June 16, 2025 • 21 mins
Science and technology will bring more change to health care over the next decade than we saw in the past century, says Joaquin Duato, Chairman and CEO, Johnson & Johnson, and a 2025 Distinguished Leadership Award honoree. What drives his confidence, and how is the company creating this future?
Join David K. Young and Duato to discover what he has learned in 36 years at J&J, how the company innovates in science and technology, and how the company supports employees and communities..css-j9qmi7{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:row;-ms-flex-direction:row;flex-direction:row;font-weight:700;margin-bottom:1rem;margin-top:2.8rem;width:100%;-webkit-box-pack:start;-ms-flex-pack:start;-webkit-justify-content:start;justify-content:start;padding-left:5rem;}@media only screen and (max-width: 599px){.css-j9qmi7{padding-left:0;-webkit-box-pack:center;-ms-flex-pack:center;-webkit-justify-content:center;justify-content:center;}}.css-j9qmi7 svg{fill:#27292D;}.css-j9qmi7 .eagfbvw0{-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;color:#27292D;}Mark as PlayedTranscript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
David K. Young (00:00):
Welcome to C-Suite Perspectives, a signature
(00:03):
series by The Conference Board.
I'm David Young, the presidentof the Committee for Economic
Development, the Public Policy Centerof The Conference Board (CED), and
delighted to be your host today.
In today's conversation, we will discussLeadership in Challenging Times, where
we feature the outstanding CEOs who arethe recipients of CED's Distinguished
(00:26):
Leadership Awards for corporatecitizenship and business stewardship.
Today, I have the privilege ofspeaking with one of our 2025 honorees,
Joaquin Duato, the chairman andCEO of Johnson & Johnson, a leading
health care innovation company.
Under Joaquin's leadership, Johnson& Johnson is committed to building
(00:50):
a world where complex diseases areprevented, treated, and cured, where
treatments are smarter and lessinvasive, and solutions are personal.
And just how they do that iswhat we'll be discussing today.
Joaquin, welcome.
We're so pleased to haveyou joining us today.
Joaquin Duato (01:10):
Thank you, David.
David K. Young (01:12):
So let's start off with the fact that you have been now with
Johnson & Johnson for more than 35 years.
Tell us about your journeyto the role of CEO.
Did you ever think you wouldend up as a CEO of one of the
most remarkable companies in theworld, and what core values are
key to being a successful leader?
Joaquin Duato (01:34):
I found my way in Johnson & Johnson in Spain, where I grew up.
And also while growing up, Idiscovered my passion for health care.
Health care is rooted in my family.
My mom was a midwife, my grandmotherwas a pharmacist, my grandfather,
a pediatrician, and they allpractice in my hometown of Valencia
(01:58):
On my career, a story that may amuseyou is that when I graduated from
college, I interviewed with everycompany on campus, including J&J.
And interestingly, J&J did not hire me.
But I did not give up, no.
And that's one of the reasons Ialways tell people when they ask me,
(02:19):
"Tell me something about a secretin your career," I always tell
people that a "no" is actually thefirst step in getting to a "yes."
I am only the eighth CEO ofJohnson & Johnson in almost 140
years since the company was founded.
So it's really a great honor tobe able to lead this incredible
(02:44):
organization with such a long history.
I am who I am thanks to Johnson & Johnson.
I have had 12 different jobs in my36-year career at J&J, and I'm here today
because all these learning opportunitiesthat the company gave me and because I
always said "yes" early on to all theseopportunities that were given to me.
(03:09):
I worked in our consumer sector, inour medtech sector, in diagnostics, in
pharmaceuticals, and I even was interimCIO of the company for some time.
So I would not be who I am today, Iwould not be CEO of Johnson & Johnson
without these experiences and learningopportunities that J&J offered me.
(03:30):
As I evolved in the company.
It also evolved the wayI approach leadership.
And let me start by saying that,as leadership is concerned, the
most important people in a room,in the room in a company like J&J
are the people who are the experts.
Because we are about bringingnew therapies, new medical
technologies to patients.
So the most important people inthe room at Johnson & Johnson are
(03:53):
the scientists, the engineers, thesalespeople that bring these therapies
and medical technologies to patients.
It's the work that they do toadvance our pipeline that really
brings our mission to life, and myjob is really helping them succeed.
That's why when I think about myleadership philosophy, it's very
(04:13):
much putting people first, puttingpeople at the center of what we do.
And it's very important for methat we nurture a culture in which
people felt cared about and alsothat they have a clear purpose.
Caring for the people we serve, it'svery important for Johnson & Johnson,
(04:33):
and it's a sense of purpose thatwe all have around our credo.
In many ways, the original missionthat we have in our credo that
was written 80 years ago iswhat drives the company today.
The second element, which isimportant in our culture in a
company that has 140 years, isthat speed of continuous learning.
(04:55):
In a high-science, high-tech industry likeours, innovation advances very rapidly.
So in our business, you are asgood as your last innovation.
Helping our employees stay on the cuttingedge of science, technology, and health
care delivery, it's a very importantpart of what I do because I believe
(05:18):
that's how we build a strong company.
And that builder mindset, it's veryimportant in the way we run the company.
So when I look at stronger leaders, Ialways think that people who are able
to build, and I always am looking forthose strengths that they have, that they
are going to use to accelerate impact.
(05:39):
So my leadership philosophy is verymuch, David, very much focused around
people, is very much focused onhaving a clear purpose, is very much
focused about learning and building.
David K. Young (05:49):
Fascinating.
Thank you for sharing.
And what a start to yourcareer at Johnson & Johnson.
So, Johnson & Johnson turns 140years old next year, I believe.
When you look at the company, what are thesecrets to the company's longevity that's
made it so successful over so many years?
Joaquin Duato (06:09):
That's an important question and something
that I reflect on a lot.
First, I would come back to ourculture of continuous learning.
J&J has thrived for 140 yearsbecause we are a learning company.
We have been able to disrupt healthcare again and again over these years.
(06:29):
If you stop learning, you areat risk of being disrupted.
The second is the fact thatwe have a very clear purpose,
which is driven by our credo.
That sense of responsibility, thatclarity to understand what is relevant
is very important for our employeesand gives us the energy to continue
(06:52):
to evolve and to continue to learn.
And third is that we are broadlydiversified, meaning that we can
really lead where medicine is going.
We are unique on the fact that wecan expand the whole patient journey.
We have a focus on pharmaceuticals andmedical technology, and we can really
impact the full spectrum of disease.
(07:15):
We go from cardiology to cancer,from mental health to vision, from
cell therapies to robotic surgery.
The depth and breadth of ourexpertise and capabilities is one
that no other company can match.
So we are very broad in the way wecan approach the patient journey.
And unlike other companies, weare not a one-trick company.
(07:37):
And looking ahead, I see Johnson& Johnson continuing to do what it
does best (07:42):
advancing therapies, solutions that address the world's
greatest health challenges.
That is our mission.
David K. Young (07:51):
What an incredible mission.
You've said that advances in scienceand technology will transform
health care more over the nextdecade than in the last century.
More over the next decadethan in the last century.
It's a bold statement.
What makes you say it and believe it?
Joaquin Duato (08:10):
I believe that our generation is living at a time of
unprecedented opportunity in health care.
From discovery to diagnosisto treatments, this is a time
of unprecedented opportunity.
We have scientific platforms todaythat were unimaginable 10 years
ago, and technology is also helping,transforming every aspect of health care.
(08:36):
We have advances in fundamentalbiology and genomics that we have
seen the proliferation of new ways oftreating disease like cell therapies,
gene therapies, radiopharmaceuticals,multi-specific antibodies, antibody
drug conjugates, and uniquedrug-device combination, to name a few.
(08:57):
In areas like cancer, advances inmodern medicine have reduced cancer
deaths by a third, and we are seeingincredible progress all the time
in new ways to treat the disease.
At Johnson & Johnson, our visionis to eliminate cancer for good.
And the best way of doing that istrying to focus on the earlier stages.
(09:20):
So we can start treating before thecancer advances and becomes incurable.
And for that, we have to look not only atthe treatment, but also at the diagnosis.
And we have multiple examplesof that in our portfolio.
For example, in multiple myeloma, ablood cancer, that was one thought to
(09:41):
be incurable, and now we are advancinglife expectancy from around two to three
years, to five to seven years, withmany patients living more than 10 years.
We have been innovating in this spaceof multiple myeloma for about 20 years,
and our latest therapy, it's calledhealth therapy, and utilizes your own
(10:06):
immune system cells to attack the cancer.
We have other examples in solid tumors.
For example, in lung cancer and inbladder cancer, which are highly
prevalent, where we are developingindustry-leading therapies that are going
to clearly improve the standard of care.
And alongside the science,we have technologies that are
(10:27):
dramatically transforming thespeed and delivery of innovation.
For example, we are using AI to accelerateour small-molecule discovery programs.
It's helping also us understandingbetter the drivers of disease,
identifying novel targets, andalso finally, more efficiently
(10:48):
optimizing molecular design beforethey even enter into clinical trials.
So yes, saying that we are going toadvance more in this decade than in
the last century is a bold statement,but I believe we have incredible
advances with the combination ofscience and technology that are going
to make this bold statement true.
David K. Young (11:10):
Johnson & Johnson is undoubtedly transforming
health care with groundbreakingscience and tech innovation,
much of which you've alluded to.
You are investing record amounts in bothR&D and M&A, earning 27 approvals for
its innovative medicines across majormarkets, and now launching 15 major
(11:30):
medtech products just in the last year.
And you have your site set onconquering some of the most challenging
medical conditions, as you'veexplained, from curing cancer to
preventing cardiovascular disease.
How on earth does Johnsondecide where to invest and when?
Joaquin Duato (11:51):
You are right.
Innovation is the lifebloodof Johnson & Johnson.
We are a leading investorin health care innovation.
Last year, we invested $50 billion inresearch and development and in M&A, and
we have more than 26,000 people workingin R&D, in innovation, and in engineering.
(12:13):
We have delivered 18 newmedicines in the last decade
and nearly a hundred new medicaltechnologies introduced since 2018.
No other company in the worldhas the reach and impact that
Johnson & Johnson can have.
So in terms of investment decisions,we look at a number of criteria.
(12:36):
First is, is this an area inwhich we have internal expertise?
We find that there's a correlation inwhich our internal expertise and our
probability of success come together.
The second one, is this aclear improvement on the
current standard of care?
We have to see that we are bringingtransformational innovation.
(13:00):
If it's not transformational,we should step back.
And finally, we need to be able toalso deliver value for health care
professionals, for our investors, forall the people working in health care.
So that's why we rely in our expertise,in our experts to analyze these
(13:20):
opportunities and to make a judgment ofwhich opportunities are going to have
the higher probability of success, whichopportunities are going to be able to
really improve the standard of care.
So where are we focused today?
Because there's multipleareas of unmet medical need.
We are focused in areas of highinnovation and high growth.
(13:41):
For example, oncology, immunology,neuroscience, cardiovascular,
vision, or robotic surgery.
These are areas where we see incrediblepotential to deliver progress upon
the standard of care and in whichwe have internally the depth of
expertise that is needed to lead.
David K. Young (14:03):
Joaquin, AI, artificial intelligence, now has the potential
to accelerate the pace of innovationacross almost every industry.
How is Johnson & Johnson advancingthe latest technology, and how do
you ensure that Johnson & Johnsonand your 138,000 employees keep up
with rapidly evolving tech advances?
Joaquin Duato (14:25):
Very important for a health care company, and
I was CIO at J&J for a while.
It is that technology here is nottechnology for the sake of technology,
but technology with a purpose.
It's about deploying technologyin a way that accelerates our
innovation and accelerates impact.
(14:46):
I think it's important to note thatit is our scientists, engineers,
and the thousands of PhDs whowork at Johnson & Johnson who are
the primary source of innovation.
So it's about deploying thetechnology, deploying those
tools in a way that amplifies andpropels the work of our scientists.
(15:07):
So when we are thinking about technology,the question that we ask ourselves is,
will this improve outcomes for patients?
Will this get a new medicine ora new device to patients faster?
And yes, we are deploying AIand technology tools across
our business in multiple ways.
And yes, in many ways it's helping, it'samplifying, it's turbocharging how we
(15:31):
discover, develop, and deliver innovation.
For example, in pharmaceuticals, we areusing an AI-enabled platform to accelerate
enrollment in our clinical studies.
And we have seen that by usingAI in selecting the right sites
for our clinical studies, we cansignificantly accelerate enrollment.
(15:54):
In medtech, we are embedding AItools directly into our devices.
For example, we are doing that inorder to be able to map the heart in
3D with our electrophysiology systems.
The question is, how do we ensurethat all our employees, the 138,000
employees at Johnson & Johnson,are technology literate?
(16:17):
It's very important for us because wewould expect that all our employees
are experts in their domain, butthey are also people that can
use technology for their domain.
In other words, thatthey are tech bilingual.
They need to understand their area ofexpertise, but they need to understand
also how technology is going tohelp them accelerate in their work.
(16:38):
And in that, we're helping them.
Learning and development.
We recently launched an AI-poweredlearning platform designed to help
employees acquire the skills neededto accelerate their careers and their
understanding of the science andtechnology that is transforming our
business and health care more broadly.
(16:58):
We also host a global learning day,enabling our 138,000 employees to
set aside an entire day to pursuelearning opportunities that match
their positions and career goals.
David K. Young (17:12):
We're now going to take a short break, and we'll
be right back with more of myconversation with Joaquin Duato.
Welcome back to C-Suite Perspectives.
I'm David Young, the host of today's show.
I'm the president of the Committee forEconomic Development, the Public Policy
Center of The Conference Board, and todaydelighted to be joined by Joaquin Duato,
(17:34):
the chairman and CEO of Johnson & Johnson.
Welcome back.
In addition to supporting the growthof your employees, you empower
the health care workforce overall.
There's an anticipated shortfallof 11 million health care
workers globally by 2030.
Why is this shortfall such anarea of concern, and how can
(17:59):
the business and health carecommunities work to address it?
Joaquin Duato (18:03):
That's a great question, David.
Innovation is only meaningful ifit gets to patients, and in order
for innovation to get to patients,we need health care workers.
And you're right, we have a crisis.
We have a shortage of health careworkers at Johnson & Johnson.
We are ready to address this global crisisin the number of health care workers.
(18:25):
Our historical focus has been onfrontline health care workers.
Every year, through partnershipsand through programs, we support
about a million health care workers,with a particular focus on nursing.
So yes, that's an area inwhich we are committed to help.
Community health care workers, nursesplay a critical role in the delivery of
(18:48):
health care, and Johnson & Johnson willalways be there by their side in order to
be able to address this important crisis.
In short, resilient healthcare workers are the bridge
between innovation and care.
David K. Young (19:02):
Joaquin, as we approach the end one, one final question for you.
Access to life-saving health care is notguaranteed for many people that need it.
What are some of the ways to ensurethat people in underserved communities
receive the treatments that they need?
Joaquin Duato (19:21):
You are right.
By some estimates, there's more than halfof the world population that lacks access
to essential health services, and wesupport a range of initiatives at closing
the gaps between communities and care.
And as I mentioned earlier, we championnurses and community health workers.
(19:41):
And we also collaborate with governments,NGOs, and local community partners to
strengthen health systems and improveaccess to medicines and technologies.
We have strategies that help ensureour products reach the patients that
need them, and that includes ouraccess and pricing principles that help
support broad access to our medicines.
(20:03):
As an example, for more than adecade, Johnson & Johnson has
ranked among the top five companiesin the Access to Medicine Index.
In 2024 alone, Johnson & Johnsonprovided more than $4.6 billion in
product, including free productsto patients facing affordability
(20:23):
challenges through our Johnson& Johnson patient assistance programs.
And we are also building community healthcapacity to meet people where they are.
In the US, we support community healthcenters across the country where more
than 32 million people get medical,dental, and mental health services.
(20:45):
Ultimately, no one entity can solvethis crisis alone, which is why
Johnson & Johnson has a long historyof collaboration and partnerships to do
what we can to support access to care.
David K. Young (20:58):
Joaquin, thank you so much for sharing your insights,
your reflections, and also,importantly, your own personal story.
And thanks to all of you forlistening to C-Suite Perspectives.
I'm David Young, and this series has beenbrought to you by The Conference Board.
Welcome to C-Suite Perspectives, a signature
(00:03):
series by The Conference Board.
I'm David Young, the presidentof the Committee for Economic
Development, the Public Policy Centerof The Conference Board (CED), and
delighted to be your host today.
In today's conversation, we will discussLeadership in Challenging Times, where
we feature the outstanding CEOs who arethe recipients of CED's Distinguished
(00:26):
Leadership Awards for corporatecitizenship and business stewardship.
Today, I have the privilege ofspeaking with one of our 2025 honorees,
Joaquin Duato, the chairman andCEO of Johnson & Johnson, a leading
health care innovation company.
Under Joaquin's leadership, Johnson& Johnson is committed to building
(00:50):
a world where complex diseases areprevented, treated, and cured, where
treatments are smarter and lessinvasive, and solutions are personal.
And just how they do that iswhat we'll be discussing today.
Joaquin, welcome.
We're so pleased to haveyou joining us today.
Joaquin Duato (01:10):
Thank you, David.
David K. Young (01:12):
So let's start off with the fact that you have been now with
Johnson & Johnson for more than 35 years.
Tell us about your journeyto the role of CEO.
Did you ever think you wouldend up as a CEO of one of the
most remarkable companies in theworld, and what core values are
key to being a successful leader?
Joaquin Duato (01:34):
I found my way in Johnson & Johnson in Spain, where I grew up.
And also while growing up, Idiscovered my passion for health care.
Health care is rooted in my family.
My mom was a midwife, my grandmotherwas a pharmacist, my grandfather,
a pediatrician, and they allpractice in my hometown of Valencia
(01:58):
On my career, a story that may amuseyou is that when I graduated from
college, I interviewed with everycompany on campus, including J&J.
And interestingly, J&J did not hire me.
But I did not give up, no.
And that's one of the reasons Ialways tell people when they ask me,
(02:19):
"Tell me something about a secretin your career," I always tell
people that a "no" is actually thefirst step in getting to a "yes."
I am only the eighth CEO ofJohnson & Johnson in almost 140
years since the company was founded.
So it's really a great honor tobe able to lead this incredible
(02:44):
organization with such a long history.
I am who I am thanks to Johnson & Johnson.
I have had 12 different jobs in my36-year career at J&J, and I'm here today
because all these learning opportunitiesthat the company gave me and because I
always said "yes" early on to all theseopportunities that were given to me.
(03:09):
I worked in our consumer sector, inour medtech sector, in diagnostics, in
pharmaceuticals, and I even was interimCIO of the company for some time.
So I would not be who I am today, Iwould not be CEO of Johnson & Johnson
without these experiences and learningopportunities that J&J offered me.
(03:30):
As I evolved in the company.
It also evolved the wayI approach leadership.
And let me start by saying that,as leadership is concerned, the
most important people in a room,in the room in a company like J&J
are the people who are the experts.
Because we are about bringingnew therapies, new medical
technologies to patients.
So the most important people inthe room at Johnson & Johnson are
(03:53):
the scientists, the engineers, thesalespeople that bring these therapies
and medical technologies to patients.
It's the work that they do toadvance our pipeline that really
brings our mission to life, and myjob is really helping them succeed.
That's why when I think about myleadership philosophy, it's very
(04:13):
much putting people first, puttingpeople at the center of what we do.
And it's very important for methat we nurture a culture in which
people felt cared about and alsothat they have a clear purpose.
Caring for the people we serve, it'svery important for Johnson & Johnson,
(04:33):
and it's a sense of purpose thatwe all have around our credo.
In many ways, the original missionthat we have in our credo that
was written 80 years ago iswhat drives the company today.
The second element, which isimportant in our culture in a
company that has 140 years, isthat speed of continuous learning.
(04:55):
In a high-science, high-tech industry likeours, innovation advances very rapidly.
So in our business, you are asgood as your last innovation.
Helping our employees stay on the cuttingedge of science, technology, and health
care delivery, it's a very importantpart of what I do because I believe
(05:18):
that's how we build a strong company.
And that builder mindset, it's veryimportant in the way we run the company.
So when I look at stronger leaders, Ialways think that people who are able
to build, and I always am looking forthose strengths that they have, that they
are going to use to accelerate impact.
(05:39):
So my leadership philosophy is verymuch, David, very much focused around
people, is very much focused onhaving a clear purpose, is very much
focused about learning and building.
David K. Young (05:49):
Fascinating.
Thank you for sharing.
And what a start to yourcareer at Johnson & Johnson.
So, Johnson & Johnson turns 140years old next year, I believe.
When you look at the company, what are thesecrets to the company's longevity that's
made it so successful over so many years?
Joaquin Duato (06:09):
That's an important question and something
that I reflect on a lot.
First, I would come back to ourculture of continuous learning.
J&J has thrived for 140 yearsbecause we are a learning company.
We have been able to disrupt healthcare again and again over these years.
(06:29):
If you stop learning, you areat risk of being disrupted.
The second is the fact thatwe have a very clear purpose,
which is driven by our credo.
That sense of responsibility, thatclarity to understand what is relevant
is very important for our employeesand gives us the energy to continue
(06:52):
to evolve and to continue to learn.
And third is that we are broadlydiversified, meaning that we can
really lead where medicine is going.
We are unique on the fact that wecan expand the whole patient journey.
We have a focus on pharmaceuticals andmedical technology, and we can really
impact the full spectrum of disease.
(07:15):
We go from cardiology to cancer,from mental health to vision, from
cell therapies to robotic surgery.
The depth and breadth of ourexpertise and capabilities is one
that no other company can match.
So we are very broad in the way wecan approach the patient journey.
And unlike other companies, weare not a one-trick company.
(07:37):
And looking ahead, I see Johnson& Johnson continuing to do what it
does best (07:42):
advancing therapies, solutions that address the world's
greatest health challenges.
That is our mission.
David K. Young (07:51):
What an incredible mission.
You've said that advances in scienceand technology will transform
health care more over the nextdecade than in the last century.
More over the next decadethan in the last century.
It's a bold statement.
What makes you say it and believe it?
Joaquin Duato (08:10):
I believe that our generation is living at a time of
unprecedented opportunity in health care.
From discovery to diagnosisto treatments, this is a time
of unprecedented opportunity.
We have scientific platforms todaythat were unimaginable 10 years
ago, and technology is also helping,transforming every aspect of health care.
(08:36):
We have advances in fundamentalbiology and genomics that we have
seen the proliferation of new ways oftreating disease like cell therapies,
gene therapies, radiopharmaceuticals,multi-specific antibodies, antibody
drug conjugates, and uniquedrug-device combination, to name a few.
(08:57):
In areas like cancer, advances inmodern medicine have reduced cancer
deaths by a third, and we are seeingincredible progress all the time
in new ways to treat the disease.
At Johnson & Johnson, our visionis to eliminate cancer for good.
And the best way of doing that istrying to focus on the earlier stages.
(09:20):
So we can start treating before thecancer advances and becomes incurable.
And for that, we have to look not only atthe treatment, but also at the diagnosis.
And we have multiple examplesof that in our portfolio.
For example, in multiple myeloma, ablood cancer, that was one thought to
(09:41):
be incurable, and now we are advancinglife expectancy from around two to three
years, to five to seven years, withmany patients living more than 10 years.
We have been innovating in this spaceof multiple myeloma for about 20 years,
and our latest therapy, it's calledhealth therapy, and utilizes your own
(10:06):
immune system cells to attack the cancer.
We have other examples in solid tumors.
For example, in lung cancer and inbladder cancer, which are highly
prevalent, where we are developingindustry-leading therapies that are going
to clearly improve the standard of care.
And alongside the science,we have technologies that are
(10:27):
dramatically transforming thespeed and delivery of innovation.
For example, we are using AI to accelerateour small-molecule discovery programs.
It's helping also us understandingbetter the drivers of disease,
identifying novel targets, andalso finally, more efficiently
(10:48):
optimizing molecular design beforethey even enter into clinical trials.
So yes, saying that we are going toadvance more in this decade than in
the last century is a bold statement,but I believe we have incredible
advances with the combination ofscience and technology that are going
to make this bold statement true.
David K. Young (11:10):
Johnson & Johnson is undoubtedly transforming
health care with groundbreakingscience and tech innovation,
much of which you've alluded to.
You are investing record amounts in bothR&D and M&A, earning 27 approvals for
its innovative medicines across majormarkets, and now launching 15 major
(11:30):
medtech products just in the last year.
And you have your site set onconquering some of the most challenging
medical conditions, as you'veexplained, from curing cancer to
preventing cardiovascular disease.
How on earth does Johnsondecide where to invest and when?
Joaquin Duato (11:51):
You are right.
Innovation is the lifebloodof Johnson & Johnson.
We are a leading investorin health care innovation.
Last year, we invested $50 billion inresearch and development and in M&A, and
we have more than 26,000 people workingin R&D, in innovation, and in engineering.
(12:13):
We have delivered 18 newmedicines in the last decade
and nearly a hundred new medicaltechnologies introduced since 2018.
No other company in the worldhas the reach and impact that
Johnson & Johnson can have.
So in terms of investment decisions,we look at a number of criteria.
(12:36):
First is, is this an area inwhich we have internal expertise?
We find that there's a correlation inwhich our internal expertise and our
probability of success come together.
The second one, is this aclear improvement on the
current standard of care?
We have to see that we are bringingtransformational innovation.
(13:00):
If it's not transformational,we should step back.
And finally, we need to be able toalso deliver value for health care
professionals, for our investors, forall the people working in health care.
So that's why we rely in our expertise,in our experts to analyze these
(13:20):
opportunities and to make a judgment ofwhich opportunities are going to have
the higher probability of success, whichopportunities are going to be able to
really improve the standard of care.
So where are we focused today?
Because there's multipleareas of unmet medical need.
We are focused in areas of highinnovation and high growth.
(13:41):
For example, oncology, immunology,neuroscience, cardiovascular,
vision, or robotic surgery.
These are areas where we see incrediblepotential to deliver progress upon
the standard of care and in whichwe have internally the depth of
expertise that is needed to lead.
David K. Young (14:03):
Joaquin, AI, artificial intelligence, now has the potential
to accelerate the pace of innovationacross almost every industry.
How is Johnson & Johnson advancingthe latest technology, and how do
you ensure that Johnson & Johnsonand your 138,000 employees keep up
with rapidly evolving tech advances?
Joaquin Duato (14:25):
Very important for a health care company, and
I was CIO at J&J for a while.
It is that technology here is nottechnology for the sake of technology,
but technology with a purpose.
It's about deploying technologyin a way that accelerates our
innovation and accelerates impact.
(14:46):
I think it's important to note thatit is our scientists, engineers,
and the thousands of PhDs whowork at Johnson & Johnson who are
the primary source of innovation.
So it's about deploying thetechnology, deploying those
tools in a way that amplifies andpropels the work of our scientists.
(15:07):
So when we are thinking about technology,the question that we ask ourselves is,
will this improve outcomes for patients?
Will this get a new medicine ora new device to patients faster?
And yes, we are deploying AIand technology tools across
our business in multiple ways.
And yes, in many ways it's helping, it'samplifying, it's turbocharging how we
(15:31):
discover, develop, and deliver innovation.
For example, in pharmaceuticals, we areusing an AI-enabled platform to accelerate
enrollment in our clinical studies.
And we have seen that by usingAI in selecting the right sites
for our clinical studies, we cansignificantly accelerate enrollment.
(15:54):
In medtech, we are embedding AItools directly into our devices.
For example, we are doing that inorder to be able to map the heart in
3D with our electrophysiology systems.
The question is, how do we ensurethat all our employees, the 138,000
employees at Johnson & Johnson,are technology literate?
(16:17):
It's very important for us because wewould expect that all our employees
are experts in their domain, butthey are also people that can
use technology for their domain.
In other words, thatthey are tech bilingual.
They need to understand their area ofexpertise, but they need to understand
also how technology is going tohelp them accelerate in their work.
(16:38):
And in that, we're helping them.
Learning and development.
We recently launched an AI-poweredlearning platform designed to help
employees acquire the skills neededto accelerate their careers and their
understanding of the science andtechnology that is transforming our
business and health care more broadly.
(16:58):
We also host a global learning day,enabling our 138,000 employees to
set aside an entire day to pursuelearning opportunities that match
their positions and career goals.
David K. Young (17:12):
We're now going to take a short break, and we'll
be right back with more of myconversation with Joaquin Duato.
Welcome back to C-Suite Perspectives.
I'm David Young, the host of today's show.
I'm the president of the Committee forEconomic Development, the Public Policy
Center of The Conference Board, and todaydelighted to be joined by Joaquin Duato,
(17:34):
the chairman and CEO of Johnson & Johnson.
Welcome back.
In addition to supporting the growthof your employees, you empower
the health care workforce overall.
There's an anticipated shortfallof 11 million health care
workers globally by 2030.
Why is this shortfall such anarea of concern, and how can
(17:59):
the business and health carecommunities work to address it?
Joaquin Duato (18:03):
That's a great question, David.
Innovation is only meaningful ifit gets to patients, and in order
for innovation to get to patients,we need health care workers.
And you're right, we have a crisis.
We have a shortage of health careworkers at Johnson & Johnson.
We are ready to address this global crisisin the number of health care workers.
(18:25):
Our historical focus has been onfrontline health care workers.
Every year, through partnershipsand through programs, we support
about a million health care workers,with a particular focus on nursing.
So yes, that's an area inwhich we are committed to help.
Community health care workers, nursesplay a critical role in the delivery of
(18:48):
health care, and Johnson & Johnson willalways be there by their side in order to
be able to address this important crisis.
In short, resilient healthcare workers are the bridge
between innovation and care.
David K. Young (19:02):
Joaquin, as we approach the end one, one final question for you.
Access to life-saving health care is notguaranteed for many people that need it.
What are some of the ways to ensurethat people in underserved communities
receive the treatments that they need?
Joaquin Duato (19:21):
You are right.
By some estimates, there's more than halfof the world population that lacks access
to essential health services, and wesupport a range of initiatives at closing
the gaps between communities and care.
And as I mentioned earlier, we championnurses and community health workers.
(19:41):
And we also collaborate with governments,NGOs, and local community partners to
strengthen health systems and improveaccess to medicines and technologies.
We have strategies that help ensureour products reach the patients that
need them, and that includes ouraccess and pricing principles that help
support broad access to our medicines.
(20:03):
As an example, for more than adecade, Johnson & Johnson has
ranked among the top five companiesin the Access to Medicine Index.
In 2024 alone, Johnson & Johnsonprovided more than $4.6 billion in
product, including free productsto patients facing affordability
(20:23):
challenges through our Johnson& Johnson patient assistance programs.
And we are also building community healthcapacity to meet people where they are.
In the US, we support community healthcenters across the country where more
than 32 million people get medical,dental, and mental health services.
(20:45):
Ultimately, no one entity can solvethis crisis alone, which is why
Johnson & Johnson has a long historyof collaboration and partnerships to do
what we can to support access to care.
David K. Young (20:58):
Joaquin, thank you so much for sharing your insights,
your reflections, and also,importantly, your own personal story.
And thanks to all of you forlistening to C-Suite Perspectives.
I'm David Young, and this series has beenbrought to you by The Conference Board.
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