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(upbeat music)

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- Welcome, everyone.

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We're so happy you could join us.

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We have an outstanding CEO
discussion planned for today.

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We're honored and excited
to have you all joining us.

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And during today's session. Joaquin Duato,

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the CEO of Johnson & Johnson,

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and Dr. Bernd Montag, the
CEO of Siemens Healthineers

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will share their reflections

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on this week's J.P. Morgan
Healthcare Conference,

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as well as their perspectives

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on the 2023 health care industry outlook.

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(upbeat music)

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- Companies acknowledge
that some of the headwinds:

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inflation, interest rates,
the currency fluctuations,

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the higher costs are going
to continue into 2023.

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But at the same time,
most of the companies

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were expressing confidence
in the long-term potential

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of our industry, the biopharmaceutical

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and the medical technology industry,

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to be able to navigate
the situation in 2023

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and improve things as we move
into the midterm horizon.

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I mean, one key element of that resiliency

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that I think has been a big learning

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coming out of the pandemic

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is the importance of the
resiliency in our supply chains.

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On one hand, we are using
technology more and more

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to help on demand-sensing,

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demand planning, inventory planning.

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On the other hand,

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we are also using
automation for logistics.

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And also in the case of health care.

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We are using also technology to improve

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the testing of our products
to streamline that process.

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The other side of that is,

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you know, your geographical footprint

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of your manufacturing
chain and to what extent

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that is going to contribute or not

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to maintain the resiliency.

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Health care companies
need global supply chains

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in order to be able to optimize

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our capabilities and our costs.

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You're going to see a movement

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to regionalize supply chains more

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in order to improve the
resiliency components.

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- Everybody is switching
back from coping to shaping.

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Coping with, you know,
at first there's COVID,

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and then there's the lack
of elective procedures,

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then there's inflation and
supply chain interruptions

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and so on and so on.

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And the attention is moving
away, not back to normal,

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but back to the excitement of shaping

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this super important industry.

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- It's a reminder that health
care and health care innovation,

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it's more a marathon,
not so much a sprint.

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(adventurous music)

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Innovation is the
lifeblood of our industry

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and what society expects
from health care companies.

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I know innovation can occur
in all parts of the company.

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But ultimately, that has to
translate into medicines,

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medical devices, and consumer products

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that address the needs of
patients and consumers.

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R&D is fundamental to
develop that innovation.

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We prioritize investment in R&D

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when we allocate capital and investments.

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Over the past ten years, we have invested

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about a hundred billion
dollars in internal R&D,

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but at the same time we
have to be also aware

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that not all the innovation
occurs in Johnson & Johnson.

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So we have invested about
76 billion dollars in M&A.

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At the end of the day,

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what makes our company special
in the area of innovation,

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it's coming back to the type of people

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we have in Johnson & Johnson.

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We are able to attract,
especially on the science side,

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very talented individuals

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that are very passionate
about what they do.

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- Every progress we see in therapies

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also helps Siemens Healthineers,

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because there is no
treatment without diagnosis,

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or without AI enabling it, and so on.

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We try to master a triangle
of patient training,

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precision therapy, and
digitalization in AI.

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Patient training means we have the vision

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that we improve our
diagnostic capabilities

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that ultimately we can really imagine

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we have "digital copy," quote unquote,

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of the actual situation of a patient.

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Physician therapy means
technology led intervention

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or delivery of energy

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or whatever the treatment possibility is.

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And as a third component,
digitalization in AI

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which is augmenting the other two.

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This triangle is especially
important in oncology

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because cancer is the
most personal disease.

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It is...

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every cancer is different.

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So you need that
personalization on the one hand

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and the personal patient
training, if you wish.

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And then as much as possible,

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automation to deliver the right therapy

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so that the patient doesn't depend

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on just the experience of
the individual physician.

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(heavy drum beats)

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- I have no doubt that the new platforms

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are going to fuel waves of innovation

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and are going to help us treating

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some of these more intractable diseases.

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So, that's in the positive.

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I also believe that we
are in the very early days

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of these approaches.

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There are multiple issues

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that we're going to have to work through.

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For example, one:

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drug delivery is one of
the biggest challenges

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that we have in RNA and gene therapies,

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as the delivery is currently limited

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to a few specific tissues or cell types.

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Once we figure out how
to deliver treatments

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to a wider range of tissues,

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we are going to drastically expand

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the types and number of diseases
that we're able to treat.

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The second thing is
manufacturing reliability,

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and reducing cost is imperative.

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To bring these therapies to
as many patients as possible,

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we need to evolve the way we manufacture

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these new modalities.

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So, collaboration.

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In the area of manufacturing
will also be required

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in order to be able to go the next step

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into gene and cell therapies.

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(upbeat music)

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- For us, it is about external innovation.

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How do we develop AI algorithms

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which help our customers
deliver better medicine?

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Or how do we make sure that
there's higher consistency

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and that certain steps
which steal a lot of time

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over and over.

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Overburdened workforce with automation.

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We have an, as you said, a
really amazing team in Princeton.

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We have satellites which
is definitely leading

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in the field of AI-based
on medical images.

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It is one of the pioneers,
I think of the use of AI

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in health care simply because
there is nothing more digital

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like a medical image.

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So we have a curated data lake

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of 1.5 billion medical data sets,

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mainly images with diagnosis.

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And we use our own supercomputer
for running AI experiments.

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Augmenting helping in automating diagnosis

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but it helps also in this translation

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from diagnosis to therapy so
we can do the right treatment,

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find the best possible
delineation of the tumor,

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and also find out what there is the tissue

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which we definitely need to spare

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because it would have side effects.

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So, and that is already in many cases

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not only faster, but better,

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than what humans can do in
this type of routine work.

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In our next steps,

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it's mainly about how do we
collect treatment information.

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And patient episodes, to
have a feedback mechanism

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that patient number 10,000
can benefit from the knowledge

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which is online, generated
by the 9,999 patients before.

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- I believe we can advance health care

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more in the next decade than
in the next hundred years.

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Data science and digital
health are transforming

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the way we work and the way
we innovate in health care.

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On the drug discovery side,
we can analyze millions

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of data points simultaneously,

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and that is helping us a
lot in identifying targets

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for drug discovery and in screening.

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That can save us months
in the development side.

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Data science is helping us
proactively locate patients

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who meet the clinical trial criteria.

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Truly medtech is being
transformed by technology.

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All our medical devices
are going to be connected.

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- But I think every human
wants to have a purpose.

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Doing AI in health care
is just super exciting

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and super rewarding.

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That is what makes people join

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and that is also what makes people stay.

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(upbeat music)

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- What can big companies like you all do

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practically to promote health equity?

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- It is super important to make it

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really visibly part of the agenda.

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The pioneer breakthroughs in health care

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for everyone everywhere.

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- We have to find ideas where we can make

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a positive contribution to health equity.

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And I'm going to give
you a couple of examples

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of what we are doing.

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One is in the area of
clinical trial diversity.

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Gender, race, ethnicity, age,
all these factors play a role

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in how our body responds
to different medications

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or different interventions.

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So, it's critical that
we are able to include

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all types of individuals
in our clinical trials.

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We have a global initiative on
frontline health care workers

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in order to support not
only in the developing world

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where we are supporting
hundreds of thousands

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of health care workers' training programs,

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but also in developed
countries like the US.

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And finally at Johnson & Johnson,

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we have a dedicated R&D
and market access group

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working on global public health issues,

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like infectious diseases

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are more prevalent in
lower resource settings.

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- Thank you both.

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It's an inspiring way to end
this discussion very much.

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And thank you for everyone for joining us.

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Bernd and Joaquin, your insights

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not on just on health equity,

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but across this whole
discussion have been terrific.

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We wish you all a great
start and a great 2023

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and appreciate all the J&J
and Siemens Healthineers

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and so many others who
participated in this video

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are doing for patients around the world.

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And again, thank you, Bernd.

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Thank you Joaquin.

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(upbeat music)