Q1 2025 Johnson & Johnson Earnings Call Transcript
Key Points
- Johnson & Johnson (JNJ) delivered strong operational sales growth of 4.2% in Q1 2025, despite headwinds from STELARA's loss of exclusivity.
- The company's Innovative Medicine sector achieved 4.2% operational sales growth, with 11 key brands growing double digits.
- MedTech sector showed 4.1% operational sales growth, driven by strong performance in cardiovascular businesses and surgical vision.
- Johnson & Johnson (JNJ) announced a commitment to invest over $55 billion in the US over the next four years, enhancing manufacturing and R&D capabilities.
- The company increased its dividend for the 63rd consecutive year, reflecting its commitment to returning capital to shareholders.
- STELARA faced an approximate 810 basis points headwind due to biosimilar competition, impacting overall sales growth.
- Gross margins were below recent trends, affected by the loss of exclusivity for STELARA and Part D redesign.
- The orthopedic segment experienced a decline of 3.1%, impacted by competitive pressures and one-time events.
- Tariffs, particularly those related to China, are expected to have a significant impact on costs, with a $400 million impact anticipated in 2025.
- The company faces ongoing litigation challenges related to the Talc bankruptcy ruling, which could impact future financial performance.
Good morning and welcome to Johnson & Johnson's first quarter 2025 earnings conference call. (Operator Instructions) I now turn the conference call over to Johnson & Johnson. You may begin.
Hello, everyone. This is Jessica Moore, Vice President of Investor Relations for Johnson & Johnson. Welcome to our company's review of business results for the first quarter of 2025, and our updated financial outlook.
A few logistics before we get into the details. As a reminder, you can find additional materials, including today's presentation and associated schedules on the Investor Relations section of the Johnson & Johnson website at investor.jnj.com.
Please note that this presentation contains forward-looking statements regarding among other things the company's future operating and financial performance, market position, and business strategy. You are cautioned not to rely on these forward-looking statements, which are based on the current expectations of
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