Johnson & Johnson Reports Q1 2024 Results

Johnson & Johnson announced results for first-quarter 2024. “Johnson & Johnson’s solid first quarter performance reflects our sharpened focus and the progress in our portfolio and pipeline,” said Joaquin Duato, Chairman and Chief Executive Officer.

  • 2024 First-Quarter reported sales growth of 2.3% to $21.4 Billion with operational growth of 3.9%* and adjusted operational growth of 4.0%*
    • Adjusted operational growth excluding COVID-19 Vaccine of 7.7%*
  • 2024 First-Quarter Earnings per share (EPS) increased to $2.20 and adjusted EPS increased to $2.71 or 12.4%*
  • Company increasing the midpoint for Full-Year 2024 operational sales5 and adjusted operational EPS guidance

NEW BRUNSWICK, N.J.--(BUSINESS WIRE)-- Johnson & Johnson (NYSE: JNJ) today announced results for first-quarter 2024. “Johnson & Johnson’s solid first quarter performance reflects our sharpened focus and the progress in our portfolio and pipeline,” said Joaquin Duato, Chairman and Chief Executive Officer. “Our impact across the full spectrum of healthcare is unique in our industry, and the milestones achieved this quarter reinforce our position as an innovation powerhouse.”

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

Overall Financial Results

 

Q1

($ in Millions, except EPS)

2024

2023

% Change

Reported Sales

$21,383

$20,894

2.3%

Net Earnings/(Loss)

$5,354

($491)

 

EPS (Diluted/Basic)6

$2.20

($0.19)

 
       
 

Q1

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

2024

2023

% Change

Operational Sales1,2

   

3.9%

Adjusted Operational Sales1,3

   

4.0%

Adjusted Operational Sales ex. COVID-19 Vaccine1,3

   

7.7%

Adjusted Net Earnings1,4

$6,580

$6,340

3.8%

Adjusted EPS (Diluted)1,4

$2.71

$2.41

12.4%

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

4

 

Excludes intangible amortization expense and special items

5

 

Excludes COVID-19 Vaccine

6

 

Basic shares are used to calculate loss per share in the first quarter of 2023 as use of diluted shares when in a loss position would be anti-dilutive

   

Note: Values may have been rounded

Regional Sales Results

Q1

 

% Change

($ in Millions)

2024

2023

Reported

Operational1,2

Currency

Adjusted
Operational1,3

U.S.

$11,620

$10,782

7.8%

7.8

-

7.9

International

9,763

10,112

(3.4)

(0.3)

(3.1)

(0.3)

Worldwide

$21,383

$20,894

2.3%

3.9

(1.6)

4.0

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

Q1

   

% Change

     
($ in Millions)

2024

2023

Reported

Operational1,2

Currency

Adjusted
Operational1,3

Innovative Medicine

$13,562

$13,413

1.1%

2.5

(1.4)

2.5

MedTech

7,821

7,481

4.5

6.3

(1.8)

6.5

Worldwide

$21,383

$20,894

2.3%

3.9

(1.6)

4.0

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

   

Values may have been rounded

First Quarter 2024 Segment Commentary:

Operational sales* reflected below excludes the impact of translational currency. Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Innovative Medicine

Innovative Medicine worldwide operational sales, excluding the COVID-19 Vaccine, grew 8.3%*. Growth was driven by DARZALEX (daratumumab), ERLEADA (apalutamide), CARVYKTI (ciltacabtagene autoleucel), TECVAYLI (teclistamab-cqyv) and Other Oncology in Oncology, UPTRAVI (selexipag) and OPSUMIT (macitentan) in Pulmonary Hypertension, TREMFYA (guselkumab) in Immunology, and SPRAVATO (esketamine) in Neuroscience. Including the COVID-19 Vaccine, Innovative Medicine worldwide operational sales grew 2.5%*.

MedTech

MedTech worldwide operational sales grew 6.3%* driven primarily by electrophysiology products and Abiomed in Cardiovascular, previously referred to as Interventional Solutions, and wound closure products in General Surgery.

Notable New 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, www.factsabouttalc.com, and www.LLTManagementInformation.com.

Regulatory

CARVYKTI is the First and Only BCMA-Targeted Treatment Approved by the U.S. FDA for Patients with Relapsed or Refractory Multiple Myeloma Who Have Received At Least One Prior Line of Therapy1

Press Release

Johnson & Johnson’s nipocalimab granted U.S. FDA Fast Track designation to reduce the risk of fetal neonatal alloimmune thrombocytopenia (FNAIT) in alloimmunized pregnant adults

Press Release

Biosense Webster Submits Application to U.S. FDA Seeking Approval of the VARIPULSE Platform for the Treatment of Paroxysmal Atrial Fibrillation

Press Release

U.S. FDA Approves OPSYNVI (macitentan and tadalafil) as the First and Only Once-Daily Single-Tablet Combination Therapy for Patients with Pulmonary Arterial Hypertension (PAH)

Press Release

U.S. FDA Oncologic Drugs Advisory Committee recommends CARVYKTI (ciltacabtagene autoleucel) for the earlier treatment of patients with relapsed or refractory multiple myeloma

Press Release

Johnson & Johnson submits supplemental Biologics License Application to U.S. FDA seeking approval of TREMFYA (guselkumab) for the treatment of adults with moderately to severely active ulcerative colitis

Press Release

Johnson & Johnson submits application to the European Medicines Agency for DARZALEX (daratumumab)-based quadruplet therapy for the treatment of patients with transplant-eligible, newly diagnosed multiple myeloma

Press Release

RYBREVANT (amivantamab-vmjw) in Combination With Chemotherapy Is the First FDA Approved Therapy for First-line Treatment of Patients With Non-Small Cell Lung Cancer with EGFR Exon 20 Insertion Mutations

Press Release

Janssen Receives Positive CHMP Opinion for CARVYKTI (ciltacabtagene autoleucel; cilta-cel) for Treatment in Earlier Lines of Relapsed and Refractory Multiple Myeloma

Press Release

TECVAYLI (teclistamab-cqyv) biweekly dosing approved by the U.S. FDA for the treatment of patients with relapsed or refractory multiple myeloma

Press Release

Johnson & Johnson’s nipocalimab granted U.S. FDA Breakthrough Therapy Designation for the treatment of individuals at high risk for severe hemolytic disease of the fetus and newborn (HDFN)

Press Release

Johnson & Johnson submits supplemental Biologics License Application to U.S. FDA seeking approval of DARZALEX FASPRO (daratumumab and hyaluronidase-fihj) based regimen for the treatment of patients with transplant-eligible, newly diagnosed multiple myeloma

Press Release

Data Release

Unique molecular properties of nipocalimab enabling differentiated potential in treating generalized myasthenia gravis to be presented at American Academy of Neurology’s 2024 Annual Meeting1

Press Release

Johnson & Johnson to Showcase its Broad Scientific Leadership and Latest Innovations to Combat Cardiovascular Disease at ACC.241

Press Release

RYBREVANT (amivantamab-vmjw) data at ELCC advance Johnson & Johnson’s ambition to transform the standard of care for patients with EGFR-mutated non-small cell lung cancer

Press Release

New data shows JNJ-2113, the first and only investigational targeted oral peptide, maintained skin clearance in moderate-to-severe plaque psoriasis through one year

Press Release

Investigational targeted oral peptide JNJ-2113 demonstrated positive results in moderate-to-severe plaque psoriasis in Phase 2b study published in New England Journal of Medicine

Press Release

Johnson & Johnson reports positive topline results for Nipocalimab from a Phase 3 pivotal study in generalized myasthenia gravis (gMG) and a Phase 2 study in Sjögren’s Disease (SjD)

Press Release

Johnson & Johnson Highlights Ambition to Transform the Treatment of Prostate Cancer and Bladder Cancer through Data Presentations at ASCO GU

Press Release

Product Launch

Biosense Webster Announces CE Mark approval in Europe for VARIPULSE Pulsed Field Ablation (PFA) Platform

Press Release

Other

Johnson & Johnson to Acquire Shockwave Medical1

Press Release

Johnson & Johnson Completes Acquisition of Ambrx

Press Release

1 Subsequent to the quarter

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.

($ in Billions, except EPS)

April 2024

January 2024

Adjusted Operational Sales1,2,5
Change vs. Prior Year / Mid-point

5.5% – 6.0% / 5.8%

5.0% – 6.0% / 5.5%

Operational Sales2,5/ Mid-point
Change vs. Prior Year / Mid-point

$88.7B – $89.1B / $88.0B

5.5% – 6.0% / 5.8%

$88.2B – $89.0B / $88.6B

5.0% – 6.0% / 5.5%

Estimated Reported Sales3,5/ Mid-point
Change vs. Prior Year / Mid-point

$88.0B – $88.4B / $88.2B

4.7% – 5.2% / 5.0%

$87.8B – $88.6B / $88.2B

4.5% – 5.5% / 5.0%

     

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

Change vs. Prior Year / Mid-point

$10.60 – $10.75 / $10.68

6.9% – 8.4% / 7.7%

$10.55 – $10.75 / $10.65

6.4% – 8.4% / 7.4%

Adjusted EPS (Diluted)3,4 / Mid-point
Change vs. Prior Year / Mid-point

$10.57 – $10.72 / $10.65

6.6% – 8.1% / 7.4%

$10.55 – $10.75 / $10.65

6.4% – 8.4% / 7.4%

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: April 2024 = $1.08 and January 2024 = $1.09 (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.

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 https://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; the Company’s ability to realize the anticipated benefits from the separation of Kenvue Inc; and Kenvue’s ability to succeed as a standalone publicly traded company. 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)

FIRST QUARTER

         

Percent Change

 

2024

 

2023

 

Total

   

Operations

 

Currency

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

7,612

 

7,023

 

8.4

     

8.4

   

-

 
International  

5,950

 

6,390

 

(6.9

)

   

(4.0

)

 

(2.9

)

   

13,562

 

13,413

 

1.1

     

2.5

   

(1.4

)

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

7,612

 

7,023

 

8.4

     

8.4

   

-

 
International  

5,925

 

5,643

 

5.0

     

8.3

   

(3.3

)

   

13,537

 

12,666

 

6.9

     

8.3

   

(1.4

)

                     
MedTech                    
U.S.  

4,008

 

3,759

 

6.6

     

6.6

   

-

 
International  

3,813

 

3,722

 

2.4

     

6.1

   

(3.7

)

   

7,821

 

7,481

 

4.5

     

6.3

   

(1.8

)

                     
U.S.  

11,620

 

10,782

 

7.8

     

7.8

   

-

 
International  

9,763

 

10,112

 

(3.4

)

   

(0.3

)

 

(3.1

)

Worldwide  

21,383

 

20,894

 

2.3

     

3.9

   

(1.6

)

                     
U.S.  

11,620

 

10,782

 

7.8

     

7.8

   

-

 
International  

9,738

 

9,365

 

4.0

     

7.4

   

(3.4

)

Worldwide excluding COVID-19 Vaccine (1)

$

21,358

 

20,147

 

6.0

 

%

 

7.6

   

(1.6

)

                     
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) FIRST QUARTER
         

Percent Change

 

2024

 

2023

 

Total

   

Operations

 

Currency

Sales to customers by                    
geographic area                    
                     
U.S.

$

11,620

 

10,782

 

7.8

 

%

 

7.8

   

-

 
                     
Europe  

5,163

 

5,590

 

(7.6

)

   

(7.7

)

 

0.1

 
Western Hemisphere excluding U.S.  

1,194

 

1,076

 

11.0

     

21.3

   

(10.3

)

Asia-Pacific, Africa  

3,406

 

3,446

 

(1.1

)

   

5.0

   

(6.1

)

International  

9,763

 

10,112

 

(3.4

)

   

(0.3

)

 

(3.1

)

                     
Worldwide

$

21,383

 

20,894

 

2.3

 

%

 

3.9

   

(1.6

)

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

Percent Change

 

2024

 

2023

 

Total

   

Operations

 

Currency

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

$

11,620

 

10,782

 

7.8

 

%

 

7.8

   

-

 
                     
Europe(1)  

5,138

 

4,843

 

6.1

     

6.0

   

0.1

 
Western Hemisphere excluding U.S.*  

1,194

 

1,076

 

11.0

     

21.3

   

(10.3

)

Asia-Pacific, Africa*  

3,406

 

3,446

 

(1.1

)

   

5.0

   

(6.1

)

International  

9,738

 

9,365

 

4.0

     

7.4

   

(3.4

)

                     
Worldwide

$

21,358

 

20,147

 

6.0

 

%

 

7.6

   

(1.6

)

                     
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) FIRST QUARTER
                   
 

2024

 

2023

 

Percent

     

Percent

     

Percent

 

Increase

 

Amount

 

to Sales

 

Amount

 

to Sales

 

(Decrease)

Sales to customers

$

21,383

   

100.0

   

$

20,894

   

100.0

   

2.3

 
Cost of products sold  

6,511

   

30.4

     

6,687

   

32.0

   

(2.6

)

Gross Profit  

14,872

   

69.6

     

14,207

   

68.0

   

4.7

 
Selling, marketing and administrative expenses  

5,257

   

24.6

     

4,906

   

23.5

   

7.2

 
Research and development expense  

3,542

   

16.6

     

3,455

   

16.6

   

2.5

 
In-process research and development impairments  

-

   

-

     

49

   

0.2

     
Interest (income) expense, net  

(209

)

 

(1.0

)

   

14

   

0.1

     
Other (income) expense, net  

(322

)

 

(1.5

)

   

6,940

   

33.2

     
Restructuring  

164

   

0.8

     

130

   

0.6

     
Earnings/(loss) before provision for taxes on income  

6,440

   

30.1

     

(1,287

)

 

(6.2

)

   
Provision for/(Benefit from) taxes on income  

1,086

   

5.1

     

(796

)

 

(3.9

)

   
Net earnings/(loss) from Continuing Operations

$

5,354

   

25.0

   

$

(491

)

 

(2.3

)

   
Net earnings from Discontinued Operations, net of tax  

-

         

423

         
Net earnings/(loss)

$

5,354

       

$

(68

)

       
                   
Net earnings (loss) per share (Diluted/Basic) from Continuing Operations

$

2.20

       

$

(0.19

)

       
Net earnings per share (Diluted) from Discontinued Operations

$

-

       

$

0.16

         
                   
Average shares outstanding (Diluted/Basic)  

2,430.1

         

2,605.5

  *      
                   
Effective tax rate from Continuing Operations  

16.9

 

%

     

61.8

 

%

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

$

7,877

   

36.8

   

$

7,536

   

36.1

   

4.5

 
Net earnings from Continuing Operations

$

6,580

   

30.8

   

$

6,340

   

30.3

   

3.8

 
Net earnings per share (Diluted) from Continuing Operations

$

2.71

       

$

2.41

       

12.4

 
Average shares outstanding (Diluted)  

2,430.1

         

2,634.3

         
Effective tax rate from Continuing Operations  

16.5

 

%

     

15.9

 

%

     
*Basic shares are used to calculate loss per share in the first quarter of 2023 as use of diluted shares when in a loss position would be anti-dilutive
(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries        
Reconciliation of Non-GAAP Financial Measures        
           
     

First Quarter

  (Dollars in Millions Except Per Share Data)  

2024

 

2023

  Net Earnings/(loss) from Continuing Operations, after tax- as reported  

$5,354

   

($491

)

           
  Pre-tax Adjustments        
  Litigation related  

-

   

6,900

 
  Intangible Asset Amortization expense  

1,078

   

1,122

 
  COVID-19 Vaccine related costs 1  

9

   

444

 
  Restructuring related 2  

171

   

130

 
  Medical Device Regulation 3  

51

   

64

 
  Acquisition, integration and divestiture related  

148

   

42

 
  (Gains)/losses on securities  

(20

)

 

72

 
  IPR&D impairments  

-

   

49

 
           
  Tax Adjustments        
  Tax impact on special item adjustments 4  

(229

)

 

(1,980

)

  Tax legislation and other tax related  

18

   

(12

)

  Adjusted Net Earnings from Continuing Operations, after tax  

$6,580

   

$6,340

 
  Average shares outstanding (Diluted)  

2,430.1

   

2,634.3

 
  Adjusted net earnings per share from Continuing Operations (Diluted)  

$2.71

   

$2.41

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

$2.72

     
      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 expenses of $144 million in the fiscal first quarter of 2024 and $130 million in the fiscal first quarter of 2023 include the termination of partnered and non-partnered program costs and asset impairments.
       
      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 expenses of $27 million in the fiscal first quarter of 2024 primarily includes costs related to 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 during 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
FIRST QUARTER 2024 ACTUAL vs. 2023 ACTUAL
 
Segments
             
   

Innovative Medicine

 

MedTech

 

Total

             
WW As Reported  

1.1%

 

4.5%

 

2.3%

U.S.  

8.4%

 

6.6%

 

7.8%

International  

(6.9)%

 

2.4%

 

(3.4)%

             
WW Currency  

(1.4)

 

(1.8)

 

(1.6)

U.S.  

-

 

-

 

-

International  

(2.9)

 

(3.7)

 

(3.1)

             
WW Operational  

2.5%

 

6.3%

 

3.9%

U.S.  

8.4%

 

6.6%

 

7.8%

International  

(4.0)%

 

6.1%

 

(0.3)%

             
All Other Acquisitions and Divestitures (A&D)  

0.0

 

0.2

 

0.1

U.S.  

0.0

 

0.2

 

0.1

International  

0.0

 

0.1

 

0.0

             
WW Adjusted Operational Ex A&D  

2.5%

 

6.5%

 

4.0%

U.S.  

8.4%

 

6.8%

 

7.9%

International  

(4.0)%

 

6.2%

 

(0.3)%

             
COVID-19 Vaccine  

5.8

     

3.7

U.S.  

0.0

     

0.0

International  

12.3

     

7.7

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

8.3%

 

6.5%

 

7.7%

U.S.  

8.4%

 

6.8%

 

7.9%

International  

8.3%

 

6.2%

 

7.4%

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

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

FIRST QUARTER

         

% Change

INNOVATIVE MEDICINE SEGMENT (2)  

2024

 

2023

Reported

Operational (1)

Currency

               
IMMUNOLOGY              
US  

$

2,453

   

2,448

0.2%

0.2%

-

Intl    

1,794

   

1,664

7.9%

11.0%

-3.1%

WW    

4,247

   

4,112

3.3%

4.6%

-1.3%

REMICADE              
US    

266

   

276

-3.9%

-3.9%

-

US Exports (3)    

27

   

41

-32.7%

-32.7%

-

Intl    

141

   

170

-17.2%

-14.2%

-3.0%

WW    

434

   

487

-10.9%

-9.9%

-1.0%

SIMPONI / SIMPONI ARIA              
US    

254

   

271

-6.2%

-6.2%

-

Intl    

299

   

266

12.4%

20.0%

-7.6%

WW    

554

   

537

3.0%

6.8%

-3.8%

STELARA              
US    

1,396

   

1,451

-3.8%

-3.8%

-

Intl    

1,055

   

993

6.2%

8.2%

-2.0%

WW    

2,451

   

2,444

0.3%

1.1%

-0.8%

TREMFYA              
US    

509

   

406

25.4%

25.4%

-

Intl    

299

   

234

27.9%

31.5%

-3.6%

WW    

808

   

640

26.3%

27.6%

-1.3%

OTHER IMMUNOLOGY              
US    

0

   

3

* *

-

Intl    

0

   

0

-

-

-

WW    

0

   

3

* *

-

INFECTIOUS DISEASES              
US    

324

   

392

-17.4%

-17.4%

-

Intl    

497

   

1,193

-58.4%

-58.5%

0.1%

WW    

821

   

1,586

-48.3%

-48.3%

0.0%

COVID-19 VACCINE              
US    

0

   

0

-

-

-

Intl    

25

   

747

-96.6%

-96.7%

0.1%

WW    

25

   

747

-96.6%

-96.7%

0.1%

EDURANT / rilpivirine              
US    

8

   

9

-10.9%

-10.9%

-

Intl    

315

   

271

16.6%

15.7%

0.9%

WW    

323

   

280

15.7%

14.8%

0.9%

PREZISTA / PREZCOBIX / REZOLSTA / SYMTUZA              
US    

314

   

378

-16.9%

-16.9%

-

Intl    

104

   

99

5.5%

5.5%

0.0%

WW    

418

   

477

-12.3%

-12.3%

0.0%

OTHER INFECTIOUS DISEASES              
US    

2

   

5

-68.8%

-68.8%

-

Intl    

52

   

77

-32.8%

-30.6%

-2.2%

WW    

53

   

82

-35.1%

-33.1%

-2.0%

               
               
               
               
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

FIRST QUARTER

         

% Change

   

2024

 

2023

Reported

Operational (1)

Currency

NEUROSCIENCE              
US    

1,054

   

978

7.8%

7.8%

-

Intl    

749

   

826

-9.3%

-4.4%

-4.9%

WW    

1,803

   

1,804

0.0%

2.2%

-2.2%

CONCERTA / Methylphenidate              
US    

41

   

70

-41.2%

-41.2%

-

Intl    

136

   

136

-0.1%

4.5%

-4.6%

WW    

177

   

206

-14.1%

-11.1%

-3.0%

INVEGA SUSTENNA / XEPLION /
INVEGA TRINZA / TREVICTA
             
US    

765

   

713

7.2%

7.2%

-

Intl    

292

   

331

-11.8%

-8.7%

-3.1%

WW    

1,056

   

1,044

1.2%

2.2%

-1.0%

SPRAVATO              
US    

191

   

111

71.5%

71.5%

-

Intl    

34

   

20

76.1%

74.8%

1.3%

WW    

225

   

131

72.2%

72.0%

0.2%

OTHER NEUROSCIENCE              
US    

58

   

84

-31.1%

-31.1%

-

Intl    

287

   

339

-15.5%

-8.4%

-7.1%

WW    

345

   

423

-18.5%

-12.9%

-5.6%

ONCOLOGY              
US    

2,383

   

1,889

26.2%

26.2%

-

Intl    

2,430

   

2,223

9.3%

12.6%

-3.3%

WW    

4,814

   

4,112

17.1%

18.8%

-1.7%

CARVYKTI              
US    

140

   

70

99.8%

99.8%

-

Intl    

16

   

2

* * *
WW    

157

   

72

* * *
DARZALEX              
US    

1,464

   

1,191

22.9%

22.9%

-

Intl    

1,228

   

1,072

14.5%

19.0%

-4.5%

WW    

2,692

   

2,264

18.9%

21.0%

-2.1%

ERLEADA              
US    

285

   

249

14.1%

14.1%

-

Intl    

404

   

293

38.0%

40.6%

-2.6%

WW    

689

   

542

27.0%

28.4%

-1.4%

IMBRUVICA              
US    

265

   

270

-1.5%

-1.5%

-

Intl    

518

   

557

-7.0%

-5.6%

-1.4%

WW    

784

   

827

-5.2%

-4.3%

-0.9%

TECVAYLI(4)              
US    

101

   

57

76.7%

76.7%

-

Intl    

33

   

6

* * *
WW    

133

   

63

* * *
ZYTIGA / abiraterone acetate              
US    

9

   

16

-41.3%

-41.3%

-

Intl    

172

   

229

-24.8%

-20.7%

-4.1%

WW    

181

   

245

-25.9%

-22.1%

-3.8%

OTHER ONCOLOGY(4)              
US    

119

   

35

* *

-

Intl    

60

   

64

-6.1%

-5.6%

-0.5%

WW    

178

   

99

80.2%

80.5%

-0.3%

               
               
               
               
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

FIRST QUARTER

         

% Change

   

2024

 

2023

Reported

Operational (1)

Currency

PULMONARY HYPERTENSION              
US    

766

   

600

27.5%

27.5%

-

Intl    

283

   

272

4.1%

10.9%

-6.8%

WW    

1,049

   

872

20.2%

22.4%

-2.2%

OPSUMIT              
US    

356

   

273

30.4%

30.4%

-

Intl    

169

   

167

0.8%

4.6%

-3.8%

WW    

524

   

440

19.1%

20.6%

-1.5%

UPTRAVI              
US    

392

   

304

29.0%

29.0%

-

Intl    

76

   

58

30.7%

38.6%

-7.9%

WW    

468

   

362

29.2%

30.5%

-1.3%

OTHER PULMONARY HYPERTENSION              
US    

18

   

23

-24.6%

-24.6%

-

Intl    

39

   

47

-16.9%

-1.0%

-15.9%

WW    

56

   

70

-19.5%

-8.9%

-10.6%

CARDIOVASCULAR / METABOLISM / OTHER              
US    

631

   

715

-11.7%

-11.7%

-

Intl    

197

   

212

-7.0%

-6.8%

-0.2%

WW    

829

   

927

-10.6%

-10.5%

-0.1%

XARELTO              
US    

518

   

578

-10.4%

-10.4%

-

Intl    

-

   

-

-

-

-

WW    

518

   

578

-10.4%

-10.4%

-

OTHER              
US    

114

   

137

-17.1%

-17.1%

-

Intl    

197

   

212

-7.0%

-6.8%

-0.2%

WW    

311

   

349

-11.0%

-10.9%

-0.1%

               
TOTAL INNOVATIVE MEDICINE              
US    

7,612

   

7,023

8.4%

8.4%

-

Intl    

5,950

   

6,390

-6.9%

-4.0%

-2.9%

WW  

$

13,562

   

13,413

1.1%

2.5%

-1.4%

               
               
See footnotes at end of schedule              
               
               
               
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

 

FIRST QUARTER

         

% Change

MEDTECH SEGMENT (2)  

2024

 

2023

Reported Operational (1) Currency
               
CARDIOVASCULAR (5)              
US  

$

1,025

   

863

18.8%

18.8%

-

Intl    

781

   

640

22.1%

27.6%

-5.5%

WW    

1,806

   

1,503

20.2%

22.5%

-2.3%

ELECTROPHYSIOLOGY              
US    

692

   

571

21.3%

21.3%

-

Intl    

652

   

522

24.9%

30.9%

-6.0%

WW    

1,344

   

1,092

23.0%

25.9%

-2.9%

ABIOMED              
US    

303

   

264

15.0%

15.0%

-

Intl    

67

   

60

12.4%

14.7%

-2.3%

WW    

371

   

324

14.5%

15.0%

-0.5%

OTHER CARDIOVASCULAR (5)              
US    

30

   

28

3.3%

3.3%

-

Intl    

62

   

58

6.9%

11.5%

-4.6%

WW    

92

   

87

5.7%

8.8%

-3.1%

ORTHOPAEDICS              
US    

1,448

   

1,363

6.2%

6.2%

-

Intl    

892

   

881

1.3%

2.7%

-1.4%

WW    

2,340

   

2,245

4.3%

4.8%

-0.5%

HIPS              
US    

270

   

241

12.1%

12.1%

-

Intl    

152

   

149

1.7%

3.3%

-1.6%

WW    

422

   

390

8.1%

8.7%

-0.6%

KNEES              
US    

242

   

226

6.9%

6.9%

-

Intl    

160

   

142

12.3%

13.1%

-0.8%

WW    

401

   

368

9.0%

9.3%

-0.3%

TRAUMA              
US    

504

   

491

2.8%

2.8%

-

Intl    

261

   

267

-2.3%

-1.1%

-1.2%

WW    

765

   

757

1.0%

1.4%

-0.4%

SPINE, SPORTS & OTHER              
US    

432

   

406

6.5%

6.5%

-

Intl    

320

   

323

-0.9%

0.9%

-1.8%

WW    

752

   

729

3.2%

4.0%

-0.8%

               
               
               
               
 

REPORTED SALES vs. PRIOR PERIOD ($MM)

  FIRST QUARTER
          % Change
   

2024

 

2023

Reported Operational (1) Currency
SURGERY              
US    

987

   

975

1.2%

1.2%

-

Intl    

1,429

   

1,459

-2.0%

2.3%

-4.3%

WW    

2,416

   

2,434

-0.7%

1.9%

-2.6%

ADVANCED              
US    

446

   

444

0.2%

0.2%

-

Intl    

641

   

673

-4.7%

-0.7%

-4.0%

WW    

1,087

   

1,118

-2.8%

-0.3%

-2.5%

GENERAL              
US    

542

   

531

2.1%

2.1%

-

Intl    

788

   

785

0.3%

4.8%

-4.5%

WW    

1,330

   

1,316

1.0%

3.7%

-2.7%

VISION              
US    

547

   

558

-1.8%

-1.8%

-

Intl    

710

   

743

-4.4%

-1.1%

-3.3%

WW    

1,258

   

1,300

-3.3%

-1.4%

-1.9%

CONTACT LENSES / OTHER              
US    

438

   

444

-1.4%

-1.4%

-

Intl    

472

   

509

-7.4%

-3.1%

-4.3%

WW    

910

   

953

-4.6%

-2.3%

-2.3%

SURGICAL              
US    

110

   

114

-3.7%

-3.7%

-

Intl    

238

   

233

2.2%

3.4%

-1.2%

WW    

348

   

347

0.3%

1.1%

-0.8%

               
TOTAL MEDTECH              
US    

4,008

   

3,759

6.6%

6.6%

-

Intl    

3,813

   

3,722

2.4%

6.1%

-3.7%

WW  

$

7,821

 

$

7,481

4.5%

6.3%

-1.8%

               
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) See Supplemental Sales Information Schedule
(5) Previously referred to as Interventional Solutions
Supplemental Sales Information (Unaudited)
(Dollars in Millions)
Schedule 1                        
   

FIRST QUARTER

             

Percent Change

   

2024

   

2023

 

Total

   

Operations

 

Currency

                         
Innovative Medicine                        
U.S.  

$

7,612

   

7,023

 

8.4

 

%

 

8.4

   

-

 
International    

5,950

   

6,390

 

(6.9

)

   

(4.0

)

 

(2.9

)

Worldwide    

13,562

   

13,413

 

1.1

     

2.5

   

(1.4

)

                         
COVID-19 Vaccine                        
U.S.    

-

   

-

 

-

     

-

   

-

 
International    

25

   

747

 

(96.6

)

   

(96.7

)

 

0.1

 
Worldwide    

25

   

747

 

(96.6

)

   

(96.7

)

 

0.1

 
                         
Innovative Medicine excluding COVID-19 Vaccine                        
U.S.    

7,612

   

7,023

 

8.4

     

8.4

   

-

 
International    

5,925

   

5,643

 

5.0

     

8.3

   

(3.3

)

Worldwide    

13,537

   

12,666

 

6.9

     

8.3

   

(1.4

)

                         
Worldwide                        
U.S.    

11,620

   

10,782

 

7.8

     

7.8

   

-

 
International    

9,763

   

10,112

 

(3.4

)

   

(0.3

)

 

(3.1

)

Worldwide    

21,383

   

20,894

 

2.3

     

3.9

   

(1.6

)

                         
COVID-19 Vaccine                        
U.S.    

-

   

-

 

-

     

-

   

-

 
International    

25

   

747

 

(96.6

)

   

(96.7

)

 

0.1

 
Worldwide    

25

   

747

 

(96.6

)

   

(96.7

)

 

0.1

 
                         
Worldwide                        
U.S.    

11,620

   

10,782

 

7.8

     

7.8

   

-

 
International    

9,738

   

9,365

 

4.0

     

7.4

   

(3.4

)

Worldwide excluding COVID-19 Vaccine  

$

21,358

   

20,147

 

6.0

 

%

 

7.6

   

(1.6

)

                         
                         
Europe  

$

5,163

   

5,590

 

(7.6

)

%

 

(7.7

)

 

0.1

 
Europe COVID-19 Vaccine Sales    

25

   

747

 

(96.6

)

   

(96.7

)

 

0.1

 
Europe excluding COVID-19 Vaccine Sales  

$

5,138

   

4,843

 

6.1

 

%

 

6.0

   

0.1

 
                         
Schedule 2                              
 

2022

 

2023

 

2023

                             
   

Full Year

   

Q1

 

Q2

 

Q3

 

Q4

   

Full Year

 
INNOVATIVE MEDICINE SEGMENT (1)                              
                               
ONCOLOGY                              
TECVAYLI                              
US  

12

   

57

 

82

 

93

 

102

   

334

 
INTL  

3

   

6

 

12

 

19

 

24

   

61

 
WW  

15

   

63

 

94

 

112

 

126

   

395

 
                               
OTHER ONCOLOGY                              
US  

144

   

35

 

40

 

50

 

90

   

215

 
INTL  

280

   

64

 

80

 

67

 

58

   

269

 
WW  

423

   

99

 

120

 

117

 

148

   

484

 
                               
Note: Columns and rows within tables may not add due to rounding
                               
(1) Unaudited
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Q1 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 $

4,969

   

4,402

   

1,520

   

1,409

   

(49

)

 

(7,098

)

   

6,440

   

(1,287

)

% to Sales  

36.6

%

 

32.8

%

 

19.4

%

 

18.8

%

 

-0.2

%

 

-34.0

%

   

30.1

%

 

-6.2

%

                                   
Intangible asset amortization expense  

698

   

739

   

380

   

383

   

-

   

-

     

1,078

   

1,122

 
                                   
In-process research and development impairments  

-

   

-

   

-

   

49

   

-

   

-

     

-

   

49

 
                                   
Litigation related  

-

   

-

   

-

   

-

   

-

   

6,900

     

-

   

6,900

 
                                   
Loss/(gain) on securities  

(55

)

 

38

   

22

   

34

   

13

   

-

     

(20

)

 

72

 
                                   
Restructuring related  

144

   

130

   

27

   

-

   

-

   

-

     

171

   

130

 
                                   
Acquisition, integration and divestiture related  

47

   

-

   

61

   

42

   

40

   

-

     

148

   

42

 
                                   
Medical Device Regulation  

-

   

-

   

51

   

64

   

-

   

-

     

51

   

64

 
                                   
COVID-19 Vaccine related costs  

9

   

444

   

-

   

-

   

-

   

-

     

9

   

444

 
                                   
Adjusted Income Before Tax by Segment From Continuing Operations $

5,812

   

5,753

   

2,061

   

1,981

   

4

   

(198

)

   

7,877

   

7,536

 
% to Sales  

42.9

%

 

42.9

%

 

26.4

%

 

26.5

%

 

0.0

%

 

-0.9

%

   

36.8

%

 

36.1

%

                                   
*Estimated as of 4/16/2024                                  
As Reported Research and development expense $

2,896

   

2,778

   

646

   

677

             

3,542

   

3,455

 
% to Sales  

21.4

%

 

20.7

%

 

8.3

%

 

9.1

%

           

16.6

%

 

16.6

%

Johnson & Johnson and Subsidiaries
GAAP to Non-GAAP Reconciliation
$ in Millions
                                             
Year to Date
                                             
  First Quarter
March 31, 2024
GAAP
    Intangible asset
amortization
  Litigation related   In-process
research and
development
impairments
 

Restructuring
related

  Acquisition, integration and
divestiture related
  (Loss)/gain on
securities
 

Medical Device
Regulation

  COVID-19 Vaccine
Related Costs
  Tax legislation
and other tax
related
  First Quarter
March 31, 2024
Non-GAAP
Cost of products sold

$

6,511

     

(1,078

)

         

(7

)

         

(20

)

 

(2

)

 

-

   

5,404

 
Selling, marketing and admin expenses  

5,257

                             

(4

)

         

5,253

 
Research and development expense  

3,542

                     

(18

)

     

(27

)

 

(7

)

     

3,490

 
Other (Income) / Expense  

(322

)

   

-

   

-

       

-

   

(130

)

 

20

   

-

   

-

       

(432

)

In-process research and development impairments  

-

             

-

                           

-

 
Restructuring  

164

                 

(164

)

                     

-

 
Provision for taxes on income  

1,086

     

148

   

-

   

-

   

39

   

38

   

(7

)

 

9

   

2

   

(18

)

 

1,297

 
Net Earnings from Continuing Operations  

5,354

     

930

   

-

   

-

   

132

   

110

   

(13

)

 

42

   

7

   

18

   

6,580

 
                                             
                                             
  First Quarter
April 2, 2023
GAAP
    Intangible asset
amortization
  Litigation related   In-process
research and
development
impairments
 

Restructuring
related

  Acquisition, integration and
divestiture related
  (Loss)/gain on
securities
 

Medical Device
Regulation

  COVID-19 Vaccine
Related Costs
  Tax legislation
and other tax
related
  First Quarter
April 2, 2023
Non-GAAP
Cost of products sold

$

6,687

     

(1,118

)

         

-

           

(23

)

 

(206

)

 

-

   

5,340

 
Selling, marketing and admin expenses  

4,906

                             

(7

)

         

4,899

 
Research and development expense  

3,455

                     

(16

)

     

(34

)

 

(16

)

     

3,389

 
Other (Income) / Expense  

6,940

     

(4

)

 

(6,900

)

     

-

   

(26

)

 

(72

)

     

(222

)

     

(284

)

In-process research and development impairments  

49

             

(49

)

                         

-

 
Restructuring  

130

                 

(130

)

                     

-

 
Provision for (Benefit from) taxes on income  

(796

)

   

177

   

1,622

   

11

   

32

   

5

   

16

   

12

   

105

   

12

   

1,196

 
Net Earnings (Loss) from Continuing Operations  

(491

)

   

945

   

5,278

   

38

   

98

   

37

   

56

   

52

   

339

   

(12

)

 

6,340

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240416019157/en/

Contacts

Media contact:
Tesia Williams
media-relations@its.jnj.com

Investor contact:
Jessica Moore
investor-relations@its.jnj.com

Source: Johnson & Johnson

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