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`Johnson & Johnson (JNJ) CEO Discusses Q2 2013 Results - Earnings Call Transcript | Seeking Alpha
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`Johnson & Johnson (JNJ) CEO Discusses Q2 2013 Results - Earnings
`Call Transcript
`
`Jul. 16, 2013 2:46 PM ET1 comment
`by: SA Transcripts
`
`Johnson & Johnson (NYSE:JNJ)
`
`Q2 2013 Earnings Call
`
`Jul 16, 2013, 8:30 am ET
`
`Executives
`
`Louise Mehrotra - Vice President, Investor Relations
`
`Alex Gorsky - Chairman of the Board, Chief Executive Officer
`
`Sandra Peterson - Group Worldwide Chairman
`
`Dominic Caruso - Chief Financial Officer, Vice President - Finance
`
`Analysts
`
`Mike Weinstein - JPMorgan
`
`Rajeev Jashnani - UBS
`
`Matthew Dodds - Citigroup
`
`Kristen Stewart - Deutsche Bank
`
`Larry Biegelsen - Wells Fargo
`
`Derrick Sung - Sanford Bernstein
`
`Jami Rubin - Goldman Sachs
`
`Danielle Antalffy - Leerink Swann
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`JANSSEN EXHIBIT 2140
`Wockhardt v. Janssen IPR2016-01582
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`Johnson & Johnson (JNJ) CEO Discusses Q2 2013 Results - Earnings Call Transcript | Seeking Alpha
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`Tony Butler - Barclays Capital
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`Glenn Navarro - RBC Capital Markets
`
`Matt Miksic - Piper Jaffray
`
`Jeff Holford - Jefferies
`
`Bob Hopkins - Bank of America Merrill Lynch
`
`David Lewis - Morgan Stanley
`
`Operator
`
`Good morning, and welcome to the Johnson & Johnson second quarter 2013 earnings
`conference call. All participants will be able to listen-only 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. (Operator Instructions).
`
`I will now turn the call over to Johnson & Johnson. You may begin.
`
`Louise Mehrotra
`
`Good morning and welcome. I am Louise Mehrotra, Vice President of Investor Relations
`for Johnson & Johnson and it is my pleasure this morning to review our business results
`for the second quarter of 2013. Joining me on the call today are Alex Gorsky, Chairman of
`the Board and Chief Executive Officer and Sandy Peterson, Group Worldwide Chairman
`and Dominic Caruso, Vice President Finance and Chief Financial Officer.
`
`A few logistics before we get into the details. This review is being made available to a
`broader audience via a webcast accessible through the Investor Relations section of the
`Johnson & Johnson website. I will begin by briefly reviewing highlights of the second
`quarter for the corporation and highlights for our three business segments.
`
`Following my remarks, Alex will provide some additional commentary on our results and
`an update on our near term priorities and Sandy will provide an update on our consumer
`business and our global supply chain. Please note, the presentation for the company's,
`Sandy's and Alex's remarks are available on our website. Dominic will provide some
`additional commentary on the financial results and guidance for 2013.
`
`We will then open the call to your questions. We expect the call to last approximately one
`and a half hour. Included with the press release that was issued earlier this morning is the
`schedule of sales for key products and/or businesses to facilitate updating your models.
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`These schedules are available on the Johnson & Johnson website as is the press release.
`
`Before I get into the results, let me remind you that some of the statements made during
`this review may be considered forward-looking statements. The 10-K for the fiscal year
`2012 identifies certain factors that could cause the company's actual results to differ
`materially from those projected in any forward-looking statements made today. The
`company does not undertake to update any forward-looking statements as a result of new
`information or future events or developments. The 10-K is available through the company
`and online.
`
`During the review, non-GAAP financial measures are used to provide information pertinent
`to ongoing business performance. These non-GAAP financial measures should not be
`considered replacements for GAAP results. Tables reconciling these measures to the
`most comparable GAAP measures are available in the press release and on the Investor
`Relations section of the Johnson & Johnson website at investor.jnj.com.
`
`Now, we would like to review our results for the second quarter of 2013. If you would refer
`to your copy of the press release, let's begin with the schedule titled, supplementary sales
`data by geographic area. Worldwide sales to customers were $17.9 billion for the second
`quarter of 2013, up 8.5% as compared to the second quarter of 2012. On an operational
`basis, sales were up 10% and currency had a negative impact of 1.5%.
`
`In the U.S., sales were up 8%. In regions outside the U.S., our operational growth was
`11.8%, while the effect of currency exchange rates negatively impacted our recorded
`results by 2.8 points. Sales included the impact of the acquisition of Synthes, net of the
`divestiture of the DePuy trauma business. Excluding this impact, worldwide operational
`sales growth was 5.6%.
`
`The western hemisphere, excluding the U.S. grew by 14% operationally while Europe
`grew 11.4% on an operational basis. Asia-Pacific, Africa region grew 11% operationally.
`The success of new product launches and Synthes sales made strong contributions to the
`results in all regions.
`
`If you will now turn to the consolidated statement of earnings. Net earnings were $3.8
`billion compared to $1.4 billion in the same period in 2012. Earnings per share were $1.33
`versus $0.50 a year ago. Please direct your attention to the box section of the schedule
`where we have provided earnings adjusted to exclude special items. As a reference to the
`accompanying table reconciling non-GAAP measures, 2013 second quarter net earnings
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`were adjusted to exclude special items related to increases in litigation expense accrual,
`integration and transaction cost related to the acquisition of Synthes and cost associated
`with the DePuy ASR Hip program.
`
`Second quarter 2012 net earnings included after-tax special items of approximately $2.2
`billion as shown in the accompanying reconciliation of non-GAAP financial measures.
`Excluding these special items for both periods, net earnings for the current quarter were
`$4.3 billion and diluted earnings per share were $1.48, representing increases of 17.7%
`and 13.8%, respectively, as compared to the same period in 2012.
`
`I would now like to make some additional comments relative to the components leading to
`earnings before we move onto the segment highlights. For the second quarter of 2013,
`cost of goods sold at 30.7% was down 50 basis points from the same period last year,
`primarily due mix, lower cost associated with strong volume growth in our pharmaceutical
`business and cost improvement initiatives across all the businesses. This was partially
`offset by incremental amortization expense related to Synthes of approximately $140
`million, or 80 basis points and the impact of the medical device excise tax.
`
`Second quarter selling, marketing and administrative expenses were 30.1% of sales
`consistent with our 2012 results. Our investment in research and development as a
`percent of sales was 10.9%, up 20 basis points due to milestone payments.
`
`Interest expense net of interest income of $101 million was down $28 million versus the
`second quarter of 2012, due to a lower average debt level. Other expense, net of other
`income was $172 million in the second quarter of 2013, compared to $2 billion in the same
`period last year.
`
`Excluding special items, other income net of other expense of $394 million was $220
`million favorable compared to 2012, the gain on sale of the ECHELON investment is
`reflected in this amount.
`
`Excluding special items, the effective tax rate was 20% in the second quarter of 2013,
`compared to 21.6% in the same period last year. Dominic will provide commentary on
`taxes in his remarks.
`
`Turning now to business segment highlights, please refer to the supplementary sales
`schedule highlighting key products or businesses for the second quarter of 2013. I will
`begin with the consumer segment.
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`Worldwide consumer segment sales for the second quarter of 2013 of $3.7 billion,
`increased 1.1% as compared to the same period, last year. On an operational basis, sales
`increased 1.7%, while the impact of currency was negative 0.6% U.S. sales were up 1%,
`while international sales grew 2% on an operational basis.
`
`Excluding the impact of divestitures net of acquisitions operational growth was
`approximately 2.5%. Baby Care products increased on an operational basis by 3.1% when
`compared to the second quarter of 2012, primarily due to hair care and cleansers. Sales in
`the Oral Care business increased operationally 0.2%. Results were driven by strong
`international sales of LISTERINE, due to the continued success of new product launches
`partially offset by the impact of the divestiture of manual toothbrushes in North America.
`
`Beginning this quarter, we are reporting OTC Pharmaceuticals separately and have
`moved Nutritionals to the other line. To assist in updating your models, a summary under
`the new format is included in the sales schedule that accompany the press release.
`
`For the second quarter of 2013, sales for OTC pharmaceuticals increased 5.4% on an
`operational basis compared to the same period in 2012. U.S. sales were up 17.4% driven
`by strong growth in analgesics and other key brands as we continue to make progress in
`returning a reliable supply products to the marketplace.
`
`International sales were up 0.9% operationally. Our Skin Care business was down 0.4%
`on an operational basis in the second quarter of 2013. Strong results for [renal] were
`offset by the impact of divestitures. Excluding divestitures, operational growth was
`approximately 1%.
`
`Women's health grew 3.6% on an operational basis due to strong growth in women's
`sanitary protection products. Wound Care other sales decreased 4.3% on an operational
`basis, impacted by competitive pressures as well as a divestiture and nutritionals.
`
`That completes the review of the Consumer segment, and I will now review highlights for
`the pharmaceutical segment.
`
`Worldwide net sales for the second quarter of $7 billion increased 11.7% versus the same
`period last year. On an operational basis, sales increased 12.9% with a negative currency
`impact of 1.2 points. Sales in the U.S. increased 9.1%, while sales outside the U.S.
`increased on an operational basis by 16.5%.
`
`Now reviewing sales for major therapeutic areas. Immunology products were 17.6%
`operationally, with sales in the U.S. up 7.3% and sales outside the U.S. up 51.5%
`operationally. During the quarter, the company made certain supply chain changes from
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`for REMICADE, resulting in sales to distributors previously recorded as U.S. exports sales
`now being international sales. Adjusting for this impact, the U.S. immunology growth was
`approximately 14% with REMICADE excluding expert sales up approximately 4%,
`SIMPONI up 38.1% and STELARA up 53.3%. Results were driven by market growth
`across the major products, complemented by increased market share for both STELARA
`and SIMPONI.
`
`With the strength of our portfolio, we continue to be the U.S. market leader in immunology.
`Adjusted immunology sales outside the U.S. increased by over 25% operationally, with
`REMICADE up approximately 20% due to strong growth in Canada and the emerging
`markets including a tender shipment. STELARA made significant contributions due to
`market share gains and market growth across the major regions, while very strong growth
`in Japan drove the results for SIMPONI.
`
`Sales of infectious disease products increased 23.9% on an operational basis. INCIVO, a
`treatment for Hepatitis C grew 71.8% on an operational basis due to the success of the
`continued rollout most notably in Latin America as well as a shipment for tender business.
`Continued momentum in market share growth of PREZISTA made notable contributions to
`the results as did the combined sales of COMPLERA and EDURANT.
`
`Neuroscience product sales increased 0.4% operationally. U.S. sales declined 4.9%
`impacted by generic competition primarily for CONCERTA. The long-acting injectable
`antipsychotics, RISPERDAL CONSTA and INVEGA SUSTENNA or XEPLION achieved
`operational growth of approximately 15% due to an increase in combined market share.
`
`Sales of oncology products increased 53.2% on an operational basis due to the very
`strong results for ZYTIGA and VELCADE. ZYTIGA is now approved to treat both chemo
`refractory and chemo naïve metastatic castration resistant prostate cancer. In the quarter,
`ZYTIGA achieved operational sales growth of 70% with U.S. sales growing 54% due to
`very strong market growth of over 20% and increased market share in the combined
`metastatic castrate resistant prostate cancer market. ZYTIGA has captured over 30% of
`that market and is up approximately 3.5 points sequentially. Operational sales outside the
`U.S. grew 85.2% versus second quarter 2012 and on a sequential basis, ZYTIGA was up
`over 20%. Additional country rollouts and the expansion of the label to chemo naïve
`patients drove the strong results. ZYTIGA is approved in more than 80 countries.
`
`VELCADE is a treatment for multiple myeloma. Sales increased 22.7% on an operational
`basis. Strong performance in patient share in the frontline setting and the launch of the
`subcutaneous version continue to drive sales growth.
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`Other oncology increased primarily due to DOXIL/CAELYX. Other pharmaceutical
`products declined 2.7% on an operational basis with lower sales for ACIPHEX and
`PARIET, related primarily to generic competition. PROCRIT sales declined 18.1%, due
`primarily to a market decline. Positively impacting results, XARELTO sales grew over 20%
`on a sequential basis capturing nearly 39% of new to brand scripts in cardiology,
`surpassing warfarin. Total prescription share in the broader anticoagulant market grew 1.7
`points on a sequential basis to 7.4%.
`
`As an update on the pipeline, during the quarter, in immunology the FDA approved
`SIMPONI for the treatment of moderately to severely active ulcerative colitis and the EMA
`application for SIMPONI IV for the treatment of adults with moderately to severely active
`RA was resubmitted. In infectious diseases, a marketing authorization application was
`submitted to the European Medicines Agency seeking approval for simeprevir for Hepatitis
`C, and it was granted U.S. priority review status by the FDA with a PDUFA in late
`November. The European Commission approved a new twice daily dosing for INCIVO. In
`neuroscience, regarding bapineuzumab, JANSSEN Alzheimer Immunotherapy and its
`alliance partner Pfizer have decided to discontinue development of the subcutaneous
`formulation.
`
`Studies with other compounds in earlier stages of development in the alliance portfolio are
`ongoing and future development strategies will be discussed jointly by the alliance
`partners. We remain committed to our efforts to discover and develop promising new
`treatments for people with Alzheimer's disease.
`
`Regarding the stent thrombosis sNDA for XARELTO, a complete response letter was
`received from the FDA. We remain confident in the results of the ATLAS ACS trial and are
`in ongoing discussions with the FDA regarding this sNDA.
`
`In oncology, Breakthrough Therapy Designation for daratumumab, for the treatment of
`certain patients with multiple myeloma was granted by the FDA and the positive opinion
`from the European authorities on two variations relating to the use of VELCADE were
`received.
`
`The first recommendations for the use of VELCADE as retreatment in adult who had
`previously responded to the treatment with the same medicine, the second
`recommendation was for using induction combination therapy for certain adult patients.
`And, ibrutinib was submitted to the FDA for use in the treatment of previously treated
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`patients with chronic lymphocytic leukemia or CLL, and small lymphocytic lymphoma or
`SLL and for its use in treatment of previously treated patients with mantle cell lymphoma
`or MCL.
`
`That completes the review of the Pharmaceutical segment. I will now review the Medical
`Devices and Diagnostics segment results. Worldwide Medical Devices and Diagnostics
`segment sales of $7.2 billion grew 12% operationally as compared to the same period in
`2012.
`
`Currency had a negative impact of 2.4 points resulting in a total sales increase of 9.6%.
`Sales excluding the net impact of Synthes were up 0.5% on an operational basis, with
`U.S. sales down 3.3% and sales outside the U.S. up 3.5% on an operational basis.
`Adjusted for divestitures and exits from certain businesses, underlying growth was
`approximately 1.5%, reflecting continued market and pricing pressures. I will provide more
`commentary on these factors in the franchise reviews.
`
`Now, turning to the MD&D businesses starting with, Cardiovascular Care. Cardiovascular
`Care sales were up 7.7% operationally, with U.S. up 4.6% and sales outside the U.S. up
`9.6%, operationally, driven by Biosense Webster, our electrophysiology business with
`worldwide operational growth of over 16% in the quarter.
`
`The success of a number of catheter launches made strong contributions to the results.
`The Diabetes Care business operational sales declined 11.8% in the second quarter of
`2013 with U.S. business down 23.1%, due to the impact of lower price, competitive
`pressures and softness in the retail market. The business outside the U.S. was down
`0.5%, operationally, with strong growth in the emerging markets offset by lower sales in
`many of the developed markets.
`
`The Diagnostics business declined 4% on an operational basis. Excluding the impact of
`divestitures of RhoGAM and Theracos businesses operational sales grew approximately
`2.5%, primarily due to growth and donors screening in the U.S. and emerging markets
`outside the U.S.
`
`Infection Prevention increased 5.2% on an operational basis, with sales in the U.S. down
`4% due to lower sales of capital equipment. Outside the U.S. operational growth of 12.3%
`was driven by both, consumables and capital item sales.
`
`Orthopedic sales were up 48.9% on an operational basis when compared to the same
`period in 2012. Excluding the net impact of Synthes, operational sales were up
`approximately 3% with U.S. up approximately 2% and outside the U.S. up approximately
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`3.5%, operationally.
`
`Operationally, Hips were up 4% worldwide driven by 5% growth in the U.S., due to strong
`results in primary stent platform sales, partially offset by continued pricing pressure. Hips
`outside the U.S. were up 4% on an operational basis, driven mainly by heads and
`acetabular products.
`
`Knees worldwide increased 2% on an operational basis with the U.S. up 3% driven by the
`ATTUNE fixed bearing knee as well as revision platforms offset by lower sales of rotating
`platforms. Sales outside the U.S. were up 1%. Including the Synthes business in both
`periods and excluding the divested DePuy trauma business in both periods, trauma grew
`approximately 4% on an operational basis due to both, new products and stronger
`underlying demand.
`
`Growth in the U.S. was 2% and 7%, operational outside the U.S. Including the Synthes
`business in both periods, worldwide spine was down 2% on an operational basis, with
`U.S. down approximately 7%, impacted by continued softness in the market, as well as
`the impact of the attrition of the commercial sales organization as we integrate the
`businesses. Outside the U.S., sales were up approximately 6% operationally with strong
`growth in Latin America, Canada and Asia-Pacific.
`
`Specialty surgery operational growth was 2.8% in the second quarter of 2013. U.S. Sales
`were down 1.5% and sales outside the U.S. were up 7.5% on an operational basis. Strong
`sales of balloon sinuplasty products from Acclarent and biosurgical products were partially
`offset by lower sales of Mentor products due to competitive and pricing pressures. Sales
`of energy products were flat on an operational basis with new product launches and
`continued penetration driving strong sales outside the U.S. offset by softer sales of
`HARMONIC products in the U.S. Surgical care worldwide sales were down 1.2% on an
`operational basis with the U.S. down 4.2% and sales outside the U.S. up 0.6%
`operationally.
`
`Negatively impacting growth were divestitures and business exits. Excluding these items,
`the underlying business was flat with lower sales of women's health and urology offset by
`strong demand for endocutter products, with the ECHELON FLEX Powered ENDOPATH
`Stapler.
`
`Rounding out the review, the medical devices and diagnostics segment, our Vision Care
`business achieved operational sales growth of 5.4% in the second quarter with the U.S.
`up 3.6% and sales outside the U.S. up 6.4% operationally. Growth was driven by daily
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`lenses and astigmatism lenses. That completes highlights for the medical devices and
`diagnostics segment and concludes the segment highlights for Johnson & Johnson
`second quarter of 2013.
`
`It is now my pleasure to turn the call over to Alex Gorsky. Alex?
`
`Alex Gorsky
`
`Well, hello everyone and thank you, Louise, and thanks to everyone for joining us on this
`call today. Now it is really my pleasure to review our results for the first half of the year and
`also the progress we made under near-term priorities. Now, you recall, in January, that I
`discussed the framework for managing our business. The success of our enterprise is built
`first on Our Credo, which unites Johnson & Johnson as a global enterprise. Our strategic
`operating principles continue to service well in the evolving marketplace and with our four
`growth drivers, we have a sound approach to sustaining and driving growth in today's
`dynamic global healthcare environment.
`
`At the mid-year point, we have achieved strong growth across our enterprise. A year ago,
`our team established a set of critical near-term priorities for moving the business forward.
`As part of our commitment to keeping you appraised of how we are doing against them, I
`am pleased to say that with the laser focus approach we have taken, we have made solid
`demonstrable progress in delivering on our financial commitments, restoring a reliable
`supply of OTC products to consumers, continuing the successful integration of Synthes
`and building on the strong momentum in our pharmaceutical business.
`
`Reflecting our broad base of leadership in healthcare, we have generated sales of $35.4
`billion thus far in 2013, up a strong 9.9% operationally versus this time a year ago, 4.8%
`operationally, excluding the net impact of Synthes. Medical devices and diagnostics
`represents 40% of our total sales, generating $14.3 billion in sales year-to-date. Sales
`grew 12% operationally driven by the positive growth contribution of the Synthes
`acquisition.
`
`Excluding Synthes, overall growth in this segment was impacted by portfolio decisions to
`divest and exit certain businesses as well as the continued economic and pricing
`pressures within these markets. Underlying growth was essentially flat year-to-date. With
`$13.8 billion, the pharmaceutical segment represented 39% of our total sales and has
`continued its strong momentum reporting operational growth of 12.1%. Our consumer
`segment generated 21% of our total sales at $7.3 billion in revenue at an operational
`growth rate of 2.4%.
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`Now as the global economy evolves, more people are entering the middle-class in
`emerging markets and increasing demands on the healthcare system. As I outlined at our
`year-end earnings meeting in January, we are investing in growth and expansion in the
`broader emerging markets by leveraging our strong iconic brands as well as acquiring
`market specific products and to-date they account for nearly a quarter of our sales. As a
`subset of the emerging markets, we are also seeing growth in the brick nations, which
`account for approximately 10% of our overall sales this year.
`
`We are encouraged by the double-digit growth rates we are seeing in these countries
`driven by our core pharmaceutical and the Indian consumer brands as well as the
`complementary acquisitions we have made in Russia and China. As our global reach with
`local focus, strategy for driving growth matures, we will overtime be introducing more
`products that will increase options for consumers in these fast-growing parts of the world.
`
`Moving now to the segment highlights. I will start with pharmaceuticals. Our
`pharmaceutical segment continues to drive robust growth by delivering meaningful
`innovations that will improve patient care, demonstrating the effect of the transformation
`we made in this segment. I am very proud of the accomplishments that our pharma team
`has exhibited in this process.
`
`Our market leading execution in support of the 11 new products we've launched since
`2009 has led our Pharmaceuticals business to a record 13 consecutive quarters of
`operational growth. That pace positions us as the fastest growing, top-10 global
`pharmaceutical company and U.S. leader in new product sales. Those new products,
`which includes ZYTIGA, STELARA and INVEGA SUSTENNA comprise 24% of our global
`pharmaceutical sales in the first half of 2013.
`
`Now, we gave you a full review of our Pharmaceutical business in May, at which time we
`announced our intention to file more than 10 new molecular entities and 25 significant
`brand line extensions by 2017, so today I will just comment on two important
`developments we made in the quarter within our oncology division since the meeting
`which will really help to increase our leadership position in the category.
`
`As we announced last week, ibrutinib became one of the first medicines to be filed with
`the FDA and the new breakthrough therapy designation. And if approved, it will be a first-
`in-class treatment option for patients who received prior therapy for chronic lymphocytic
`leukemia and small lymphocytic lymphoma, and also for patients who received prior
`therapy for mantle cell lymphoma, population today have very limited options.
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`Now recognizing this need, we and our strategic partners at Pharmacyclics are pleased to
`have been able to open an expand access program for relapsed or refractory MCL
`patients in the U.S. The program began enrolling in May. It is allowed by the FDA as a
`means of making an investigational drug available to patients with a serious or
`immediately life-threatening disease without comparable or satisfactory alternatives.
`
`We also announced a definitive agreement to acquire Aragon Pharmaceuticals, a move
`that will add their androgen receptor antagonist program to our R&D engine, including a
`lead development stage product ARN-509 for prostate cancer, which is attractive to us
`because the way it complements ZYTIGA were also increasing new options we can
`eventually offer patients in this important and growing segments of the oncology field.
`
`So, now let's look at the market performance of some of our recent pharmaceutical
`launches. By combining superior science with best-in-class commercial capabilities, many
`of our newly launched products are delivering robust growth and outpacing our peers. As
`you can see, XARELTO, which is the broadest indication among novel oral anticoagulants
`is tracking well at of warfarin and the others in the category, in new to brand prescriptions
`among cardiologists and ZYTIGA is continuing on its strong growth trajectory gaining 22%
`in the U.S. chemo naïve market since its approval in this indication in December.
`
`INVOKANA, our new treatment for Type 2 diabetes was launched in the U.S. in April, was
`demonstrating very strong early results with the primary care and endocrinologists.
`Access INVOKANA is also building steadily and we are seeing strong interest from
`payers. Overall, 80% of patients with commercial plans now have access to INVOKANA in
`either Tier 2 or Tier 3. The success coupled with the supported joining the forces our
`pharmaceutical group with our Diabetes Care business has helped INVOKANA overtake
`Januvia, Onglyza and Trajenta in share of new to brand prescriptions in the important
`Endocrinologists segment.
`
`This type of early progress demonstrates the power of leveraging our enterprise-wide
`capabilities to offer patients a full solutions based approach to diabetes management, and
`we are looking at leveraging our broad capabilities across the enterprise to support the
`growth of our products in other categories in similar ways.
`
`As I referred to earlier, the pace of growth in the global MD&D markets has slowed and
`competition is intensifying. In spite of the economic compression however, the medical
`device industry remains attractive and we are transforming our go-to-market approach to
`drive our competitiveness in this dynamic environment and ensure we continue to lead the
`sector.
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`Johnson & Johnson (JNJ) CEO Discusses Q2 2013 Results - Earnings Call Transcript | Seeking Alpha
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`With market-leading platforms and products, we succeeded in sustaining or grown share
`in the majority of our key platforms, holding number one or number two positions in about
`85% of them. We are continuing to bring innovations to patients and providers through
`meaningful product launches that will help sustain and drive growth and we are especially
`excited about the steady cadence of innovation emerging across the segment.
`
`For example, Biosense Webster, a business unit that's on track to deliver another year of
`double-digit growth as it has for more than 10 years in a row. Their nMARQ, circular
`ablation catheter is designed to reduce cardiac ablation procedure time and complexity to
`key customer needs. It launched last year in Europe and we began enrolling patients in
`the clinical trial that will support our regulatory filing in the U.S. planned for next year.
`
`Also, the ThermoCool SmartTouch Catheter is an important innovative product that
`measures the catheter tip contact force and direction inside the heart during ablation
`procedures in real time. We launched this product in the EU in 2012 and compelling new
`safety and efficacy data were presented recently at the Heart Rhythm Society meeting.
`These data will