Johnson & Johnson

Good morning and welcome to Johnson & Johnson's second quarter 2022 earnings conference call. All participants will be in a 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 an operator. I would now like to turn the conference call over to Johnson & Johnson. You may begin.

Please note that today's meeting may include forward-looking statements relating to, among other things, the company's future financial performance, product development, market position and business strategy, and the anticipated separation of the company's consumer health business. You're cautioned not to rely on these statements, which are based on current expectations of future events, using the information available as of today's date, and are subject to certain risks and uncertainties 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. A further description of these risks, uncertainties, and other factors can be found in our SEC filings, including our 2021 Form 10-K, which is available at investor.jnj.com and on the SEC's website. Additionally, several of the products and compounds discussed today are being developed in collaboration with strategic partners or licensed from other companies. These slides acknowledge those relationships.

Good morning, everyone. This is Joaquin Duato, Chief Executive Officer of Johnson & Johnson. Thanks for joining us today. I am accompanied by Joe Wok and Jessica Moore, and we have the privilege to share our second quarter financial results and answer questions you have regarding Johnson & Johnson's business. During my first six months as CEO, I have had the opportunity to reconnect in person with colleagues, customers, and stakeholders around the world. These conversations have energized me about the future of Johnson & Johnson. They have also made clear the critical role our company plays as a leader in bringing innovative healthcare solutions to patients and customers both today and long into the future. And they further validated that the three strategic priorities I outlined earlier this year will continue to guide us in 2022 as we deliver on our mission to transform the future of human health. Let me remind you of those priorities. First, we will continue to advance our industry-leading success in pharmaceuticals, by delivering the innovative pipeline we highlighted at our pharmaceutical business review last November. This includes our goal to grow this sector to $60 billion by 2025, with growth in every year, including years facing the Stellara loss of exclusivity and continuing to deliver above-market compounded annual growth of at least 5%. In the second quarter, we saw evidence of this plan coming to fruition with the launch of CARBICTI in April. And in May, we received conditional marketing authorization in Europe. In addition, Talquetamab was granted FDA breakthrough therapy designation in June. I have great confidence in the strength of our current portfolio, which remains underappreciated and in our robust pipeline to meet our long-term goals and to deliver transformational medicines that help improve and save lives. Our second priority, continue to strengthen our performance in medtech. Over the past several years, this acceleration in performance has been driven by the delivery of differentiated solutions as well as improved commercial execution. We expect this improvement to continue enabled by our innovative pipeline as well as the potential for expansion into higher growth market segments. Currently, 11 MedTech platforms each deliver over $1 billion in revenue annually. And based on the most recent results, we are gaining or holding share in nearly all of these. With the positive momentum in this business and our improvement in competitiveness, MedTech has delivered 6% adjusted operational growth in the first half of 2022. We believe medtech will continue to be a significant source of value for our investors and our stakeholders. Third, we are separating our consumer health business to create two market-leading stand-alone companies. This separation can be a significant opportunity for value creation. The two new global entities will be well positioned to thrive in their respective markets and drive greater strategic and financial success. We are making excellent progress and remain on track to complete the separation in 2023. In the second quarter, we announced the global leadership team for the new consumer health organization led by Thibault Mongon, a CEO designate, and Paul Roux, a CFO designate. Having worked with both Thibault and Paul for many years, I'm confident we have selected the right leadership team to lead the new consumer health company in its next chapter. The new Johnson & Johnson, comprising our pharmaceutical and medtech businesses, will remain the largest, most diversified healthcare product company in the world, with over $80 billion in sales. With enhanced operational focus, the new Johnson & Johnson will be poised to bring integrated, comprehensive, disease-centric technology and innovative solutions to enhance patient care. Our balance sheet will remain strong, allowing us to pursue both organic and inorganic opportunities in higher growth markets across both segments, while maintaining our strong dividend distribution. With these clear priorities in place, we are confident in our ability to execute on both our short-term and long-term objectives. We are very pleased to have delivered solid sales and earnings growth through the first half of 2022, reporting adjusted operational sales and EPS growth of 8% and 8.5% respectively. Joe and Jess will share details reflecting above-market adjusted operational sales growth from pharmaceuticals and continued resiliency in both medtech and consumer health, results that stand out given the current global macroeconomic challenges. We are well positioned across the globe to sustain our leadership position in healthcare. We aspire to accelerate growth while maintaining the diversification in our business and our discipline around capital allocation, which have been foundational to our success for over the past 135 years. I look forward to addressing your questions soon, but for now, I will turn the call over to Jessica Moore to discuss those details. Yes.