(upbeat music)
- Welcome, everyone.
We're so happy you could join us.
We have an outstanding CEO discussion planned for today.
We're honored and excited to have you all joining us.
And during today's session. Joaquin Duato,
the CEO of Johnson & Johnson,
and Dr. Bernd Montag, the CEO of Siemens Healthineers
will share their reflections
on this week's J.P. Morgan Healthcare Conference,
as well as their perspectives
on the 2023 health care industry outlook.
(upbeat music)
- Companies acknowledge that some of the headwinds:
inflation, interest rates, the currency fluctuations,
the higher costs are going to continue into 2023.
But at the same time, most of the companies
were expressing confidence in the long-term potential
of our industry, the biopharmaceutical
and the medical technology industry,
to be able to navigate the situation in 2023
and improve things as we move into the midterm horizon.
I mean, one key element of that resiliency
that I think has been a big learning
coming out of the pandemic
is the importance of the resiliency in our supply chains.
On one hand, we are using technology more and more
to help on demand-sensing,
demand planning, inventory planning.
On the other hand,
we are also using automation for logistics.
And also in the case of health care.
We are using also technology to improve
the testing of our products to streamline that process.
The other side of that is,
you know, your geographical footprint
of your manufacturing chain and to what extent
that is going to contribute or not
to maintain the resiliency.
Health care companies need global supply chains
in order to be able to optimize
our capabilities and our costs.
You're going to see a movement
to regionalize supply chains more
in order to improve the resiliency components.
- Everybody is switching back from coping to shaping.
Coping with, you know, at first there's COVID,
and then there's the lack of elective procedures,
then there's inflation and supply chain interruptions
and so on and so on.
And the attention is moving away, not back to normal,
but back to the excitement of shaping
this super important industry.
- It's a reminder that health care and health care innovation,
it's more a marathon, not so much a sprint.
(adventurous music)
Innovation is the lifeblood of our industry
and what society expects from health care companies.
I know innovation can occur in all parts of the company.
But ultimately, that has to translate into medicines,
medical devices, and consumer products
that address the needs of patients and consumers.
R&D is fundamental to develop that innovation.
We prioritize investment in R&D
when we allocate capital and investments.
Over the past ten years, we have invested
about a hundred billion dollars in internal R&D,
but at the same time we have to be also aware
that not all the innovation occurs in Johnson & Johnson.
So we have invested about 76 billion dollars in M&A.
At the end of the day,
what makes our company special in the area of innovation,
it's coming back to the type of people
we have in Johnson & Johnson.
We are able to attract, especially on the science side,
very talented individuals
that are very passionate about what they do.
- Every progress we see in therapies
also helps Siemens Healthineers,
because there is no treatment without diagnosis,
or without AI enabling it, and so on.
We try to master a triangle of patient training,
precision therapy, and digitalization in AI.
Patient training means we have the vision
that we improve our diagnostic capabilities
that ultimately we can really imagine
we have "digital copy," quote unquote,
of the actual situation of a patient.
Physician therapy means technology led intervention
or delivery of energy
or whatever the treatment possibility is.
And as a third component, digitalization in AI
which is augmenting the other two.
This triangle is especially important in oncology
because cancer is the most personal disease.
It is...
every cancer is different.
So you need that personalization on the one hand
and the personal patient training, if you wish.
And then as much as possible,
automation to deliver the right therapy
so that the patient doesn't depend
on just the experience of the individual physician.
(heavy drum beats)
- I have no doubt that the new platforms
are going to fuel waves of innovation
and are going to help us treating
some of these more intractable diseases.
So, that's in the positive.
I also believe that we are in the very early days
of these approaches.
There are multiple issues
that we're going to have to work through.
For example, one:
drug delivery is one of the biggest challenges
that we have in RNA and gene therapies,
as the delivery is currently limited
to a few specific tissues or cell types.
Once we figure out how to deliver treatments
to a wider range of tissues,
we are going to drastically expand
the types and number of diseases that we're able to treat.
The second thing is manufacturing reliability,
and reducing cost is imperative.
To bring these therapies to as many patients as possible,
we need to evolve the way we manufacture
these new modalities.
So, collaboration.
In the area of manufacturing will also be required
in order to be able to go the next step
into gene and cell therapies.
(upbeat music)
- For us, it is about external innovation.
How do we develop AI algorithms
which help our customers deliver better medicine?
Or how do we make sure that there's higher consistency
and that certain steps which steal a lot of time
over and over.
Overburdened workforce with automation.
We have an, as you said, a really amazing team in Princeton.
We have satellites which is definitely leading
in the field of AI-based on medical images.
It is one of the pioneers, I think of the use of AI
in health care simply because there is nothing more digital
like a medical image.
So we have a curated data lake
of 1.5 billion medical data sets,
mainly images with diagnosis.
And we use our own supercomputer for running AI experiments.
Augmenting helping in automating diagnosis
but it helps also in this translation
from diagnosis to therapy so we can do the right treatment,
find the best possible delineation of the tumor,
and also find out what there is the tissue
which we definitely need to spare
because it would have side effects.
So, and that is already in many cases
not only faster, but better,
than what humans can do in this type of routine work.
In our next steps,
it's mainly about how do we collect treatment information.
And patient episodes, to have a feedback mechanism
that patient number 10,000 can benefit from the knowledge
which is online, generated by the 9,999 patients before.
- I believe we can advance health care
more in the next decade than in the next hundred years.
Data science and digital health are transforming
the way we work and the way we innovate in health care.
On the drug discovery side, we can analyze millions
of data points simultaneously,
and that is helping us a lot in identifying targets
for drug discovery and in screening.
That can save us months in the development side.
Data science is helping us proactively locate patients
who meet the clinical trial criteria.
Truly medtech is being transformed by technology.
All our medical devices are going to be connected.
- But I think every human wants to have a purpose.
Doing AI in health care is just super exciting
and super rewarding.
That is what makes people join
and that is also what makes people stay.
(upbeat music)
- What can big companies like you all do
practically to promote health equity?
- It is super important to make it
really visibly part of the agenda.
The pioneer breakthroughs in health care
for everyone everywhere.
- We have to find ideas where we can make
a positive contribution to health equity.
And I'm going to give you a couple of examples
of what we are doing.
One is in the area of clinical trial diversity.
Gender, race, ethnicity, age, all these factors play a role
in how our body responds to different medications
or different interventions.
So, it's critical that we are able to include
all types of individuals in our clinical trials.
We have a global initiative on frontline health care workers
in order to support not only in the developing world
where we are supporting hundreds of thousands
of health care workers' training programs,
but also in developed countries like the US.
And finally at Johnson & Johnson,
we have a dedicated R&D and market access group
working on global public health issues,
like infectious diseases
are more prevalent in lower resource settings.
- Thank you both.
It's an inspiring way to end this discussion very much.
And thank you for everyone for joining us.
Bernd and Joaquin, your insights
not on just on health equity,
but across this whole discussion have been terrific.
We wish you all a great start and a great 2023
and appreciate all the J&J and Siemens Healthineers
and so many others who participated in this video
are doing for patients around the world.
And again, thank you, Bernd.
Thank you Joaquin.
(upbeat music)