Johnson & Johnson

Good morning. Welcome to Johnson & Johnson's fourth quarter 2020 earnings conference call. All participants will be in listen-only mode until the question and answer session of the conference. This call is being recorded. If anyone has any objections, you may disconnect at this time. If you experience technical difficulties during the conference, you may press star zero to reach the operator. I would now like to turn the call over to Johnson & Johnson. You may begin.

Good morning. This is Chris DeLorphis, Vice President of Investor Relations for Johnson & Johnson. Welcome to our company's review of business results for the fourth quarter and full year of 2020 and our financial outlook for 2021. Joining me on today's call are Alex Gorski, Chairman of the Board of Directors and Chief Executive Officer, and Joe Wolk, Executive Vice President, Chief Financial Officer. A few logistics before we get into the details. This review is being made available via webcast, accessible through the investor relations section of the Johnson & Johnson website at investor.jnj.com, where you can also find additional materials, including today's presentation and associated schedules. Please note that today's presentation includes forward-looking statements. We encourage you to review the cautionary statement included in today's presentation which identifies certain risks and factors that may cause the company's actual results to differ materially from those projected. In particular, there is significant uncertainty about the duration and contemplated impact of the COVID-19 pandemic. This means the results could change at any time, and the contemplated impact of COVID-19 on the company's business results and outlook is a best estimate based on the information available as of today's date. A further description of these risks, uncertainties, and other factors can be found in our SEC filings, including our 2019 Form 10-K and subsequent Form 10-Qs, along with reconciliations of the non-GAAP financial measures utilized for today's discussion to the most comparable GAAP measures are also available at investor.jnj.com. Several of the products and compounds discussed today are being developed in collaboration with strategic partners or licensed from other companies. This slide acknowledges those relationships. Moving to today's agenda, Alex will provide perspective on our overall results and business highlights for the year. I will review the fourth quarter sales and P&L results for the corporation and the three business segments. Joe will conclude by providing insights about our cash position, capital allocation deployment, and our guidance for 2021. The remaining time will be available for your questions. We anticipate the webcast will last up to 90 minutes. I will now turn the call over to Alex to share our overall results and business highlights.

Thank you, Chris, and thank you, everyone, for taking time to join us today to discuss our full year 2020 results and outlook for 2021. At the start of last year, no one could have imagined just how drastically our lives were about to change because of a virus that would impact billions of people around the world. By any measure, 2020 was a year dominated by uncertainty. Yet the pandemic also helped to clarify both our priorities and our values. And within Johnson & Johnson, it has illustrated the power and importance of our credo in guiding our actions to meet the needs of all our stakeholders. Now, because of COVID-19, we now have a deeper appreciation of just how pivotal good health is to our safety, security, and prosperity as a society. We have a profound respect and gratitude for all the doctors, nurses, and hospital staff serving on the front lines of care, for the everyday heroism of the essential workers who show up every day to keep the world's critical infrastructure up and running. and expectations that companies can and should help drive positive change in the society are higher than ever. As the world's largest and most broadly based global healthcare company, Johnson & Johnson was built for times like these. We've been leading to the world's biggest public health challenges for over a century, and today our diversified businesses touch so many parts of people's lives. we had both the ability and the responsibility to act when the COVID-19 outbreak turned into a global pandemic. Within weeks of the DNA sequencing of the COVID-19 virus, chancellors and scientists were working 24-7 to identify the most promising lead candidate for a vaccine. I'm proud of the progress of our COVID-19 vaccine candidate and the fact that we moved so quickly while maintaining the highest level of science and safety standards. This is truly a remarkable accomplishment and a testament to the ingenuity and determination of our vaccine and supply chain teams. We look forward to sharing further details from our phase three study by early next week. Additionally, I'm just as proud of the ways each of my Johnson & Johnson colleagues have gone above and beyond the call of duty to provide uninterrupted access to our medicines, embrace radically new ways of working, and use the full breadth and depth of our expertise to deliver our important medicines and products to patients and consumers and support healthcare systems that have been overwhelmed by the pandemic. The fact that we've been able to not just weather this crisis, but bring our broad-based capabilities to support this crisis and deliver on our shorter-term top and bottom line business goals while increasing our investments in innovation to record levels is a remarkable testament to our purpose-driven culture and the core strengths that have characterized our company for over a century, execution, innovation, and people. Our relentless focus on excellence in execution is key to meeting the needs of all our stakeholders today and tomorrow. The performance of our business in 2020 reflects the continued confidence from patients, physicians, customers, and consumers in our lifesaving medicines and products. Our pharmaceutical business performed well above market, kept pipeline submissions and approvals on track, and exceeded patient enrollment in clinical trials compared to 2019. Our consumer health business also performed above market for the year, and our medical devices business demonstrated resiliency and agility, leading to a strong second half recovery. Our unparalleled scientific expertise allows us to create life-enhancing innovation. Our R&D colleagues across Johnson & Johnson have continued to advance our robust pipeline of innovative and transformational new products. Of note, we initiated our U.S. filing for our BCMA CAR-T and multiple myeloma in December. In addition, we filed amivatinab for the treatment of exon 20 mutations in non-small cell lung cancer in the U.S. and Europe. Our medical device business has made strong progress advancing our pipeline despite the pandemic, achieving and even accelerating certainty milestones throughout the year. As you heard from Ashley, Dr. Moll and the team at the Medical Device Update November, we are developing an end-to-end digital ecosystem across three robotics platforms, and we achieved a significant milestone this month, receiving FDA clearance for our VELUS robotic-assisted solution. We believe the industry is just starting to unlock the full potential and benefits of robotic and digital technologies. Johnson & Johnson is well-positioned to bring innovative, differentiated solutions to the surgery suite over the next 10, 20, and 30 years. I'm also very proud of the great work of our supply chain colleagues in driving improvements and efficiencies over the past year. Gartner even honored Johnson & Johnson with a number three ranking across all industries on its annual 2020 Supply Chain Top 25 Index. That's up five spots from our 2019 ranking. Gartner also awarded Johnson & Johnson the number one spot on the 2020 healthcare supply chain top 25, citing our commitment to continuous improvement while putting innovation into practice, particularly in our response to the COVID-19 pandemic. And finally, we are powered by our people, purpose, and value system. More than 75 years since it was authored, our credo continues to guide all 135,000 of us at Johnson & Johnson. And with that in mind, I want to highlight a recent appointment to our Board of Directors, an incredibly high honor awarded to one of our own directors. In December, Johnson & Johnson appointed retired U.S. Army Lieutenant General and former U.S. Army Surgeon General Dr. Nadia West to our Board of Directors. Dr. West's accomplished healthcare background, in addition to her deep strategic leadership experience, are strong additions to our board of directors. In October, Johnson & Johnson Board Director, Dr. Jennifer Doudna, along with her colleague, Dr. Emmanuelle Charpentier, was awarded the 2020 Nobel Prize in Chemistry for the revolutionary discovery of CRISPR-Cas9 gene editing technology, considered to be one of the most significant breakthroughs in molecular biology in the past decade. We are truly proud of our recognition for this incredible work. Our commitment to diversity, equity, and inclusion in both our workforce and the communities in which we serve has always been an important part of our culture. However, the past year has also shown a spotlight on the fact that we can all do more. To that end, I am proud of our Race to Health Equity platform launched in November. Our Race to Health Equity aims to help improve racial equity by eliminating health inequities for people of color and our $100 million commitment to invest in and promote health equity. I'm excited to be part of this progress and for Johnson & Johnson to play a part in impactful, lasting change. And most importantly, the talented and committed people at Johnson & Johnson drive our success by putting the patients and consumers we serve around the world at the forefront of all we do. We thank and rely on them to continue to innovate, execute, and focus on our shared purpose to deliver better health for everyone, everywhere. I look forward to addressing your questions during the Q&A portion of the webcast. Right now, I'll turn the call over to Chris to share details related to our performance for the quarter. Thank you.