Johnson and Johnson 2Q17 Earnings Call Notes

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Alex Gorsky

We’re pleased that the admin is listening to business leaders

“First in terms of our interactions with the US Administration, we’re pleased that senior officials are continuing to listen to business leaders, when considering the impacts of legislation and we’ll continue to participate in these conversations as well as those with other world leaders to make sure our voices are heard on these vital issues. In fact, I’m here in Washington DC today meeting with U.S. and global leaders driving forward discussions on the important issues impacting healthcare today. On the topic of Healthcare Reform, we continue to support initiatives that expand access to affordable healthcare and improve long-term sustainability of the U.S. healthcare system.”

Monitoring AHCA

“We’ve been monitoring the ongoing development of the AHCA with great interest and think that as our political leaders bring the new healthcare bills through Congress, it is important that they consider how these efforts will ensure stability within the system, while enhancing the competitive market and fostering continued innovation for new treatments and cures.”

Pharma pricing thoughts

“In terms of the potential Executive Order on pharmaceutical pricing, we understand the concern about the cost of healthcare and believe we have a responsibility to ensure our products are both assessable and representative of the outcomes and value they deliver. We recognize the important role pharmaceutical drugs play in improving healthcare outcomes. We know these medicines represent only about 15% of overall healthcare spending as they also represent a critical component of effectiveness and efficiency in the healthcare system. As we note in our 2017 Janssen US Transparency Report, we’ve maintained a responsible approach to pharmaceutical pricing, generally limiting our aggregate annual price increase to single-digit percentages below those of our competitive set. We’ll continue working with all our stakeholders to ensure sustainable future for America’s healthcare ecosystem.”

Tax code disadvantages US companies

“Finally, while we remain optimistic that there are opportunities from modernization of the corporate tax code in the near future, we’ll continue to monitor any developments or progress as Congress prioritizes this among other pressing needs. As we said before, we believe fundamental elements of our current tax system are outdated and disadvantaged U.S. companies against our international competitors who have reduced tax rates, domestic-only taxation and have incentives for innovation and investments.”