Johnson and Johnson at JP Morgan Healthcare 2017 Notes

Alex Gorsky – Chairman and CEO

My plate has never been so full with new opportunities

“It starts really first of all which is science innovation, and I think by far the best part of my job is I get to sit in rooms all day long with a diverse array of some of the world’s best scientists seeing groundbreaking innovation across a number of different disciplines and domains from pharma to biotechnology to medical devices to consumer. And I can tell you never has my plate been so full with new opportunities, and it’s very different than from the ’90s when we were on the 17th PPI and I’m sure people in this room were wondering is pharma ever going to show a breakthrough.”

It’s not an accident

“Today, it’s just the opposite. It’s how are we ever going to make the right portfolio decisions. And look, I don’t think that’s an accident. I think it happened because the people in this room and the people in our industry have invested billions of dollars in understanding the genome and really understanding some of the underlying biology and pathophysiology of these conditions whether it’s in oncology, neuroscience, immunology. So I think it’s a very exciting time and I think it’s picking up. And what you see more and more is that while there’s one good opportunity, there may be five more opportunities the next day.”

clinical development, regulatory and reimbursement capabilities

” if a great opportunity presents itself, we’ve got a lot of clinical development capabilities, a lot of regulatory capabilities, a lot of reimbursement capabilities that we can put to bear on something that maybe an adjacency. So that’s the way we tend to think about it.”

Haven’t seen hospital volumes ever really rebound from the recession

” it was one of the first times really that we saw elasticity in demand in healthcare along with the more general economy, things really slowed down. We saw especially in medical devices, you saw most categories go from 6%, 7%, 8% growth rates down to 2%, 3% in a very short period of time. What we’ve seen since then is hospital volumes have not rebounded significantly. It’s been in the low-single digits as you know from the different data sources and that’s by the way in terms of hospital admissions, in-patient admissions, surgical procedures.”

There will be good things and bad things from corporate tax reform

“Now when we talk about change at first there’s a lot of enthusiasm for it and I think we should be and I think the overall outcome really has the potential to be positive. But we should also understand that there are going to be some things that all of us really like that are likely going to go away. There’s going to be other things that we don’t necessarily like that may be introduced as part of that. Based upon the conversations that we’ve had, the opportunity to go to more of a territorial-based system will result in us being much more competitive hopefully taking out some of the anomalies that cause us to do inversions, other factors that may result in us being less competitive. So I think that could be a very good thing.”