Johnson & Johnson Earnings Call Nuggets: ZYTIGA Patent Application and Consumer Business Margins
Johnson & Johnson (NYSE:JNJ) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.
ZYTIGA Patent Application
Michael Weinstein – JPMorgan: I wanted to ask about the recent event which was the allowance of the patent application on ZYTIGA in combination with prednisone and could you give us your updated view on life of ZYTIGA in the U.S. and how ZYTIGA is going to fit in with ARN-509 and the Aragon acquisition, in other words how do you see positioning the two products?
Alex Gorsky – Chairman and CEO: Mike this is Alex. Thanks a lot for the question. As you know, Janssen’s got five years of data exclusivity in the U.S. from the date of approval which was April 2011 or until April 2016. We’re also watching the Hatch-Waxman extension to December 2016. At this point in time, we believe that those are the correct dates to be using. Obviously we are going to be looking at some of these other recent events, closer to see what impact it may have, but at this time, we’re sticking with December 2016. Regarding the Oregon, look we think it’s a great complement our portfolio. If you look at the great job frankly that our team has been able to do with ZYTIGA in the launch regarding the clinical – you should backup actually the actual approval of the compound, the ongoing clinical development, very impressive, the commercial penetration that we’ve seen as well as the care programs for patients. We think it represents a significant capability, and now when you complement that with the Aragon compound, it will certainly enable us to leverage all of those skills on to a next phase. We think that there could be potentially complementary utilization of both compounds together, and again as one – another example of us continuing to really make a difference for patients and for our business in this very exciting oncology area.
Michael Weinstein – JPMorgan: Let me just ask two quick follow-ups if I can, one is an update on the plans for the clinical diagnostics, and two, Dominic, where are you with the completion of last year’s ASR and could you just talk about thoughts on additional share repurchase following that?
Alex Gorsky – Chairman and CEO: Sure Mike, I’ll take the first half of that question and I’ll Dominic to follow-up on the second part. As you remember, earlier this year, we announced that we were going to be exploring the future of the Diagnostics group at an enterprise level. And the initiation of this process was really part of a broader strategic planning process across Johnson & Johnson, recognizing that that we wanted to be very disciplined and decisive about what we’re going to do with our businesses and our capabilities going forward. As we stated back in January we expect that this process could take anywhere from about 12 to 24 months. We are on track for that. We are still in the early stages, and we think it’s premature at this time to speculate about the specific impact. But we are continuing to look at our options. Dominic?