Johnson and Johnson at UBS Conference Notes

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Johnson & Johnson (JNJ) Management Presents at UBS Global Healthcare Brokers Conference

Sandra Peterson – EVP, Group Worldwide Chairman

Technology is an enabler but not going to change things by itself

“the way we think about it is that technology as an enabler, in and of itself it’s not going to change things. So I think you need to bring your expertise, which we have, as you all know, years and years of expertise of how you engage with consumers through our consumer portfolio, how you actually impact behavior change, but technology is an enabler for that. So I’ll use the surgery example again. We know that 70% of the cost of a planned surgery, whether it’s a knee or hip replacement, 70% of that cost actually happens post-surgery because the person doesn’t get up and get active and really get to their full productive self again as quickly as they should.”

Seen consolidation in hospitals and more physicians becoming employees of hospitals

“over the last couple years a significant amount of consolidation in hospitals, and that will probably continue. We’ve also seen that the physician, more and more physicians are becoming employees of the hospital than they have been in the past. And obviously given some of the changes with CMS and others, the requirements and demands on hospitals to demonstrate improved outcomes and improve patient satisfaction is also impacting how you go to market with hospitals.”

Have had to change the way we go to market

“And one of the things that we have done over the last 12 months is we’ve really changed the way in which we go to market, particularly in the US, but also globally with hospitals. We’ve consolidated and really created an organization that has clear line of sight working with individual hospitals.”

It’s analogous to what happened in the consumer business already

“It’s a little bit analogous to what happened in the consumer business 10 or 15 years ago, when there was a massive amount of consolidation of retail chains around the – in the United States and now globally, where we as a consumer business used to have four different consumer businesses, we now have one, and we have one point of contact that does strategic account management, joint strategic planning with those accounts. We’re now doing that on the hospital side. And given our breadth and depth in the hospitals today, we believe that we have scale to be able to do that.”