Johnson & Johnson (NYSE:JNJ) Q3 2020 Earnings Conference Call - Final Transcript

Oct 13, 2020 • 08:30 am ET


Johnson & Johnson (NYSE:JNJ) Q3 2020 Earnings Conference Call - Final Transcript


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Good morning, and welcome to Johnson & Johnson's Third Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference call over to Johnson & Johnson. You may begin.

Christopher DelOrefice

Good morning. This is Chris DelOrefice, Vice President of Investor Relations for Johnson & Johnson. Welcome to our company's review of business results for the third quarter of 2020. I hope everyone is healthy and continues to remain safe during these times.

Joining me on today's call is Joe Wolk, Executive Vice President, Chief Financial Officer. During the Q&A portion of the call, we will be joined by Jennifer Taubert, Executive Vice President and Worldwide Chairman, Pharmaceuticals; Ashley McEvoy, Executive Vice President and Worldwide Chairman, Medical Devices; Thibaut Mongon, Executive Vice President and Worldwide Chairman, Consumer Health; and Mathai Mammen, Global Head of Janssen Research and Development.

A few logistics before we get into the details. This review is being made available via webcast, accessible through the Investor Relations section of the Johnson & Johnson website at where you can also find additional materials, including today's presentation and associated schedules.

Please note that today's presentation includes forward-looking statements. We encourage you to review the cautionary statement included in today's presentation, which identifies certain risks and factors that may cause the company's actual results to differ materially from those projected. In particular, there is significant uncertainty about the duration and contemplated impact of the COVID-19 pandemic. This means that results could change at any time. And the contemplated impact of COVID-19 on the company's business results and outlook is a best estimate based on the information available as of today's date. A further description of these risks, uncertainties and other factors can be found in our SEC filings, including our 2019 Form 10-K and subsequent Form 10-Qs, along with a reconciliation of the non-GAAP financial measures utilized for today's discussion to the most comparable GAAP measures are also available at Several of the products and compounds discussed today are being developed in collaboration with strategic partners or licensed from other companies. This slide acknowledges those relationships.

Moving to today's agenda. I will cover consolidated and segment sales information, along with some operational highlights from the P&L results for the corporation and the three business segments. My comments on the segments will be shared at a high level to allow more time for Q&A. Joe will provide high-level commentary about our enterprise performance, including J&J's response to COVID-19, followed by insights into our capital allocation priorities as well as some key pipeline updates. He will then conclude with our 2020 guidance and qualitative expectations as we position for a strong start to 2021. The remaining time will be available for your questions. We anticipate the webcast will last about 75 minutes.

Worldwide sales were $21.1 billion for the third quarter of 2020, reflecting a reported growth of 1.7% versus the third quarter of 2019. Operational sales growth, which excludes the effect of translational currency, also increased 1.7% as