Johnson & Johnson (JNJ) Wells Fargo 21st Annual Healthcare Conference summary

Strategic transformation and growth outlook

• Confidently tracking at the high end of 5%-7% operational growth for MedTech from 2022 through 2027, driven by a shift into higher-growth markets and a new business unit operating model.

• Portfolio focus sharpened on cardiovascular, surgery, and vision, with the separation of orthopedics enabling greater capital allocation to these areas.

• Cardiovascular has become the largest and fastest-growing MedTech segment, bolstered by acquisitions like Abiomed and Shockwave, and is expected to lead growth by early 2025.

• Ongoing transformation includes a robust pipeline of differentiated innovation, such as OTTAVA in surgical robotics, expected to materially contribute by the end of the decade.

• Confident in delivering on 2026 commitments and projecting 2027 to be even stronger, supported by a focused portfolio and operational changes.

Market environment and headwinds

• Procedure volumes remain robust across segments, with no evidence of slowdown, including in orthopedics, despite competitor signals.

• Geopolitical headwinds, particularly in the Middle East, are causing some unpredictability due to both healthcare provision and investment shifts.

• Competitive intensity is lingering longer than expected, especially in electrophysiology (EP), with notable challenges outside the U.S. and anticipated cost pressures from volume-based procurement in China.

• The company is committed to maintaining leadership in EP through a pipeline of new PFA catheters and leveraging its established CARTO mapping platform.

• Abiomed's performance was impacted by the BCIS3 trial, but recovery is expected as new evidence and education initiatives are implemented, with the PROTECT IV study set to report in 2027.

Innovation and portfolio management

• OTTAVA surgical robot received FDA approval, with strong early feedback from surgeons and health systems due to its differentiated architecture and workflow benefits.

• Contact lens business has rebounded, especially in Asia-Pacific, and is expected to continue growing due to unmet needs and premium innovations.

• U.S. vision surgical business was soft but is expected to improve with the launch of PureSee, a new premium IOL, and further portfolio enhancements.

• Orthopedics separation is targeted for mid-2027, with the mode of separation to be determined by year-end, focusing on value creation rather than structure.

• M&A strategy remains disciplined, targeting high-growth, differentiated innovation areas, as exemplified by the Shockwave acquisition.