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Johnson & Johnson reports Q3 2022 results

  • Reported sales growth of 1.9% to $23.8 Billion with operational growth of 8.1%* and adjusted operational growth of 8.2%*
  • Earnings per share (EPS) of $1.68 increasing 22.6% and adjusted EPS of $2.55 decreasing by 1.9%*
  • Company is maintaining 2022 full-year guidance midpoints for adjusted operational sales and reported adjusted EPS; increasing adjusted operational EPS performance offsetting continued unfavorable currency impacts

 

NEW BRUNSWICK, N.J. — (BUSINESS WIRE) — Johnson & Johnson (NYSE: JNJ) today announced results for third-quarter 2022. “Our third quarter performance demonstrates our continued strength and resilience across all three of our businesses,” said Joaquin Duato, Chief Executive Officer. “Through the ongoing efforts of our teams around the world, we continue to navigate the dynamic macroeconomic environment and remain focused on delivering transformative healthcare solutions. Looking ahead, I remain confident in our business and ability to continue advancing our innovative portfolio and pipeline.”

OVERALL FINANCIAL RESULTS

Q3

($ in Millions, except EPS)

2022

2021

% Change

Reported Sales

$23,791

$23,338

1.9%

Net Earnings

4,458

3,667

21.6%

EPS (diluted)

$1.68

$1.37

22.6%

Q3

Non-GAAP* ($ in Millions, except EPS)

2022

2021

% Change

Operational Sales1,2

8.1%

Adjusted Operational Sales1,3

8.2%

Adjusted Net Earnings1,4

6,779

6,968

(2.7)%

Adjusted EPS (diluted)1,4

$2.55

$2.60

(1.9)%

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

4 Excludes intangible amortization expense and special items

Note: values may have been rounded

REGIONAL SALES RESULTS

Q3

% Change

($ in Millions)

2022

2021

Reported

Operational1,2

Currency

Adjusted

Operational1,3

U.S.

$12,453

$11,963

4.1%

4.1

4.2

International

$11,338

$11,375

(0.3)

12.3

(12.6)

12.4

Worldwide

$23,791

$23,338

1.9%

8.1

(6.2)

8.2

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

Note: Values may have been rounded

SEGMENT SALES RESULTS

Q3

% Change

($ in Millions)

2022

2021

Reported

Operational1,2

Currency

Adjusted

Operational1,3

Consumer Health4

$3,795

$3,812

(0.4)%

4.7

(5.1)

4.8

Pharmaceutical4

$13,214

$12,882

2.6

9.0

(6.4)

9.2

MedTech

$6,782

$6,644

2.1

8.1

(6.0)

8.1

Worldwide

$23,791

$23,338

1.9%

8.1

(6.2)

8.2

1 Non-GAAP financial measure; refer to reconciliations of non-GAAP financial measures included in accompanying schedules

2 Excludes the impact of translational currency

3 Excludes the net impact of acquisitions and divestitures and translational currency

4 Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes

Note: Values may have been rounded

THIRD QUARTER 2022 SEGMENT COMMENTARY:

Adjusted operational sales* reflected below excludes the net impact of acquisitions and divestitures and translational currency.

Consumer Health

Consumer Health worldwide adjusted operational sales increased 4.8%*. Major contributors to growth include upper respiratory and analgesic products in the over-the-counter franchise, NEUTROGENA and AVEENO in Skin Health/Beauty and Women’s Health products outside the United States.

Pharmaceutical

Pharmaceutical worldwide adjusted operational sales grew 9.2%*, driven by DARZALEX (daratumumab), a biologic for the treatment of multiple myeloma, TREMFYA (guselkumab), a biologic for the treatment of adults living with moderate to severe plaque psoriasis, and for adults with active psoriatic arthritis, STELARA (ustekinumab), a biologic for the treatment of a number of immune-mediated inflammatory diseases, ERLEADA (apalutamide), a next-generation androgen receptor inhibitor for the treatment of patients with prostate cancer, and INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA (paliperidone palmitate), long-acting, injectable atypical antipsychotics for the treatment of schizophrenia in adults. Also contributing to growth were sales of the Janssen COVID-19 Vaccine (Ad26.COV2.S) for the prevention of the SARS-CoV-2 virus. This growth was partially offset by declines in sales of REMICADE (infliximab), a biologic approved for the treatment of several immune-mediated inflammatory diseases and IMBRUVICA (ibrutinib), an oral, once daily therapy approved for use in treating certain B-cell malignancies, a type of blood or lymph node cancer.

MedTech

MedTech worldwide adjusted operational sales grew 8.1%*, driven primarily by electrophysiology products in Interventional Solutions, contact lenses in Vision, Trauma in Orthopaedics and wound closure products in General Surgery.

NOTABLE NEW ANNOUNCEMENTS IN THE QUARTER:

The information contained in this section should be read in conjunction with Johnson & Johnson’s other disclosures filed with the Securities and Exchange Commission, including its Current Reports on Form 8-K, Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. The reader is also encouraged to review all other news releases and information available in the Investors section of the company’s website at news releases, as well as www.factsabouttalc.com, www.factsaboutourprescriptionopioids.com, and www.LTLManagementInformation.com.

Regulatory Decisions

STELARA (ustekinumab) Approved by the U.S. Food and Drug Administration to Treat Pediatric Patients with Active Psoriatic Arthritis

Press Release

European Commission Approves IMBRUVICA (ibrutinib) in a Fixed-Duration Combination Regimen for Adult Patients with Previously Untreated Chronic Lymphocytic Leukaemia (CLL)

Press Release

Janssen Marks First Approval Worldwide for TECVAYLI (teclistamab) with EC Authorisation of First-in-Class Bispecific Antibody for the Treatment of Patients with Multiple Myeloma

Press Release

U.S. FDA Approves IMBRUVICA (ibrutinib) as First and Only BTKi Treatment for Pediatric Patients with Chronic Graft-Versus-Host Disease

Press Release

Data Release

Janssen Announces New Data Supporting Safety and Efficacy of RYBREVANT and Lazertinib Combination for Patients with Non-Small Cell Lung Cancer and EGFR Mutations

Press Release

Final Analysis of Phase 2 GRIFFIN Study Presented for DARZALEX (daratumumab)-based Investigational Quadruplet Regimen in Patients with Newly Diagnosed, Transplant-Eligible Multiple Myeloma

Press Release

TREMFYA (guselkumab) Demonstrates Higher Rates of Complete Skin Clearance with Earlier Treatment in Adults with Moderate to Severe Plaque Psoriasis in Phase 3b GUIDE Study

Press Release

Results of Novel Clinical Study of Guselkumab and Golimumab Combination Therapy Show Adults with Moderately to Severely Active Ulcerative Colitis Maintained Higher Rates of Clinical, Histologic, and Endoscopic Remission at Week 381

Press Release

STELARA (ustekinumab) Demonstrated Sustained Symptomatic and Corticosteroid-Free Remission Through Four Years in Adults with Moderately to Severely Active Ulcerative Colitis1

Press Release

Janssen Announces Late-Breaking Data from Two Gene Therapy Programs at the American Academy of Ophthalmology 2022 Annual Meeting

Press Release

Product Launches

Biosense Webster Launches the OCTARAY Mapping Catheter with TRUEref Technology

Press Release

Johnson & Johnson Vision Introduces All Purpose EDOF, TECNIS Symfony OptiBlue IOL, the Latest PC-IOL Powered by InteliLight Technology

Press Release

Johnson & Johnson Vision Launches New Contact Lens Innovation to Help Meet the Needs of Digitally Intense Lifestyles: ACUVUE OASYS MAX 1-Day

Press Release

Biosense Webster Launches HELIOSTAR in Europe, the First Radiofrequency Balloon Ablation Catheter, Enabling Physicians to Perform More Efficient Cardiac Ablations1

Press Release

Other

Johnson & Johnson Announces $5 Billion Share Repurchase Program

Press Release

Johnson & Johnson Appoints Larry Merlo as Non-Executive Chair Designate of Planned New Consumer Health Company

Press Release

Johnson & Johnson Announces Kenvue as the Name for Planned New Consumer Health Company

Press Release

1 Subsequent to the quarter.

FULL-YEAR 2022 GUIDANCE:

Johnson & Johnson does not provide GAAP financial measures on a forward-looking basis because the company is unable to predict with reasonable certainty the ultimate outcome of legal proceedings, unusual gains and losses, acquisition-related expenses and purchase accounting fair value adjustments without unreasonable effort. These items are uncertain, depend on various factors, and could be material to Johnson & Johnson’s results computed in accordance with GAAP.

($ in Billions, except EPS)

October 2022

July 2022

Adjusted Operational Sales1,2,5

Change vs. Prior Year

6.7% – 7.2%

6.5% – 7.5%

Operational Sales2,5/ Mid-point2,5

Change vs. Prior Year / Mid-point

$97.5B – $98.0B / $97.8B

6.7% – 7.2% / 7.0%

$97.3B – $98.3B / $97.8B

6.5% – 7.5% / 7.0%

Estimated Reported Sales3,5/ Mid-point3,5

Change vs. Prior Year / Mid-point

$93.0B – $93.5B / $93.3B

1.8% – 2.3% / 2.1%

$93.3B – $94.3B / $93.8B

2.1% – 3.1% / 2.6%

Adjusted Operational EPS (Diluted)2,4/ Mid-point2,4

Change vs. Prior Year / Mid-point

$10.70 – $10.75 / $10.73

9.2% – 9.7% / 9.5%

$10.65 – $10.75 / $10.70

8.7% – 9.7% / 9.2%

Adjusted EPS (Diluted)3,4 / Mid-point3,4

Change vs. Prior Year / Mid-point

$10.02 – $10.07 / $10.05

2.3% – 2.8% / 2.6%

$10.00 – $10.10 / $10.05

2.1% – 3.1% / 2.6 %

1 Non-GAAP financial measure; excludes the net impact of acquisitions and divestitures

2 Non-GAAP financial measure; excludes the impact of translational currency

3 Calculated using Euro Average Rate: October 2022 = $1.04 and July 2022 = $1.05 (Illustrative purposes only)

4 Non-GAAP financial measure; excludes intangible amortization expense and special items

5 Excludes COVID-19 Vaccine

Note: percentages may have been rounded

Other modeling considerations will be provided on the webcast.

WEBCAST INFORMATION:

Johnson & Johnson will conduct a conference call with investors to discuss this earnings release today at 8:30 a.m., Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Johnson & Johnson website. A replay and podcast will be available approximately two hours after the live webcast in the Investors section of the company’s website at events-and-presentations.

ABOUT JOHNSON & JOHNSON:

At Johnson & Johnson, we believe good health is the foundation of vibrant lives, thriving communities and forward progress. That’s why for more than 135 years, we have aimed to keep people well at every age and every stage of life. Today, as the world’s largest and most broadly-based health care company, we are committed to using our reach and size for good. We strive to improve access and affordability, create healthier communities, and put a healthy mind, body and environment within reach of everyone, everywhere. We are blending our heart, science and ingenuity to profoundly change the trajectory of health for humanity.

NON-GAAP FINANCIAL MEASURES:

* “Operational sales growth” excluding the impact of translational currency, “adjusted operational sales growth” excluding the net impact of acquisitions and divestitures and translational currency, as well as “adjusted net earnings”, “adjusted diluted earnings per share” and “adjusted operational diluted earnings per share” excluding after-tax intangible amortization expense and special items, are non-GAAP financial measures and should not be considered replacements for, and should be read together with, the most comparable GAAP financial measures. Except for guidance measures, reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the accompanying financial schedules of the earnings release and the Investors section of the company’s website at quarterly results.

Copies of the financial schedules accompanying this earnings release are available on the company’s website at quarterly results. These schedules include supplementary sales data, a condensed consolidated statement of earnings, reconciliations of non-GAAP financial measures, and sales of key products/franchises. Additional information on Johnson & Johnson, including adjusted income before tax by segment, a pharmaceutical pipeline of selected compounds in late stage development and a copy of today’s earnings call presentation can also be found in the Investors section of the company’s website at quarterly results.

NOTE TO INVESTORS CONCERNING FORWARD-LOOKING STATEMENTS:

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 regarding, among other things: future operating and financial performance, product development, market position and business strategy, and the anticipated separation of the Company’s Consumer Health business. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: economic factors, such as interest rate and currency exchange rate fluctuations; competition, including technological advances, new products and patents attained by competitors; challenges inherent in new product research and development, including uncertainty of clinical success and obtaining regulatory approvals; uncertainty of commercial success for new and existing products; challenges to patents; the impact of patent expirations; the ability of the company to successfully execute strategic plans; the impact of business combinations and divestitures; manufacturing difficulties or delays, internally or within the supply chain; product efficacy or safety concerns resulting in product recalls or regulatory action; significant adverse litigation or government action, including related to product liability claims; changes to applicable laws and regulations, including tax laws and global health care reforms; trends toward health care cost containment; changes in behavior and spending patterns of purchasers of health care products and services; financial instability of international economies and legal systems and sovereign risk; increased scrutiny of the health care industry by government agencies; the Company’s ability to satisfy the necessary conditions to consummate the separation of the Company’s Consumer Health business on a timely basis or at all; the Company’s ability to successfully separate the Company’s Consumer Health business and realize the anticipated benefits from the separation; the New Consumer Health Company’s ability to succeed as a standalone publicly traded company; and risks related to the impact of the COVID-19 global pandemic, such as the scope and duration of the outbreak, government actions and restrictive measures implemented in response, material delays and cancellations of medical procedures, supply chain disruptions and other impacts to the business, or on the company’s ability to execute business continuity plans, as a result of the COVID-19 pandemic. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson’s Annual Report on Form 10-K for the fiscal year ended January 2, 2022, including in the sections captioned “Cautionary Note Regarding Forward-Looking Statements” and “Item 1A. Risk Factors,” and in Johnson & Johnson’s subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com or on request from Johnson & Johnson. Any forward-looking statement made in this release speaks only as of the date of this release. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.

Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)

THIRD QUARTER

NINE MONTHS

Percent Change

Percent Change

2022

2021

Total

Operations

Currency

2022

2021

Total

Operations

Currency

Sales to customers by
segment of business
Consumer Health (1)
U.S.

$ 1,659

1,625

2.1

%

2.1

$ 4,903

4,987

(1.7

)

%

(1.7

)

International

2,136

2,187

(2.3

)

6.7

(9.0

)

6,283

6,320

(0.6

)

6.0

(6.6

)

3,795

3,812

(0.4

)

4.7

(5.1

)

11,186

11,307

(1.1

)

2.6

(3.7

)

Pharmaceutical (1)
U.S.

7,438

7,221

3.0

3.0

21,229

20,536

3.4

3.4

International

5,776

5,661

2.0

16.7

(14.7

)

18,171

16,927

7.3

18.5

(11.2

)

13,214

12,882

2.6

9.0

(6.4

)

39,400

37,463

5.2

10.2

(5.0

)

Pharmaceutical excluding COVID-19 Vaccine (1,3)
U.S.

7,438

6,951

7.0

7.0

21,109

20,115

4.9

4.9

International

5,287

5,429

(2.6

)

11.3

(13.9

)

16,801

16,582

1.3

11.7

(10.4

)

12,725

12,380

2.8

8.9

(6.1

)

37,910

36,697

3.3

8.0

(4.7

)

MedTech (2)
U.S.

3,356

3,117

7.7

7.7

9,932

9,470

4.9

4.9

International

3,426

3,527

(2.9

)

8.5

(11.4

)

10,719

10,731

(0.1

)

8.2

(8.3

)

6,782

6,644

2.1

8.1

(6.0

)

20,651

20,201

2.2

6.6

(4.4

)

U.S.

12,453

11,963

4.1

4.1

36,064

34,993

3.1

3.1

International

11,338

11,375

(0.3

)

12.3

(12.6

)

35,173

33,978

3.5

12.9

(9.4

)

Worldwide

23,791

23,338

1.9

8.1

(6.2

)

71,237

68,971

3.3

7.9

(4.6

)

U.S.

12,453

11,693

6.5

6.5

35,944

34,572

4.0

4.0

International

10,849

11,143

(2.6

)

9.5

(12.1

)

33,803

33,633

0.5

9.5

(9.0

)

Worldwide excluding COVID-19 Vaccine (3)

$ 23,302

22,836

2.0

%

8.0

(6.0

)

$ 69,747

68,205

2.3

%

6.7

(4.4

)

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(1) Certain international OTC products, primarily in China, were reclassified from the Pharmaceutical segment to the Consumer Health segment based on operational changes.
(2) Previously referred to as Medical Devices
(3) Refer to supplemental sales reconciliation schedule
Johnson & Johnson and Subsidiaries
Supplementary Sales Data
(Unaudited; Dollars in Millions)

THIRD QUARTER

NINE MONTHS

Percent Change

Percent Change

2022

2021

Total

Operations

Currency

2022

2021

Total

Operations

Currency

Sales to customers by
geographic area
U.S.

$ 12,453

11,963

4.1

%

4.1

$ 36,064

34,993

3.1

%

3.1

Europe

5,524

5,587

(1.1

)

14.5

(15.6

)

17,633

16,669

5.8

18.2

(12.4

)

Western Hemisphere excluding U.S.

1,562

1,500

4.1

9.1

(5.0

)

4,580

4,291

6.7

9.6

(2.9

)

Asia-Pacific, Africa

4,252

4,288

(0.9

)

10.5

(11.4

)

12,960

13,018

(0.4

)

7.2

(7.6

)

International

11,338

11,375

(0.3

)

12.3

(12.6

)

35,173

33,978

3.5

12.9

(9.4

)

Worldwide

$ 23,791

23,338

1.9

%

8.1

(6.2

)

$ 71,237

68,971

3.3

%

7.9

(4.6

)

Note: Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures) THIRD QUARTER

2022

2021

Percent

Percent

Percent

Increase

Amount

to Sales

Amount

to Sales

(Decrease)

Sales to customers

$

23,791

100.0

$

23,338

100.0

1.9

Cost of products sold

7,807

32.8

7,250

31.1

7.7

Gross Profit

15,984

67.2

16,088

68.9

(0.6

)

Selling, marketing and administrative expenses

6,089

25.6

6,000

25.7

1.5

Research and development expense

3,597

15.1

3,422

14.7

5.1

In-process research and development

900

3.9

Interest (income) expense, net

(99

)

(0.4

)

7

0.0

Other (income) expense, net

493

2.1

1,850

7.9

Restructuring

82

0.3

60

0.2

Earnings before provision for taxes on income

5,822

24.5

3,849

16.5

51.3

Provision for taxes on income

1,364

5.8

182

0.8

649.5

Net earnings

$

4,458

18.7

$

3,667

15.7

21.6

Net earnings per share (Diluted)

$

1.68

$

1.37

22.6

Average shares outstanding (Diluted)

2,661.3

2,674.9

Effective tax rate

23.4

%

4.7

%

Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income

$

8,073

33.9

$

8,058

34.5

0.2

Net earnings

$

6,779

28.5

$

6,968

29.9

(2.7

)

Net earnings per share (Diluted)

$

2.55

$

2.60

(1.9

)

Effective tax rate

16.0

%

13.5

%

(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Condensed Consolidated Statement of Earnings
(Unaudited; in Millions Except Per Share Figures) NINE MONTHS

2022

2021

Percent

Percent

Percent

Increase

Amount

to Sales

Amount

to Sales

(Decrease)

Sales to customers

$

71,237

100.0

$

68,971

100.0

3.3

Cost of products sold

23,324

32.7

21,900

31.8

6.5

Gross Profit

47,913

67.3

47,071

68.2

1.8

Selling, marketing and administrative expenses

18,253

25.7

17,505

25.4

4.3

Research and development expense

10,762

15.1

9,994

14.5

7.7

In-process research and development

610

0.9

900

1.3

Interest (income) expense, net

(137

)

(0.2

)

83

0.1

Other (income) expense, net

664

0.9

480

0.7

Restructuring

237

0.3

169

0.2

Earnings before provision for taxes on income

17,524

24.6

17,940

26.0

(2.3

)

Provision for taxes on income

3,103

4.4

1,798

2.6

72.6

Net earnings

$

14,421

20.2

$

16,142

23.4

(10.7

)

Net earnings per share (Diluted)

$

5.41

$

6.04

(10.4

)

Average shares outstanding (Diluted)

2,667.5

2,674.6

Effective tax rate

17.7

%

10.0

%

Adjusted earnings before provision for taxes and net earnings (1)
Earnings before provision for taxes on income

$

24,462

34.3

$

24,125

35.0

1.4

Net earnings

$

20,820

29.2

$

20,517

29.7

1.5

Net earnings per share (Diluted)

$

7.81

$

7.67

1.8

Effective tax rate

14.9

%

15.0

%

(1) See Reconciliation of Non-GAAP Financial Measures.
Johnson & Johnson and Subsidiaries
Reconciliation of Non-GAAP Financial Measures

Third Quarter

Nine Months Ended

(Dollars in Millions Except Per Share Data)

2022

2021

2022

2021

Net Earnings, after tax- as reported

$4,458

$3,667

$14,421

$16,142

Pre-tax Adjustments
Intangible Asset Amortization expense

1,041

1,159

3,244

3,576

Litigation related

219

2,077

604

2,054

IPR&D

900

610

900

Restructuring related

123

121

323

333

Acquisition, integration and divestiture related ¹

20

(504

)

(Gains)/losses on securities

164

(127

)

684

(335

)

Medical Device Regulation 2

78

59

208

161

COVID-19 Vaccine related costs 3

377

653

Consumer Health separation costs

249

619

Other

(7

)

Tax Adjustments
Tax impact on special item adjustments 4

(379

)

(849

)

(1,085

)

(1,097

)

Consumer Health separation tax related costs

361

459

Tax legislation and other tax related

88

(59

)

87

(713

)

Adjusted Net Earnings, after tax

$6,779

$6,968

$20,820

$20,517

Average shares outstanding (Diluted)

2,661.3

2,674.9

2,667.5

2,674.6

Adjusted net earnings per share (Diluted)

$2.55

$2.60

$7.81

$7.67

Operational adjusted net earnings per share (Diluted)

$2.75

$8.25

Notes:

1

Acquisition, integration and divestiture related for the nine months of 2021 primarily includes the gain on the divestiture of two Pharmaceutical brands outside of the U.S.

2

European Medical Device Regulation (MDR) costs represent one-time compliance costs for the Company’s previously registered products. MDR is a replacement of the existing European Medical Devices Directive regulatory framework, and manufacturers of currently marketed medical devices were required to comply with EU MDR beginning in May 2021. The Company considers the adoption of EU MDR to be a significant one-time regulatory change and is not indicative of on-going operations. The Company has excluded only external third-party regulatory and consulting costs from its MedTech operating segments’ measures of profit and loss used for making operating decisions and assessing performance which is expected to be completed during 2024.

3

COVID-19 Vaccine related costs include remaining commitments and obligations, including external manufacturing network exit costs and required clinical trial expenses, associated with the Company’s modification of its COVID-19 vaccine research program and manufacturing capacity to levels that meet all customer contractual requirements.

4

The tax impact related to special item adjustments reflects the current and deferred income taxes associated with the above pre-tax special items in arriving at adjusted earnings.

Contacts

Press Contacts:

Jake Sargent

(732) 524-1090

Investor Contacts:

Jessica Moore

(732) 524-2955

Sarah Wood

(732) 524-2617

Read full story here

Categories
Business International & World

AM Best downgrades credit ratings of Family Guardian Insurance Company Limited and FamGuard Corporation Limited

OLDWICK, N.J. — (BUSINESS WIRE) — AM Best has downgraded the Financial Strength Rating to B++ (Good) from A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb+” (Good) from “a-” (Excellent) of Family Guardian Insurance Company Limited (Family Guardian). Concurrently, AM Best has downgraded the Long-Term ICR to “bb+” (Fair) from “bbb-” (Good) of FamGuard Corporation Limited. Both Companies are domiciled in Nassau, Bahamas. In addition, AM Best has revised the outlooks of these Credit Ratings (ratings) to stable from negative.

The ratings reflect Family Guardian’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).

 

The balance sheet strength assessment reflects Family Guardian’s risk-adjusted capital at the strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), the elimination of financial leverage and continued good liquidity, which is offset partly by the company’s limited investment options and high concentration of sovereign debt holdings. The company’s BCAR levels declined in the past year due to downgrades of the Bahamas’ sovereign ratings.

 

Family Guardian’s operating performance remains strong, with return on equity levels consistently over 10% and a continued trend of positive net earnings, which have supported capital growth. The business profile assessment considers Family Guardian’s good market position in the Bahamas and creditworthy product offerings offset by its geographic concentration in the Bahamas. The company’s ERM framework and governance structure are appropriate for its risk profile.

 

There are ongoing concerns regarding global economic conditions and their negative impact on the Bahamas. AM Best will continue to monitor the economic conditions in the Bahamas and take appropriate rating actions as they change.

 

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Louis Silvers
Senior Financial Analyst
+1 908 439 2200, ext. 5802
louis.silvers@ambest.com

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com

Anthony McSwieney
Senior Financial Analyst
+1 908 439 2200, ext. 5715
anthony.mcswieney@ambest.com

Al Slavin
Communications Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com

Categories
Business

AM Best to host IMCA/AM Best Marketing Leader Lunch with Baldwin Risk Partners’ Rich Tallo

OLDWICK, N.J. — (BUSINESS WIRE) — AM Best will host a joint presentation with the Insurance Marketing & Communications Association (IMCA) on Friday, Oct. 28, 2022, at Noon (EDT). In the live, interactive roundtable discussion, Rich Tallo, chief marketing officer at Baldwin Risk Partners, will discuss branding, how marketing is evolving to meet customers’ changing expectations, opportunities and challenges in business-to-business versus business-to-consumer marketing, attracting the next generation of marketing talent to the insurance industry and uncovering the keys to success in digital marketing. Register today: http://www.ambest.com/webinars/BaldwinRiskPartners/index.html

Panelists include:

  • Rich Tallo, chief marketing officer, Baldwin Risk Partners;
  • Peter van Aartrijk, principal, Aartrijk, and IMCA CMO Council member;
  • Lee McDonald, group vice president, AM Best; and
  • Lori Chordas, senior associate editor, AMBestTV.

 

Attendees can submit questions during registration or by emailing webinars@ambest.com. The event will be streamed in video and audio formats, and playback will be available to registered viewers shortly after the event.

 

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

 

Copyright © 2022 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Lee McDonald
Group Vice President, Publication & News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com

Categories
Business Healthcare Local News Science

TransPerfect Life Sciences hosts ‘Conversations on Clinical Content’ event series

2022 C3 Summit Program Concludes October 20 in Princeton, New Jersey

 

NEW YORK — (BUSINESS WIRE) — TransPerfect Life Sciences, a leading provider of services and technologies to support global clinical trials and product development for the biopharmaceutical industry, today announced a final call for registration for the 2022 Conversations on Clinical Content (C3) summit. The event is the third in a three-part series and takes place on Oct. 20 in Princeton, NJ. Registration and details can be found at https://thec3summit.com/princeton/.

C3 brings together leading industry executives with expertise in product development and decentralized clinical trials (DCTs) for regional meetings and virtual sessions. The series serves as a platform for industry leaders to share knowledge on important industry trends and topics, including best practices around DCT, patient diversity, patient centricity, and outcome assessments.

 

The 2022 C3 events have been held in Raleigh, North Carolina, and London, England. Speakers included representatives from Walgreens, Pfizer, Parexel, AstraZeneca, Roche, Evidera/PPD, Boehringer Ingelheim, and Red Nucleus.

 

Katja Rudell, Senior Director, COA, CDDS, at Parexel and London C3 Summit panelist, said, “The C3 sessions were packed with great questions. As a panelist, I appreciated the questions and opportunity to share perspectives with others on stage. As an audience member, the event served as an effective forum to demystify a number of topics related to patient centricity.”

 

Scheduled presenters at C3 Princeton include clinical leaders from CVS Health Clinical Trial Services, Bristol Myers Squibb, Decentralized Trials & Research Alliance, Kyowa Kirin, Savvy Cooperative, Exponent, ProofPilot, ObvioHealth, and MANA RBM.

 

“As a solutions provider assisting companies with their increasingly virtual operations, we work every day with thought leaders who have knowledge that can benefit others on similar journeys,” said Michael Smyth, Division President, TransPerfect Life Sciences Solutions. “The enthusiasm and willingness to share shown by our speakers has created many thought-provoking discussions.”

 

TransPerfect President and CEO Phil Shawe stated, “C3 is a unique opportunity for thought leaders in the clinical community to discuss trends, see recent innovations, and better prepare for the future.”

 

For more information on the C3 Summit series, visit https://thec3summit.com/.

 

About TransPerfect Life Sciences

TransPerfect Life Sciences specializes in supporting global development and commercialization of drugs, treatments, and devices designed to improve and save lives. Our comprehensive solutions include eTMF and eClinical technologies, paper TMF migration, pharmacovigilance and safety solutions, translation and language services, and call center support. With offices in over 100 cities worldwide, TransPerfect is the ideal partner to ensure that your global launch makes a global impact. For more information, please visit our website at https://lifesciences.transperfect.com/.

 

About TransPerfect

TransPerfect is the world’s largest provider of language and technology solutions for global business. From offices in over 100 cities on six continents, TransPerfect offers a full range of services in 200+ languages to clients worldwide. More than 6,000 global organizations employ TransPerfect’s GlobalLink® technology to simplify management of multilingual content. With an unparalleled commitment to quality and client service, TransPerfect is fully ISO 9001 and ISO 17100 certified. TransPerfect has global headquarters in New York, with regional headquarters in London and Hong Kong. Visit https://www.transperfect.com for more information on TransPerfect.

 

Contacts

Ryan Simper +1 212.689.5555
mediainquiry@transperfect.com

Categories
Business Environment Science

American Water to discuss third quarter 2022 earnings and initiation of 2023 earnings guidance on Nov. 1, 2022

CAMDEN, N.J. — (BUSINESS WIRE) — American Water Works Company, Inc. (NYSE: AWK) announced today that it intends to release its 2022 third quarter financial results and 2023 earnings guidance after the market closes on Monday, Oct. 31, 2022.

Susan Hardwick, president, and chief executive officer; Cheryl Norton, executive vice president and chief operating officer, and John Griffith, executive vice president and chief financial officer, will host a conference call and webcast with investors, analysts and other interested parties on Tuesday, Nov. 1, 2022, at 9 a.m. Eastern Daylight Time. The call will include a discussion of third quarter 2022 results, initiation of 2023 earnings guidance, and discussion of long-term financial targets. There will be a question-and-answer session as part of the call.

 

Interested parties may listen to an audio webcast of the conference call through a link on the Investor Relations website at ir.amwater.com. Presentation slides that will be used in conjunction with the earnings conference call will also be made available online in advance at ir.amwater.com. A replay of the audio webcast will be available for one year on American Water’s investor relations website at ir.amwater.com/events. The company recognizes its website as a key channel of distribution to reach public investors and as a means of disclosing material non-public information to comply with its obligations under SEC Regulation FD.

 

About American Water

With a history dating back to 1886, American Water (NYSE: AWK) is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs approximately 6,400 dedicated professionals who provide regulated and regulated-like drinking water and wastewater services to an estimated 14 million people in 24 states. American Water provides safe, clean, affordable, and reliable water services to our customers to help keep their lives flowing. For more information, visit amwater.com and diversityataw.com. Follow American Water on Twitter, Facebook and LinkedIn.

AWK-IR

Contacts

Investor:
Aaron Musgrave

Vice President, Investor Relations

(856) 955-4029

aaron.musgrave@amwater.com

Media:
Maureen Duffy

Senior Vice President, Communications and External Affairs

(856) 955-4163

maureen.duffy@amwater.com

Categories
Business Lifestyle Technology

Seabury Solutions applies AI to scheduling, data wrangling and revenue potential forecasting

 Seabury Solutions integrates AI (Artificial Intelligence) solutions to improve financial and operational models, for its growing solutions platform

 

AMSTERDAM — (BUSINESS WIRE) — #artificialintelligence–Seabury Solutions, a market leader in providing Information Technology solutions for the aviation industry, announced today the integration of AI solutions through strategic partnerships.


“Aurora’s intelligent scheduling technology improves MRO throughput, resulting in improved transparency and reduced costs, while also resulting in superior operations management. Aurora was developed to help tackle difficult, mission-critical scheduling problems—by using artificial intelligence technologies to encode extensive expert domain knowledge with advanced algorithms to generate more efficient schedules. Today, Aurora manages the most demanding operations for organizations such as The Boeing Company, Mitsubishi Heavy Industries, Bombardier Learjet, Spirit AeroSystems, General Dynamics Electric Boat, Korea Aerospace Industries, and the US Air Force, US Space Force, and US Navy,” says Richard Stottler, President, Stottler Henke.

 

“Having seen OEMs and Tier 1s invest in predictive maintenance driven AI channels, it was crucial that AI found its way into enhancing data quality and integrity using data driven models. This acts as a segway into helping organizations visualize commercial impact of decisions using an Aircraft, Engine or Component’s Airworthiness and Maintenance data. KeepFlying sees great potential for Airlines, MROs, Lessors and Banks to create financial twins for the Assets they operate, lease, maintain and finance to predict costs, revenues, asset placement commercial potentials and risks using Machine Learning models trained across different Aircraft and Engine types,” remarked KeepFlying CEO, Sriram Haran.

 

“Our decision to include AI into our Functional Architecture was taken right before the Pandemic started and it was included in our road map together with a 5-year plan to execute it. After understanding the necessity of tools driven by AI in areas such as Scheduling, Planning, Revenue Forecasting (specifically for Airframe and Engines MROs, lessors and Financial Institutions) we took the challenge of inviting specialized strategic partners to deliver a set of solutions that will only improve our digital transformation platform and benefit not only current but also future customers,” stated Seabury Solutions CEO & President, Bijoy Mechery.

 

ABOUT STOTTLER HENKE ASSOCIATES Inc.

ABOUT KEEPFLYING

ABOUT SEABURY SOLUTIONS

Contacts

mkt@seaburysolutions.com
www.seaburysolutions.com/

Categories
Business Culture Perks

Beyond Fifteen Communications, Inc. makes internal promotion and adds three new employees

Leading Orange County Marcom Firm Brings on Strategic New Hires and Announces Internal Promotion to Bolster Offerings and Better Serve its Growing Client Roster

 

IRVINE, Calif. — (BUSINESS WIRE) — #AgencyBeyond Fifteen Communications, Inc. (Beyond Fifteen), an Orange County-based full-service public relations (PR), digital marketing, social media and influencer marketing agency has hired three new employees located in Florida, Texas and New Jersey to widen its footprint and strengthen its U.S. service offerings.

 

In addition, after three years at the agency and countless high-profile earned media successes on behalf of some of the firm’s largest clients, eleven-year industry veteran, Jennifer Magaña, was promoted to senior account executive, PR division lead.


“Over the last year, more new brands have sought out our services to efficiently and effectively reach targeted audiences to grow brand awareness, support lead generation programs and bolster sales,” said Leslie Licano, Beyond Fifteen co-founder. “To complement the strengths of our current team and support growth, we have added three new hires that bring specific experience in social content creation, execution and measurement to help our clients reach their business goals. In addition, we are proud to re-invest in our PR division with the promotion of Jennifer to focus even more heavily on the strategic, systematic and ongoing improvement of our team’s proven public relations competency.”

 

Brianne Giordano brings four years of agency experience to her new role as digital advertising specialist. She has worked with dozens of entrepreneurs, executive teams and businesses to successfully market their products, services and brands and is skilled at developing creative strategies and innovative solutions to help level-up client results.

 

Brelyn Bashrum joined the team as an account coordinator following her graduation from Texas Tech University where she earned her bachelor’s degree in advertising with a minor in public relations. During her first few months with the firm, she has already contributed to the successes of both the digital and PR teams, and agency clients have benefitted from her strong writing skills and ability to develop messaging that resonates with their audiences.

 

Connor Emert brings both traditional and digital marketing prowess to his role at Beyond Fifteen. As a recent graduate of the University of Central Florida with a bachelor’s degree in advertising and public relations and a minor in writing and rhetoric, he has continued to stay current with industry trends and earned a certificate in Google Display Ads and SEO during his first months with the agency. He has also contributed to some of the firm’s strongest media wins including Men’s Health, MSN and Best Life Online, and has drafted top-performing digital content.

 

Since joining Beyond Fifteen in 2019, Jennifer Magaña has landed coverage for clients in leading publications, including Forbes, Good Day LA, Inc., MSN, USA Today, Yahoo! News and Business Insider, and has been a strong leader and mentor to junior staff. As the firm’s new media relations lead, she is responsible for the oversight and continual improvement of Beyond Fifteen’s earned media division as part of the organization’s senior leadership team.

 

Beyond Fifteen’s recent growth will support its roster of more than 24 client brands including publicly traded solar provider, Sunworks; B-Corporation financial institution, Beneficial State Bank; the father of modern infidelity counseling, Dr. Talal Alsaleem; and prosthetic limb innovator, Xtremity.

 

“Not only has Beyond Fifteen been able to add new clients, but we have grown existing client scopes of work enabling them to benefit from a full-funnel, omni-channel marketing approach,” notes Beyond Fifteen co-founder, Lauren Ellermeyer. “Thanks to its continued growth, our agency has been able to not only create new jobs, but also offer internal development opportunities and cross-functional training to ensure our team continues to learn new skills in order to further enhance the value we deliver to clients.”

 

To learn more about Beyond Fifteen, visit www.beyondfifteen.com.

 

ABOUT BEYOND FIFTEEN COMMUNICATIONS: Beyond Fifteen Communications, Inc., an Orange County, Calif.-based firm launched in 2009, is a progressive, full-service public relations, digital marketing, social media and influencer marketing agency dedicated to providing powerful, goal-driven communications solutions that exceed client expectations and deliver far more than 15 minutes of fame. Beyond Fifteen combines the talent, capability and reach of a mega-agency with the personal service and dedication of a boutique firm. It is laser-focused on achieving measurable results for every client it serves. Follow Beyond Fifteen on Facebook, Twitter, LinkedIn and Instagram. For more information, visit www.beyondfifteen.com.

Contacts

Leslie Licano, Beyond Fifteen Communications, Inc.

leslie@beyondfifteen.com | 949-733-8679 x 101

Categories
Business Healthcare

Hinge Health surpasses 1,000 enterprise customers, now accessible to 21 million lives

Doubles customer base in the last 12 months and leads with 80% market share for digital MSK solutions


SAN FRANCISCO — (BUSINESS WIRE) — Hinge Health announces that it has crossed over 1,000 self-insured employer customers just 12 months after reaching the 500 customer milestone. The company has added more customers in the past 12 months than in the prior 7 years combined. Including fully-insured groups and other risk pools, over 21 million lives across tens of thousands of employers from every major private and public sector now have access to Hinge Health.

 

At a time of economic uncertainty coupled with a tight labor market, more employers than ever are turning to Hinge Health’s Digital MSK Clinic to reduce claim costs while attracting and retaining employees through a better benefits experience. Four in five employers, 90% of the health plans, and the top-3 PBMs with a digital MSK solution have partnered with Hinge Health.

 

“We’re humbled by the trust our enterprise partners have shown in allowing us to deliver accessible back and joint care to millions of people,” said Daniel Perez, co-founder and CEO, Hinge Health. “We promise to never take their trust for granted, as we continue to invest in creating the best member experience, superior clinical outcomes, and reducing avoidable costs.”

 

Enterprises continue to choose Hinge Health for its relentless focus on driving groundbreaking innovations in the MSK space that includes:

  • End-to-end MSK care accessible through a single app
  • Nationally accessible Women’s Pelvic Health program to address an enormous care gap, available through a member’s existing Hinge Health experience
  • Industry-leading motion technology combining wearable sensors and computer vision to deliver at-home exercise therapy with real-time feedback
  • Enso – the most advanced nerve stimulation device for effective, non-addictive pain relief
  • HingeConnect to integrate with 1 million in-person providers allowing real-time intervention when a member is referred for surgery or prescribed opiates

 

“As one of Hinge Health’s first customers we weren’t sure of the impact the offering would have on our associates,” said Joe Tonolio, senior director of benefits, US Foods. “But after 5 years with Hinge Health, they remain one of our best benefits decisions. Hinge Health’s solution is a great example of supporting the US Foods cultural belief of You Matter.”

 

Hinge Health has published 9 peer-reviewed publications on pain reduction outcomes and 3 independently validated ROI studies. The latest among them is the industry’s largest medical claims analysis across 136 employer groups, which found a $2,387 cost savings per participant enrolled in the company’s Digital MSK Clinic.

 

“Digital MSK care has the potential to transform chronic pain treatment for millions across America,” said Dr. D.J. Kennedy, M.D., professor and chair of physical medicine and rehabilitation, Vanderbilt University Medical Center. “Hinge Health has gone beyond convenient care access to deliver a clinically superior program to its members. It has set the standard for the whole industry.

 

About Hinge Health

Hinge Health is building the world’s most patient-centered Digital Musculoskeletal (MSK) Clinic™. It is now the leading Digital MSK Clinic, used by four in five employers and 90% of health plans with a digital MSK solution. Hinge Health reduces MSK pain, surgeries, and opioid use by pairing advanced wearable sensors and computer vision technology with a comprehensive clinical care team of physical therapists, physicians, and board-certified health coaches. Hinge Health’s HingeConnect integrates with 1 million+ in-person providers and enables real-time interventions for elective MSK surgeries, driving proven medical claims reduction. Available to millions of members, Hinge Health is widely trusted by leading organizations, including Land O’Lakes, L.L. Bean, Salesforce, Self-Insured Schools of California, Southern Company, State of New Jersey, US Foods, and Verizon. Learn more at http://www.hingehealth.com.

Contacts

Erica Osian

media@hingehealth.com

Categories
Business Local News Science

US LBM chooses Billtrust to provide enterprise-wide automated accounts receivable capabilities

Specialty Building Materials Distributor Adopts Billtrust Solutions for its 56 U.S. Divisions

 

LAWRENCEVILLE, N.J. — (BUSINESS WIRE) — Billtrust (NASDAQ: BTRS), a B2B accounts receivable automation and integrated payments leader, announced today that US LBM, the largest privately owned, full-line distributor of specialty building materials in the U.S., has chosen Billtrust as its enterprise-wide accounts receivable platform. By standardizing their automated accounts receivable capability with Billtrust, US LBM can grow electronic payments and maximize cash flow while optimizing the order-to-cash process.

Leveraging Billtrust Credit, Invoicing and Payments and Cash Application solutions, US LBM’s more than 400 locations nationwide are now able to provide B2B buyers with more digital payment options and an enhanced customer experience.

 

“Many of our local divisions have already seen AR automation success with Billtrust, and expanding our collaboration supports our growth strategy while driving substantial operating efficiency and improved cash flow,” said US LBM Executive Vice President and CFO Pat McGuiness. “Billtrust offers us an integrated solution which scales and standardizes our processes across the organization while supporting electronic invoicing and payments.”

 

“We are proud and thankful for the trust and belief that US LBM has in Billtrust,” said Steve Pinado, Billtrust President. “This enterprise-wide collaboration will enable US LBM to centralize their digital transformation efforts and support strategic growth.”

 

About Billtrust

Billtrust is a leading provider of cloud-based software and integrated payment processing solutions that simplify and automate B2B commerce. Accounts receivable is broken and relies on conventional processes that are outdated, inefficient, manual and largely paper based. Billtrust is at the forefront of the digital transformation of AR, providing mission-critical solutions that span credit decisioning and monitoring, online ordering, invoice delivery, payments and remittance capture, invoicing, cash application and collections. For more information, visit Billtrust.com.

 

About US LBM

US LBM is the largest privately owned, full-line distributor of specialty building materials in the United States. Offering a comprehensive portfolio of specialty products, including windows, doors, millwork, wallboard, roofing, siding, engineered components and cabinetry, US LBM combines the scale and operational advantages of a national platform with a local go-to-market strategy through its national network of locations across the country. For more information, please visit uslbm.com or follow US LBM on LinkedIn.

 

Forward-Looking Statements

This press release includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the benefits and synergies that may be realized by Billtrust (“the Company”) and US LBM as a result of the collaboration. These forward-looking statements are subject to a number of risks and uncertainties, including our ability to integrate with customers’ and partners’ application programming interfaces for their billing and payment systems and with third-party technologies; our ability to develop partnerships with financial institutions, third-party service providers, processing providers and other financial services suppliers; our ability to implement services provided by us or our partners; our ability to adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations and payment methods, demand for product enhancements, new product features, and changing business needs, requirements or preferences and the risks discussed in Billtrust’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission (“SEC”) on March 9, 2022, under the heading “Risk Factors” and other documents of Billtrust filed, or to be filed, with the SEC, including Billtrust’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed with the SEC on August 9, 2022. If any of these risks materialize or any of Billtrust’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Billtrust presently does not know of or that Billtrust currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Billtrust’s expectations and views as of the date of this press release. While Billtrust may elect to update these forward-looking statements at some point in the future, Billtrust specifically disclaims any obligation to do so other than to the extent required by applicable law. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Contacts

Investors

John T. Williams

IR@billtrust.com

Media

Paul Accardo

PR@billtrust.com

Categories
Business Healthcare Science

Bayer’s KERENDIA® (finerenone) receives grade A recommendation as treatment option for patients with chronic kidney disease associated with type 2 diabetes in latest guideline update from American Association of Clinical Endocrinology

  • AACE task force recognized KERENDIA with a grade A recommendation* as a treatment option for patients with chronic kidney disease (CKD) associated with type 2 diabetes (T2D), an estimated glomerular filtration rate (eGFR) ≥25 mL/min/1.73 m2, normal serum potassium concentration and albuminuria (urine albumin-to-creatinine ratio ≥30 mg/g) despite maximum tolerated dose of renin-angiotensin-system inhibitor1
  • AACE recommended KERENDIA for kidney and cardiovascular (CV) benefits in CKD associated with T2D, based on its ability to reduce the risk of sustained eGFR decline, end-stage kidney disease, CV death, non-fatal myocardial infarction and hospitalization for heart failure1
  • Recommendation follows recent recognition by the American Diabetes Association Standards of Medical Care in Diabetes—2022 with a new grade A recommendation** for improving CV outcomes and reducing the risk of CKD progression in patients with CKD associated with T2D2

 

WHIPPANY, N.J. — (BUSINESS WIRE) — The American Association of Clinical Endocrinology (AACE) issued an update to its Developing a Diabetes Mellitus Comprehensive Care Plan guideline, which included a grade A recommendation* for Bayer’s KERENDIA® (finerenone), a first-in-class non-steroidal mineralocorticoid receptor antagonist (ns-MRA), for the management of patients with chronic kidney disease (CKD) associated with type 2 diabetes (T2D).1

KERENDIA was approved by the FDA in July 2021 to reduce the risk of sustained estimated glomerular filtration rate (eGFR) decline, end-stage kidney disease, cardiovascular (CV) death, non-fatal myocardial infarction (MI) and hospitalization for heart failure in adult patients with CKD associated with T2D, based on the results of the FIDELIO-DKD pivotal trial.3 The KERENDIA label contains a Warning and Precaution that KERENDIA can cause hyperkalemia.3 For more information, see “Important Safety Information” below.

 

The updated AACE guideline included a recommendation for KERENDIA, an ns-MRA with proven kidney and cardiovascular disease (CVD) benefits, for patients with CKD associated with T2D who have an eGFR ≥25 mL/min/1.73 m2, normal serum potassium concentration and albuminuria (urine albumin-to-creatinine ratio ≥30 mg/g) despite maximum tolerated dose of renin-angiotensin-system (RAS) inhibitor.1 The recommendation is based on data that demonstrated KERENDIA’s ability to reduce the risk of sustained eGFR decline, end-stage kidney disease, CV death, non-fatal MI and hospitalization for heart failure.1

 

The guideline takes a fresh look at the latest evidence in today’s environment and provides robust guidance for clinicians to ensure we are providing the highest standards of care,” said Susan L. Samson, M.D., Ph.D., FRCPC, FACE, Interim President Elect and Treasurer of AACE and an author of the guideline in AACE’s press release. “AACE has led the way with clinical knowledge of endocrinology since 1991, and I am proud that with this updated guideline, we can continue to be a proactive force in providing diabetes education, support and guidance.”4

 

The latest AACE guideline helps patients and their care teams better understand the treatments and resources available and equips them with the latest scientific evidence to aid critical decisions for optimal disease management,” said Amit Sharma, M.D., Vice President of Cardiovascular and Renal, U.S. Medical Affairs at Bayer. “AACE’s latest guideline update reinforces KERENDIA as a fundamental pillar in the treatment algorithm for preserving kidney function and providing dual cardiorenal risk reduction in chronic kidney disease associated with type 2 diabetes patients with a broad range of chronic kidney disease severity.”1,3

 

In a joint consensus statement released by the American Diabetes Association (ADA) and Kidney Disease: Improving Global Outcomes (KDIGO) earlier this month, the clinical bodies recommended inclusion of KERENDIA in the treatment regimen of patients with CKD associated with T2D who have an eGFR ≥25 mL/min/1.73 m2, normal serum potassium concentration and albuminuria (urine albumin-to-creatinine ratio ≥30 mg/g) despite maximum tolerated dose of RAS inhibitor.5

 

*Recommendations that are granted a grade A recommendation are based on strong evidence proven through clinical trials per the AACE protocols.1

**Recommendations with an A rating, the ADA’s highest recommendation, are based on large, well-designed clinical trials or well-done meta-analyses that have the best chance of improving outcomes. Generally, these recommendations have the best chance of improving outcomes when applied to the population to which they are appropriate.6

 

About AACE’s Clinical Practice Guideline: Developing a Diabetes Mellitus Comprehensive Care Plan—2022 Update

AACE guidelines are designed to elevate the practice of clinical endocrinology to benefit patients and are aimed at providing new evidence-based clinical practice recommendations for comprehensive care.1 The 2022 guideline features 170 updated and new evidence-based clinical practice recommendations for diabetes at every stage, including prevention, diagnosis and treatment.1 The 2022 guideline, updated from the 2015 guideline by a task force inclusive of medical experts and staff, synthesizes thousands of articles to provide health care professionals with the latest evidence-based information on the total care of diabetes.1 The 2022 update includes, among other topics, guidance on the use of newer antihyperglycemic therapies with enhanced safety and classes of drugs that reduce the risk of cardiovascular disease, heart failure and/or chronic kidney disease, independent of glycemic control.1

 

About KERENDIA (finerenone)

INDICATION:

  • KERENDIA is indicated to reduce the risk of sustained eGFR decline, end-stage kidney disease, cardiovascular death, non-fatal myocardial infarction, and hospitalization for heart failure in adult patients with chronic kidney disease (CKD) associated with type 2 diabetes (T2D).3

 

IMPORTANT SAFETY INFORMATION

CONTRAINDICATIONS:

  • Concomitant use with strong CYP3A4 inhibitors3
  • Patients with adrenal insufficiency3

 

WARNINGS AND PRECAUTIONS:

  • Hyperkalemia: KERENDIA can cause hyperkalemia. The risk for developing hyperkalemia increases with decreasing kidney function and is greater in patients with higher baseline potassium levels or other risk factors for hyperkalemia. Measure serum potassium and eGFR in all patients before initiation of treatment with KERENDIA and dose accordingly. Do not initiate KERENDIA if serum potassium is >5.0 mEq/L.3 

    Measure serum potassium periodically during treatment with KERENDIA and adjust dose accordingly. More frequent monitoring may be necessary for patients at risk for hyperkalemia, including those on concomitant medications that impair potassium excretion or increase serum potassium.3

 

MOST COMMON ADVERSE REACTIONS:

  • From the pooled data of 2 placebo-controlled studies, the adverse reactions reported in ≥1% of patients on KERENDIA and more frequently than placebo were hyperkalemia (14% vs 6.9%), hypotension (4.6% vs 3.9%), and hyponatremia (1.3% vs 0.7%).3

DRUG INTERACTIONS:

  • Strong CYP3A4 Inhibitors: Concomitant use of KERENDIA with strong CYP3A4 inhibitors is contraindicated. Avoid concomitant intake of grapefruit or grapefruit juice.3
  • Moderate and Weak CYP3A4 Inhibitors: Monitor serum potassium during drug initiation or dosage adjustment of either KERENDIA or the moderate or weak CYP3A4 inhibitor and adjust KERENDIA dosage as appropriate.3
  • Strong and Moderate CYP3A4 Inducers: Avoid concomitant use of KERENDIA with strong or moderate CYP3A4 inducers.3

USE IN SPECIFIC POPULATIONS:

  • Lactation: Avoid breastfeeding during treatment with KERENDIA and for 1 day after treatment.3
  • Hepatic Impairment: Avoid use of KERENDIA in patients with severe hepatic impairment (Child Pugh C) and consider additional serum potassium monitoring with moderate hepatic impairment (Child Pugh B).3

 

Please read the Prescribing Information for KERENDIA.

About Finerenone Phase III Clinical Trials Program

Having randomized more than 13,000 patients with CKD associated with T2D around the world, the Phase III program with finerenone in CKD associated with T2D comprises two studies, evaluating the effect of finerenone versus placebo on top of standard of care on both renal and CV outcomes.3

 

FIDELIO-DKD (FInerenone in reducing kiDnEy faiLure and dIsease prOgression in Diabetic Kidney Disease) and FIGARO-DKD (FInerenone in reducinG cArdiovascular moRtality and mOrbidity in Diabetic Kidney Disease) studies were randomized, double-blind, placebo-controlled, multicenter studies in adult patients with chronic kidney disease (CKD) associated with type 2 diabetes (T2D).3 In FIDELIO-DKD, patients needed to either have an UACR of 30 to < 300 mg/g, eGFR 25 to < 60 mL/min/1.73 m2 and diabetic retinopathy, or an UACR of ≥ 300 mg/g and an eGFR of 25 to < 75 mL/min/1.73 m2 to qualify for enrollment.3 In FIGARO-DKD, patients needed to have an UACR of 30 mg/g to < 300 mg/g and an eGFR of 25 to 90 mL/min/1.73 m2, or an UACR ≥ 300 mg/g and an eGFR ≥ 60 mL/min/1.73 m2.3

 

Both trials excluded patients with known significant non-diabetic kidney disease.3 All patients were to have a serum potassium ≤ 4.8 mEq/L at screening and be receiving standard of care background therapy, including a maximum tolerated labeled dose of an angiotensin-converting enzyme inhibitor (ACEi) or angiotensin receptor blocker (ARB).3 Patients with a clinical diagnosis of chronic heart failure with reduced ejection fraction and persistent symptoms (New York Heart Association class II to IV) were excluded.3 The starting dose of KERENDIA was based on screening eGFR (10 mg once daily in patients with an eGFR of 25 to < 60 mL/min/1.73 m2 and 20 mg once daily in patients with an eGFR ≥ 60 mL/min/1.73 m2).3 The dose of KERENDIA could be titrated during the study, with a target dose of 20 mg daily.3

 

The primary objective of the FIDELIO-DKD study was to determine whether KERENDIA reduced the incidence of a sustained decline in eGFR of ≥ 40%, kidney failure (defined as chronic dialysis, kidney transplantation, or a sustained decrease in eGFR to < 15 mL/min/1.73 m2), or renal death.3 The secondary outcome was a composite of time to first occurrence of CV death, non-fatal MI, non-fatal stroke or hospitalization for heart failure.3 The primary objective of the FIGARO-DKD study was to determine whether KERENDIA reduced the time to first occurrence of CV death, non-fatal MI, non-fatal stroke or hospitalization for heart failure.3 The secondary outcome was a composite of time to kidney failure, a sustained decline in eGFR of 40% or more compared to baseline over at least 4 weeks, or renal death.3

 

In FIDELIO-DKD, a total of 5674 patients were randomized to receive KERENDIA (N=2833) or placebo (N=2841) and were followed for a median of 2.6 years.3 The mean age of the study population was 66 years, and 70% of patients were male.3 This global trial population was 63% White, 25% Asian, and 5% Black (24% Black in the US).3 At baseline, the mean eGFR was 44 mL/min/1.73 m2, with 55% of patients having an eGFR < 45 mL/min/1.73 m2.3 Median urine albumin-to-creatinine ratio (UACR) was 852 mg/g, mean glycated hemoglobin A1c (HbA1c) was 7.7%, and the mean blood pressure was 138/76 mmHg.3 Approximately 46% of patients had a history of atherosclerotic cardiovascular disease and 8% had a history of heart failure.3 At baseline, 99.8% of patients were treated with an ACEi or ARB.3 Approximately 97% were on an antidiabetic agent (insulin [64.1%], biguanides [44%], glucagon-like peptide-1 [GLP-1] receptor agonists [7%], sodium-glucose cotransporter 2 [SGLT2] inhibitors [5%]), 74% were on a statin, and 57% were on an antiplatelet agent.3

 

In FIGARO-DKD, a total of 7352 patients were randomized to receive KERENDIA (N=3686) or placebo (N=3666) and were followed for 3.4 years.3 As compared to FIDELIO-DKD, baseline eGFR was higher in FIGARO-DKD (mean eGFR 68, with 62% of patients having an eGFR ≥ 60 mL/min/1.73 m2) and median UACR was lower (308 mg/g).3 Otherwise, baseline patient characteristics and background therapies were similar in the two trials.3

 

In FIDELIO-DKD, KERENDIA reduced the incidence of the primary composite endpoint of a sustained decline in eGFR of ≥ 40%, kidney failure, or renal death (HR 0.82, 95% CI 0.73-0.93, P=0.001).3 The treatment effect reflected a reduction in a sustained decline in eGFR of ≥ 40% and progression to kidney failure.3 There were few renal deaths during the trial. KERENDIA also reduced the incidence of the secondary composite endpoint of cardiovascular (CV) death, non-fatal myocardial infarction (MI), non-fatal stroke or hospitalization for heart failure (HR 0.86, 95% CI 0.75-0.99, P=0.034).3 The treatment effect reflected a reduction in CV death, non-fatal MI, and hospitalization for heart failure.3 The treatment effect on the primary and secondary composite endpoints was generally consistent across subgroups.3

 

In FIGARO-DKD, KERENDIA reduced the incidence of the primary composite endpoint of CV death, non-fatal MI, non-fatal stroke or hospitalization for heart failure (HR 0.87, 95% CI 0.76-0.98, P=0.026).3 The treatment effect was mainly driven by an effect on hospitalization for heart failure, though CV death also contributed to the treatment effect.3 The treatment effect on the primary composite endpoint was generally consistent across subgroups, including patients with and without pre-existing cardiovascular disease.3 The secondary composite outcome of kidney failure, sustained eGFR decline of 40% or more or renal death occurred in 350 patients (9.5%) in the finerenone group and in 395 (10.8%) in the placebo group (HR=0.87, 95% CI 0.76-1.01).3,7

 

The safety of KERENDIA was evaluated in 2 randomized, double-blind, placebo-controlled, multicenter pivotal phase 3 studies, FIDELIO-DKD and FIGARO-DKD, in which a total of 6510 patients were treated with 10 or 20 mg once daily over a mean duration of 2.2 and 2.9 years, respectively.3 Overall, serious adverse events occurred in 32% of patients receiving KERENDIA and in 34% of patients receiving placebo in the FIDELIO-DKD study; the findings were similar in the FIGARO-DKD study.3 Permanent discontinuations due to adverse events also occurred in a similar proportion of patients in the two studies (6-7% of patients receiving KERENDIA and in 5-6% of patients receiving placebo).3 From the pooled data of 2 placebo-controlled studies, the adverse reactions reported in ≥1% of patients on KERENDIA and more frequently than placebo were hyperkalemia (14% vs 6.9%), hypotension (4.6% vs 3.9%), and hyponatremia (1.3% vs 0.7%).3 The most frequently reported (≥ 10%) adverse reaction in both studies was hyperkalemia.3 Hospitalization due to hyperkalemia for the KERENDIA group was 0.9% vs 0.2% in the placebo group across both studies.3 Hyperkalemia led to permanent discontinuation of treatment in 1.7% receiving KERENDIA versus 0.6% of patients receiving placebo across both studies.3

 

About Chronic Kidney Disease Associated With Type 2 Diabetes

Patients with CKD associated with T2D are three times more likely to die from a CV-related cause than those with T2D alone.8 CKD is a serious and progressive condition that is generally underrecognized.9 CKD is a frequent complication arising from T2D and is also an independent risk factor of CV disease.10-12 Approximately 40% of all patients with T2D develop CKD.12 Despite guideline-directed therapies, patients with CKD associated with T2D remain at high risk of CKD progression and CV events.10,11,13,14 T2D is the leading cause of end-stage kidney disease, which requires dialysis or a kidney transplant to stay alive.15-17

 

About Bayer’s Commitment in Cardiovascular and Kidney Diseases

Bayer is an innovation leader in the area of cardiovascular diseases, with a long-standing commitment to delivering science for a better life by advancing a portfolio of innovative treatments. The heart and the kidneys are closely linked in health and disease, and Bayer is working in a wide range of therapeutic areas on new treatment approaches for cardiovascular and kidney diseases with high unmet medical needs. The cardiology franchise at Bayer already includes a number of products and several other compounds in various stages of preclinical and clinical development. Together, these products reflect the company’s approach to research, which prioritizes targets and pathways with the potential to impact the way that cardiovascular diseases are treated.

 

About Bayer

Bayer is a global enterprise with core competencies in the life science fields of health care and nutrition. Its products and services are designed to help people and the planet thrive by supporting efforts to master the major challenges presented by a growing and aging global population. Bayer is committed to drive sustainable development and generate a positive impact with its businesses. At the same time, the Group aims to increase its earning power and create value through innovation and growth. The Bayer brand stands for trust, reliability and quality throughout the world. In fiscal 2021, the Group employed around 100,000 people and had sales of 44.1 billion euros. R&D expenses before special items amounted to 5.3 billion euros. For more information, go to www.bayer.com.

 

Find more information at www.pharma.bayer.com.

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Forward-Looking Statements

This release may contain forward-looking statements based on current assumptions and forecasts made by Bayer management. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Bayer’s public reports which are available on the Bayer website at www.bayer.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

 

References:

  1. Blonde L, Umpierrez GE, McGill JB, et al. American Association of Clinical Endocrinology clinical practice guideline: developing a diabetes mellitus comprehensive care plan—2022 update. Endocr Pract. 2022;S1530-891X(22)00576-6. doi:10.1016/j.eprac.2022.08.002.
  2. ADA Professional Practice Committee. Addendum. 10. Cardiovascular disease and risk management: standards of medical care in diabetes—2022. Diabetes Care. 2022;45(suppl 1):S144-S174. doi:10.2337/dc22-ad08
  3. KERENDIA (finerenone) [prescribing information]. Whippany, NJ: Bayer HealthCare Pharmaceuticals, Inc.; September 2022.
  4. American Association of Clinical Endocrinology. Updated diabetes guideline released by the American Association of Clinical Endocrinology features the latest state-of-the-science in diabetes care. Accessed September 2022. https://www.prnewswire.com/news-releases/updated-diabetes-guideline-released-by-the-american-association-of-clinical-endocrinology-features-the-latest-state-of-the-science-in-diabetes-care-301633516.html
  5. de Boer IH, Khunti K, Sadusky T, et al. Diabetes management in chronic kidney disease: a consensus report by the American Diabetes Association (ADA) and Kidney Disease: Improving Global Outcomes (KDIGO). Diabetes Care. 2022:dci220027. doi:10.2337/dci22-0027.
  6. American Diabetes Association Professional Practice Committee. Chronic kidney disease and risk management: standards of medical care in diabetes—2017. Diabetes Care. 2017;40(suppl 1):S1-S2. https://doi.org/10.2337/dc17-S001
  7. Pitt B, Filippatos G, Agarwal R, et al. Cardiovascular events with finerenone in kidney disease and type 2 diabetes. N Engl J Med. 2021;385(24):2252-2263. doi:10.1056/NEJMoa2110956
  8. Afkarian M, Sachs MC, Kestenbaum B, et al. Kidney disease and increased mortality risk in type 2 diabetes. J Am Soc Nephrol. 2013;24(2):302-308.
  9. Breyer MD, Susztak K. Developing treatments for chronic kidney disease in the 21st century. Semin Nephrol. 2016;36(6):436-447.
  10. Anders HJ, Huber TB, Isermann B, et al. CKD in diabetes: diabetic kidney disease versus nondiabetic kidney disease. Nat Rev Nephrol. 2018;14:361-377.
  11. Thomas MC, Brownlee M, Susztak K, et al. Diabetic kidney disease. Nat Rev Dis Primers. 2015;1:1-20.
  12. Bailey RA, Wang Y, Zhu V, et al. Chronic kidney disease in US adults with type 2 diabetes: an updated national estimate of prevalence based on Kidney Disease: Improving Global Outcomes (KDIGO) staging. BMC Res Notes. 2014;7(1):415. doi:10.1186/1756-0500-7-415
  13. KDIGO 2012 clinical practice guideline for the evaluation and management of chronic kidney disease. Kidney Int. 2013;3:1-150. https://kdigo.org/guidelines/ckd-evaluation-and-management/
  14. American Diabetes Association. Standards of medical care in diabetes—2021. Diabetes Care. 2021;44(1):1-244.
  15. National Diabetes Statistics Report 2020: Estimates of Diabetes and Its Burden in the United States. Centers for Disease Control and Prevention. Accessed July 9, 2021. https://www.cdc.gov/diabetes/pdfs/data/statistics/national-diabetes-statistics-report.pdf
  16. Stages of CKD. American Kidney Fund. Accessed May 11, 2021. https://www.kidneyfund.org/kidney-disease/chronic-kidney-disease-ckd/stages-of-chronic-kidney-disease/
  17. United States Renal Data System. USRDS Annual Data Report. National Institutes of Health, National Institute of Diabetes and Digestive and Kidney Diseases; 2020. Accessed November 2021. https://adr.usrds.org/2020/chronic-kidney-disease/6-healthcare-expenditures-for-persons-with-ckd

Contacts

Media:
Elaine Colón
Tel. +1 732-236-1587
Email: elaine.colon@bayer.com