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From January 8 to 11, 2024, the 42nd J.P. Morgan Healthcare Conference (JPM) was grandly held in San Francisco, California, USA.
Venue: Westin Hotel St. Francis
The JPM Conference is the largest industry event in the global biopharmaceutical and healthcare field, as well as the most information-rich conference for healthcare investment and industry cooperation, covering the entire global healthcare sector, including pharmaceutical companies, healthcare service providers, for-profit and non-profit organizations, and medical device companies. Today, Siyu brings you a selection of highlights from the speeches given by the two giants in the medical device industry, Johnson & Johnson and Medtronic, at the conference.
Johnson & Johnson: Brand Revitalization
At Johnson & Johnson, the person interviewed by J.P. Morgan was Joaquin Duato, Chairman and Chief Executive Officer of Johnson & Johnson.Joaquin Duato stated that 2023 is a significant year for Johnson & Johnson.Brand RefreshThe first year. By divesting its consumer products business and focusing solely on medical technology and innovative pharmaceuticals, Johnson & Johnson will become a company with stronger growth, higher profit margins, and greater focus and specialization. Moreover, Johnson & Johnson remains the largest and most diversified healthcare company in the world.In the first 9 months of the 2023 fiscal year, Johnson & Johnson's growth rate was close to7%And8%(Including Abiomed, the heart pump company acquired by Johnson & Johnson in 2022). Such a growth rate is considered significant for a large company like Johnson & Johnson.# Return to Interventional CardiologyIn terms of medical technology,Highly Praised by Johnson & JohnsonAbiomedLike Johnson & Johnson, it is a mission-driven company, highlighting its strategic importance.Since the acquisition, Abiomed has maintained its status as an independent operation based in Massachusetts.For Johnson & Johnson, Abiomed is the gateway to re-entering interventional cardiology.Abiomed has been studying continuously.Heart Failure、High-Risk PCIAndCardiogenic ShockIn these areas, the company has many innovations, including improvements to existingImpella Interventional Heart Pump. Johnson & Johnson is expected to submit in 2024Impella ECP. In addition, Abiomed is conducting three PMA studies, one of which is for high-risk heart attack patients.STEMI DTU, measure the size of the infarction.Johnson & Johnson hopes to continue to consolidate Abiomed's position in the field of heart failure. However, Abiomed is also making advances into two other fields:Chronic Heart FailureAndAcute Decompensated Congestive Heart FailureFor the former, Abiomed is developing a new device called "Bridge-to-Recovery," which is expected to replace LVAD; for the latter, Abiomed is developing a device namedpreCARDIAThe device (which has received the FDA's "Breakthrough Device Designation," as demonstrated below).At the same time, Johnson & Johnson stated that it would submit an Investigational Device Exemption (IDE) application to the FDA for the OTTAVA laparoscopic surgical robot in the second half of 2024 to initiate clinical trials.Johnson & Johnson isThe only company that develops three different types of robots, The three robots developed are:OTTAVA Soft Tissue Surgical Robot, MONARCH Natural Orifice Surgical Robot, and VELYS Orthopedic Surgical Robot.With technological innovation and its own vast market scale, Johnson & Johnson is confident in achieving growth in the high-end market of the medical technology sector.
MONARCH Platform & VELYS™ Robotic-Assisted SolutionIn addition, Johnson & Johnson also announced significant progress in the company's pulsed field ablation (PFA) catheter, with research under its subsidiary.VARIPULSE PFA CatheterThe INSPIRE study has been completed.In addition, Joaquin Duato also mentioned the acquisition of the left atrial appendage closure company.LaminarOne thing, indicating that the company thus has an opportunityWill enter the left atrial appendage closure market.Medtronic: Comprehensive Transformation
As for Medtronic, there were many people in dialogue with the J.P. Morgan interviewer, but the main speaker was Geoffrey Martha, Chairman of the Board and Chief Executive Officer.Geoffrey Martha stated that Medtronic has been undergoing a comprehensive transformation, which includesOperation Mode、Incentive Measures、Corporate CultureAndEmployeeAt the same time, Medtronic also focuses on specific areas to leverage the company's large scale. Medtronic divided its investment portfolio into segments a year ago.Fastest Growing、Synergistic GrowthAndMature BusinessClass III, and nowadays, these three types of products are each developing well.# Fastest Growing BusinessMartha first introduced several areas that have brought the most growth to the company, respectively:Cardiac Ablation、Diabetes、Structural Heart, These areas account for 20% of the company's current revenue.In terms of cardiac ablation, Medtronic has made several significant investments and now...The First Company with an FDA-Approved PFA System. In addition, the company'sSphere-9 Focal PFA Ablation CatheterIt has also been launched in limited quantities in Europe. Therefore, Medtronic is increasing its manufacturing efforts and expects to obtain IDE results in the first half of 2024.In terms of diabetes, Medtronic keeps making progress. The market for critically ill insulin patients is transitioning from the current predominant use of standalone CGMs with multiple daily injections to smart dosing systems that utilize automated insulin delivery or intelligent MDI systems. Medtronic forecasts that by the end of this decade,Intelligent Metering SystemWill become the technology used in most markets.It has been several quarters since Medtronic launched the 780G system in the United States, and the system's market adoption rate is very high, leading Medtronic to predict that its diabetes business in the U.S. will resume growth in the second half of this fiscal year. In addition, Medtronic's AID system is also on track.
In the field of structural heart, Medtronic's new technology is Evolut FX. Evolut FX is easy to deploy and has performed exceptionally well in the United States and Japan. It has just been launched in Europe. The superior performance of this aortic valve system gives Medtronic confidence against a host of competitors.# Synergistic Growth BusinessLater, Martha also introduced the company's synergistic growth business, which includes:ENT、Cardiac Surgery、NeuromodulationAndEndoscope。In the field of ENT, Martha mentioned that the acquisition of Intersect ENT a year and a half ago has proven to be beneficial. The company's innovative...PROPEL and SINUVA Sinus ImplantsThe growth rate so far this fiscal year has been very high, bringing the revenue of one of the company's most profitable businesses, the ENT (Ear, Nose, and Throat) business, to 1 billion US dollars now.In cardiac surgery, Martha mentioned that the acquisition broughtPenditure Left Atrial Appendage OccluderThe口碑 is also very good. Currently, this is the only left atrial appendage closure device on the market that can recapture, reposition, and even redeploy.In terms of neuromodulation, Medtronic is awaiting FDA approval.PerceptRC Rechargeable Brain Pacemaker(Approved) and the firstClosed-Loop Spinal Cord Stimulator Inceptiv. Both devices have obtained CE certification, and they both performed well when they were initially launched in Europe.At the same time, these two devices also demonstrate the continuous technological innovation of Medtronic engineers, as their efforts have made neurostimulation devices smaller in size and equipped with sensing technology.In terms of endoscopes, Medtronic hasGI Genius™ Computer-Aided Polyp Detection SystemThis system, by using AI technology, is able to better detect polyps during colonoscopy. Medtronic stated that the market penetration for this technology is very low, so its growth will be very strong. Currently, Medtronic is expanding the functionalities of the GI Genius™ system, hoping to provide additional artificial intelligence applications on this platform.Finally, Martha talked about the company's mature businesses, which account for about half of Medtronic's current revenue, including:CRM、Cranial and Spinal Technologies BusinessAndSurgery。In terms of CRM, Medtronic has launched a disruptiveEV-ICD. At the same time, Medtronic also has the next-generation miniature transcatheter pacemaker.Micra AV2 and VR2. Finally, Medtronic also has3830 Lead, this is the only approved conduction system pacing system in the United States.In the business of skull and spine technology, the spinal market isUndergo Structural Changes. What is coming is a real transformation, and the basis of competition isEnabling Technology, including: robotics, imaging, navigation, preoperative planning software, and enabling tools. Medtronic, with its rich portfolio of enabling technologies, holds a dominant position at the forefront. In the future, Medtronic will continue to build and upgrade its technological moat.In surgery, Medtronic'sHugo Surgical RobotIt is being launched in multiple markets worldwide. In addition, this robot has made very good progress in the U.S. IDE trial. Meanwhile, Medtronic is also introducing broader digital technologies through Touch Surgery, innovating market-leading surgical instruments, such asSignia、Tri-StapleAndLigaSure。Later, Martha's topic returned toSymplicitySpyral Renal Denervation SystemMore than 1 billion people worldwide suffer from hypertension. For Medtronic, achieving just a 1% penetration rate in the target market could generate over $1 billion in revenue, making it a must-win opportunity. Medtronic is now pushing forward with reimbursement efforts and actively engaging in discussions with CMS and private payers.# Big Data + Factory Closure
Finally, Martha talked aboutBig Data. He believes that Medtronic, with its professional knowledge in the medical device field and vast patient data, has a unique advantage in advancing artificial intelligence and medical technology. Nowadays, many hospitals share data with trusted partners, and Medtronic will also focus on these areas in the future. Currently, Medtronic has spent a significant amount of time discussing with regulatory agencies around the world, especially the FDA, on how to approach artificial intelligence and healthcare.
In addition to this interview, Martha also emphasized at JPM's company presentation: Medtronic is now highly focused on performance and profitability, and this year, at the very least, will...Close Five Manufacturing Bases(The specific five have not been disclosed yet), and will alsoIntegrate eight distribution centers into two super distribution centers, while ceasing operations with approximately 200 suppliers to improve operations and the supply chain.Martha stated, "Last year, we spent nearly $11 billion on sales. This expense is too high, with more than half of the company's employees involved in global operations and the supply chain."
