Johnson & Johnson 4Q15 Earnings Call Notes

Johnson & Johnson (JNJ) Alex Gorsky on Q4 2015 Results

Medical devices and prescription drugs represent 18% of total healthcare costs

“Here in the United States, prescription drugs represent approximately 12% of total healthcare costs and medical devices represent around 6%.”

Last year M&A was premium priced. Today we see a number of opportunities

“As we reflect back on 2015 we realize that the market was premium priced. We remained very active in a number of different areas. And while we didn’t necessarily close on a larger deal, I would not assume that we were not engaged and involved. But at the same time, we think it’s really important for you, our shareholders, as you think about long-term returns, that we stay at the appropriate level of discipline and decisiveness as we go through that process. As we look at the environment today, we see a number of opportunities across the Consumer, the Medical Devices, and the Pharmaceutical groups. We’re going to remain very active.’

Overall we see a positive trend in med tech markets

“Look, I think what we would say overall is we continue to see let’s say a slightly increasing positive trend. So we saw hospital admissions I believe up around 2%. We saw surgical procedures up a little over 1% in the U.S. That’s the most recent data that we have.”

Dominic J. Caruso – Vice President, Finance and Chief Financial Officer

Did see a slowdown in China, but we’re optimistic

And on China, just a couple comments. That China, we did see a slowdown in China primarily in the Consumer business, because both Medical Devices and Pharma businesses still had high single digit growth in China. And we’re optimistic about China going into 2016. Our plans are for improved growth in China in 2016.