Navigating the fine line between innovation and affordability: Insights from Johnson & Johnson global CEO

MedTech & Diagnostics News: In an exclusive peek behind the scenes at Johnson & Johnson, the world’s largest and most diversified healthcare company, Managing Director of J&J MedTech Australia and New Zealand, Susan Martin, sat down with Chairman and Chief Executive Officer of Johnson and Johnson, Joaquin Duato, for a fireside chat at the MTAA’s MedTech ’23 Annual Conference.

Mr Duato, who has been with Johnson & Johnson for over three decades, expressed his enthusiasm for the medical technology industry and the opportunities it presents. “I find medtech fascinating, intellectually stimulating. It combines multiple disciplines – biology, medical knowledge, engineering, material science, digital software,” he said.

He highlighted the convergence of pharmaceuticals and medical technology, noting that they share many commonalities, such as similar diseases, regulatory agencies, and payers. “I believe that over time, the fact that Johnson and Johnson has capabilities on both sides is going to put us in a better place to shape the practice of medicine and to be more meaningful in our impact for patients,” he emphasised.

Mr Duato also touched on the significant role technology is playing in the medtech industry.

“In a very short period of time, most of our medical devices are going to have some type of a smart component that is going to help us better treat patients,” he said.

The conversation turned to the impact of COVID-19 on healthcare systems and the importance of healthcare innovation. Mr Duato noted that strong healthcare systems are crucial for societies and highlighted the role of innovation in addressing medical challenges, particularly during a crisis like a pandemic.

On the topic of access to new health technologies, he acknowledged the ongoing tension between innovation and affordability. However, he stressed that the ability to navigate this tension depends on factors such as the meaningfulness of innovation, responsible pricing policies, and the need for global pricing policies that consider different countries’ economic conditions.

He also stressed the importance of demonstrating the clinical value of novel medical interventions through long-term studies and shaping health technology assessment (HTA) systems.

“We need to be able to account for multiple benefits that are not considered by the assessment systems. So working shaping how the degree assessment system work, if we are able to deliver a strong data use defining the clinical value of our intervention, and we work in trying to shape the assessment systems. I’m not going to tell you that the the inherent tension is going to disappear, but we are going to be able to be more successful,” he explained.

Mr Duato concluded the discussion by expressing his excitement for the future of the medtech sector, stating, “I am convinced that we are at the starting point of our golden era for medical technology innovation.”

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