Growth strategy and MedTech performance
Q: Asad Haider from Goldman Sachs asked if the double-digit growth target assumes M&A and if there is urgency to acquire in MedTech.
A: Joe Wolk confirmed the growth target is based on internal investments. Tim Schmid explained that MedTech performance is below expectations, specifically in Abiomed and OUS markets, but they are not viewing these as structural issues.
Q: Joanne Wuenci from Citi asked about MedTech fundamentals and how to improve the franchise.
A: Tim Schmid noted that U.S. growth was robust at nearly 5%, and the OUS challenges are due to known factors like VBP in China and Middle East disruptions.
Q: Jayson Bedford from Raymond James asked for quantification of Middle East and VBP impacts and actions for international surgery.
A: Joe Wolk stated the Middle East disruption is a short-term factor affecting tender timing. Tim Schmid added that they are confident in U.S. surgery and expect a return to growth in EMEA in the fourth quarter.
Financial outlook
Q: Larry Biegelsen from Wells Fargo asked about 2027 sales and EPS growth, and the impact of IPR&D.
A: Joe Wolk noted that EPS growth should be slightly better than sales growth next year. He clarified that the Firefly and Sale Biomedicines dilution is $0.64 per share this year and $1.36 per share next year.
Innovative medicine pipeline and launches
Q: Chris Schott from JPMorgan Chase asked about icotide patient uptake and peak sales potential.
A: Tom Cavanaugh reported over 20,000 patients initiated on therapy with 9,000 prescribers, noting that 60% of patients are systemic naive.
Q: Richard Wagner from Bank of America asked about lessons from the icotide psoriasis launch for IBD and combination therapy.
A: Tom Cavanaugh and John Reed explained that they are developing a combination therapy for refractory patients and believe the oral profile will perform well in IBD.
Q: Vamil Divan from Guggenheim Securities asked for icotide sales figures and the market opportunity for Enlexo.
A: Management stated icotide sales are not yet disclosed, but Enlexo Q3 sales were north of $90 million, with significant expansion opportunities in SunRISe-5 and SunRISe-3 studies.
Q: Michael Yee from UBS Securities asked about icotide IBD efficacy and confidence in Milvexian.
A: John Reed stated that IBD efficacy is to be determined, while they remain confident in Milvexian, with secondary stroke data expected this year.
Q: Alexandria Hammond from Wolfe Research asked about physician education for CARVYKTI in earlier lines of therapy.
A: Tom Cavanaugh and John Reed noted they are educating providers on appropriate patient selection and highlighted 5-year follow-up data showing strong disease-free survival.
