Johnson & Johnson (JNJ) Earnings Call Transcript & Summary

Good day and welcome to the Johnson & Johnson Annual Meeting of Shareholders. 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 factors that may cause the company's actual results to differ materially from those projected. Our SEC filings, including our 2019 Form 10-K, along with reconciliations of any non-GAAP financial measures utilized to the most comparable GAAP measures, are also available at investor.jnj.com. I would now like to turn the conference over to Alex Gorsky. Please go ahead.

Good morning. I'm Alex Gorsky, Chairman and CEO of Johnson & Johnson. And it's my pleasure to welcome you all to the 2020 Annual Meeting of Shareholders. I'd also like to welcome our Executive Committee members who are joining us virtually. Additionally, I'd like to begin today's webcast by introducing our Board of Directors who bring diverse perspectives and a breadth of experiences. They are global leaders in business and health care, leading experts in science and policy, and each director brings deep expertise, skills and capabilities to their roles. Joining us virtually today are Dr. Mary Beckerle, Scott Davis, Ian Davis, Dr. Jennifer Doudna, Marillyn Hewson, Dr. Mark McClellan, Anne Mulcahy, Chuck Prince, Dr. Eugene Washington and Ronald Williams. We're also very excited to welcome 2 new Board nominees, Hubert Joly and Mark Weinberger, both of whom have vast experiences leading major complex organizations across both the public and private sectors. And lastly, I'd like to acknowledge Bill Perez, who will not be seeking reelection. I personally want to thank Bill as does the entire Board for his dedication and the many contributions that he has made over the past 13 years. Bill has brought tremendous wisdom, expertise and judgment to our Board, including most recently in the vital roles that he has played as a member of our Audit Committee and Chair of our Nominating and Corporate Governance Committee. We wish Bill the very best and thank him for his service to the Johnson & Johnson Board and our shareholders. Also here with us on the line today are Steve Johnson and Chris King representing PricewaterhouseCoopers, our independent auditors. Now a copy of today's program, including the agenda and the rules of order, are available in the Meeting Materials section of the virtual meeting website. There, you'll also find links to our 2020 proxy statement and 2019 annual report. If you have attended a Johnson & Johnson Annual Meeting of Shareholders in the past, you will notice that this year's format is different as we are holding the meeting virtually. This decision was made in light of the COVID-19 outbreak, public health concerns, the current state of emergency in New Jersey and government recommended and required limits on public gatherings and to assist in protecting the health and safety of the company's shareholders and employees. And given the magnitude of COVID-19, we are committed to doing our part on a global scale to promote and protect the health and well-being of all of our stakeholders. This is our #1 priority and it has been throughout our 134-year history. I will now move into the business review section of today's agenda. 2020 is clearly going to be quite extraordinary by all accounts and by every measure. We have been catapulted into a new era and a new normal with the lives we live, the way we work and the things we perhaps took for granted and also hold dearly have dramatically changed within the blink of an eye, the phrase social distancing, what wasn't even in our vocabulary at the start of this year, and now it's essential to live a healthy life. Clearly, top of everyone's mind joining this meeting today and around the world is COVID-19. Despite the uncertainty of this global pandemic, the role of Johnson & Johnson is crystal clear. During our century-plus history, Johnson & Johnson has faced several daunting global health crises, natural disasters and even 2 World Wars. Every challenge and every crisis throughout our history has helped shape the capability and strategic focus that we have today. We are at the forefront of science, public health, business and philanthropy which reinforces why Johnson & Johnson is built for times like these and built to lead during this extremely difficult and uncertain time. For more than 75 years, our credo has been the moral compass that guides our business decisions, and it's the blueprint that outlines how we operate and care for the world. Guided by our credo and unyielding sense of purpose, we have created a powerful legacy of improving the health and well-being of people worldwide while delivering sustainable, long-term value to all of our stakeholders. Johnson & Johnson's talented colleagues around the world, 3 major business segments with broad and diverse portfolios, strong cash flows and a AAA credit rating aren't just statistics that appear on the top list of prominent publications. They are attributes that allow us to help fight the COVID-19 pandemic and address this public health crisis. In fact, I'd like to share a few highlights that reflect our commitment to advancing health and performance excellence, and they include: 58 consecutive years of increased dividends as we announced during our earnings call earlier this month; 36 consecutive years of adjusted operational earnings growth; $11 billion of record investments in research and development, enabling our relentless pursuit of innovation to develop vital scientific breakthroughs; a long-standing pursuit that empowers us to take a leading role in the fight against the COVID-19 pandemic. We believe that being the most broadly based global company in the health care industry is a strategic business advantage. Leading across the pharmaceutical, consumer health and medical device segments provides us with a unique and powerful perspective that enables us to do more across the full spectrum of health and throughout every stage of our patients' and consumers' lives. Our supply chain teams and robust business continuity plans have been instrumental in enabling us to continue meeting the needs of the patients and consumers who depend on our products during this unprecedented time with minimal interruption. We also understand that addressing unmet needs of this magnitude is going to involve world-class collaboration and ingenuity that transcends industries and international borders. We continue to take actions that mobilize and make a difference. Some examples include: in our pharmaceutical business, we are thrilled to have identified a lead candidate for a potential vaccine, and we are committed to bringing an affordable vaccine to the public on a not-for-profit basis for emergency pandemic use. In consumer health, Tylenol is one of our most iconic and trusted brands by consumers and health care professionals for reducing fever, and we have increased production running our Tylenol manufacturing plant 24/7 to maximize supply. In medical devices, we are utilizing our supply chain delivery and 3D printing expertise in collaboration with Prisma Health to manufacture and distribute a device to address the acute ventilator shortage during the COVID-19 pandemic and at no cost to health care providers. And we have contributed products and essential health supplies to support frontline health care workers and others around the world to combat this virus and other health challenges. In fact, we increased our previous $250 million commitment over 10 years by an additional $50 million for immediate COVID-19 response. I am both proud and amazed at the level of dedication that I've witnessed from our Johnson & Johnson colleagues. Their commitment to delivering health care products and solutions that benefit patients, consumers and communities is both admirable and inspiring. Despite the many challenges and disruptions related to COVID-19, our employees around the globe remain committed to protecting and improving the health and well-being of people everywhere. And we remain just as committed to protecting the safety and well-being of each and every one of our 132,000 employees, especially during this global public health crisis. 2019 was a year of extreme challenge and change. However, it is no understatement to say that 2020 will certainly surpass last year and will represent an unprecedented time in our history. We see the COVID-19 pandemic as a call to action, and we are answering this call across the entirety of our broad-based business because Johnson & Johnson was built for this. And we know that good health is the universal wish of every individual and every family. That wish unites us all today. As a global leader in health care, we will never stop our relentless focus on relieving pain, raising hope and restoring health. This is what the world expects of us, and this is what our global workforce is committed to and prepared to do. It's been my honor and privilege to serve as Chairman and CEO of Johnson & Johnson for the last 8 years. You have my unwavering commitment that across the company, we will rely on the same courage, conviction and core strengths that have defined our 134-year legacy to help win the fight against the COVID-19 crisis and to make a positive impact on society as well as change the landscape of health care for the better. I'd like to now introduce my colleague, our Corporate Secretary, Matt Orlando, to conduct the official business portion of the meeting. I now call this meeting to order. Matt, do we have a quorum?

Thank you, Mr. Chairman. Hello, everyone. I'm Matt Orlando, Johnson & Johnson's Corporate Secretary and Worldwide Vice President of Corporate Governance. I will present the formal portion of today's meeting. I'm pleased to announce that we do have a quorum of shareholders present today, in person or by proxy, representing more than 85% of the outstanding shares entitled to vote at today's meeting. In accordance with the laws of the state of New Jersey, a list of all shareholders of record entitled to vote at this meeting is available upon request. Please refer to the Meeting Materials section of the virtual meeting website. The first item of business is the election of directors to serve on the Board of Directors until the next annual meeting. As described in the proxy statement, as our Chairman introduced earlier on today's webcast, there are 13 nominees for the Board of Directors. Under our bylaws, the election of each director nominee in today's election requires the affirmative vote of a majority of the votes cast, excluding abstentions. The Board recommends a vote for each of the nominees. The second item of business is an advisory vote to approve the compensation of our named executive officers and the executive compensation philosophy, policies and procedures described in the Compensation Discussion and Analysis section beginning on Page 43 of the 2020 Proxy Statement. As an advisory vote, the results of this vote will not be binding on the Board or the company. However, the Board understands the importance of receiving shareholder feedback on executive compensation. The Board recommends a vote for this management proposal. The third item of business is the ratification of the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for Johnson & Johnson for fiscal year 2020 as described in the proxy statement beginning on Page 98. The affirmative vote of a majority of the votes cast at this meeting is required to ratify this proposal. The Board recommends a vote for this management proposal. The fourth item of business is the approval of the amendment to the company's Restated Certificate of Incorporation to permit the removal of directors without cause as described in the proxy statement on Page 100. If this proposal is approved by a majority of our shareholders, following the Annual Meeting, a certificate of amendment will be filed with the Secretary of State of the state of New Jersey, and the Board of Directors will adopt a conforming amendment to company's bylaws. The Board recommends a vote for this management proposal. The final items of business are 2 proposals submitted by shareholders. Let me start by explaining the rules of order, a copy of which is available using the link in the Meeting Materials section of this webcast page. Each shareholder proponent or a qualified representative thereof will have 2 minutes to present their proposal and must address only that matter. Following the presentation of the shareholder proposals, the polls will remain open for a short period of time if you wish to vote or change your proxy vote. There is no need for anyone who has already voted his or her proxy to do anything. However, if you have not voted your proxy and wish to vote, or if you wish to change your proxy vote, you may do so by clicking the Vote Here button highlighted in red on the virtual meeting website. The first shareholder proposal and its supporting statement appear on Page 101 of the proxy statement and was submitted by Trillium Asset Management LLC on behalf of Oneida Trust Minors, a beneficial owner of 711 shares of the company's common stock. Mr. Jonas Kron will introduce the proposal on behalf of the proponent and will have 2 minutes.

Good morning, Mr. Chairman, members of the Board of Directors, fellow shareholders. My name is Jonas Kron, and I'm here on behalf of Trillium Asset Management and the Oneida Trust to hereby move Item #5, seeking an independent Board share policy for Johnson & Johnson. A 2016 Glass Lewis report on independent Board chairman found "that shareholders are better served when the Board is led by an independent chairman who we believe is better able to oversee the executives of the company and set a pro-shareholder agenda without the management conflicts that exist when a CEO or other executive also serves as chairman. This, in turn, leads to a more proactive and effective Board of Directors." Consistent with that report, a 2019 PwC survey of over 700 directors found that 57% of directors who sit on a Board with a unified chair CEO say that under those circumstances, it is difficult to voice dissent. A counter to this evidence is often the idea of having a lead independent director. But as the EY Center for Board Matters put it, "they do not command the same authority as a Board chair." This is why we believe the position of the Council of Institutional Investors, the authoritative voice on governance matters, hold so much weight because as CII puts it, "a CEO who serves as chair can exert excessive influence on the Board and its agenda." Separating the chair and CEO positions can reduce this conflict. And an independent chair provides the most transparent separation of power between the CEO and the rest of the Board. Finally, it is worth remembering that in 2017, another version of the same proposal was voted on by shareholders and received a 42.7% voting support. There appears to be a broadly held opinion at Johnson & Johnson to have an independent Board Chair. Thank you for your time and attention and for your support for an independent Board chair.

Thank you, Mr. Kron, for your comments. So as described in detail in the proxy statement, our Board believes it is crucial to maintain the flexibility to tailor its leadership structure to best fit the needs of Johnson & Johnson as they evolve as well as to best respond to the challenges facing the company. Our Board considers extensive shareholder feedback and reviews market developments on an ongoing basis and continues to believe that the Board's current structure with a robust lead director and committees each composed entirely of independent directors, provides appropriately strong independent leadership and oversight. Importantly, the guidance provided by the Johnson & Johnson Board under the current structure has enabled the creation of significant value for shareholders. The Board believes that a one-size-fits-all policy deprives the company of the benefit of its current leadership structure and would not result in better governance or oversight. For these reasons, the Board recommends a vote against this shareholder proposal.

The second and final shareholder proposal and its supporting statement appear on Page 104 of the proxy statement and was submitted by the Bright Start College Savings Trust, a beneficial owner of over $2,000 worth of shares of the company's common stock. Mr. Max Dulberger will introduce the proposal on behalf of the proponent and will have 2 minutes.

Greetings. My name is Max Dulberger, and I'm presenting on behalf of Illinois State Treasurer, Michael Frerichs, the lead sponsor of the proposal on Page 104 of the proxy, which requests that the Board issue a report describing its oversight of opioid-related risks. The Illinois Treasurer is joined by several co-filers, including the Connecticut Treasurer, BNP Paribas Asset Management, Mercy Investment Services, Catholic Health Initiatives, Dignity Health and Trinity Health. The proposal also shares the support from Investors for Opioid & Pharmaceutical Accountability, an investor coalition representing nearly $4 trillion in assets under management. Now we all have a vested interest in ensuring that J&J is effectively managing and openly disclosing risk exposures that may impact the value of the company. In this case, we are clearly dealing with a significant controversy [ stepping ] J&J's role in the opioid epidemic that presents material risk to the company, critics have accused J&J of fueling the opioid epidemic given its role in previous years as the lead supplier of opioid raw ingredients in the U.S. via its former subsidiaries. J&J has also been accused of illegally marketing opioids. J&J and its subsidiary, Janssen Pharmaceuticals, have been named in more than 2,800 lawsuits brought by state and local governments. Further, J&J was recently ordered to pay $465 million to the state of Oklahoma in what observers are calling a landmark case, which signals additional concerns as the success of this suit could potentially increase the risk of more losses, not to mention further reputational damage. While we recognize that J&J has taken steps to reduce its exposures, there remain notable gaps in the company's reporting on opioid-related risks, specifically the Board's oversight responsibilities and the governance measures taken to effectively manage financial, legal and reputational risks. In addition, there remain unanswered questions about J&J's future opioid business lines as opioid products are listed on Janssen's website as are other scheduled drugs and J&J continues to market in foreign countries. Further, a number of J&J's peers, including Endo, McKesson, CVS, among many others, have issued similar reports and shown this can be accomplished efficiently. All this echoes a point expressed by Bill McNabb, the former CEO of Vanguard. He notes that investors should always feel justified asking Board of Directors about the company's long-term strategy and its progress compared to its peers. In both these respects, J&J has an opportunity to enhance its position. Given the company's known commitments on transparency, the breadth of the ongoing risk exposures and the progress demonstrated by peers, we believe it is warranted for J&J's Board to issue this report. Thank you very much.

Thank you, Mr. Dulberger. As outlined in our proxy statement, the company's current opioid business activities are immaterial. The company is committed to transparency and strong governance practices and has created a resource, www.factsaboutourprescriptionopioids.com, in an effort to update our shareholders about opioid-related litigation and steps that the company has taken to help address this opioid crisis. Through this website and other public reports, the company already provides meaningful and substantive disclosure concerning the governance measures and other controls that we have in place to manage significant risks. We believe that the preparation of reports suggested by this proposal is unnecessary and duplicative of existing disclosures. Therefore, it is recommended that shareholders vote against this proposal.

Thank you, Mr. Chairman. The polls will now remain open for a few minutes. We will report on the voting results for each item of business in a few minutes after the polls have closed and the inspector of elections has had the opportunity to conduct its preliminary tabulation. In the meantime, we would like to share a powerful COVID-19 video with you, highlighting some of the critical ways in which we are mobilizing all of our resources to help win the fight against this global pandemic. [Presentation]

The polls have been closed, and I will now report on the preliminary voting results for the items of business that were presented. The preliminary voting results are based on the tabulation received from the inspector of elections a few moments ago and are as follows: the 13 director nominees named in the proxy statement have been elected to the Board of Directors. The advisory vote to approve named executive officer compensation has been approved. The ratification of appointment of our independent public accounting firm was approved. The amendment to the Restated Certificate of Incorporation has been approved. The independent Board shareholder proposal did not pass. The report on governance of opioids-related risk shareholder proposal passed. Final voting results will be published within 4 business days of this meeting in a Form 8-K that will be filed with the Securities and Exchange Commission. This now concludes the formal portion of our program, and this year's Annual Meeting is adjourned. We will now open the questions -- we will now open the meeting for a Q&A session. We want to thank you for all the questions you submitted online during today's webcast. We will try to get to as many as we can over the next 15 minutes. As we reviewed the submissions, there were several questions on the same topic. For those topics, we have selected a representative question to answer today. I'll now turn it back over to our Chairman to moderate the Q&A portion of this meeting.

Hello again. This is Alex Gorsky. Now we've been informed that some shareholders have had difficulty logging on because of a technical issue around capacity. We've been informed that this issue has been resolved. But the entire broadcast will be available on jnj.com following this meeting. We apologize for any difficulties you may have had and appreciate your patience. As Matt alluded to, we've received many questions during this meeting and over the prior weeks from shareholders about Johnson & Johnson's response to the COVID-19 pandemic. Individual shareholders, such as [ Mike Solza ] and [ Marriott Jacobs ], institutional shareholders such as Oxfam America and shareholder coalitions, including the Interfaith Center on Corporate Responsibility, have requested information on a number of topics related to COVID-19, mostly around our work in developing a vaccine, how we are supporting our global workforce through this crisis and how we expect this crisis to impact our business. To best respond to the questions that so many of you have raised, I'd like to share some information on each of these topics. As I mentioned in my formal remarks, we've identified a lead COVID-19 vaccine candidate, which has been enabled by the groundbreaking science and scalable production platform that we already have in place from our pioneering work on Ebola, Zika and HIV. And we expect to initiate human clinical studies by September of 2020 and anticipate the first batches of a COVID-20 -- of, excuse me, a COVID-19 vaccine would be available for emergency authorization use in early 2021. Now at the same time, through our partnership with BARDA, we're expanding our existing manufacturing capacity and we're working to establish a new U.S. vaccine manufacturing capability as well as looking to expand manufacturing capacity in Europe and Asia. And again, as I stated earlier in this meeting, our goal is to bring an affordable vaccine to the public on a not-for-profit basis for emergency pandemic use and enable the supply of more than 1 billion doses of the vaccine globally. Now it's important to note that the process of manufacturing of vaccine using our platform is very complex. But we are working with partners to ensure that we can upscale capacity to make a vaccine widely available. Now another critical question regards our employees. And to ensure our global colleagues can play their part in the fight against COVID-19 at home and at work, we've implemented significantly enhanced sanitizing procedures and appropriate distancing to ensure we maintain safe, clean and well-functioning facilities across all of our manufacturing, distribution centers and research and development sites. And we're rolling out a onetime award of $1,000 per essential employee with cost-of-living adjustments globally, whose presence is required on-site to recognize the extraordinary work these employees are doing to advance our science and ensure supply of our most essential products and medicines. We're also providing 100% of base salary and benefits through May 15 to employees who are primary caregivers and who are unable to work remotely due to COVID-related family care responsibilities, things such as underlying health issues, connectivity issues or other unique circumstances. And we're granting up to 14 weeks of paid leave to employees around the world with medical training who volunteer, who are called on to serve their communities in diagnosing, treating and providing health support related to COVID-19. And I have to tell you, from the first-hand accounts I've seen from several of our employees, it's remarkable the work that they're doing. Now let's talk for just a few minutes about the COVID-19 impact on our business. As we shared a few weeks ago during our first quarter performance webcast, our first quarter results were strong and really reinforce our broadly-based sustainable business model as well as the hard work and engagement of our Johnson & Johnson colleagues worldwide. We also increased our quarterly dividend by 6.3% to $1.01, which is another reflection of our stability and further underscores our commitment to delivering value to our shareholders. Now we clearly expect that there will be some short-term disruption related to new patient starts and access to physician-administered drugs, but our pharmaceuticals business is resilient, and we largely expect patients will continue to receive and seek treatment. We remain confident in the progression of our pipeline and strength of our base business, and we still expect to grow at a rate above the market in 2020 despite any short-term impacts related to COVID-19. In Consumer Health, we operate in categories such as over-the-counter medicines that should continue to perform well as consumers look to self-managed conditions such as fever and pain. And as I previously mentioned, we've ramped up the production at TYLENOL to meet increased demand. We anticipate that other product lines such as skin health may be negatively impacted, but we believe the upside will help offset this effect. Now our medical device business has been the most significantly impacted by COVID-19 consistent with the rest of the medical devices market as elective procedures are deferred and hospital resources are diverted. However, our broad portfolio that we discussed many times in the past has helped us manage this downturn because about 1/3 of our products support essential nondeferrable types of surgeries. And although we expect COVID-19 to impact our full year 2020 performance in Medical Devices, the underlying fundamentals of the market remain intact. And we believe there is tremendous potential over the longer term to serve our patients and customers. Now I know that COVID-19 is top of mind for so many of you, and I hope this answers your questions. Now let's turn it over to some other questions from shareholders. There's another question from [ Rebecca Wolf ]. How many shareholders are attending this meeting? I'm glad to report that we have over 2,300 shareholders calling in virtually, the first time that we've done this kind of virtual meeting at Johnson & Johnson. I have another question from [ Mark Zashen ]. Has Johnson & Johnson increased the use of robotics? What I would say is we're very excited about the potential for robotics becoming increasingly used, particularly in areas such as surgery. As you know, from many of our filings, we've invested significantly over the past 5-plus years in this space, beginning with our Ethicon unit doing a very significant joint partnership with Verb Verily that we later acquired. We expanded that with our acquisition of Auris led by Dr. Fred Moll. And in fact, we're already seeing very good uptake with our Monarch platform in areas such as pulmonoscopy and other lung conditions. And by being able to bring these capabilities, these technologies together, we truly believe that we can help to create a next-generation robotics and digital platform that will offer significant advantages in terms of outcomes for patients and also efficiencies in the operating room. So stay tuned. We intend to be doing significantly more research and development in this area. And we think it will be an important opportunity not only to improve patient outcomes, but to expand our business and surgery in the future as well. We also have questions from a few shareholders, including [ Deger Tunk ] and [ Gerald Prentke ], who have asked questions about the status of certain litigation matters, including talc and opioids. In answering this, let me first be very clear that we always have a tremendous amount of sympathy and care for patients and consumers who might be suffering from a condition that they don't quite fully understand. We also always place an extremely strong emphasis and priority on safety, quality and compliance in everything that we do. As I mentioned earlier, we have extensive disclosure regarding all of our litigation matters that's broadly available and very transparent. And finally, we have a long track record of resolving these types of issues in a manner that's consistent with our credo, and it was ultimately in the best interest of all of our stakeholders. Next question. The next question is from [ Vincent Raneri ]. It is, "Our stock is nearly at an all-time high, even during these tough times with the COVID-19 slowdowns. Will Johnson & Johnson ever consider a stock split in the future?" Well, thank you very much for your question, Vincent. And what I would say is that we're always looking for ways to maximize not only shareholder value, but also shareholder participation. And that is certainly something that we will continue to look at as we go forward. Next question is from [ Hagan Liss ]. And it is, "Will virtual meetings continue to be available after the pandemic or social distancing?" What I can say there is, look, I'm very proud of the work that our team has done in working with all the appropriate authorities to make this meeting so accessible vis-à-vis a virtual means. Of course, our #1 priority was to ensure the safety of all of our shareholders as well as our employees and our Board members who participate in this meeting. We always look for ways to ensure that this meeting is as meaningful and engaging as possible, and we'll continue to see what are the best options for us going forward, again, to maintain the unique character of the Johnson & Johnson Shareholder Meeting while at the same time, ensuring the safety of all attendees or participants and making sure that we're making the very best and most efficient use of technology. I've got a question from [ Sharon Lynch ]. And this is regarding a question about the pricing of our tuberculosis drug, bedaquiline. And what I would say regarding bedaquiline is we're very proud of all the progress that we've made with this important treatment. In fact, it's the first treatment for treatment-resistant tuberculosis in more than 40 or 50 years offering relief and hope for thousands of patients and families, in fact, around the globe. We have worked diligently with global partners, including the World Health Organization, other NGOs and other authorities to ensure that bedaquiline is available at a very affordable and accessible price around the world. We've also worked very diligently to ensure that the product was distributed and used in a way that could ensure compliance and would not actually result in untoward consequences that could arise without a strong distribution system in place. We intend to continue this practice. And of course, we will ensure that we also continue to look for ways to expand both the access and affordability of this product as we go forward. The next question is from shareholder and employee, P. Jurgensen, and it is, "How will our workspaces change when we return to work? We work in an open floor space and share offices." And look, what I can tell you is that we are currently taking a very broad and comprehensive approach to how will we return to work across all of our Johnson & Johnson affiliates. As I mentioned earlier, this is an unprecedented time, and we understand that the changes that we will likely make will result in us not going back to the workplace that we left about approximately 6 weeks ago. We're working very hard to ensure, number one, that we take a very science- and fact-based approach regarding social distancing, regarding the incidence of the virus and certainly any new treatments or therapeutics that may become available. We're working very hard looking at guidelines that are being issued by other authorities, again, on a global basis to ensure the policies, processes, protocols that we have in place regarding any type of testing, social distancing, things even such as how we might eat in our lunch rooms and cafeterias or operate in meeting rooms are reflective and indicative of the most current guidelines that ultimately have the safety of all of our employees and any of our partners in our mind at all times. We will be working diligently in the coming weeks as we would intend, under any case, to have a phased rollout of this program in the coming weeks and months. And we'll certainly do our best to keep all of our employees appraised of those programs as we bring them together. Next question is from [ Pamela Michaels ]. What plans does Johnson & Johnson have to shift supply chains away from China to the U.S. post coronavirus crisis? Thank you very much for your question, Pamela. And as we stated several times before, given the depth, the breadth, the diversity of Johnson & Johnson and the more than 250,000 SKUs and line items that we have across our various businesses, we have a very comprehensive globally integrated supply chain. It's something that we can continue to revise to ensure that not only is it effective in bringing safe and high-quality products to the market but that it also has a robust and -- a robust and rigorous supply chain in place that can withstand shocks and other situations like this. We have extensive business continuity plans in place. And that's predicated upon having a number of different backup supplies available for all of our products depending on the situation. So look, we'll continue to review this as we go forward. But I can assure you that this is a top priority for us across the Johnson & Johnson supply chain as we prepare for the future. So with that, I'd like to thank all of you, and that concludes today's meeting. As I mentioned earlier, this is the first virtual annual meeting that Johnson & Johnson has ever hosted, another historic moment for the company. Thank you for your thoughtful questions, for your patience, and I want to thank our Board of Directors and my executive committee team members who've joined us by phone. I'd also like to take this opportunity to thank our shareholders for your continued trust and support and frankly, for the privilege of leading this great company as we execute bold strategies, develop innovative medicines and products and ultimately ensure that good health is within the reach of everyone everywhere. We trust you and your families will stay safe and healthy. Enjoy the rest of your day. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.