Johnson & Johnson Reports Q3 2024 Results

Barchart · 10/15 05:20

Johnson & Johnson (NYSE: JNJ) today announced results for third-quarter 2024. “Johnson & Johnson’s strong results in the third quarter reflect the unique breadth of our business and commitment to delivering the next wave of healthcare innovation,” said Joaquin Duato, Chairman and Chief Executive Officer. “During the quarter, we advanced our pipeline with regulatory approvals for TREMFYA and RYBREVANT, submitted an IDE for our general surgery robotic system, OTTAVA, and launched VELYS Spine and Shockwave E8 IVL Catheter, further strengthening our confidence in our near-and long-term growth targets.”

Unless otherwise noted, the financial results and earnings guidance included below reflect the continuing operations of Johnson & Johnson.

Overall financial results

Q3

($ in Millions, except EPS)

2024

2023

% Change

Reported Sales

$22,471

$21,351

5.2%

Net Earnings/(Loss)

$2,694

$4,309

-37.5%

EPS (diluted)

$1.11

$1.69

-34.3%

 

 

 

Q3

Non-GAAP* ($ in Millions, except EPS)

2024

2023

% Change

Operational Sales1,2

 

 

6.3%

Adjusted Operational Sales1,3

 

 

5.4%

Adjusted Operational Sales ex. COVID-19 Vaccine1,3

 

 

5.6%

Adjusted Net Earnings1,4

$5,876

$6,777

-13.3%

Adjusted EPS (diluted)1,4

$2.42

$2.66

-9.0%

Free Cash Flow (YTD)6,7

~$14,000

$11,974

 

1

Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2

Excludes the impact of translational currency

3

Excludes the net impact of acquisitions and divestitures and translational currency

4

Excludes intangible amortization expense and special items

5

Excludes COVID-19 Vaccine

6

Non-GAAP measure; defined as cash flow from operating activities, less additions to property, plant and equipment. Cash flow from operations, the most directly comparable GAAP financial measure, will be included in subsequent SEC filings.

7

Q3 YTD 2024 is estimated as of October 15, 2024. Q3 YTD 2023 includes approximately 8 months contribution from the Consumer Health segment.

Note: values may have been rounded

Regional sales results

Q3

 

% Change

($ in Millions)

2024

2023

Reported

Operational1,2

Currency

Adjusted

Operational1,3

U.S.

$12,909

$11,996

7.6%

7.6

-

6.5

International

9,562

9,355

2.2

4.6

-2.4

4.0

Worldwide

$22,471

$21,351

5.2%

6.3

-1.1

5.4

1

Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2

Excludes the impact of translational currency

3

Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

Segment sales results

Q3

 

% Change

($ in Millions)

2024

2023

Reported

Operational1,2

Currency

Adjusted

Operational1,3

Innovative Medicine

$ 14,580

$ 13,893

4.9%

6.3

(1.4)

6.4

MedTech

7,891

7,458

5.8%

6.4

(0.6)

3.7

Worldwide

$ 22,471

$ 21,351

5.2%

6.3

(1.1)

5.4

1

Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2

Excludes the impact of translational currency

3

Excludes the net impact of acquisitions and divestitures and translational currency

Note: values may have been rounded

Third Quarter 2024 segment commentary:

Operational sales* reflected below excludes the impact of translational currency.

Innovative Medicine

Innovative Medicine worldwide operational sales grew 6.3%. Growth was driven by DARZALEX (daratumumab), ERLEADA (apalutamide), Other Oncology, and CARVYKTI (ciltacabtagene autoleucel) in Oncology, TREMFYA (guselkumab) in Immunology, SPRAVATO (esketamine) in Neuroscience, and OPSUMIT (macitentan) in Pulmonary Hypertension. Growth was partially offset by STELARA (ustekinumab) and SIMPONI/SIMPONI ARIA (golimumab) in Immunology.

MedTech

MedTech worldwide operational sales grew 6.4%*, with net acquisitions and divestitures positively impacting growth by 2.7%. Operational sales growth was driven primarily by electrophysiology products and Abiomed in Cardiovascular, previously referred to as Interventional Solutions, contact lenses in Vision and wound closure products in General Surgery. Growth was partially offset by endocutter products in Advanced Surgery.

Full-year 2024 guidance:

Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses, and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson's results computed in accordance with GAAP.

Johnson & Johnson is updating its 2024 guidance, including adjusted operational EPS guidance, to reflect improved performance and the impact from the recent acquisition of V-Wave.

Non-GAAP*

2024

July 2024 Adjusted Operational EPS1,2

$10.05

Improved performance outlook

$0.10

October 2024 Adjusted Operational EPS1,2 pre-M&A

$10.15

M&A impact (V-Wave)

($0.24)

October 2024 Adjusted Operational EPS1,2

$9.91

1

Non-GAAP financial measure; excludes the impact of translational currency

2

Non-GAAP financial measure; excludes intangible amortization expense and special items

Note: Adjusted operational EPS figures reflect midpoint of issued guidance

($ in Billions, except EPS)

October 2024

July 2024

Adjusted Operational Sales1,2,5

Change vs. Prior Year / Mid-point

5.7% – 6.2% / 6.0%

5.5% – 6.0% / 5.8%

Operational Sales2,5/ Mid-point

$89.4B – $89.8B / $89.6B

$89.2B – $89.6B / $89.4B

Change vs. Prior Year / Mid-point

6.3% – 6.8% / 6.6%

6.1% – 6.6% / 6.4%

Estimated Reported Sales3,5/ Mid-point

$88.4B – $88.8B / $88.6B

$88.0B – $88.4B / $88.2B

Change vs. Prior Year / Mid-point

5.1% – 5.6% / 5.4%

4.7% – 5.2% / 5.0%

Adjusted Operational EPS (Diluted)2,4/ Mid-point

$9.86 – $9.96 / $9.91

$10.00 – $10.10 / $10.05

Change vs. Prior Year / Mid-point

(0.6)% – 0.4% / (0.1)%

0.8% – 1.8% / 1.3%

Adjusted EPS (Diluted)3,4 / Mid-point

$9.88 – $9.98 / $9.93

$9.97 – $10.07 / $10.02

Change vs. Prior Year / Mid-point

(0.4)% – 0.6% / 0.1%

0.5% – 1.5% / 1.0%

1

Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures

2

Non-GAAP financial measure; excludes the impact of translational currency

3

Calculated using Euro Average Rate: October 2024 = $1.09 and July 2024 = $1.08 (Illustrative purposes only)

4

Non-GAAP financial measure; excludes intangible amortization expense and special items

5

Excludes COVID-19 Vaccine

Note: percentages may have been rounded

Other modeling considerations will be provided on the webcast.

Notable announcements in the quarter:

The information contained in this section should be read together with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investor Relations section of the company’s website at News Releases, as well as Innovative Medicine News Center, MedTech News & Events, and www.factsabouttalc.com.

Regulatory

Johnson & Johnson submits application to the European Medicines Agency for DARZALEX (daratumumab) SC-based quadruplet regimen for newly diagnosed multiple myeloma patients1

Press Release

Johnson & Johnson files for U.S. FDA approval of DARZALEX FASPRO-based quadruplet regimen for newly diagnosed multiple myeloma patients for whom transplant is not planned

Press Release

DARZALEX (daratumumab)-based quadruplet regimen receives positive CHMP opinion for transplant-eligible patients with newly diagnosed multiple myeloma

Press Release

RYBREVANT (amivantamab-vmjw) plus standard of care approved in the U.S. as first and only targeted regimen to cut risk of disease progression by more than half in second-line EGFR-mutated advanced lung cancer

Press Release

Johnson & Johnson seeks first EU approval of nipocalimab to treat a broad population of patients living with antibody-positive generalised myasthenia gravis

Press Release

TREMFYA (guselkumab) receives U.S. FDA approval for adults with moderately to severely active ulcerative colitis, strengthening Johnson & Johnson's leadership in inflammatory bowel disease

Press Release

Johnson & Johnson seeks first approval of nipocalimab to treat broadest population living with antibody positive generalized myasthenia gravis

Press Release

European Commission approves RYBREVANT (amivantamab) in combination with chemotherapy for the treatment of adult patients with advanced EGFR-mutated non-small cell lung cancer after failure of prior therapy

Press Release

European Commission approves BALVERSA (erdafitinib) for adult patients with unresectable or metastatic urothelial carcinoma

Press Release

RYBREVANT (amivantamab-vmjw) plus LAZCLUZE (lazertinib) approved in the U.S. as a first-line chemotherapy-free treatment for patients with EGFR-mutated advanced lung cancer

Press Release

DARZALEX FASPRO (daratumumab and hyaluronidase-fihj)-based quadruplet regimen approved in the U.S. for patients with newly diagnosed multiple myeloma who are transplant-eligible

Press Release

Johnson & Johnson seeks U.S. FDA approval of SPRAVATO (esketamine) as the first and only monotherapy for adults with treatment-resistant depression

Press Release

Data Releases

TREMFYA (guselkumab) demonstrates impressive results across biologic-naïve and biologic-refractory patients in Crohn's disease and ulcerative colitis1

Press Release

 

CARVYKTI is the first and only cell therapy to significantly extend overall survival versus standard therapies for patients with multiple myeloma as early as second line

Press Release

DARZALEX (daratumumab)-based maintenance regimens show clinically meaningful deep and durable responses in transplant-eligible patients with newly diagnosed multiple myeloma

Press Release

Novel combination of TALVEY (talquetamab-tgvs) and TECVAYLI (teclistamab-cqyv) suggests high response rates and durable responses in triple-class refractory patients with relapsed or refractory multiple myeloma, including those with extramedullary disease

Press Release

TALVEY (talquetamab-tgvs) and DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) based combination shows deep and durable responses in patients with relapsed or refractory multiple myeloma

Press Release

Johnson & Johnson is transforming solid tumor cancer outcomes with new data at the 2024 World Conference on Lung Cancer and European Society for Medical Oncology Congress

Press Release

Groundbreaking nipocalimab study of pregnant individuals at high risk for early onset severe hemolytic disease of the fetus and newborn published in The New England Journal of Medicine

Press Release

Product Launch

Johnson & Johnson MedTech Launches VOLT Plating System1

Press Release

Johnson & Johnson Rolls Out New TECNIS Odyssey Next-Generation Intraocular Lens Offering Cataract Patients Precise Vision at Every Distance in Any Lighting

Press Release

Shockwave Medical Expands U.S. Peripheral IVL Portfolio with Enhanced Catheter

Press Release

DePuy Synthes Launches its First Active Spine Robotics and Navigation Platform

Press Release

Other

Johnson & Johnson Completes Acquisition of V-Wave1

Press Release

 

Johnson & Johnson Announces that its Subsidiary, Red River Talc LLC, has Filed a Voluntary Prepackaged Chapter 11 Case to Resolve All Current and Future Ovarian Cancer Talc Claims

Press Release

Johnson & Johnson’s Executive Vice President, Chief Human Resources Officer Peter Fasolo to Retire; Kristen Mulholland Named Chief Human Resources Officer, Effective October 1, 2024

Press Release

 

1 Subsequent to the quarter

Webcast information:

Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investor Relations section of the company's website at events-and-presentations.

About Johnson & Johnson:

At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow, and profoundly impact health for humanity. Learn more at www.jnj.com.

Non-GAAP financial measures:

* “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investor Relations section of the company's website at quarterly results.

Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, an Innovative Medicine pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investor Relations section of the company's website at quarterly results.

Note to investors concerning forward-looking statements:

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, and market position and business strategy. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the Company to successfully execute strategic plans, including restructuring plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; and the Company’s ability to realize the anticipated benefits from the separation of Kenvue Inc. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
 
(Unaudited; Dollars in Millions)

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

Percent Change

 

 

 

 

 

Percent Change

2024

 

2023

 

Total

 

Operations

Currency

 

2024

 

2023

 

Total

 

Operations

Currency

Sales to customers by
segment of business
 
Innovative Medicine (1)
U.S.

$

8,871

8,249

7.5

%

7.5

-

 

$

24,993

23,090

8.2

 

%

8.2

-

 

International

 

5,709

5,644

1.2

4.4

(3.2

)

 

17,639

17,947

(1.7

)

2.1

(3.8

)

 

14,580

13,893

4.9

6.3

(1.4

)

 

42,632

41,037

3.9

 

5.5

(1.6

)

 
Innovative Medicine excluding COVID-19 Vaccine (1)
U.S.

 

8,871

8,249

7.5

7.5

-

 

 

24,993

23,090

8.2

 

8.2

-

 

International

 

5,708

5,603

1.9

5.2

(3.3

)

 

17,441

16,874

3.4

 

7.4

(4.0

)

 

14,579

13,852

5.2

6.6

(1.4

)

 

42,434

39,964

6.2

 

7.9

(1.7

)

 
MedTech
U.S.

 

4,038

3,747

7.8

7.8

-

 

 

12,105

11,345

6.7

 

6.7

-

 

International

 

3,853

3,711

3.9

5.0

(1.1

)

 

11,564

11,382

1.6

 

4.7

(3.1

)

 

7,891

7,458

5.8

6.4

(0.6

)

 

23,669

22,727

4.1

 

5.7

(1.6

)

 
U.S.

 

12,909

11,996

7.6

7.6

-

 

 

37,098

34,435

7.7

 

7.7

-

 

International

 

9,562

9,355

2.2

4.6

(2.4

)

 

29,203

29,329

(0.4

)

3.1

(3.5

)

Worldwide

 

22,471

21,351

5.2

6.3

(1.1

)

 

66,301

63,764

4.0

 

5.6

(1.6

)

 
U.S.

 

12,909

11,996

7.6

7.6

-

 

 

37,098

34,435

7.7

 

7.7

-

 

International

 

9,561

9,314

2.7

5.1

(2.4

)

 

29,005

28,256

2.7

 

6.3

(3.6

)

Worldwide excluding COVID-19 Vaccine (1)

$

22,470

21,310

5.4

%

6.5

(1.1

)

$

66,103

62,691

5.4

 

%

7.1

(1.7

)

 
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
 
(1) Refer to supplemental sales information schedules
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
 
(Unaudited; Dollars in Millions)

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

Percent Change

 

 

 

 

 

Percent Change

2024

 

2023

 

Total

 

Operations

Currency

 

2024

 

2023

 

Total

 

Operations

Currency

Sales to customers by
geographic area
 
U.S.

$

12,909

11,996

7.6

%

7.6

-

 

$

37,098

34,435

7.7

 

%

7.7

 

-

 

 
Europe

 

4,914

4,727

4.0

3.0

1.0

 

 

15,291

15,448

(1.0

)

(0.7

)

(0.3

)

Western Hemisphere excluding U.S.

 

1,173

1,171

0.3

20.3

(20.0

)

 

3,579

3,383

5.8

 

21.4

 

(15.6

)

Asia-Pacific, Africa

 

3,475

3,457

0.5

1.5

(1.0

)

 

10,333

10,498

(1.6

)

2.8

 

(4.4

)

International

 

9,562

9,355

2.2

4.6

(2.4

)

 

29,203

29,329

(0.4

)

3.1

 

(3.5

)

 
Worldwide

$

22,471

21,351

5.2

%

6.3

(1.1

)

$

66,301

63,764

4.0

 

%

5.6

 

(1.6

)

 
 
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
 
(Unaudited; Dollars in Millions)

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

Percent Change

 

 

 

 

 

Percent Change

2024

 

2023

 

Total

 

Operations

Currency

 

2024

 

2023

 

Total

 

Operations

Currency

Sales to customers by
geographic area (ex. COVID-19 Vaccine)
 
U.S.*

$

12,909

11,996

7.6

%

7.6

-

 

$

37,098

34,435

7.7

 

%

7.7

 

-

 

 
Europe(1)

 

4,913

4,686

4.8

3.8

1.0

 

 

15,093

14,375

5.0

 

5.3

 

(0.3

)

Western Hemisphere excluding U.S.*

 

1,173

1,171

0.3

20.3

(20.0

)

 

3,579

3,383

5.8

 

21.4

 

(15.6

)

Asia-Pacific, Africa*

 

3,475

3,457

0.5

1.5

(1.0

)

 

10,333

10,498

(1.6

)

2.8

 

(4.4

)

International

 

9,561

9,314

2.7

5.1

(2.4

)

 

29,005

28,256

2.7

 

6.3

 

(3.6

)

 
Worldwide

$

22,470

21,310

5.4

%

6.5

(1.1

)

$

66,103

62,691

5.4

 

%

7.1

 

(1.7

)

 
Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
 
(1) Refer to supplemental sales information schedules
*No COVID-19 Vaccine sales
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
 
(Unaudited; in Millions Except Per Share Figures) THIRD QUARTER
 

2024

 

2023

 

Percent

 

 

Percent

 

 

 

Percent

 

Increase

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$

22,471

 

100.0

 

$

21,351

 

100.0

 

5.2

 

Cost of products sold

 

6,963

 

31.0

 

 

6,606

 

30.9

 

5.4

 

Gross Profit

 

15,508

 

69.0

 

 

14,745

 

69.1

 

5.2

 

Selling, marketing and administrative expenses

 

5,478

 

24.3

 

 

5,400

 

25.3

 

1.4

 

Research and development expense

 

4,952

 

22.0

 

 

3,447

 

16.2

 

43.7

 

In-process research and development impairments

 

-

 

-

 

 

206

 

1.0

 

Interest (income) expense, net

 

(99

)

(0.4

)

 

(182

)

(0.8

)

Other (income) expense, net

 

1,798

 

8.0

 

 

499

 

2.3

 

Restructuring

 

41

 

0.2

 

 

158

 

0.7

 

Earnings before provision for taxes on income

 

3,338

 

14.9

 

 

5,217

 

24.4

 

(36.0

)

Provision for taxes on income

 

644

 

2.9

 

 

908

 

4.2

 

(29.1

)

Net earnings from Continuing Operations

$

2,694

 

12.0

 

$

4,309

 

20.2

 

(37.5

)

Net earnings from Discontinued Operations, net of tax

 

-

 

 

21,719

 

Net earnings

$

2,694

 

$

26,028

 

 
Net earnings per share (Diluted) from Continuing Operations

$

1.11

 

$

1.69

 

(34.3

)

Net earnings per share (Diluted) from Discontinued Operations

$

-

 

$

8.52

 

 
Average shares outstanding (Diluted)

 

2,427.9

 

 

2,549.7

 

 
Effective tax rate from Continuing Operations

 

19.3

 

%

 

17.4

 

%

 
Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1)
Earnings before provision for taxes on income from Continuing Operations

$

7,277

 

32.4

 

$

8,033

 

37.6

 

(9.4

)

Net earnings from Continuing Operations

$

5,876

 

26.1

 

$

6,777

 

31.7

 

(13.3

)

Net earnings per share (Diluted) from Continuing Operations

$

2.42

 

$

2.66

 

(9.0

)

Effective tax rate from Continuing Operations

 

19.3

 

%

 

15.6

 

%

 
(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
 
(Unaudited; in Millions Except Per Share Figures) NINE MONTHS
 

2024

 

2023

 

Percent

 

 

Percent

 

 

 

Percent

 

Increase

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$

66,301

 

100.0

 

$

63,764

 

100.0

 

4.0

 

Cost of products sold

 

20,343

 

30.7

 

 

19,755

 

31.0

 

3.0

 

Gross Profit

 

45,958

 

69.3

 

 

44,009

 

69.0

 

4.4

 

Selling, marketing and administrative expenses

 

16,416

 

24.8

 

 

15,702

 

24.6

 

4.5

 

Research and development expense

 

11,934

 

18.0

 

 

10,605

 

16.6

 

12.5

 

In-process research and development impairments

 

194

 

0.3

 

 

255

 

0.4

 

Interest (income) expense, net

 

(433

)

(0.7

)

 

(277

)

(0.4

)

Other (income) expense, net

 

4,855

 

7.3

 

 

7,055

 

11.1

 

Restructuring

 

192

 

0.3

 

 

433

 

0.6

 

Earnings before provision for taxes on income

 

12,800

 

19.3

 

 

10,236

 

16.1

 

25.0

 

Provision for taxes on income

 

2,165

 

3.3

 

 

1,042

 

1.7

 

107.8

 

Net earnings from Continuing Operations

$

10,635

 

16.0

 

$

9,194

 

14.4

 

15.7

 

Net earnings from Discontinued Operations, net of tax

 

-

 

 

21,910

 

Net earnings

$

10,635

 

$

31,104

 

 
Net earnings per share (Diluted) from Continuing Operations

$

4.38

 

$

3.53

 

24.1

 

Net earnings per share (Diluted) from Discontinued Operations

$

-

 

$

8.42

 

 
Average shares outstanding (Diluted)

 

2,429.5

 

 

2,603.4

 

 
Effective tax rate from Continuing Operations

 

16.9

 

%

 

10.2

 

%

 
Adjusted earnings from Continuing Operations before provision for taxes and net earnings (1)
Earnings before provision for taxes on income from Continuing Operations

$

23,558

 

35.5

 

$

23,574

 

37.0

 

(0.1

)

Net earnings from Continuing Operations

$

19,296

 

29.1

 

$

19,847

 

31.1

 

(2.8

)

Net earnings per share (Diluted) from Continuing Operations

$

7.94

 

$

7.62

 

4.2

 

Effective tax rate from Continuing Operations

 

18.1

 

%

 

15.8

 

%

 
(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
 

Third Quarter

 

Nine Months Ended

(Dollars in Millions Except Per Share Data)

2024

 

2023

 

2024

 

2023

Net Earnings from Continuing Operations, after tax- as reported

$

2,694

 

$

4,309

 

$

10,635

 

$

9,194

 

 
Pre-tax Adjustments

Litigation related

 

2,388

 

 

(51

)

 

5,466

 

 

6,986

 

Intangible Asset Amortization expense

 

1,171

 

 

1,132

 

 

3,355

 

 

3,384

 

COVID-19 Vaccine related costs 1

 

4

 

 

44

 

 

77

 

 

653

 

Restructuring related 2

 

47

 

 

384

 

 

207

 

 

659

 

Medical Device Regulation 3

 

38

 

 

74

 

 

157

 

 

223

 

Acquisition, integration and divestiture related

 

328

 

 

22

 

 

928

 

 

102

 

(Gains)/losses on securities

 

(37

)

 

1,005

 

 

374

 

 

1,076

 

IPR&D impairments

 

-

 

 

206

 

 

194

 

 

255

 

 
Tax Adjustments
Tax impact on special item adjustments 4

 

(762

)

 

(482

)

 

(2,055

)

 

(2,769

)

Tax legislation and other tax related

 

5

 

 

134

 

 

(42

)

 

84

 

Adjusted Net Earnings from Continuing Operations, after tax

$

5,876

 

$

6,777

 

$

19,296

 

$

19,847

 

Average shares outstanding (Diluted)

 

2,427.9

 

 

2,549.7

 

 

2,429.5

 

 

2,603.4

 

Adjusted net earnings per share from Continuing Operations (Diluted)

$

2.42

 

$

2.66

 

$

7.94

 

$

7.62

 

Operational adjusted net earnings per share from Continuing Operations (Diluted)

$

2.41

 

$

7.94

 

Notes:

1

COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company's completion of its COVID-19 vaccine contractual commitments.

 

2

In fiscal 2023, the company completed a prioritization of its research and development (R&D) investment within the Innovative Medicine segment to focus on the most promising medicines with the greatest benefit to patients. This resulted in the exit of certain programs within therapeutic areas. The R&D program exits are primarily in infectious diseases and vaccines including the discontinuation of its respiratory syncytial virus (RSV) adult vaccine program, hepatitis and HIV development. The restructuring expense of $19 million in the fiscal third quarter of 2024 ($100 million Q3 2024 YTD) and $149 million in the fiscal third quarter of 2023 ($424 million Q3 2023 YTD) includes the termination of partnered and non-partnered program costs, asset impairments and asset divestments.

 

 

In fiscal 2023, the company initiated a restructuring program of its Orthopaedics franchise within the MedTech segment to streamline operations by exiting certain markets, product lines and distribution network arrangements. The restructuring expense of $28 million in the fiscal third quarter of 2024 ($107 million Q3 2024 YTD) and $235 million in the fiscal third quarter of 2023 ($235 million Q3 2023 YTD) primarily includes inventory and instrument reserves related to the market and product exits.

 

3

European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments' measures of profit and loss used for making operating decisions and assessing performance which will be completed by the end of 2024.

 

4

The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
 
Adjusted Operational Sales Growth
THIRD QUARTER 2024 ACTUAL vs. 2023 ACTUAL
   
Segments
 

Innovative Medicine

 

MedTech

 

Total

 

 

 

 

 

WW As Reported

4.9%

 

5.8%

 

5.2%

U.S.

7.5%

 

7.8%

 

7.6%

International

1.2%

 

3.9%

 

2.2%

 

 

 

 

 

WW Currency

(1.4)

 

(0.6)

 

(1.1)

U.S.

-

 

-

 

-

International

(3.2)

 

(1.1)

 

(2.4)

 

 

 

 

 

WW Operational

6.3%

 

6.4%

 

6.3%

U.S.

7.5%

 

7.8%

 

7.6%

International

4.4%

 

5.0%

 

4.6%

 

 

 

 

 

Shockwave

 

 

(3.1)

 

(1.1)

U.S.

 

 

(4.4)

 

(1.4)

International

 

 

(1.8)

 

(0.7)

 

 

 

 

 

All Other Acquisitions and Divestitures (A&D)

0.1

 

0.4

 

0.2

U.S.

0.1

 

0.8

 

0.3

International

0.2

 

0.0

 

0.1

 

 

 

 

 

WW Adjusted Operational Ex A&D

6.4%

 

3.7%

 

5.4%

U.S.

7.6%

 

4.2%

 

6.5%

International

4.6%

 

3.2%

 

4.0%

 

 

 

 

 

COVID-19 Vaccine

0.3

 

 

 

0.2

U.S.

0.0

 

 

 

0.0

International

0.8

 

 

 

0.5

 

 

 

 

 

WW Adjusted Operational Ex A&D & COVID-19 Vaccine

6.7%

 

3.7%

 

5.6%

U.S.

7.6%

 

4.2%

 

6.5%

International

5.4%

 

3.2%

 

4.5%

 
 
Note: Percentages are based on actual, non-rounded figures and may not sum
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measure
 
Adjusted Operational Sales Growth
NINE MONTHS 2024 ACTUAL vs. 2023 ACTUAL
    
Segments
 

Innovative Medicine

 

MedTech

 

Total

 

 

 

 

 

WW As Reported

3.9%

 

4.1%

 

4.0%

U.S.

8.2%

 

6.7%

 

7.7%

International

(1.7)%

 

1.6%

 

(0.4)%

 

 

 

 

 

WW Currency

(1.6)

 

(1.6)

 

(1.6)

U.S.

-

 

-

 

-

International

(3.8)

 

(3.1)

 

(3.5)

 

 

 

 

 

WW Operational

5.5%

 

5.7%

 

5.6%

U.S.

8.2%

 

6.7%

 

7.7%

International

2.1%

 

4.7%

 

3.1%

 

 

 

 

 

Shockwave

 

 

(1.3)

 

(0.5)

U.S.

 

 

(2.1)

 

(0.7)

International

 

 

(0.6)

 

(0.2)

 

 

 

 

 

All Other Acquisitions and Divestitures (A&D)

0.1

 

0.3

 

0.2

U.S.

0.1

 

0.7

 

0.3

International

0.1

 

0.1

 

0.1

 

 

 

 

 

WW Adjusted Operational Ex A&D

5.6%

 

4.7%

 

5.3%

U.S.

8.3%

 

5.3%

 

7.3%

International

2.2%

 

4.2%

 

3.0%

 

 

 

 

 

COVID-19 Vaccine

2.4

 

 

 

1.5

U.S.

0.0

 

 

 

0.0

International

5.3

 

 

 

3.2

 

 

 

 

 

WW Adjusted Operational Ex A&D & COVID-19 Vaccine

8.0%

 

4.7%

 

6.8%

U.S.

8.3%

 

5.3%

 

7.3%

International

7.5%

 

4.2%

 

6.2%

 
Note: Percentages are based on actual, non-rounded figures and may not sum

REPORTED SALES vs. PRIOR PERIOD ($MM)

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

% Change

 

 

 

 

 

% Change

INNOVATIVE MEDICINE SEGMENT (2)

 

2024

2023

Reported

Operational (1)

Currency

 

 

2024

2023

Reported

Operational (1)

Currency

 
IMMUNOLOGY
US

$

3,068

 

3,193

-3.9

%

-3.9

%

-

 

$

8,499

8,506

-0.1

%

-0.1

%

-

 

Intl

 

1,552

 

1,656

-6.2

%

-2.1

%

-4.1

%

 

5,090

4,951

2.8

%

7.3

%

-4.5

%

WW

 

4,621

 

4,849

-4.7

%

-3.3

%

-1.4

%

 

13,590

13,457

1.0

%

2.6

%

-1.6

%

REMICADE
US

 

281

 

296

-5.4

%

-5.4

%

-

 

 

778

849

-8.5

%

-8.5

%

-

 

US Exports (3)

 

27

 

38

-28.9

%

-28.9

%

-

 

 

89

112

-20.5

%

-20.5

%

-

 

Intl

 

112

 

127

-11.5

%

-6.5

%

-5.0

%

 

380

449

-15.4

%

-11.3

%

-4.1

%

WW

 

419

 

461

-9.1

%

-7.7

%

-1.4

%

 

1,246

1,410

-11.6

%

-10.3

%

-1.3

%

SIMPONI / SIMPONI ARIA
US

 

299

 

310

-3.7

%

-3.7

%

-

 

 

820

866

-5.3

%

-5.3

%

-

 

Intl

 

218

 

319

-31.8

%

-23.3

%

-8.5

%

 

787

829

-5.1

%

4.1

%

-9.2

%

WW

 

516

 

629

-18.0

%

-13.6

%

-4.4

%

 

1,607

1,695

-5.2

%

-0.7

%

-4.5

%

STELARA
US

 

1,770

 

1,912

-7.5

%

-7.5

%

-

 

 

5,021

5,180

-3.1

%

-3.1

%

-

 

Intl

 

906

 

951

-4.8

%

-2.3

%

-2.5

%

 

2,991

2,925

2.2

%

5.4

%

-3.2

%

WW

 

2,676

 

2,864

-6.6

%

-5.7

%

-0.9

%

 

8,012

8,105

-1.2

%

0.0

%

-1.2

%

TREMFYA
US

 

691

 

634

9.1

%

9.1

%

-

 

 

1,789

1,490

20.1

%

20.1

%

-

 

Intl

 

316

 

258

22.6

%

26.9

%

-4.3

%

 

932

747

24.7

%

29.6

%

-4.9

%

WW

 

1,007

 

891

13.0

%

14.3

%

-1.3

%

 

2,721

2,237

21.6

%

23.3

%

-1.7

%

OTHER IMMUNOLOGY
US

 

1

 

2

-45.6

%

-45.6

%

-

 

 

3

9

-66.8

%

-66.8

%

-

 

Intl

 

0

 

0

-

 

-

 

-

 

 

0

0

-

 

-

 

-

 

WW

 

1

 

2

-45.6

%

-45.6

%

-

 

 

3

9

-66.8

%

-66.8

%

-

 

INFECTIOUS DISEASES
US

 

365

 

360

1.5

%

1.5

%

-

 

 

1,023

1,147

-10.8

%

-10.8

%

-

 

Intl

 

471

 

500

-5.7

%

-5.1

%

-0.6

%

 

1,599

2,420

-33.9

%

-33.4

%

-0.5

%

WW

 

836

 

859

-2.7

%

-2.4

%

-0.3

%

 

2,622

3,566

-26.5

%

-26.1

%

-0.4

%

COVID-19 VACCINE
US

 

0

 

0

-

 

-

 

-

 

 

0

0

-

 

-

 

-

 

Intl

 

1

 

41

-97.7

%

-98.9

%

1.2

%

 

198

1,073

-81.6

%

-81.6

%

0.0

%

WW

 

1

 

41

-97.7

%

-98.9

%

1.2

%

 

198

1,073

-81.6

%

-81.6

%

0.0

%

EDURANT / rilpivirine
US

 

8

 

9

-15.8

%

-15.8

%

-

 

 

24

26

-10.0

%

-10.0

%

-

 

Intl

 

323

 

287

12.3

%

11.4

%

0.9

%

 

926

816

13.5

%

13.3

%

0.2

%

WW

 

330

 

297

11.5

%

10.6

%

0.9

%

 

950

843

12.7

%

12.6

%

0.1

%

PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA
US

 

355

 

345

2.8

%

2.8

%

-

 

 

990

1,105

-10.5

%

-10.5

%

-

 

Intl

 

94

 

102

-6.9

%

-3.0

%

-3.9

%

 

315

310

1.8

%

4.3

%

-2.5

%

WW

 

449

 

447

0.6

%

1.5

%

-0.9

%

 

1,305

1,415

-7.8

%

-7.2

%

-0.6

%

OTHER INFECTIOUS DISEASES
US

 

3

 

5

-52.2

%

-52.2

%

-

 

 

10

15

-37.7

%

-37.7

%

-

 

Intl

 

53

 

69

-23.2

%

-20.5

%

-2.7

%

 

160

220

-27.4

%

-24.2

%

-3.2

%

WW

 

55

 

74

-25.4

%

-22.9

%

-2.5

%

 

169

235

-28.0

%

-25.1

%

-2.9

%

 
 
 
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

% Change

 

 

 

 

 

% Change

 

2024

2023

Reported

Operational (1)

Currency

 

 

2024

2023

Reported

Operational (1)

Currency

NEUROSCIENCE
US

 

1,094

 

1,036

5.6

%

5.6

%

-

 

 

3,250

3,043

6.8

%

6.8

%

-

 

Intl

 

662

 

706

-6.2

%

-3.9

%

-2.3

%

 

2,090

2,296

-8.9

%

-4.8

%

-4.1

%

WW

 

1,755

 

1,742

0.8

%

1.7

%

-0.9

%

 

5,340

5,339

0.0

%

1.8

%

-1.8

%

CONCERTA / Methylphenidate
US

 

26

 

57

-55.0

%

-55.0

%

-

 

 

101

191

-47.5

%

-47.5

%

-

 

Intl

 

117

 

133

-11.9

%

-8.5

%

-3.4

%

 

382

412

-7.3

%

-2.9

%

-4.4

%

WW

 

142

 

189

-24.8

%

-22.5

%

-2.3

%

 

482

603

-20.0

%

-17.0

%

-3.0

%

INVEGA SUSTENNA / XEPLION /

INVEGA TRINZA / TREVICTA
US

 

780

 

730

6.8

%

6.8

%

-

 

 

2,329

2,164

7.6

%

7.6

%

-

 

Intl

 

269

 

299

-10.1

%

-8.3

%

-1.8

%

 

830

940

-11.7

%

-8.7

%

-3.0

%

WW

 

1,049

 

1,029

1.9

%

2.4

%

-0.5

%

 

3,159

3,104

1.8

%

2.7

%

-0.9

%

SPRAVATO
US

 

243

 

154

56.8

%

56.8

%

-

 

 

660

409

61.2

%

61.2

%

-

 

Intl

 

42

 

29

44.6

%

47.4

%

-2.8

%

 

120

74

62.9

%

65.0

%

-2.1

%

WW

 

284

 

183

54.9

%

55.3

%

-0.4

%

 

780

483

61.5

%

61.8

%

-0.3

%

OTHER NEUROSCIENCE
US

 

46

 

94

-51.4

%

-51.4

%

-

 

 

161

278

-42.1

%

-42.1

%

-

 

Intl

 

235

 

245

-4.4

%

-2.0

%

-2.4

%

 

759

870

-12.8

%

-7.4

%

-5.4

%

WW

 

281

 

340

-17.4

%

-15.7

%

-1.7

%

 

920

1,149

-19.9

%

-15.8

%

-4.1

%

ONCOLOGY
US

 

2,816

 

2,219

26.9

%

26.9

%

-

 

 

7,835

6,177

26.8

%

26.8

%

-

 

Intl

 

2,565

 

2,313

10.9

%

14.3

%

-3.4

%

 

7,450

6,865

8.5

%

12.6

%

-4.1

%

WW

 

5,380

 

4,533

18.7

%

20.5

%

-1.8

%

 

15,284

13,043

17.2

%

19.3

%

-2.1

%

CARVYKTI
US

 

258

 

140

84.9

%

84.9

%

-

 

 

565

324

74.6

%

74.6

%

-

 

Intl

 

27

 

12

*

*

*

 

63

17

*

*

*

WW

 

286

 

152

87.7

%

87.6

%

0.1

%

 

629

341

84.3

%

84.2

%

0.1

%

DARZALEX
US

 

1,684

 

1,369

23.0

%

23.0

%

-

 

 

4,789

3,882

23.4

%

23.4

%

-

 

Intl

 

1,332

 

1,130

17.9

%

22.8

%

-4.9

%

 

3,797

3,312

14.6

%

19.9

%

-5.3

%

WW

 

3,016

 

2,499

20.7

%

22.9

%

-2.2

%

 

8,586

7,194

19.3

%

21.8

%

-2.5

%

ERLEADA
US

 

337

 

288

17.1

%

17.1

%

-

 

 

940

778

20.8

%

20.8

%

-

 

Intl

 

453

 

342

32.4

%

34.0

%

-1.6

%

 

1,275

961

32.6

%

35.6

%

-3.0

%

WW

 

790

 

631

25.4

%

26.3

%

-0.9

%

 

2,215

1,740

27.3

%

29.0

%

-1.7

%

IMBRUVICA
US

 

259

 

264

-1.9

%

-1.9

%

-

 

 

770

796

-3.2

%

-3.2

%

-

 

Intl

 

494

 

545

-9.2

%

-7.2

%

-2.0

%

 

1,537

1,681

-8.5

%

-6.1

%

-2.4

%

WW

 

753

 

808

-6.8

%

-5.5

%

-1.3

%

 

2,307

2,476

-6.8

%

-5.2

%

-1.6

%

TECVAYLI
US

 

105

 

93

13.5

%

13.5

%

-

 

 

310

232

34.0

%

34.0

%

-

 

Intl

 

30

 

19

54.2

%

59.4

%

-5.2

%

 

93

37

*

 

*

*

WW

 

135

 

112

20.6

%

21.4

%

-0.8

%

 

403

269

49.6

%

50.0

%

-0.4

%

ZYTIGA / abiraterone acetate
US

 

5

 

16

-66.0

%

-66.0

%

-

 

 

25

41

-38.0

%

-38.0

%

-

 

Intl

 

144

 

199

-27.1

%

-24.4

%

-2.7

%

 

470

646

-27.1

%

-22.8

%

-4.3

%

WW

 

150

 

214

-30.0

%

-27.5

%

-2.5

%

 

496

686

-27.8

%

-23.7

%

-4.1

%

OTHER ONCOLOGY
US

 

168

 

50

*

*

-

 

 

435

125

*

*

-

 

Intl

 

83

 

67

24.8

%

27.6

%

-2.8

%

 

214

211

2.0

%

4.8

%

-2.8

%

WW

 

250

 

117

*

*

*

 

649

336

93.4

%

95.1

%

-1.7

%

 
 
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

% Change

 

 

 

 

 

% Change

 

2024

 

2023

Reported

Operational (1)

Currency

 

 

2024

 

2023

Reported

Operational (1)

Currency

PULMONARY HYPERTENSION
US

 

815

 

680

20.0

%

20.0

%

-

 

 

2,324

1,964

18.4

%

18.4

%

-

 

Intl

 

287

 

274

4.5

%

9.7

%

-5.2

%

 

866

835

3.7

%

10.6

%

-6.9

%

WW

 

1,102

 

954

15.6

%

17.0

%

-1.4

%

 

3,190

2,798

14.0

%

16.1

%

-2.1

%

OPSUMIT
US

 

406

 

323

25.4

%

25.4

%

-

 

 

1,135

924

22.8

%

22.8

%

-

 

Intl

 

165

 

166

-0.2

%

1.7

%

-1.9

%

 

504

512

-1.6

%

2.2

%

-3.8

%

WW

 

571

 

490

16.8

%

17.4

%

-0.6

%

 

1,639

1,437

14.1

%

15.4

%

-1.3

%

UPTRAVI
US

 

379

 

336

12.7

%

12.7

%

-

 

 

1,120

978

14.5

%

14.5

%

-

 

Intl

 

80

 

66

21.8

%

28.2

%

-6.4

%

 

232

185

25.5

%

33.5

%

-8.0

%

WW

 

458

 

402

14.2

%

15.2

%

-1.0

%

 

1,352

1,163

16.3

%

17.5

%

-1.2

%

OTHER PULMONARY HYPERTENSION
US

 

32

 

20

54.0

%

54.0

%

-

 

 

70

61

14.0

%

14.0

%

-

 

Intl

 

40

 

42

-3.9

%

12.4

%

-16.3

%

 

129

137

-5.8

%

10.9

%

-16.7

%

WW

 

72

 

63

15.0

%

25.9

%

-10.9

%

 

199

199

0.3

%

11.9

%

-11.6

%

CARDIOVASCULAR / METABOLISM / OTHER
US

 

713

 

763

-6.5

%

-6.5

%

-

 

 

2,061

2,254

-8.5

%

-8.5

%

-

 

Intl

 

170

 

194

-11.9

%

-10.0

%

-1.9

%

 

543

580

-6.4

%

-4.6

%

-1.8

%

WW

 

884

 

957

-7.6

%

-7.2

%

-0.4

%

 

2,605

2,834

-8.1

%

-7.7

%

-0.4

%

XARELTO
US

 

592

 

625

-5.2

%

-5.2

%

-

 

 

1,697

1,840

-7.8

%

-7.8

%

-

 

Intl

 

-

 

-

-

 

-

 

-

 

 

-

-

-

 

-

 

-

 

WW

 

592

 

625

-5.2

%

-5.2

%

-

 

 

1,697

1,840

-7.8

%

-7.8

%

-

 

OTHER
US

 

121

 

139

-12.2

%

-12.2

%

-

 

 

364

414

-11.9

%

-11.9

%

-

 

Intl

 

170

 

194

-11.9

%

-10.0

%

-1.9

%

 

543

580

-6.4

%

-4.6

%

-1.8

%

WW

 

292

 

332

-12.0

%

-10.9

%

-1.1

%

 

908

994

-8.7

%

-7.7

%

-1.0

%

 
TOTAL INNOVATIVE MEDICINE
US

 

8,871

 

8,249

7.5

%

7.5

%

-

 

 

24,993

23,090

8.2

%

8.2

%

-

 

Intl

 

5,709

 

5,644

1.2

%

4.4

%

-3.2

%

 

17,639

17,947

-1.7

%

2.1

%

-3.8

%

WW

$

14,580

$

13,893

4.9

%

6.3

%

-1.4

%

$

42,632

41,037

3.9

%

5.5

%

-1.6

%

 
 
See footnotes at end of schedule
 
 
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

% Change

 

 

 

 

 

% Change

MEDTECH SEGMENT (2)

 

2024

 

2023

Reported

Operational (1)

Currency

 

 

2024

 

2023

Reported

Operational (1)

Currency

 
CARDIOVASCULAR (4)
US

$

1,148

 

891

28.6

%

28.6

%

-

 

$

3,292

2,662

23.6

%

23.6

%

-

 

Intl

 

819

 

667

22.8

%

23.7

%

-0.9

%

 

2,353

2,019

16.5

%

20.5

%

-4.0

%

WW

 

1,966

 

1,558

26.2

%

26.5

%

-0.3

%

 

5,645

4,681

20.6

%

22.3

%

-1.7

%

ELECTROPHYSIOLOGY
US

 

660

 

611

7.9

%

7.9

%

-

 

 

2,057

1,791

14.8

%

14.8

%

-

 

Intl

 

619

 

549

12.7

%

13.8

%

-1.1

%

 

1,889

1,658

14.0

%

18.2

%

-4.2

%

WW

 

1,279

 

1,161

10.2

%

10.7

%

-0.5

%

 

3,946

3,449

14.4

%

16.5

%

-2.1

%

ABIOMED
US

 

293

 

254

15.4

%

15.4

%

-

 

 

905

790

14.5

%

14.5

%

-

 

Intl

 

68

 

57

20.1

%

20.1

%

0.0

%

 

207

176

17.7

%

20.0

%

-2.3

%

WW

 

362

 

311

16.3

%

16.3

%

0.0

%

 

1,112

966

15.1

%

15.5

%

-0.4

%

SHOCKWAVE (5)
US

 

163

 

-

*

*

-

 

 

240

-

*

*

-

 

Intl

 

66

 

-

*

*

-

 

 

66

-

*

*

-

 

WW

 

229

 

-

*

*

-

 

 

306

-

*

*

-

 

OTHER CARDIOVASCULAR (4)
US

 

30

 

26

16.7

%

16.7

%

-

 

 

89

81

10.6

%

10.6

%

-

 

Intl

 

66

 

61

7.7

%

7.5

%

0.2

%

 

192

186

3.0

%

5.7

%

-2.7

%

WW

 

96

 

87

10.4

%

10.2

%

0.2

%

 

281

267

5.3

%

7.2

%

-1.9

%

ORTHOPAEDICS
US

 

1,359

 

1,349

0.7

%

0.7

%

-

 

 

4,229

4,100

3.2

%

3.2

%

-

 

Intl

 

832

 

815

2.0

%

2.2

%

-0.2

%

 

2,614

2,574

1.5

%

3.1

%

-1.6

%

WW

 

2,191

 

2,164

1.2

%

1.3

%

-0.1

%

 

6,843

6,674

2.5

%

3.2

%

-0.7

%

HIPS
US

 

250

 

239

4.8

%

4.8

%

-

 

 

785

730

7.5

%

7.5

%

-

 

Intl

 

131

 

136

-3.6

%

-3.2

%

-0.4

%

 

435

432

0.6

%

2.4

%

-1.8

%

WW

 

381

 

375

1.7

%

1.9

%

-0.2

%

 

1,220

1,162

5.0

%

5.6

%

-0.6

%

KNEES
US

 

212

 

207

2.2

%

2.2

%

-

 

 

684

654

4.5

%

4.5

%

-

 

Intl

 

140

 

131

6.9

%

7.0

%

-0.1

%

 

463

415

11.5

%

12.7

%

-1.2

%

WW

 

352

 

338

4.0

%

4.1

%

-0.1

%

 

1,147

1,069

7.2

%

7.7

%

-0.5

%

TRAUMA
US

 

497

 

488

1.8

%

1.8

%

-

 

 

1,499

1,462

2.5

%

2.5

%

-

 

Intl

 

265

 

253

4.2

%

4.8

%

-0.6

%

 

786

775

1.4

%

3.0

%

-1.6

%

WW

 

761

 

742

2.6

%

2.8

%

-0.2

%

 

2,285

2,238

2.1

%

2.7

%

-0.6

%

SPINE, SPORTS & OTHER
US

 

400

 

415

-3.6

%

-3.6

%

-

 

 

1,262

1,254

0.6

%

0.6

%

-

 

Intl

 

296

 

295

0.4

%

0.4

%

0.0

%

 

930

952

-2.3

%

-0.6

%

-1.7

%

WW

 

696

 

710

-1.9

%

-2.0

%

0.1

%

 

2,191

2,205

-0.6

%

0.1

%

-0.7

%

 
 
 
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

REPORTED SALES vs. PRIOR PERIOD ($MM)

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

% Change

 

 

 

 

 

% Change

 

2024

 

2023

Reported

Operational (1)

Currency

 

 

2024

 

2023

Reported

Operational (1)

Currency

SURGERY
US

 

983

 

994

-1.1

%

-1.1

%

-

 

 

2,965

2,984

-0.6

%

-0.6

%

-

 

Intl

 

1,451

 

1,483

-2.2

%

-0.3

%

-1.9

%

 

4,373

4,522

-3.3

%

0.4

%

-3.7

%

WW

 

2,434

 

2,479

-1.8

%

-0.7

%

-1.1

%

 

7,338

7,507

-2.2

%

0.0

%

-2.2

%

ADVANCED
US

 

448

 

455

-1.4

%

-1.4

%

-

 

 

1,360

1,365

-0.4

%

-0.4

%

-

 

Intl

 

661

 

709

-6.8

%

-5.1

%

-1.7

%

 

1,977

2,139

-7.6

%

-4.2

%

-3.4

%

WW

 

1,109

 

1,164

-4.7

%

-3.6

%

-1.1

%

 

3,337

3,504

-4.8

%

-2.7

%

-2.1

%

GENERAL
US

 

535

 

540

-0.9

%

-0.9

%

-

 

 

1,605

1,619

-0.9

%

-0.9

%

-

 

Intl

 

791

 

775

2.1

%

4.0

%

-1.9

%

 

2,397

2,383

0.6

%

4.4

%

-3.8

%

WW

 

1,325

 

1,314

0.8

%

2.0

%

-1.2

%

 

4,001

4,002

0.0

%

2.3

%

-2.3

%

VISION
US

 

549

 

512

7.2

%

7.2

%

-

 

 

1,619

1,599

1.3

%

1.3

%

-

 

Intl

 

751

 

744

0.9

%

1.8

%

-0.9

%

 

2,224

2,265

-1.8

%

1.0

%

-2.8

%

WW

 

1,300

 

1,256

3.5

%

4.0

%

-0.5

%

 

3,843

3,864

-0.5

%

1.1

%

-1.6

%

CONTACT LENSES / OTHER
US

 

441

 

399

10.2

%

10.2

%

-

 

 

1,288

1,252

2.8

%

2.8

%

-

 

Intl

 

527

 

529

-0.3

%

0.6

%

-0.9

%

 

1,508

1,568

-3.8

%

-0.4

%

-3.4

%

WW

 

968

 

928

4.2

%

4.7

%

-0.5

%

 

2,796

2,820

-0.9

%

1.0

%

-1.9

%

SURGICAL
US

 

108

 

112

-3.6

%

-3.6

%

-

 

 

331

346

-4.4

%

-4.4

%

-

 

Intl

 

225

 

216

3.9

%

4.7

%

-0.8

%

 

717

698

2.7

%

4.2

%

-1.5

%

WW

 

333

 

328

1.3

%

1.9

%

-0.6

%

 

1,048

1,044

0.3

%

1.4

%

-1.1

%

 
TOTAL MEDTECH
US

 

4,038

 

3,747

7.8

%

7.8

%

-

 

 

12,105

11,345

6.7

%

6.7

%

-

 

Intl

 

3,853

 

3,711

3.9

%

5.0

%

-1.1

%

 

11,564

11,382

1.6

%

4.7

%

-3.1

%

WW

$

7,891

$

7,458

5.8

%

6.4

%

-0.6

%

$

23,669

22,727

4.1

%

5.7

%

-1.6

%

 
Note: Columns and rows within tables may not add due to rounding. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely
   
* Percentage greater than 100% or not meaningful
(1) Operational growth excludes the effect of translational currency
(2) Unaudited
(3) Reported as U.S. sales
(4) Previously referred to as Interventional Solutions
(5) Acquired on May 31, 2024
Supplemental Sales Information (Unaudited)
(Dollars in Millions)
 

THIRD QUARTER

 

NINE MONTHS

 

 

 

 

Percent Change

 

 

 

 

 

Percent Change

2024

 

2023

 

Total

Operations

Currency

 

2024

 

2023

 

Total

Operations

Currency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Innovative Medicine
U.S.

$

8,871

8,249

7.5

 

7.5

 

-

 

$

24,993

23,090

8.2

 

8.2

 

-

 

International

 

5,709

5,644

1.2

 

4.4

 

(3.2

)

 

17,639

17,947

(1.7

)

2.1

 

(3.8

)

Worldwide

 

14,580

13,893

4.9

 

6.3

 

(1.4

)

 

42,632

41,037

3.9

 

5.5

 

(1.6

)

 
COVID-19 Vaccine
U.S.

 

-

-

-

 

-

 

-

 

-

-

-

 

-

 

-

 

International

 

1

41

(97.7

)

(98.9

)

1.2

 

 

198

1,073

(81.6

)

(81.6

)

0.0

 

Worldwide

 

1

41

(97.7

)

(98.9

)

1.2

 

 

198

1,073

(81.6

)

(81.6

)

0.0

 

 
Innovative Medicine excluding COVID-19 Vaccine
U.S.

 

8,871

8,249

7.5

 

7.5

 

-

 

 

24,993

23,090

8.2

 

8.2

 

-

 

International

 

5,708

5,603

1.9

 

5.2

 

(3.3

)

 

17,441

16,874

3.4

 

7.4

 

(4.0

)

Worldwide

 

14,579

13,852

5.2

 

6.6

 

(1.4

)

 

42,434

39,964

6.2

 

7.9

 

(1.7

)

 
Worldwide
U.S.

 

12,909

11,996

7.6

 

7.6

 

-

 

 

37,098

34,435

7.7

 

7.7

 

-

 

International

 

9,562

9,355

2.2

 

4.6

 

(2.4

)

 

29,203

29,329

(0.4

)

3.1

 

(3.5

)

Worldwide

 

22,471

21,351

5.2

 

6.3

 

(1.1

)

 

66,301

63,764

4.0

 

5.6

 

(1.6

)

 
COVID-19 Vaccine
U.S.

 

-

-

-

 

-

 

-

 

-

-

-

 

-

 

-

 

International

 

1

41

(97.7

)

(98.9

)

1.2

 

 

198

1,073

(81.6

)

(81.6

)

0.0

 

Worldwide

 

1

41

(97.7

)

(98.9

)

1.2

 

 

198

1,073

(81.6

)

(81.6

)

0.0

 

 
Worldwide
U.S.

 

12,909

11,996

7.6

 

7.6

 

-

 

 

37,098

34,435

7.7

 

7.7

 

-

 

International

 

9,561

9,314

2.7

 

5.1

 

(2.4

)

 

29,005

28,256

2.7

 

6.3

 

(3.6

)

Worldwide excluding COVID-19 Vaccine

$

22,470

21,310

5.4

 

6.5

 

(1.1

)

$

66,103

62,691

5.4

 

7.1

 

(1.7

)

 

Europe

$

4,914

4,727

4.0

 

3.0

 

1.0

 

$

15,291

15,448

(1.0

)

(0.7

)

(0.3

)

Europe COVID-19 Vaccine Sales

 

1

41

(97.7

)

(98.9

)

1.2

 

 

198

1,073

(81.6

)

(81.6

)

0.0

 

Europe excluding COVID-19 Vaccine Sales

$

4,913

4,686

4.8

 

3.8

 

1.0

 

$

15,093

14,375

5.0

 

5.3

 

(0.3

)

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q3 QTD - Income Before Tax and Research & Development Expense by Segment
Dollars in Millions
 

Innovative Medicine

 

MedTech

 

Unallocated

 

 

Worldwide Total

2024

2023

2024

2023

 

2024

2023

 

 

2024

2023

 
Reported Income Before Tax by Segment From Continuing Operations $

4,482

 

4,794

 

1,059

 

1,185

 

(2,203

)

(762

)

3,338

 

5,217

 

% to Sales

30.7

%

34.5

%

13.4

%

15.9

%

-9.8

%

-3.6

%

14.9

%

24.4

%

 
Intangible asset amortization expense

695

 

749

 

476

 

383

 

-

 

-

 

1,171

 

1,132

 

 
In-process research and development impairments

-

 

206

 

-

 

-

 

-

 

-

 

-

 

206

 

 
Litigation related

356

 

(32

)

19

 

(19

)

2,013

 

-

 

2,388

 

(51

)

 
Loss/(gain) on securities

(41

)

398

 

4

 

(38

)

-

 

645

 

(37

)

1,005

 

 
Restructuring related

19

 

149

 

28

 

235

 

-

 

-

 

47

 

384

 

 
Acquisition, integration and divestiture related

6

 

-

 

277

 

22

 

45

 

-

 

328

 

22

 

 
Medical Device Regulation

-

 

-

 

38

 

74

 

-

 

-

 

38

 

74

 

 
COVID-19 Vaccine related costs

4

 

44

 

-

 

-

 

-

 

-

 

4

 

44

 

 
Adjusted Income Before Tax by Segment From Continuing Operations $

5,521

 

6,308

 

1,901

 

1,842

 

(145

)

(117

)

7,277

 

8,033

 

% to Sales

37.9

%

45.4

%

24.1

%

24.7

%

-0.6

%

-0.5

%

32.4

%

37.6

%

 
Estimated as of 10/15/2024
As Reported Research and development expense* $

4,213

 

2,778

 

739

 

669

 

4,952

 

3,447

 

% to Sales

28.9

%

20.0

%

9.4

%

9.0

%

22.0

%

16.2

%

 
*Includes payment to secure the global rights for NM26 Bi-specific Antibody in Q3 2024

1,250

 

1,250

 

Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q3 YTD - Income Before Tax and Research & Development Expense by Segment
Dollars in Millions
 

Innovative Medicine

 

MedTech

 

Unallocated

 

 

Worldwide Total

2024

2023

2024

2023

 

2024

2023

 

 

2024

2023

 
Reported Income Before Tax by Segment From Continuing Operations $

14,910

 

14,008

 

3,668

 

4,265

 

(5,778

)

(8,037

)

12,800

 

10,236

 

% to Sales

35.0

%

34.1

%

15.5

%

18.8

%

-8.7

%

-12.6

%

19.3

%

16.1

%

 
Intangible asset amortization expense

2,087

 

2,236

 

1,268

 

1,148

 

-

 

-

 

3,355

 

3,384

 

 
In-process research and development impairments

194

 

206

 

-

 

49

 

-

 

-

 

194

 

255

 

 
Litigation related

399

 

(125

)

15

 

41

 

5,052

 

7,070

 

5,466

 

6,986

 

 
Loss/(gain) on securities

(26

)

474

 

48

 

(43

)

352

 

645

 

374

 

1,076

 

 
Restructuring related

100

 

424

 

107

 

235

 

-

 

-

 

207

 

659

 

 
Acquisition, integration and divestiture related

54

 

-

 

747

 

102

 

127

 

-

 

928

 

102

 

 
Medical Device Regulation

-

 

-

 

157

 

223

 

-

 

-

 

157

 

223

 

 
COVID-19 Vaccine related costs

77

 

653

 

-

 

-

 

-

 

-

 

77

 

653

 

 
Adjusted Income Before Tax by Segment From Continuing Operations $

17,795

 

17,876

 

6,010

 

6,020

 

(247

)

(322

)

23,558

 

23,574

 

% to Sales

41.7

%

43.6

%

25.4

%

26.5

%

-0.4

%

-0.5

%

35.5

%

37.0

%

 
Estimated as of 10/15/2024
As Reported Research and development expense* $

9,831

 

8,604

 

2,103

 

2,001

 

11,934

 

10,605

 

% to Sales

23.1

%

21.0

%

8.9

%

8.8

%

18.0

%

16.6

%

 
*Includes payment to secure the global rights for NM26 Bi-specific Antibody in Q3 2024

1,250

 

1,250

 

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
 
Quarter to Date
 
In-process

research and

development

impairments
Acquisition, integration

and divestiture related
(Loss)/gain on

securities
COVID-19

Vaccine Related

Costs
Tax legislation

and other tax

related
Third Quarter

Sept. 29, 2024

GAAP
Intangible asset

amortization
Litigation

related
Restructuring

related
Medical Device

Regulation
Third Quarter

Sept. 29, 2024

Non-GAAP
Cost of products sold

$

6,963

(1,171

)

(6

)

(156

)

(16

)

(2

)

-

 

5,612

 

Selling, marketing and admin expenses

 

5,478

(3

)

5,475

 

Research and development expense

 

4,952

(36

)

(19

)

(2

)

4,895

 

Other (Income) / Expense

 

1,798

-

 

(2,388

)

-

 

(136

)

37

 

-

 

(689

)

In-process research and development impairments

 

-

-

 

-

 

-

 

Restructuring

 

41

(41

)

-

 

Provision for taxes on income

 

644

169

 

527

 

-

 

9

 

59

 

(9

)

6

 

1

 

(5

)

1,401

 

Net Earnings from Continuing Operations

 

2,694

1,002

 

1,861

 

-

 

38

 

269

 

(28

)

32

 

3

 

5

 

5,876

 

 
 
In-process

research and

development

impairments
Acquisition, integration

and divestiture related
(Loss)/gain on

securities
COVID-19

Vaccine Related

Costs
Tax legislation

and other tax

related
Third Quarter

Oct. 1, 2023

GAAP
Intangible asset

amortization
Litigation

related
Restructuring

related
Medical Device

Regulation
Third Quarter

Oct. 1, 2023

Non-GAAP
Cost of products sold

$

6,606

(1,132

)

(226

)

(34

)

(9

)

-

 

5,205

 

Selling, marketing and admin expenses

 

5,400

(6

)

5,394

 

Research and development expense

 

3,447

-

 

(33

)

(36

)

3,378

 

Other (Income) / Expense

 

499

-

 

51

 

-

 

(22

)

(1,005

)

-

 

(477

)

In-process research and development impairments

 

206

(206

)

-

 

Restructuring

 

158

(158

)

-

 

Provision for taxes on income

 

908

178

 

(12

)

46

 

72

 

5

 

167

 

14

 

12

 

(134

)

1,256

 

Net Earnings from Continuing Operations

 

4,309

954

 

(39

)

160

 

312

 

17

 

838

 

59

 

33

 

134

 

6,777

 

 
Year to Date
 
In-process

research and

development

impairments
Acquisition, integration

and divestiture

related
(Loss)/gain on

securities
COVID-19

Vaccine Related

Costs
Tax legislation

and other tax

related
Nine Months

Sept. 29, 2024

GAAP
Intangible asset

amortization
Litigation

related
Restructuring

related
Medical Device

Regulation
Nine Months

Sept. 29, 2024

Non-GAAP
Cost of products sold

$

20,343

(3,355

)

(15

)

(206

)

(66

)

(8

)

16,693

 

Selling, marketing and admin expenses

 

16,416

(12

)

-

 

16,404

 

Research and development expense

 

11,934

(69

)

(79

)

(19

)

11,767

 

Other (Income) / Expense

 

4,855

-

 

(5,466

)

-

 

(653

)

(374

)

(50

)

(1,688

)

In-process research and development impairments

 

194

(194

)

-

 

-

 

-

 

-

 

-

 

Restructuring

 

192

(192

)

-

 

Provision for taxes on income

 

2,165

473

 

1,224

 

43

 

42

 

222

 

5

 

29

 

17

 

42

 

4,262

 

Net Earnings from Continuing Operations

 

10,635

2,882

 

4,242

 

151

 

165

 

706

 

369

 

128

 

60

 

(42

)

19,296

 

 
 
In-process

research and

development

impairments
Acquisition, integration

and divestiture

related
(Loss)/gain on

securities
COVID-19

Vaccine Related

Costs
Tax legislation

and other tax

related
Nine Months

Oct. 1, 2023

GAAP
Intangible asset

amortization
Litigation

related
Restructuring

related
Medical Device

Regulation
Nine Months

Oct 1, 2023

Non-GAAP
Cost of products sold

$

19,755

(3,380

)

(226

)

(91

)

(177

)

15,881

 

Selling, marketing and admin expenses

 

15,702

(21

)

15,681

 

Research and development expense

 

10,605

(16

)

(111

)

(98

)

10,380

 

Other (Income) / Expense

 

7,055

(4

)

(6,986

)

-

 

(86

)

(1,076

)

(378

)

(1,475

)

In-process research and development impairments

 

255

(255

)

-

 

-

 

Restructuring

 

433

(433

)

-

 

Provision for taxes on income

 

1,042

532

 

1,639

 

57

 

141

 

22

 

182

 

41

 

155

 

(84

)

3,727

 

Net Earnings from Continuing Operations

 

9,194

2,852

 

5,347

 

198

 

518

 

80

 

894

 

182

 

498

 

84

 

19,847