Johnson & Johnson (JNJ) Q1 2017

Dominic Caruso – EVP and CFO

Acquisition of Actelion almost complete

“…we have had many positive developments concerning the steps needed to close the Actelion transaction and we expect to complete our acquisition of Actelion by the end of the second quarter. ”

Cost management bearing fruit

“Cost of goods sold decreased by 20 basis points, primarily due to manufacturing cost improvements which were partially offset by transactional currency impacts. Selling, marketing and administrative expenses were 26.6% of sales, or 20 basis points lower as compared to the first quarter of 2016 due to cost management.”

On taxation

“With respect to tax reform and what we expect to happen, I was actually just in Washington last week and one of the things that I think is very clear is that the House has a plan that they want to move forward which includes the border adjustment tax, that has not yet been adopted by the Senate, although everyone agrees that some innovation in the way jobs will be created in the U.S. is important and I would say the grand summary from my takeaway was that both the House and the Senate are waiting for guidance from the White House on whether they prefer the border adjustment tax or whether they have another vehicle that they would like to implement. And while everyone is waiting for that, things have in fact stalled…, but I am confident that we’re talking about the right things, we’re talking about a lower U.S. tax rate, we’re talking about a territorial system and we’re talking about some innovation and some incentive for job creation in the U.S.”

Price trends

“I would say no significant acceleration or change in the pricing dynamics that we’ve been seeing. So steady as she goes with respect to slightly negative price across the industry”