Who will kick things off for us here in this one adam? Thank you. Zach and it’s good to see you joe congratulations on the quarter. Thank you, adam it’s, a pleasure to be here when uh, when the ceo alex gorsey gorski pointed out. Good health is pivotal to our society, security and prosperity as a society. It was no wonder that most of the questions at the beginning of the earnings call were about the vaccine, so you’ve announced next week early next week, we’re going to get the phase three study data on the vaccine i’m curious. What is the status of johnson and johnson’s ability to deliver the 100 million doses, i think it’s by the end of april and a billion doses this year, yep so adam uh, we uh as uh who stated on the the conference call. There was a lot of questions about our vaccine. The data should be available. It was a 45 000 person study across three continents, eight countries which are inclusive of south africa and brazil. So maybe we’ll have some insights with respect to some of the new strains that we’re seeing we’ll. Let the scientists talk about that in the next couple days. We are very much on track to meet the capacity requirements. Understandably, there’s a lot of enthusiasm and questions around our ability to supply because of the one shot nature of our vaccine, as well as the i’ll say, limited refrigeration requirements compared to some others that are out there, and so some have labeled this as potentially a game.
Changer in our fight against the pandemic, we are on track to meet our commitments to the u.s uh this year. Uh for the first half of this year, that’s 100 million doses to the eu will begin shipping in april that’s, 200 million doses for the balance of 2021, and we also have an agreement with the global alliance for vaccines and immunizations to deliver 500 million vaccines about 200 million up to 200 million this year shipments for those will probably begin in the second half, but our supply chain leadership team has done a great job, expanding capacity. We hope to have seven sites uh up and running by the end of the second quarter. Uh and just as a tease to what we’re going to get next week, i know the new england journal of medicine published just two weeks ago. Preliminary data that showed uh 90 of the study participants as of day 29 had 100 um. They were aged 18 to 55, had the antibodies that you would hope would be generated. So that’s that’s, not the data that’s coming next week. We hope it’s replicated there but i’m curious between the government and your subsidiary jansen j j has got in this partnership. 2.6 billion is that correct, invested in delivering this vaccine to all of us is that accurate uh, the the numbers are fluctuating right now, as you can imagine, adam we’re waiting to see the data, the manufacturing capacity also has to be included in those costs, but it Is several hundred million dollars at this point uh in terms of what we’ve encountered uh and incurred in 2020, uh we’ll see how 2021 plays out and that’s? Why i’m, a little bit um hesitant to give you a number, because if there are new strains as we learn more about the durability, there’s, a number of fluid dynamics that still have to play out and we’ll be in a better position to answer that as we Learn more about the data that we we get from this first uh ensemble study and then subsequent studies uh as time proceeds joe it’s good to talk to you today.
Looking specifically at your pharmaceutical business we’re looking at a revenue of 12.2 billion dollars in the quarter about a 15 percent increase year on year, how much more of a jump? Are we expecting on that front, tied directly to this vaccine uh? Well right now, our forecast and our outlook for 2021 does not include any revenue that we may garner from the distribution of vaccine sales. We thought that was a little premature at this time. It’S, not a commentary on what we think the prospects of data efficacy will be it’s, just something that it’s still fluid. You can imagine, because of the not for profit selling price, that we’ve committed to to our firm orders for signed agreements that are currently in place. Um, the volume you eventually have is going to determine what that selling price is so we’ve steered the investment committee uh the investment community to look towards our first quarter. Earnings call in april we’ll be able to have some of these uh dynamics a little bit tighter uh and some variables uh more solidified, joe, sometimes good news isn’t, exactly good news in totality and help us understand something that was mentioned during the call which had to Do with consumer health that the fact we’re all locked down and not engaging with the population led to fewer people having colds fewer people having flus and that impacted your sales of things like tylenol that’s, a one off, though that’s not going to be a long term Thing is it no that’s correct, adam, you know some of the restrictions in place.
It was specifically our children’s line of tylenol products. Our adult tylenol product continues to do extremely well, as does listerine and wound care. So some of these things that are where people are home a little bit more frequently, you can have your own conjecture as to why listerine sales have had a banner year um, but those products will continue to do well going forward. We’Ve also made some new product offerings uh that should be more appealing to customers going forward and joe. I know you said you don’t, want to necessarily include kind of the expectations there on the vaccine front again, not a nod to what we’ll expect on the efficacy data when we get it next week. But when it comes to maybe johnson and johnson’s positioning around profiting off of the vaccine, you guys have made it clear that you don’t intend to some of the other vaccine makers out there breaking from you guys who also received government money, uh modern among them. What do those discussions sound like internally, when you’re trying to figure out what makes sense as a company after receiving federal money for research to maybe profit or not profit yeah? So the the um commitment we’ve made was uh why the pandemic is uh front and center right. We didn’t want uh access to what could potentially be a great solution to address the pandemic, to get in the way of some of the discussions, and certainly the clinical development we’ll evaluate the commercial opportunity at the appropriate time.
Right now, we’re focused uh. Really the task at hand is finalizing this very robust study of 45 000 individuals and then manufacturing as responsibly as we can as much capacity as we can to make sure that vaccines are available. We know, through our decades of study in infectious diseases, that one of the best things we can do even to combat uh potential future strains is to get people vaccinated, so that’s really our task at hand as we think about it, and commercial opportunities will present themselves At the right time, hey joe uh help us understand going forward, what’s going to happen with medical devices. Covid’S impacted that sector for several quarters now, but you expect growth there next year. We do. I mean if you just look at the um, the math we’ll almost take you there adam. We were down about 33 percent in the second quarter uh when we were dealing in the early days of the pandemic. Uh i’d be remiss if i just didn’t acknowledge the great resiliency and uh innovativeness of hospital systems hospital administrators to really make sure that they were treating covet 19 patients, but also treating patients who were in need of serious medical procedures and diagnostics um. You know we know that having some of those linger too long creates a potentially worse problem, and so uh they’ve done a great job. We do think that we’ll see growth, uh healthy growth in 2021, for our medical device unit and, at the same time, ashley mcavoy and her medical device team have done a great job, solidifying the relationships with hospital systems.
We certainly wanted to know where the pandemic stood and what their perspectives were, but we also asked them the question: what can we do to help as one of the world’s largest healthcare providers, and i just want to clarify something i started off with, because i was Using previous press releases, when i said 2.6 billion in the partnership with barda, the us government and jansen, is it 2 billion roughly in contracts and in investment from barda to help develop the vaccine yeah? So there is a component where it’s about a 50 50 split with respect to development cost, and then there are um significant billions potentially at play. Should we have successful efficacy data by which they would purchase our vaccine and real quick joe just because he mentioned for profit, i’m? Sorry, yeah, yeah and one one quick last point on the drop in food cases, because we were discussing that earlier. Uh kind of a silver lining here in the covet efforts – uh, you know it could be a blip could maybe not depending on how long this lasts and what booster shots might look like. But but how does that appear to you going further out if we do in fact see a reduction in the way that people maybe buy some of your guys’s products to combat the flu yeah? So what we saw in the early part of last year, especially with the adult thailand online um, was what we called pantry loading.
So people, normally, if they’re, not feeling well on their way home from work or school, would pick up some tylenol to address some cold and flu symptoms. What we saw was kind of a change in buying patterns where people wanted to have a shell, a bottle or two on their shelves at the ready, uh, and we think people will be more prepared. There are learnings that come from a pandemic like this, and those are probably things that, while it was a temporary uh upside to our business last year, we don’t think it diminishes and turns into a downside all right, joe wolfe johnson johnson cfo appreciate you coming on Here, alongside yahoo finance, adam shapiro we’ll be watching next week for that vaccine data thanks again for the time.