soon in head and neck cancer. We are planning to launch nipocalimab, our FcRn inhibitor, also in some rheumatological indications. We just had the approval of our soft tissue robotic system, OTTAVA. We have a number of new catheters in electrophysiology that we plan to launch, in the U.S. and globally. The number one goal is to actually resource our new product launches, which are core to the cycle of growth that we want to deliver. Number two is to resource our pipeline.