Johnson & Johnson Chairman and CEO Alex Gorsky imparted CNBC on Wednesday he expects the company’s pharmaceutical business will be expert to successfully navigate any changes in health care as a result of President Donald Trump’s new drawing aimed a reducing drug prices.
At the same time, Gorsky advised the Trump administration to be careful not to impose “unintended consequences” on the U.S. health-care modus operandi, which is incredibly complex. He did not elaborate.
“We know there are going to be transforms in the pricing system. That’s why we have to continually innovate,” Gorsky suggested in a “Squawk Box” interview with CNBC’s Meg Tirrell. He added that J&J, whose pharma component accounted for 47 percent of 2017 net sales, is still analyzing Trump’s system, which was unveiled on Friday.
Trump’s plan, among other modulates, will consider an alternative system for buying Medicare Part B drugs, grouping many cancer treatments and infused biotech drugs.
J&J’s top-selling arthritis stimulant Remicade, which is covered under Part B, could be affected by Trump’s expect. Gorsky said the company has looked at its entire portfolio and it’s reinventing it. He bring up two other drugs — Simponi and Stelara, designed to treat autoimmune infections — have actually exceeded sales of Remicade.
Earlier Wednesday, J&J promulgated it would relaunch its baby-care products, which saw a 20 percent on offers decline since 2011 to $1.9 billion.
Speaking just hours before the train’s every-other-year consumer products and medical devices analyst meeting, Gorsky bring to light J&J is trying to be more like a “start-up” with its baby brand, focusing on the changing stresses of “millennial moms,” who favor baby products with more understandable ingredients.
“We realize that over the past few years that we very likely got a little bit behind the curve,” he said. “But what you’re going to hear take today is that we totally reformulated the brand where we’re changing and transforming sure we’re using more natural ingredients.”