嬌生 (JNJ) 2005 Q3 法說會逐字稿

Good morning and welcome to the Johnson & Johnson third-quarter 2005 earnings conference call. All participants will be able to listen only until the question-and-answer session of the conference. This call is being recorded. (OPERATOR INSTRUCTIONS) I would now like to turn the conference over to Johnson & Johnson. You may begin.

早上好，歡迎參加強生公司 2005 年第三季度財報電話會議。所有參與者只能在會議的問答環節之前收聽。正在錄製此通話。 （操作員說明）我現在想把會議交給強生公司。你可以開始了。

Good morning. I am Helen Short, Vice President of Investor Relations for Johnson & Johnson, and it is my pleasure this morning to review our business results for the third quarter of 2005. With me on the call today is Bob Darretta, Vice Chairman and Chief Financial Officer of Johnson & Johnson; Mike Dormer, worldwide Chairman Medical Devices and Nick Valeriani worldwide Chairman Cardiovascular Devices and Diagnostics. Also with us on today's call is Louise Mehrotra. We recently announced that Louise is replacing me as Vice President of Investor Relations. We are working together to ensure a smooth transition prior to my retirement in early 2006. Louise is looking forward to meeting many of you at our January meeting in New York City if not before.

早上好。我是強生公司投資者關係副總裁 Helen Short，今天上午我很高興回顧我們 2005 年第三季度的業務成果。今天與我通話的是副董事長兼首席財務官 Bob Darretta強生公司；醫療器械全球主席 Mike Dormer 和心血管器械和診斷全球主席 Nick Valeriani。與我們一起參加今天電話會議的還有 Louise Mehrotra。我們最近宣布 Louise 將接替我擔任投資者關係副總裁。我們正在共同努力確保在我 2006 年初退休之前順利過渡。路易絲期待著在我們 1 月份在紐約市舉行的會議上與你們中的許多人會面，如果不是之前的話。

A few logistics before we get into the details. This review is also available to a broader audience via webcast accessible through the Investor Relations portion of the Johnson & Johnson Internet site. Attached to the copy of the press release that was sent to the investment community earlier this morning is the schedule showing sales for major products and/or business franchises to facilitate in updating your models. These are also available on the J&J website as is the press release. I will review highlights of the third-quarter 2005 results for the total Company and the three business segments. Following additional remarks from Bob Darretta, Mike Dormer and Nick Valeriani will provide an overview of our medical devices and diagnostics businesses. We will then open the call to your questions. We expect the total call to last approximately 90 minutes.

在我們進入細節之前有一些物流。更廣泛的受眾也可以通過強生公司網站的投資者關係部分訪問的網絡廣播獲得此評論。今天上午早些時候發送給投資界的新聞稿副本附有時間表，其中顯示了主要產品和/或業務特許經營權的銷售情況，以促進更新您的模型。這些也可以在強生網站和新聞稿中找到。我將回顧整個公司和三個業務部門的 2005 年第三季度業績亮點。在 Bob Darretta、Mike Dormer 和 Nick Valeriani 發表補充評論後，將概述我們的醫療設備和診斷業務。然後，我們將打開您的問題的電話。我們預計總通話將持續大約 90 分鐘。

Before I get into the results let me remind you that some of the statements made during this call may be considered forward-looking statements. The 10-K for the fiscal year 2004 identifies certain factors that could cause the Company's actual results to differ materially from those projected in any forward-looking statements made during this call. The 10-K and subsequent filings are available through the Company or online. Last item during the call non-GAAP financial measures may be used to provide information pertinent to ongoing business performance. These measures are reconciled to the GAAP measures and are available on the J&J website.

在我進入結果之前，讓我提醒您，本次電話會議期間所做的一些陳述可能被視為前瞻性陳述。 2004 財年的 10-K 確定了可能導致公司的實際結果與本次電話會議期間作出的任何前瞻性陳述中預測的結果大不相同的某些因素。 10-K 及後續文件可通過公司或在線獲得。電話會議期間的最後一項非公認會計原則財務措施可用於提供與持續經營業績相關的信息。這些措施與公認會計原則措施一致，可在強生網站上查閱。

Now I would like to review our results for the third quarter of 2005. If you refer to your copy of the press release, let's begin with the schedule titled Supplementary Sales Data. Worldwide sales to customers were $12.3 billion for the third quarter of 2005, an increase of 6.6% as compared to the third quarter of 2004. Our operational growth was 5.8%, and we benefited from a positive currency impact of 0.8 points.

現在我想回顧一下我們 2005 年第三季度的業績。如果您參考您的新聞稿副本，讓我們從標題為補充銷售數據的時間表開始。 2005 年第三季度全球客戶銷售額為 123 億美元，與 2004 年第三季度相比增長 6.6%。我們的運營增長為 5.8%，我們受益於 0.8 個百分點的積極貨幣影響。

If you now turn to the schedule showing sales by geographic area, you can see that the U.S. grew by 2.6%. In regions outside the U.S. our operational growth was 10.3%. The effect of currency exchange rates added 1.9 points of growth to our international results. Strong growth was achieved in all markets outside the U.S. with especially strong growth of nearly 13% in the Asia-Pacific Africa region.

如果您現在查看按地理區域顯示銷售額的時間表，您會看到美國增長了 2.6%。在美國以外的地區，我們的運營增長率為 10.3%。貨幣匯率的影響為我們的國際業績增加了 1.9 個百分點。美國以外的所有市場都實現了強勁增長，尤其是亞太非洲地區近 13% 的強勁增長。

If you will now turn to the consolidated statement of earnings, please direct your attention to the boxed portion of the schedule that excludes special charges. I am pleased to report net earnings of $2.6 billion and earnings per share of $0.87, representing increases of 11.6% and 11.5%, respectively as compared to the third quarter of 2004. Some comments relative to earnings before we move to the segment highlights.

如果您現在將轉向綜合收益表，請注意附表中不包括特殊費用的方框部分。我很高興地報告淨收益為 26 億美元，每股收益為 0.87 美元，與 2004 年第三季度相比分別增長了 11.6% 和 11.5%。在我們轉向該細分市場之前，一些關於收益的評論突出顯示。

Cost of goods sold at 27.1% is a 50 basis point improvement as compared to the same period in 2004. This improvement is primarily in our medical devices and diagnostic segments related to positive mix as well as ongoing cost containment activities. Selling, marketing and administrative expenses at 33.1% of sales represent a modest improvement of 20 basis point as compared to the same period in 2004. The rate of spending in research and development was 12.2% of sales for the third quarter of 2005, 180 basis points higher than the same period in 2004. Our investment in research and development reflects the significant number of projects in late stage development that we discussed with you this past May, and our commitment to aggressively bringing these and future products to the market in a timely fashion.

與 2004 年同期相比，27.1% 的商品銷售成本提高了 50 個基點。這一提高主要體現在與積極組合相關的醫療器械和診斷領域以及正在進行的成本控制活動。銷售、營銷和管理費用佔銷售額的 33.1%，與 2004 年同期相比略有提高 20 個基點。2005 年第三季度，研發支出佔銷售額的 12.2%，180 個基點比 2004 年同期高出幾個百分點。我們在研發方面的投資反映了我們在今年 5 月與您討論的大量後期開發項目，以及我們致力於及時將這些和未來產品推向市場的承諾時尚。

Looking at year-to-date nine-month data, consolidated sales to customers for the first three quarters of 2005 were $37.9 billion, an increase of 9.6% over sales of $34.6 billion for the same period a year ago. On a year-to-date basis operational growth was 7.9% with an additional 1.7 points attributable to the weakness of the U.S. dollar relative to foreign currencies.

從年初至今的九個月數據來看，2005 年前三個季度對客戶的綜合銷售額為 379 億美元，比去年同期的 346 億美元增長了 9.6%。年初至今的運營增長為 7.9%，另外 1.7 個百分點歸因於美元相對於外幣的疲軟。

On the consolidated statement of year-to-date earnings I would first like to draw your attention to the boxed section, excluding charges for in process research and development as well as the adjustment to the tax reserve related to a technical correction associated with the American Jobs Creation Act of 2004 net earnings for the first nine months of 2005 were $8.4 billion or $2.77 per share, up 14.4% and 14%, respectively as compared to the same period in 2004.

關於年初至今的綜合收益表，我首先想提請您注意方框部分，不包括進行中的研發費用以及與美國技術修正相關的稅收儲備調整2004 年就業創造法案 2005 年前九個月的淨收益為 84 億美元或每股 2.77 美元，與 2004 年同期相比分別增長 14.4% 和 14%。

Turning now to business segment highlights for the third quarter, let's begin with the consumer segment. Worldwide consumer segment sales grew 10.2% in the third quarter of 2005 with 1.7 points of the growth coming from the effective currency movements. U.S. sales were up 5.1% and international sales were up a very strong 12.1% operationally. As I mentioned at the end of the first quarter, in January we reclassified a group of over-the-counter pharmaceutical products that had previously been reflected in our pharmaceutical segment results outside the United States to our McNeil over-the-counter business, again outside the United States. This reclassification contributed approximately 160 basis points to the growth in the consumer segment, 560 basis points to the McNeil over-the-counter and nutritionals results and reduced the pharmaceutical segment growth by about 50 basis points.

現在轉向第三季度的業務部門亮點，讓我們從消費者部門開始。 2005 年第三季度全球消費類銷售額增長了 10.2%，其中 1.7 個百分點的增長來自有效的貨幣變動。美國銷售額增長了 5.1%，國際銷售額增長了 12.1%，非常強勁。正如我在第一季度末提到的那樣，在 1 月份，我們再次將之前反映在我們在美國以外的製藥部門業績中的一組非處方藥產品重新分類為我們的 McNeil 非處方藥業務在美國以外。這種重新分類為消費者部門的增長貢獻了大約 160 個基點，為 McNeil 的非處方藥和營養品結果貢獻了 560 個基點，並使製藥部門的增長減少了約 50 個基點。

Our adult skin and hair care business continued to show solid growth with operational sales up 13% in the third quarter of 2005. Currency contributed approximately 1 point to bring total growth to 14%. In the U.S. solid performances from our Neutrogena and RoC brands complemented by very strong results with Aveeno were the major drivers of growth in the third quarter. New products launched throughout 2005 continue to drive the growth in our skin care franchise. Outside the U.S. the major drivers of growth in the third quarter were Johnson's adult products, Neutrogena and Clean & Clear.

我們的成人皮膚和頭髮護理業務繼續保持穩健增長，2005 年第三季度的營業銷售額增長了 13%。貨幣貢獻了大約 1 個百分點，使總增長達到 14%。在美國，我們的 Neutrogena 和 RoC 品牌的穩健表現加上 Aveeno 的強勁業績是第三季度增長的主要驅動力。 2005 年全年推出的新產品繼續推動我們護膚系列的增長。在美國以外，第三季度增長的主要驅動力是強生的成人用品、露得清和 Clean & Clear。

Baby and kids care products grew on an operational basis 7% in the third quarter, led by strong growth in markets outside the United States. Growth of 8% outside the U.S. was driven by continued success with the soft lotion products, hair care products and the Bathtime Buddies line of cleansers. More modest growth of 3% in the U.S. was led by positive results with Bathtime Buddies and the babycenter.com.

在美國以外市場的強勁增長帶動下，第三季度嬰兒和兒童護理產品的運營增長了 7%。美國以外地區增長了 8%，這得益於柔軟乳液產品、護髮產品和 Bathtime Buddies 系列清潔劑的持續成功。 Bathtime Buddies 和 babycenter.com 的積極成果引領了美國 3% 的溫和增長。

The McNeil over-the-counter and nutritionals franchise had operational growth of 11% for the third quarter. As I mentioned earlier, approximately 6 points were contributed by a reclassification of the over-the-counter products previously reflected in the pharmaceutical segment. Contributors to the positive results in the quarter were the continued growth in Splenda, our no calorie sweetener, where tabletop share in the U.S. came in at 57% in the third quarter, up 6 points from the same period last year and several new product launches in the adult and pediatric analgesics lines. This growth was partially offset by the negative impact of restrictions implemented on products containing pseudoephedrine. McNeil supports the actions to control the inappropriate use of pseudoephedrine and is in the process of reformulating our products that contain this ingredient. McNeil will maintain a limited number of products containing pseudoephedrine for behind-the-counter sales.

麥克尼爾非處方藥和營養品特許經營權第三季度的運營增長了 11%。正如我之前提到的，大約 6 分來自對先前反映在製藥領域的非處方產品的重新分類。本季度取得積極成果的貢獻者是我們的無卡路里甜味劑 Splenda 的持續增長，第三季度在美國的桌面份額為 57%，比去年同期增長 6 個百分點，並且推出了幾款新產品在成人和兒科止痛藥系列中。這一增長被對含偽麻黃鹼產品實施限制的負面影響部分抵消。麥克尼爾支持控制不當使用偽麻黃鹼的行動，並且正在重新配製含有這種成分的產品。 McNeil 將保留數量有限的含有偽麻黃鹼的產品，用於櫃檯後銷售。

Our women's health franchise, which consists primarily of internal and external sanitary protection and the K-Y and Monistat lines achieved operational growth of 5% when compared to the second quarter of 2004. New products in the K-Y line fueled the U.S. growth of 4%. Outside the U.S. operational sales growth of 5% was the result of strong performance from the external sanitary protection line. That concludes the consumer segment commentary. Next, I will review the pharmaceutical segment results.

與 2004 年第二季度相比，我們主要包括內部和外部衛生保護的女性健康專營權以及 K-Y 和 Monistat 線實現了 5% 的運營增長。K-Y 線的新產品推動了美國 4% 的增長。美國以外地區的營業銷售額增長 5% 是外部衛生防護產品線強勁表現的結果。消費者部分的評論到此結束。接下來，我將回顧醫藥板塊的業績。

Worldwide net sales for the third quarter of $5.5 billion were down 1.1% on an operational basis as compared to the same period in 2004. Positive currency contributed 0.6 points, resulting in a reported decline of a 0.5%. U.S. sales were positively impacted by a refund of approximately $80 million due to a retroactive change in the methodology used to calculate average manufacturing price for Medicaid charges. The product most impacted by this adjustment was Risperdal. Excluding this onetime gain sales in the United States declined by approximately 7%. Outside the U.S. sales increased on an operational basis by 6%.

與 2004 年同期相比，第三季度全球淨銷售額為 55 億美元，在運營基礎上下降了 1.1%。正貨幣貢獻了 0.6 個百分點，導致報告的下降 0.5%。由於用於計算醫療補助費用平均製造價格的方法發生追溯變化，大約 8000 萬美元的退款對美國銷售產生了積極影響。受此調整影響最大的產品是利培酮。不包括這一一次性收益，美國的銷售額下降了約 7%。美國以外的銷售額在運營基礎上增長了 6%。

Generic competition in the U.S. market significantly impacted the year-to-year comparisons for DURAGESIC, ULTRACET and SPORANOX. The combined effect on the U.S. sales results for these three products was an approximately 5 point reduction to the third-quarter 2005 worldwide pharmaceutical sales and approximately 8 point reduction to the U.S. sales.

美國市場的通用競爭顯著影響了 DURAGESIC、ULTRACET 和 SPORANOX 的年度比較。這三種產品對美國銷售結果的綜合影響是使 2005 年第三季度全球藥品銷售額減少約 5 個百分點，使美國銷售額減少約 8 個百分點。

PROCRIT and EPREX performance continue to be adversely affected by competition. Combined these two products had an operational decline of 5%. PROCRIT declined by 6% while EPREX declined operationally by 3%. Volumes associated with share loss to competitive products was the primary driver of the decline. PROCRIT share was approximately 49% in the third quarter of 2005 as compared to a 57% share in the third quarter of 2004. Clinical evidence supporting significantly higher hemoglobin response rates to PROCRIT was recently published in the Oncologist.

PROCRIT 和 EPREX 的表現繼續受到競爭的不利影響。這兩種產品加起來的運營下降了 5%。 PROCRIT 下降了 6%，而 EPREX 的運營下降了 3%。與競爭產品的份額損失相關的銷量是下降的主要驅動力。與 2004 年第三季度的 57% 相比，PROCRIT 的份額在 2005 年第三季度約為 49%。最近在 Oncologist 上發表了支持對 PROCRIT 顯著提高血紅蛋白反應率的臨床證據。

Though not a product that we disclose sales for, I will mention that we've experienced a significant decline in demand for NATRECOR. This product has been affected by the recent negative public press regarding a netted analysis of selected historical clinical trials conducted with NATRECOR. It is important to note that there has been no date driving the recent medical and consumer publications. The data currently being discussed were reviewed by the Cardio Renal Advisory Committee and the FDA at the time of approval. And the currently approved label reflects all available data to date.

雖然不是我們披露銷售的產品，但我要提到的是，我們對 NATRECOR 的需求已顯著下降。該產品受到最近關於使用 NATRECOR 進行的選定歷史臨床試驗的淨分析的負面公眾新聞的影響。值得注意的是，沒有日期推動最近的醫學和消費者出版物。目前正在討論的數據在批准時由心腎諮詢委員會和 FDA 審查。目前批准的標籤反映了迄今為止的所有可用數據。

It is also important to note that despite widespread press suggesting that the vast majority of the demand for the product was in serial outpatient use, fully 95% of all sales for the product since its launch has been to hospitals. Though we are dismayed by the impact this reporting of retrospective analysis has had on patience and the acute heart failure clinical community, we remain committed to this brand. As such, we took the step of assembling an expert panel to review the available data and our clinical development plans for the product, and we made the panel's recommendations public. In addition we had an ongoing dialogue with the FDA. Both the panel and FDA support the continued appropriate use of NATRECOR.

同樣重要的是要注意，儘管廣泛的媒體表明對該產品的絕大多數需求是在連續門診使用的，但該產品自推出以來的所有銷售額中，整整 95% 都是針對醫院的。儘管我們對回顧性分析報告對耐心和急性心力衰竭臨床社區的影響感到沮喪，但我們仍然致力於這個品牌。因此，我們採取了組建專家小組的步驟來審查可用數據和我們的產品臨床開發計劃，並將專家組的建議公開。此外，我們與 FDA 進行了持續對話。專家組和 FDA 都支持繼續適當使用 NATRECOR。

With that, let me move on to discuss some of our positive contributors. A number of important products in our pharmaceutical business provided strong growth in the third quarter, specifically Risperdal, Remicade, TOPAMAX and LEVAQUIN. Risperdal, our agent for psychotic disorders had operational growth of 22% when compared to the same period a year ago. As I mentioned earlier, Risperdal benefited from a Medicaid rebate adjustment. When adjusted for this onetime benefit, operational growth was still a very strong 16%. U.S. growth excluding this adjustment was 11% while operational growth outside the U.S. was 23%. Sales in all markets benefited from continued success with Risperdal Consta, our long-acting injectable formulation achieved third-quarter sales of $161 million. Risperdal Consta is now approved in more than 70 countries around the world. Continued country approvals outside the U.S. for the use of Risperdal in bipolar mania as well as disruptive behavioral disturbances in both the elderly and children have also been a key factor in product growth.

有了這個，讓我繼續討論我們的一些積極貢獻者。我們製藥業務中的一些重要產品在第三季度實現了強勁增長，特別是利培酮、Remicade、TOPAMAX 和 LEVAQUIN。與一年前同期相比，我們的精神病藥物 Risperdal 的業務增長了 22%。正如我之前提到的，Risperdal 受益於醫療補助回扣調整。在針對這一一次性收益進行調整後，運營增長仍然非常強勁，達到了 16%。不包括此次調整的美國增長為 11%，而美國以外的運營增長為 23%。所有市場的銷售都受益於 Risperdal Consta 的持續成功，我們的長效注射劑配方在第三季度實現了 1.61 億美元的銷售額。 Risperdal Consta 現已在全球 70 多個國家獲得批准。在美國以外的國家繼續批准使用利培酮治療雙相躁狂症以及老年人和兒童的破壞性行為障礙也是產品增長的關鍵因素。

Remicade, a biologic approved for the treatment of a number of immune mediated inflammatory diseases grew by 15% when compared to the third quarter of 2004. Growth in the U.S. was 12% while sales to our partners for markets outside the U.S. grew by 27%. Strong market growth in the anti TNF category continues to be fueled by new uses such as psoriasis, psoriatic arthritis and now ulcerative colitis. In September Remicade received FDA approval for the treatment of ulcerative colitis, its 10th approved indication. Remicade is the first and only biologic approved for this indication. On September 2nd Centocor filed a supplemental biologic application to the FDA for the use of Remicade in the treatment of psoriasis. In early October the European Commission granted approval of Remicade for the treatment of moderate to severe plaque psoriasis.

與 2004 年第三季度相比，被批准用於治療多種免疫介導炎症性疾病的生物製劑 Remicade 增長了 15%。在美國的增長為 12%，而對我們合作夥伴在美國以外市場的銷售額增長了 27% .抗 TNF 類別的強勁市場增長繼續受到銀屑病、銀屑病關節炎和現在的潰瘍性結腸炎等新用途的推動。 9 月，Remicade 獲得 FDA 批准用於治療潰瘍性結腸炎，這是其第 10 個批准的適應症。 Remicade 是第一個也是唯一一個獲批用於該適應症的生物製劑。 9 月 2 日，Centocor 向 FDA 提交了一份補充生物製劑申請，要求使用 Remicade 治療銀屑病。 10 月初，歐盟委員會批准了 Remicade 用於治療中度至重度斑塊型銀屑病。

TOPAMAX achieved operational growth of 17% with growth in the U.S. of 14% and operational growth outside the U.S. of 26%. TOPAMAX is approved for use in the treatment of epilepsy and migraine prophylaxsis. The migraine prevention indication continues to be a key growth driver in all markets. TOPAMAX is now approved for migraine prevention in 41 countries worldwide. Anti infectives grew 23% operationally during the third quarter, driven by strong results with LEVAQUIN. LEVAQUIN benefited from strong market growth as well as an additional FDA approval in August for short course treatment of acute bacterial sinusitis. That completes highlights for the pharmaceutical segment. I will now review highlights for medical devices and diagnostics.

TOPAMAX 實現了 17% 的運營增長，其中美國的增長為 14%，美國以外的運營增長為 26%。 TOPAMAX 被批准用於治療癲癇和偏頭痛的預防。偏頭痛預防跡象仍然是所有市場的主要增長動力。 TOPAMAX 現在在全球 41 個國家被批准用於預防偏頭痛。受 LEVAQUIN 強勁業績的推動，第三季度抗感染藥物的運營增長了 23%。 LEVAQUIN 受益於強勁的市場增長以及 8 月 FDA 批准用於急性細菌性鼻竇炎的短期治療。這完成了製藥領域的亮點。我現在將回顧醫療設備和診斷的亮點。

Worldwide the medical devices and diagnostic segment sales to customers were $4.6 billion, representing operational growth of 13.7% in the third quarter of 2005. Currency contributed 0.6 points to bring reported growth to a total of 14.3% with similar rates of growth in and outside the United States. Let me start with some discussion about the results of our Cordis business, which was a major contributor to the overall segment growth. Cordis achieved operational growth of 31% as compared to the same period last year. In the U.S. sales grew by 22% while sales outside the U.S. achieved operational growth of 43%. Cypher, our Sirolimus-eluting stent, the worldwide leader in the drug eluding stent market was the major driver. Cypher sales in the U.S. were $347 million, representing 46% of the U.S. drug-eluting stent market. This represents a substantial increase from the third quarter of 2004 when our U.S. share was at 35%. Strong clinical evidence supporting the benefits of Cypher has been the major driver behind Cypher's continued success.

2005 年第三季度，全球醫療器械和診斷部門對客戶的銷售額為 46 億美元，運營增長率為 13.7%。貨幣貢獻了 0.6 個百分點，使報告的增長率達到 14.3%，與國內外的增長率相似。美國。讓我先討論一下我們的 Cordis 業務的結果，它是整體細分市場增長的主要貢獻者。與去年同期相比，康得思實現了 31% 的運營增長。美國的銷售額增長了 22%，而美國以外的銷售額實現了 43% 的運營增長。我們的西羅莫司洗脫支架 Cypher 是藥物洗脫支架市場的全球領導者，是主要驅動力。 Cypher 在美國的銷售額為 3.47 億美元，占美國藥物洗脫支架市場的 46%。與 2004 年第三季度相比，我們在美國的份額為 35% 時大幅增加。支持 Cypher 益處的強有力的臨床證據一直是 Cypher 持續成功的主要驅動力。

Cypher sales outside the U.S. were $309 million, representing an estimated 60% share of the international drug-eluting stent market. Our Cypher sales in Japan where we are alone in the drug eluting stent market were $115 million, while our sales in the other markets outside the U.S. were $194 million. Our share of the drug-eluting stent market outside the U.S. excluding Japan (technical difficulty) slightly from the second quarter. In the third quarter a new competitor entered the drug-eluting stent market. We estimate that they have captured approximately 2% of the international market excluding Japan. Market acceptance of drug-eluting stents has been a key contributor to overall growth in markets outside the U.S.

Cypher 在美國以外的銷售額為 3.09 億美元，約佔國際藥物洗脫支架市場 60% 的份額。我們在日本的 Cypher 銷售額是 1.15 億美元，而我們在美國以外的其他市場的銷售額為 1.94 億美元。我們在除日本以外的美國以外的藥物洗脫支架市場份額（技術難度）與第二季度相比略有下降。第三季度，一個新的競爭對手進入了藥物洗脫支架市場。我們估計他們已經佔領了除日本以外的大約 2% 的國際市場。藥物洗脫支架的市場接受度一直是美國以外市場整體增長的關鍵因素。

In the third quarter our Cordis Endovascular Group acquired LuMend Inc., a privately held company focused on the development of chronic total occlusion devices to treat peripheral vascular disease. In addition, the Biosense Webster business also had an excellent quarter with 18% operational growth, led by strong results with navigational catheter products. During the quarter Biosense Webster received approval for the NAVISTAR RMT steerable tip diagnostic catheter and the CARTO RMT EP navigation system enabling the release of our first robotically steered electrophysiology catheter in the U.S.

在第三季度，我們的 Cordis Endovascular Group 收購了 LuMend Inc.，這是一家專注於開發治療外周血管疾病的慢性全閉塞裝置的私營公司。此外，Biosense Webster 業務也有一個出色的季度，運營增長 18%，這主要得益於導航導管產品的強勁業績。在本季度，Biosense Webster 獲得了 NAVISTAR RMT 可操縱尖端診斷導管和 CARTO RMT EP 導航系統的批准，使我們能夠在美國發布我們的第一個機器人操縱的電生理導管。

That concludes my comments on Cordis; I will move onto other franchises in the segment. Our DePuy franchise had strong operational growth of 13% when compared to the same period in 2004 with the U.S. growing 15% and the business outside the U.S. growing operationally by 10%. Solid operational growth of nearly 15% in joint reconstruction was the result of knees growing operationally by 16% while hips grew by 11%. Our success from national direct to consumer advertising campaign was a major contributor to the strong category growth. DePuy Spine grew operationally by 15% with CHARITE, our artificial lumbar disc contributing approximately 6 points of this growth. Mitek sports medicine products had strong operational growth of 13% with strong results in tissue management, anchors and knee systems.

我對 Cordis 的評論到此結束；我將轉向該領域的其他特許經營權。與 2004 年同期相比，我們的 DePuy 特許經營業務增長了 13%，其中美國增長了 15%，美國以外的業務增長了 10%。關節重建中近 15% 的穩健運營增長是膝關節運營增長 16% 而臀部增長 11% 的結果。我們從全國直接到消費者的廣告活動的成功是強勁的類別增長的主要貢獻者。 DePuy Spine 與 CHARITE 一起運營增長了 15%，我們的人工腰椎間盤貢獻了大約 6 個百分點的增長。 Mitek 運動醫學產品的運營增長強勁，達到 13%，在組織管理、錨和膝關節系統方面取得了強勁的業績。

ETHICON achieved worldwide operational growth of 7% in the third quarter as compared to the same period in 2004 paced by U.S. sales growth of 12%. Sales outside the U.S. grew by 5% operationally. A key contributor to the growth in the quarter was continued penetration with several suture and mesh products, including VICRYL Plus, our antibacterial coated suture, PROCEED tissue-separating mesh and the MultiPass Needle. Solid results from CardioVations, GYNECARE and the wound management business units all contributed to the growth in the third quarter.

與 2004 年同期相比，ETHICON 在第三季度實現了 7% 的全球運營增長，美國銷售額增長了 12%。美國以外的銷售額在運營上增長了 5%。本季度增長的一個關鍵因素是多種縫合線和網片產品的持續滲透，包括 VICRYL Plus、我們的抗菌塗層縫合線、PROCEED 組織分離網片和 MultiPass Needle。 CardioVations、GYNECARE 和傷口管理業務部門的穩健業績都為第三季度的增長做出了貢獻。

Ethicon Endo-Surgery achieved operational growth of 7% in the third quarter of 2005 as compared to the same period in 2004. U.S. growth was 6% with operational growth of 8% outside the U.S. Endo-cutter sales, a key product in performing bariatric procedures as well as strong contributions from our Harmonic Scalpel and CONTOUR. CONTOUR is a (indiscernible) cutter stapler for colorectal surgery were the primary growth drivers in the third quarter. Solid performance of the advanced sterilization productlines related to the growing installed base of STERRAD systems was also a significant contributor to the results in the quarter.

與 2004 年同期相比，Ethicon Endo-Surgery 在 2005 年第三季度實現了 7% 的運營增長。美國增長為 6%，美國以外的運營增長為 8%。Endo-cutter 銷售是執行減肥治療的關鍵產品我們的 Harmonic Scalpel 和 CONTOUR 的程序以及強大的貢獻。 CONTOUR 是一款用於結直腸手術的（聽不清）切刀吻合器，是第三季度的主要增長動力。與 STERRAD 系統不斷增長的安裝基礎相關的先進滅菌產品線的穩健表現也是本季度業績的重要貢獻者。

LifeScan achieved operational growth of 9% in the third quarter of 2005 as compared to the same period in 2004. Growth in the U.S. market was a strong 13% with operational growth outside the U.S. of 5%. Growth outside the U.S. was negatively impacted by a sharp reduction in channel inventory. OneTouch Ultra has been the major driver of growth both in and outside the U.S. LifeScan holds U.S. market leadership with strip share of 34.8% as of the second quarter of 2005.

與 2004 年同期相比，LifeScan 在 2005 年第三季度實現了 9% 的運營增長。美國市場的增長強勁，達到 13%，美國以外的運營增長為 5%。美國以外的增長受到渠道庫存急劇減少的負面影響。 OneTouch Ultra 一直是美國國內外增長的主要驅動力。LifeScan 以 34.8% 的剝離份額在 2005 年第二季度佔據美國市場的領導地位。

Ortho clinical diagnostics achieved operational growth of 10% in the third quarter of 2005 led by the U.S. growing a very strong 14%. International growth was 6% operationally. Key contributors to the strong growth were continued global market penetration of the automated blood bank products and continued growth of the ECI equipment base. Our vision care franchise achieved a third quarter operational sales increase of 12%. Growth was strong both in and outside the United States; with the U.S. growing by 14% and the international markets growing 12%. U.S. results were driven by the strong growth of ACUVUE ADVANCE with HYDRACLEAR, the third quarter launch of ACUVUE OASYS with HYDRACLEAR Plus for tired and dry eyes, and continued success with ACUVUE ADVANCE for astigmatism which was launched in the first quarter of 2005. Outside the U.S. the key driver was continued strong growth in Japan and other markets in the Asia-Pacific region with One Day ACUVUE and One Day ACUVUE define (ph), as well as the September launch of ACUVUE Moist in Japan. ACUVUE Moist is a new One Day product with the added benefit of HYDRACLEAR.

Ortho 臨床診斷在 2005 年第三季度實現了 10% 的運營增長，其中美國以非常強勁的 14% 增長。國際業務增長為 6%。強勁增長的主要貢獻者是自動化血庫產品的持續全球市場滲透和 ECI 設備基礎的持續增長。我們的視力保健業務在第三季度實現了 12% 的營業銷售額增長。美國境內外增長強勁；美國增長 14%，國際市場增長 12%。美國業績的推動因素是 ACUVUE ADVANCE 與 HYDRACLEAR 的強勁增長，第三季度推出的 ACUVUE OASYS 與 HYDRACLEAR Plus 用於眼睛疲勞和乾澀，以及 2005 年第一季度推出的用於散光的 ACUVUE ADVANCE 繼續取得成功。美國的主要驅動力是日本和亞太地區其他市場的持續強勁增長，包括 One Day ACUVUE 和 One Day ACUVUE define (ph)，以及 9 月在日本推出的 ACUVUE Moist。 ACUVUE Moist 是一款全新的 One Day 產品，具有 HYDRACLEAR 的額外好處。

That concludes the results for the medical devices and diagnostic segment and concludes the segment highlights for Johnson & Johnson's third quarter of 2005. Bob Darretta will now make some additional remarks before we turn the program over to Mike Dormer and Nick Valeriani.

以上是醫療設備和診斷部分的結果，並總結了強生公司 2005 年第三季度的部分亮點。Bob Darretta 現在將在我們將項目移交給 Mike Dormer 和 Nick Valeriani 之前做一些補充說明。

Thank you, Helen, and good morning, ladies and gentlemen. Let me start by giving you an update on our cash position. We ended the third quarter with net cash of $12.8 billion. That is up $2.2 billion from the prior quarter and up $3.1 billion over the past twelve months. Excluding the effect of a major acquisition, we would expect further improvement in the fourth quarter and should end the year with a net cash position between 13.5 and $14 billion.

謝謝你，海倫，女士們先生們，早上好。讓我首先向您介紹我們的現金狀況。我們在第三季度結束時的淨現金為 128 億美元。這比上一季度增加了 22 億美元，在過去十二個月中增加了 31 億美元。排除重大收購的影響，我們預計第四季度將進一步改善，年底淨現金頭寸應在 13.5 至 140 億美元之間。

Now a word on other income and expense. By way of a reminder this is the account where we record our royalty income as well as onetime gains and losses, for example the impact of asset sales, litigation settlements, gains and losses on our Johnson & Johnson development corporate investments, et cetera. This quarter as you have seen we recorded a gain of $63 million as contrasted with a loss in the prior year of $41 million. This favorable year-to-year comparison of $104 million was the results of the combined effect of a number of relatively modest sized individual transactions. This quarter we recorded a gain on the sale of our Spectacle Lens business as well as a net gain on our Johnson & Johnson development corporate investments, whereas in the third quarter of '04 we recorded a net loss on our Johnson & Johnson development corporate investments, as well as a loss associated with a write-down of an insurance receivable. This account by its very nature is difficult to forecast but we would recommend that you model it between 150 and a $200 million gain for the full year.

現在談談其他收入和支出。提醒一下，這是我們記錄特許權使用費收入以及一次性損益的賬戶，例如資產出售、訴訟和解、損益對我們強生開發公司投資的影響等。如您所見，本季度我們錄得 6300 萬美元的收益，而上一年的虧損為 4100 萬美元。 1.04 億美元的這一有利的年度比較是一些規模相對較小的個人交易的綜合影響的結果。本季度，我們記錄了出售眼鏡鏡片業務的收益以及強生開發公司投資的淨收益，而在 04 年第三季度，我們記錄了強生開發公司投資的淨虧損，以及與保險應收賬款減記相關的損失。這個賬戶本身很難預測，但我們建議您將其建模為 150 到 2 億美元的全年收益。

Moving on to interest income and expense, in the third quarter we enjoyed interest income of just over $100 million which was $82 million higher than the interest income earned in the third quarter of last year. The gain reflects both our approved cash position and higher rates and interest being earned on our cash holdings. With regard to the full year '05, we would recommend you model interest income of approximately $350 million. Again, this guidance excludes any effect of a major acquisition.

繼續關注利息收入和支出，第三季度我們的利息收入剛剛超過 1 億美元，比去年第三季度的利息收入高出 8200 萬美元。收益反映了我們批准的現金頭寸以及我們持有的現金所賺取的更高利率和利息。關於 05 年全年，我們建議您模擬利息收入約為 3.5 億美元。同樣，本指南不包括重大收購的任何影響。

Moving on to the tax rate, and I'm speaking in terms of our tax rate excluding special items such as the effect of the in process R&D charges, as well as the adjustment to the tax reserve associated with the technical correction to the American Job Creation Act, which we recorded earlier this year. As you've seen during the first nine months of the year, net income growth benefited from a lower effective tax rate. 26.5% this year as contrasted with 28.6% in the first nine months of '04. This trend is consistent with our prior guidance that mix, more specifically that lower sales of higher tax rate products such as DURAGESIC and ULTRACET, and higher sales of lower tax rate products such as Cypher, would help drive a lower tax rate in '05. In light of our experience to date, I would suggest that you base your models on a full year tax rate of between 26% and 26.5%.

繼續談稅率，我說的是我們的稅率，不包括特殊項目，例如在製品研發費用的影響，以及與美國工作技術修正相關的稅收儲備調整我們今年早些時候記錄的《創造法》。正如您在今年前九個月所見，淨收入增長得益於較低的有效稅率。今年為 26.5%，而 04 年前九個月為 28.6%。這一趨勢與我們之前的混合指導一致，更具體地說，DURAGESIC 和 ULTRACET 等較高稅率產品的較低銷售額，以及 Cypher 等較低稅率產品的較高銷售額，將有助於推動 05 年的較低稅率。根據我們迄今為止的經驗，我建議您將模型基於 26% 到 26.5% 的全年稅率。

Moving on to sales guidance and starting with operational growth we recommend that you model full year operational sales growth of approximately 6.5%, which would imply operational growth in the fourth quarter of approximately 3%. The lower fourth-quarter growth rate reflects the fact that the fourth quarter of last year included an additional sales week. As you recall, '04 was a 53 week year for Johnson & Johnson, and last year we estimated the effect of that additional week in the fourth quarter as adding approximately 2% to last year's fourth-quarter sales. The lower growth rate in this year's fourth quarter also reflects the more challenging year-to-year sales comparisons that we face with regard to Cypher and most notably with regard to Cypher Japan.

繼續銷售指導並從運營增長開始，我們建議您模擬全年運營銷售增長約為 6.5%，這意味著第四季度的運營增長約為 3%。第四季度增長率較低反映了去年第四季度增加了銷售週這一事實。您還記得，04 年是強生公司 53 週的一年，去年我們估計第四季度額外一周的影響使去年第四季度的銷售額增加了約 2%。今年第四季度較低的增長率也反映了我們在 Cypher 方面面臨更具挑戰性的年度銷售比較，尤其是在 Cypher 日本方面。

Turning to currency, based on exchange rates as of the end of last week, and as I'm watching this morning the situation has not been atypical -- continues to change rather significantly. But based as the rates at the end of last week we suggest that you base your models on a full year positive affect from currency of 1%, which implies an adverse impact in the fourth quarter of 0.8%.

轉向貨幣，基於截至上週末的匯率，正如我今天早上所看到的那樣，情況並非不典型——繼續發生相當大的變化。但根據上週末的匯率，我們建議您將模型基於 1% 的貨幣全年積極影響，這意味著第四季度的不利影響為 0.8%。

Now moving on to earnings guidance. During our last call we recommended that you model full year earnings in the $3.44 to $3.47 per share range. Given our outperformance in earnings growth in the third quarter, we would now suggest that you consider modeling full year earnings per share in the $3.48 to $3.50 range. Now let me turn the call over to Mike Dormer, worldwide Chairman, medical devices.

現在繼續進行收益指導。在我們上次的電話會議中，我們建議您將全年收益建模在每股 3.44 美元至 3.47 美元的範圍內。鑑於我們在第三季度的盈利增長表現出色，我們現在建議您考慮將全年每股收益建模在 3.48 美元至 3.50 美元之間。現在讓我把電話轉給醫療設備全球主席 Mike Dormer。

Thank you, Bob. On behalf of Nick Valeriani and I it's great to be with you today to talk about the medical device and diagnostics group. Nick and I will be providing an overview of the seven franchises of the medical device and diagnostics group. After that we will be happy to take your questions. I would also like to announce that although our review today will be brief, we are planning a full day in depth review of the medical device and diagnostic segment in September 2006. As those of you who follow the Company know, every few years we hold more intensive programs focusing on one of our business segments to give a better sense of our portfolios and pipelines. We're looking forward to that next year. You'll hear more about that in the months to come.

謝謝你，鮑勃。我代表 Nick Valeriani 和我很高興今天能與您討論醫療設備和診斷小組。尼克和我將概述醫療設備和診斷集團的七個特許經營權。之後，我們將很樂意回答您的問題。我還想宣布，雖然我們今天的審查很簡短，但我們計劃在 2006 年 9 月對醫療器械和診斷領域進行一整天的深入審查。正如關注公司的人所知，我們每隔幾年就會舉行一次更密集的計劃專注於我們的一個業務部門，以更好地了解我們的投資組合和管道。我們期待著明年。在接下來的幾個月裡，你會聽到更多關於這方面的信息。

Let me start out by sharing with you the vision to which our medical device and diagnostics companies aspire, restoring the joys of life. Our strategic focus is on life extending and life enhancing technologies, and we encourage a patient-focused perspective that aligns our thinking around common goals. Translating this vision to our strategic goals, we have built a strong portfolio of innovative businesses that have continued to set the standards of care in the categories in which we choose to compete. We have recognized the significance of working to shape an increasingly challenging health care environment to improve access and affordability of these technologies for patients. Ultimately, this focus has enabled our companies to deliver consistent, excellent financial performance.

讓我首先與您分享我們的醫療設備和診斷公司所追求的願景，恢復生活的樂趣。我們的戰略重點是延長生命和提高生命的技術，我們鼓勵以患者為中心的觀點，使我們的思維圍繞共同目標保持一致。將這一願景轉化為我們的戰略目標，我們建立了強大的創新業務組合，這些業務繼續在我們選擇競爭的類別中設定護理標準。我們已經認識到努力塑造越來越具有挑戰性的醫療保健環境以改善患者獲得這些技術的機會和負擔能力的重要性。最終，這種關注使我們的公司能夠提供一致、出色的財務業績。

Overall, our medical device and diagnostics businesses have delivered outstanding growth in both revenue and operating profit through the first nine months of this year. Moreover, that performance continues a steady and sustained pattern of growth over the past five years. Not only has this group focused on growing our revenues, but we've also focused on growing them in a manner that delivers greater value to Johnson & Johnson. For the five-year period from 1999 to 2004 the top line compound annual growth rate was 11%, while the operating profit for MD&D grew by 20%. We have accomplished this by strategically managing our portfolio of businesses to best position us for future growth. Over the years we have divested a number of commodity line businesses while at the same time acquiring others that offer unique solutions to compelling clinical needs. This changing and reshaping enables our businesses to deliver the products that are more efficacious and more cost-effective.

總體而言，我們的醫療器械和診斷業務在今年前九個月的收入和營業利潤均實現了顯著增長。此外，這一業績在過去五年中延續了穩定和持續的增長模式。這個團隊不僅專注於增加我們的收入，而且我們還專注於以能夠為強生帶來更大價值的方式來增加收入。從 1999 年到 2004 年的五年期間，收入複合年增長率為 11%，而 MD&D 的營業利潤增長了 20%。我們通過戰略性地管理我們的業務組合來實現這一目標，從而為未來的增長做好準備。多年來，我們剝離了許多商品線業務，同時收購了其他為引人注目的臨床需求提供獨特解決方案的公司。這種變化和重塑使我們的企業能夠提供更有效和更具成本效益的產品。

Innovations that have resulted include the Cypher stent which radically changed the way the world treats coronary artery disease. The CHARITE disc, the first motion technology to treat degenerative disc disease, the CONTOUR curved cutter, the only curved stapler that allows surgeons to excise tumors low in the pelvis. The rise of OneTouch Blood Glucose meter which makes monitoring possible for millions of people in emerging markets. And CellSearch, a first of its kind diagnostic for use in oncology. There are many others we could name.

所產生的創新包括 Cypher 支架，它從根本上改變了世界治療冠狀動脈疾病的方式。 CHARITE 椎間盤是第一個治療退行性椎間盤疾病的運動技術，CONTOUR 弧形切割器是唯一允許外科醫生切除骨盆低位腫瘤的弧形縫合器。 OneTouch 血糖儀的興起，使新興市場數百萬人的監測成為可能。還有 CellSearch，這是首個用於腫瘤學的診斷工具。還有很多我們可以說出的名字。

For the first nine months of 2005 our medical device and diagnostics businesses demonstrated a very strong operational growth rate of 15% achieving sales of 14.3 billion. Medical device and diagnostics represents nearly 38% of total Johnson & Johnson's third-quarter year-to-date revenues. The focus on innovation coupled with careful financial management, manufacturing rationalization and headcount control has helped us to grow a robust segment.

2005 年前九個月，我們的醫療設備和診斷業務表現出非常強勁的 15% 的運營增長率，銷售額達到 143 億美元。醫療設備和診斷佔強生公司第三季度年初至今總收入的近 38%。對創新的關注加上謹慎的財務管理、製造合理化和員工人數控制幫助我們發展了一個強大的細分市場。

I will go into a brief review of each franchise in a moment. But you can see from our third-quarter year-to-date results that collectively and individually our businesses have had a strong year. Sales growth over the previous year was in the double-digit range in nearly every franchise, with Cordis having a particularly strong year, achieving operational revenue growth of 28%.

稍後我將簡要回顧每個特許經營權。但是您可以從我們第三季度年初至今的業績中看到，我們的業務總體上和個別地都表現出色。與上一年相比，幾乎每個特許經營店的銷售額都實現了兩位數的增長，其中康得思的表現尤為強勁，實現了 28% 的運營收入增長。

Let's begin then with a review of the DePuy franchise, the world's leader in orthopedics. Strong proprietary product positions have enabled the business to sustain excellent financial performance over the past five years. On an operational basis the five-year compound annual growth rate of revenues was a very strong 13%. The DePuy franchise consists of the orthopedics business focused on joint reconstruction, trauma and extremities, DePuy Spine, Codman, which develops technologies to treat neurological and central nervous system disorders, and Mitek, our sports medicine technologies business.

讓我們首先回顧一下世界骨科領域的領導者 DePuy 特許經營權。強大的專有產品地位使該業務在過去五年中保持了出色的財務業績。在運營基礎上，收入的五年復合年增長率非常強勁，達到了 13%。 DePuy 特許經營權包括專注於關節重建、創傷和四肢的骨科業務、開發治療神經和中樞神經系統疾病技術的 DePuy Spine、Codman 以及我們的運動醫學技術業務 Mitek。

DePuy looks for sustainable growth from strong product positions across its businesses. Recent launches in joints, spine, sports medicine and extremities technologies offer unique clinical solutions. Through its high orthopedics platform DePuy expects to capitalize on a growing trend towards greater precision and improved outcomes afforded by computer assisted memory invasive surgery. And finally, DePuy has tapped the vast experience and resources of the Johnson & Johnson companies in developing responsible, direct patient education initiatives that are clearly raising awareness of the benefits of joint reconstruction.

DePuy 從其業務的強大產品定位中尋求可持續增長。最近推出的關節、脊柱、運動醫學和四肢技術提供了獨特的臨床解決方案。通過其高水平的骨科平台，DePuy 預計將利用計算機輔助記憶侵入性手術提供的更高精確度和改善結果的增長趨勢。最後，DePuy 利用強生公司的豐富經驗和資源製定負責任、直接的患者教育計劃，這些計劃明顯提高了對聯合重建益處的認識。

Going forward DePuy expects increasing pressure on industry to demonstrate clear technological superiority and clinical and economic value. Such issues in part contributed to the challenges we faced in gaining forward adoption of CHARITE, our artificial lumbar disc approved last year by the FDA for use in the United States.

展望未來，DePuy 預計行業將面臨越來越大的壓力，以展示明顯的技術優勢以及臨床和經濟價值。這些問題部分導致了我們在獲得提前採用 CHARITE 方面所面臨的挑戰，我們的人工腰椎間盤去年被 FDA 批准在美國使用。

The ETHICON franchise is the world's indisputable leader in wound closure. Despite pricing pressures worldwide, the franchise continues to deliver solid financial performance by continuing to innovate. It is comprised of wound closure and tissue repair, ADVANCE wound management, minimally invasive cardiac surgery and gynecologic and urologic surgery businesses. While over the past five years sales grew on an operational basis an average of 4%, the franchise has had a strong nine-month year-to-date achieving operational revenue growth of 9% over the prior year.

ETHICON 特許經營權是世界傷口閉合領域無可爭議的領導者。儘管全球範圍內存在定價壓力，但該特許經營權通過不斷創新繼續提供穩健的財務業績。它由傷口閉合和組織修復、ADVANCE 傷口管理、微創心臟手術以及婦科和泌尿外科業務組成。雖然在過去五年中，銷售額在運營基礎上平均增長了 4%，但該特許經營權在今年迄今為止的九個月內實現了強勁的運營收入增長，比上一年增長了 9%。

ETHICON can leverage its considerable strength in tissue repair technology to continue to differentiate itself from the market with product innovations like VICRYL Plus, the world's only antibacterial suture. With the acquisition of Closure Medical Corporation this year, ETHICON has the added capacity to expand its biosurgical platform into new areas of tissue repair and regeneration. And by focusing on wound management needs in specialty surgical categories, ETHICON can further distinguish its comprehensive product lines and services.

ETHICON 可以利用其在組織修復技術方面的強大實力，通過世界上唯一的抗菌縫合線 VICRYL Plus 等產品創新，繼續在市場中脫穎而出。隨著今年對 Closure Medical Corporation 的收購，ETHICON 有能力將其生物外科平台擴展到組織修復和再生的新領域。通過專注於專業外科類別的傷口管理需求，ETHICON 可以進一步區分其全面的產品線和服務。

The Ethicon Endo-Surgery franchise defines the market for procedure enabling minimally invasive technologies. The franchise has contributed significantly and consistently over the past five years, delivering an operational compound growth rate of 10%. Its business is segmented into Endo mechanical devices, energy platforms and advanced sterilization systems. By continually investing in technological improvements Ethicon Endo-Surgery enables minimally invasive procedures in a growing number of surgical categories and specialties. Examples include the CONTOUR curved cutter and the hand assisted laparoscopic disc. The enhanced energy platform can extend that technology to new specialties, including plastic surgery and orthopedics. Finally, the franchise is pioneering innovations to enable natural orifice procedures with products including the PillCam ESO diagnostic imaging system and the adaptation of flexible endoscopy products.

Ethicon Endo-Surgery 特許經營權定義了啟用微創技術的程序市場。在過去五年中，該特許經營權做出了顯著且持續的貢獻，實現了 10% 的運營複合增長率。其業務分為遠藤機械設備、能源平台和先進的消毒系統。通過不斷投資於技術改進，Ethicon Endo-Surgery 在越來越多的外科類別和專業中實現了微創手術。示例包括 CONTOUR 弧形切割器和手動輔助腹腔鏡椎間盤。增強的能量平台可以將該技術擴展到新的專業，包括整形外科和骨科。最後，該特許經營權是開創性的創新，以使用 PillCam ESO 診斷成像系統和柔性內窺鏡產品等產品實現自然孔道手術。

Vistakon is the world leader in contact lenses. Through breadth of line and meaningful innovation has continued to deliver strong double-digit growth. Its innovative marketing, customer relationships and retail execution contribute to its competitive advantage. Vistakon has grown its business by geographic expansion in underpenetrated markets and by expanding its productline to treat new patient populations, including presbyopics. The franchise has a healthy pipeline and has introduced four new products in the last 18 months, two of them this year.

Vistakon 是隱形眼鏡的世界領導者。通過廣泛的產品線和有意義的創新，繼續實現強勁的兩位數增長。其創新的營銷、客戶關係和零售執行有助於其競爭優勢。 Vistakon 通過在滲透不足的市場進行地域擴張以及擴大其產品線以治療新的患者群體（包括老花眼）來發展其業務。該特許經營權擁有健康的管道，並在過去 18 個月中推出了四款新產品，其中兩款是今年。

At this point I would like to ask my colleague, Nick Valeriani, to take you through the review of the diagnostic and cardiovascular franchises.

在這一點上，我想請我的同事 Nick Valeriani 帶您回顧一下診斷和心血管專營權。

Thanks, Mike. LifeScan is our diabetes management company addressing this global pandemic. In a competitive market the Company has had sustained strong performance with average operational sales growth of 10% over the last five years and 14% for the first nine months of 2005. More and more our LifeScan business is seeking to move the conversation from the convenience and comfort of testing, to a more meaningful understanding of the compelling need for patients to more effectively manage their diabetes. In episodic monitoring, LifeScan's OneTouch brand continues to innovate with the recent and pending introductions of 3 new models, OneTouch Ultra 2, and the OneTouch Horizon and OneTouch Ultra Mini for affordable testing to reach broader groups of patients. Today one in four Americans with diabetes uses a OneTouch Ultra product to test blood glucose levels. The Company continues to explore opportunities in continuous monitoring, including external and implantable devices.

謝謝，邁克。 LifeScan 是我們應對這一全球流行病的糖尿病管理公司。在競爭激烈的市場中，公司一直保持強勁的業績，過去五年平均運營銷售額增長 10%，2005 年前九個月增長 14%。我們的 LifeScan 業務越來越多地尋求將對話從便利轉移和舒適的測試，以更有意義地了解患者更有效地管理糖尿病的迫切需求。在階段性監測方面，LifeScan 的 OneTouch 品牌不斷創新，最近和即將推出 3 款新型號 OneTouch Ultra 2 以及 OneTouch Horizon 和 OneTouch Ultra Mini，以便為更廣泛的患者群體提供負擔得起的測試。今天，四分之一的糖尿病患者使用 OneTouch Ultra 產品來測試血糖水平。公司繼續探索持續監測的機會，包括外部和植入式設備。

The ortho clinical diagnostic business offers clinical laboratory systems and assays, blood bank automation systems and advanced diagnostic technologies through Veridex. In a complex and challenging market, the Company has demonstrated strong performance throughout this year. Compound annual sales growth over the past five years has averaged 6%, but the operational growth for the first nine months of 2005 had a strong 13%. Among this franchise's platforms to ensure sustainable growth, our continued development of the VITROS clinical laboratory system which now offers enhanced integration capabilities. Over time the franchise is exploring opportunities to use existing and novel technology platforms to deliver enhanced, high-value diagnostics to customers. The Veridex business, within ortho clinical diagnostics, continues to make exciting and innovative advances in the field of oncology diagnostics. Its CellSearch assays identify, enumerate and characterize circulating tumor cells directly from whole blood. Over the past year, a library of clinical publications validating the importance of circulating tumor cells identified by Veridex systems as predictors of therapeutic effectiveness continued to grow.

Ortho 臨床診斷業務通過 Veridex 提供臨床實驗室系統和化驗、血庫自動化系統和先進的診斷技術。在復雜且充滿挑戰的市場中，公司全年表現強勁。過去五年的複合年銷售增長率平均為 6%，但 2005 年前九個月的運營增長率高達 13%。在確保可持續增長的特許經營平台中，我們繼續開發 VITROS 臨床實驗室系統，該系統現在提供增強的集成能力。隨著時間的推移，特許經營權正在探索利用現有和新技術平台為客戶提供增強的高價值診斷的機會。 Veridex 在正畸臨床診斷領域的業務繼續在腫瘤診斷領域取得令人興奮的創新進展。其 CellSearch 檢測直接從全血中識別、計數和表徵循環腫瘤細胞。在過去的一年中，驗證 Veridex 系統確定的循環腫瘤細胞作為治療效果預測指標的重要性的臨床出版物庫繼續增長。

Cordis has had a very strong year and continues its leadership in the fight against the world's leading killer, cardiovascular diseases. Fueled by the success of Cypher, the world's first drug-eluting stent, the Cordis franchise has had outstanding operational sales growth of 28% through the first nine months of the year and compound annual operational sales growth of 29% over the past five years. In the third quarter Cordis once again became the world leader in the drug-eluting stent market. In addition to the cardiology business, the Cordis franchise includes the endovascular, neurovascular and Biosense Webster businesses.

康得思度過了非常強勁的一年，並繼續在與世界頭號殺手心血管疾病的鬥爭中保持領先地位。在全球首個藥物洗脫支架 Cypher 的成功推動下，Cordis 特許經營權在今年前 9 個月實現了 28% 的出色運營銷售額增長，在過去五年中實現了 29% 的複合年運營銷售額增長。第三季度，康得思再次成為藥物洗脫支架市場的全球領導者。除了心髒病學業務，康得思的特許經營權還包括血管內、神經血管和 Biosense Webster 業務。

The Cypher business continues to demonstrate strong clinical evidence of safety and efficacy for the product and expects new indications and global expansion to continue to deliver significant opportunity into the future. In the peripheral vascular businesses we expect that the application of our technologies to important disease categories, including carotid, SFA, AAA and CTO to represent important growth opportunities. These treatments can make significant contributions to the standard of care for conditions that are seriously undertreated around the world. Similarly, we are actively engaged in efforts to understand and treat hemorrhagic and ischemic stroke. And finally, our Biosense Webster business is expanding its activities in cardiac oblation and has introduced systems like CARTOMERGE to diagnose and treat complex arrhythmias. This concludes our franchise review.

Cypher 業務繼續證明該產品的安全性和有效性的強大臨床證據，並預計新的適應症和全球擴張將繼續為未來帶來重大機遇。在外周血管業務中，我們預計將我們的技術應用於重要的疾病類別，包括頸動脈、SFA、AAA 和 CTO，代表重要的增長機會。這些治療可以為世界各地治療嚴重不足的疾病的護理標準做出重大貢獻。同樣，我們積極致力於了解和治療出血性和缺血性中風。最後，我們的 Biosense Webster 業務正在擴大其在心臟消融方面的活動，並引入了 CARTOMERGE 等系統來診斷和治療複雜的心律失常。我們的特許經營審查到此結束。

This is Bob Darretta again. And before Helen opens the call to your questions, let me say a few words to address the pending Guidant transaction. We have previously stated that we anticipated FTC clearance in October. And we continue to believe that to be the case. As it relates to the previously announced product recalls at Guidant, and the related regulatory investigations and other developments, we believe that these are serious matters, and we are continuing to closely monitor the situation at Guidant.

這又是鮑勃·達雷塔。在 Helen 開始回答您的問題之前，讓我先說幾句話來解決待處理的 Guidant 交易。我們之前曾表示，我們預計 FTC 會在 10 月獲得批准。我們仍然相信情況會如此。由於它與 Guidant 先前宣布的產品召回以及相關的監管調查和其他發展有關，我們認為這些都是嚴重的問題，我們將繼續密切關注 Guidant 的情況。

In light of these matters and their impact, we are continuing to consider the alternatives under our merger agreement. We do not have any further comment on the Guidant transaction at this time and will not take any questions on the subject of Guidant.

鑑於這些事項及其影響，我們將繼續根據我們的合併協議考慮替代方案。我們目前對 Guidant 的交易沒有任何進一步的評論，也不會就 Guidant 的主題提出任何問題。

Before I ask Elisabeth to open the call to your questions and provide instructions, I encourage you to address your questions to Nick Valeriani and Mike Dormer since we have them here with us today. Elizabeth, if you can provide the instructions for questions.

在我要求 Elisabeth 打開電話詢問您的問題並提供說明之前，我鼓勵您向 Nick Valeriani 和 Mike Dormer 提出您的問題，因為我們今天在這裡有他們。伊麗莎白，如果你能提供問題的說明。

(OPERATOR INSTRUCTIONS) Matthew Dodds, Citigroup.

（操作員說明）花旗集團的 Matthew Dodds。

Thank you. First for Mike. On the gross margin improvement that Helen talked about earlier in the call, obviously year-over-year Cordis is having a big impact. But Mike, can you tell us whether divisions, if there is anything in particular that are having a big increase in the gross margin and operationally on the profit side, or the overall division? Then I've got a quick question for Nick as well.

謝謝你。首先是邁克。關於海倫早些時候在電話會議中談到的毛利率改善，顯然 Cordis 的同比影響很大。但是邁克，你能告訴我們是部門，如果有什麼特別的東西在毛利率和運營利潤方面有很大的增加，還是整個部門？然後我也有一個簡短的問題要問尼克。

Matthew, I think it is interesting. One of the things that we've actually been trying to do, not only this year but if you take the last five years, is actually change the profile as I said of medical devices and diagnostics. And essentially, we've exited a lot of what I would call below-margin commodity like businesses, which generally had low growth profitability. At the same time, we've concentrated on more of the high-technology procedure specific products, which have had a higher gross margin. At the same time as getting that favorable mix, we've also over that five-year period had an extensive manufacturing rationalization program and reduced the number of manufacturing facilities considerably. That has had a significant impact.

馬修，我覺得這很有趣。我們實際上一直在嘗試做的事情之一，不僅是今年，而且如果你過去五年，實際上是改變配置文件，正如我所說的醫療設備和診斷。本質上，我們已經退出了很多我稱之為利潤率低於商品的業務，這些業務通常具有較低的增長盈利能力。同時，我們專注於更多具有較高毛利率的高科技程序特定產品。在獲得這種有利組合的同時，我們還在這五年期間制定了廣泛的製造合理化計劃，並大大減少了製造設施的數量。這產生了重大影響。

And then finally, we've been very careful in terms of headcount over that period of time, which has also led to some substantial productivity gains. All of those gains have shown up, not only in our gross margin, but also led to the strong operating profit performance that we've had for the group.

最後，在這段時間裡，我們在員工人數方面一直非常謹慎，這也導致了一些實質性的生產力提高。所有這些收益都已經顯現出來，不僅體現在我們的毛利率上，還帶來了我們為集團帶來的強勁營業利潤表現。

But Mike, is there any other division other than Cordis like Endo or ETHICON General that's had a big increase, or is it across the board?

但是邁克，除了 Cordis 之外，還有像 Endo 或 ETHICON General 這樣的其他部門有大幅增長，還是全面增長？

No, is essentially across the board; essentially across the board.

不，基本上是全面的；基本上是全面的。

Okay, and then quickly for Nick. On LifeScan, it was also said earlier that the OUS slowed a bit due to inventory. The last several quarters, OUS has grown phenomenally well. So should we think here that the inventory maybe got ahead of itself, or is lower reduction level in inventories outside the U.S. for LifeScan?

好的，然後很快給尼克。在 LifeScan 上，之前也有人說 OUS 由於庫存而放緩了一點。在過去的幾個季度中，OUS 的發展非常好。那麼我們是否應該在這裡認為庫存可能超出了自身，或者 LifeScan 的美國以外的庫存減少水平較低？

Matt, with regards to LifeScan OUS, what we saw in the third quarter, the slowing was really the result, as you recall, the unit of measure issue we had with some of our meters. We had not been able to for the second quarter be able to put the level of meters into the marketplace as we had previously been accustomed to as we worked through that issue. And obviously, the flow- through of that impact to our strip sales sort of provided a somewhat soft quarter as compared to previous quarters for the LifeScan business, namely in Europe.

馬特，關於 LifeScan OUS，我們在第三季度看到的情況，放緩實際上是結果，正如你所記得的，我們的一些儀表存在測量單位問題。在第二季度，我們無法像以前在解決該問題時所習慣的那樣將電錶水平推向市場。顯然，與 LifeScan 業務（即歐洲）的前幾個季度相比，這種影響對我們的帶材銷售產生的影響有點疲軟。

Thanks, Nick. Thanks, Mike.

謝謝，尼克。謝謝，邁克。

Rick Wise, Bear Stearns.

瑞克懷斯，貝爾斯登。

Good morning, everybody. I have a couple questions. Let me start, maybe pick on Mike first. Mike, can you give us your perspective on the outlook for the orthopedic market, specifically pricing? We've seen obviously some considerable price weakness in Japan and Germany. Your view of worldwide pricing trends going forward and in the U.S.

大家早上好。我有幾個問題。讓我開始吧，也許先挑邁克。邁克，您能否給我們您對骨科市場前景的看法，特別是定價？我們已經看到日本和德國的價格明顯疲軟。您對未來和美國的全球定價趨勢的看法

Good morning, Rick. I think my views are going to be in line with quite a few others in the sense that we see the growth rate for orthopedics slowing down, in part because of the ability to take less price. And that is true both in the United States and also some other countries around the world. I mean from April onwards in Japan, we will see reasonably significant price reductions as the MHLW pushed through their biannual price reviews for orthopedics, which will also have an impact on our business.

早上好，瑞克。我認為我的觀點將與其他許多人一致，因為我們看到骨科的增長率正在放緩，部分原因是能夠降低價格。這在美國和世界其他一些國家都是如此。我的意思是，從 4 月起，在日本，隨著厚生勞動省推動骨科一年兩次的價格審查，我們將看到相當大的價格下降，這也將對我們的業務產生影響。

So I think we are seeing not only a reduction in the level of price increases, but we are also seeing an impact as a result of price mix. We did go through a period earlier in this decade where we had the opportunity of seeing improved price mix because of the introduction of the various technologies, cross-linked polyethylene, metal on metal, ceramic on ceramic, etc., which was having a very favorable impact on the price mix. So for both of those reasons I think we will see a slight tick down in terms of the overall orthopedic growth rate. At the same time I would say that we are seeing the benefit of demographics and the demand for earlier treatment partially related to the fact that we can have minimally invasive procedures, which is leading to probably a stronger volume demand for the orthopedic business.

因此，我認為我們不僅看到了價格上漲水平的下降，而且還看到了價格組合帶來的影響。在這十年的早些時候，我們確實經歷了一個時期，由於引入了各種技術，交聯聚乙烯、金屬對金屬、陶瓷對陶瓷等，我們有機會看到價格組合的改善，這對陶瓷的影響很大。對價格組合產生有利影響。因此，出於這兩個原因，我認為我們將看到整體骨科增長率略有下降。與此同時，我想說的是，我們看到了人口統計學的好處以及對早期治療的需求，部分原因是我們可以進行微創手術，這可能導致對骨科業務的需求量更大。

Two quick follow-up questions. First, for Nick, can you can give us some perspective on what is required to resolve FDA -- Cordis' FDA issues and when? And maybe last one for Helen, for the Dapoxetine the PDUFA date is October 27th, I think or end of this month. You haven't commented on a panel. Is it reasonable to think we can see a first quarter launch? Thanks very much.

兩個快速跟進問題。首先，對於 Nick，您能否就解決 FDA 的要求 - Cordis 的 FDA 問題以及何時解決問題給我們一些看法？也許是海倫的最後一個，對於達泊西汀，PDUFA 的日期是 10 月 27 日，我想還是本月底。您還沒有在面板上發表評論。認為我們可以看到第一季度的發布是否合理？非常感謝。

With regards to the FDA situation, obviously it is a critical issue for us, and we are working very diligently to address the issues as outlined by the FDA. All our facilities have been inspected, and we've responded to the inspections, and we have a meeting planned with the FDA later this month. And that really is the best we can comment at this point in time.

關於 FDA 的情況，顯然這對我們來說是一個關鍵問題，我們正在非常努力地解決 FDA 概述的問題。我們所有的設施都經過了檢查，我們已經對檢查做出了回應，我們計劃在本月晚些時候與 FDA 舉行會議。這確實是我們目前可以發表的最好評論。

Rick, with regard to Dapoxetine, the PDUFA date is October 27. Since we have mentioned previously we would likely expect an advisory panel, it is hard to fathom that we will be launching in the first quarter or early next year. So we really have to wait at this point and see what kind of response we get from the FDA, and we will go from there.

Rick，關於達泊西汀，PDUFA 的日期是 10 月 27 日。由於我們之前提到過，我們可能會期待一個顧問小組，很難理解我們將在第一季度或明年初推出。所以我們現在真的必須等待，看看我們從 FDA 得到什麼樣的回應，我們將從那裡開始。

Mike Weinstein, J.P. Morgan.

邁克·溫斯坦，摩根大通。

I have a couple of questions and I apologize if I have missed this. But one, could you comment on the outstanding citizens petition for Ditropan XL and for Concerta? And two, could you just (indiscernible) clarify your fourth quarter guidance; it appears you're actually raising guidance for the fourth quarter relative to Street expectations and I wanted to just understand that a bit given what we saw here in the third quarter. Thanks.

我有幾個問題，如果我錯過了這個，我深表歉意。但是，您能否評論一下針對 Ditropan XL 和 Concerta 的傑出公民請願書？第二，您能否（音頻音頻不清晰）澄清您的第四季度指導意見？看起來你實際上是在提高第四季度相對於華爾街預期的指導，鑑於我們在第三季度看到的情況，我想稍微了解一下。謝謝。

I will tackle the second question first, Michael. I provided guidance regarding full year sales growth, as well as EPS performance. I assume you are referring to the EPS guidance when you are talking about raising guidance.

我將首先解決第二個問題，邁克爾。我提供了有關全年銷售增長以及每股收益表現的指導。我假設您在談論提高指導時指的是 EPS 指導。

Correct.

正確的。

And that is correct. I think the last time we had guided, provided guidance of 344 to 347. When I last checked the analysts and added the four quarters you're at 347. We outperformed in the third quarter by a penny versus the mean of the analyst estimates. And we therefore have provided revised guidance of 348 to 350. So somewhere in that range, depending on your level of conservatism, you may want to be towards the lower end of the range.

這是正確的。我認為我們上次提供指導時，提供了 344 到 347 的指導。當我上次檢查分析師並添加四個季度時，您的股價為 347。與分析師估計的平均值相比，我們在第三季度的表現優於一美分。因此，我們提供了 348 到 350 的修訂指導。因此，在該範圍內的某個位置，根據您的保守程度，您可能希望接近該範圍的下限。

I think the other question you asked was about the status of the citizens petitions for CHARITE, excuse me, Concerta and Ditropan XL?

我想你問的另一個問題是關於 CHARITE 公民請願書的狀態，對不起，Concerta 和 Ditropan XL？

Yes, (inaudible) maybe if you could just shed some light on why you're providing more upbeat or bullish fourth quarter guidance on the bottom line relative to what you're saying on the top line.

是的，（聽不清）也許你能解釋一下為什麼你在底線上提供了比你在頂線上所說的更樂觀或看漲的第四季度指導。

Just the third-quarter performance and our knowledge of our, both revenue projections and spending plans.

只是第三季度的業績和我們對收入預測和支出計劃的了解。

Okay.

好的。

And on the citizens petitions, we really don't have any further update. We have not heard anything back on either one of those.

關於公民請願書，我們真的沒有任何進一步的更新。我們還沒有聽到任何關於其中任何一個的回复。

Katherine Martinelli, Merrill Lynch.

凱瑟琳·馬蒂內利，美林證券。

A couple questions. Mike, first with respect to orthopedics its definitely benefiting it would seem from the direct to consumer initiatives. Is that something we should assume you are going to continue to do going forward, that that will just be part of the normal course of business with respect to DePuy, and then I was also hoping you could comment on the spine business. If you strip out CHARITE that business is growing below the market; is that a product issue? Is it a sales force issue? Maybe if you could shed some light on what initiatives are underway there and then I have a follow-up, please.

幾個問題。邁克，首先在骨科方面，它肯定會從直接面向消費者的舉措中受益。我們是否應該假設您將繼續前進，這將只是 DePuy 正常業務過程的一部分，然後我還希望您能對脊柱業務發表評論。如果你剔除 CHARITE 業務增長低於市場；這是產品問題嗎？是銷售人員的問題嗎？如果你能闡明那裡正在進行哪些舉措，然後我有一個跟進，請。

Let's take the -- Catherine, good morning -- if we take the direct to consumer advertising, we do believe in response of advertising and we are trying to make sure we follow advertising along those lines. And the answer is yes, we have just recently introduced a new hip advertisement, and we will be following that up with a new knee advertisement. And we do believe that it is having an impact on our business. And we think it is -- so long as it is responsible education of what is available for patients, a good thing to do. So we do aim to continue with that.

讓我們——凱瑟琳，早上好——如果我們採用直接面向消費者的廣告，我們確實相信廣告的反應，我們正在努力確保我們沿著這些路線跟踪廣告。答案是肯定的，我們最近剛剛推出了一個新的臀部廣告，我們將在此之後推出一個新的膝蓋廣告。我們確實相信它正在對我們的業務產生影響。我們認為這是 - 只要它是對患者可用的負責任的教育，這是一件好事。所以我們的目標是繼續這樣做。

With regard to our spine business you're absolutely right. If we look at our core business excluding CHARITE disc, it is softer than what we anticipate the overall market is growing at. That is resulting predominately from a sales management organization change that we made in 2004, which we are still climbing our way out of that change. As opposed to products, on the product side we've launched a number of really good products, including the EXPEDIUM for example, hook (indiscernible) screw system. We have also as part of a review in our performance recently changed our senior management there and appointed a new President of our DePuy Spine business, Gary Fishetti (ph). And Gary has been in the orthopedics business primarily on the joint side. And we look forward to an improving fortune for our DePuy Spine business going forward.

關於我們的脊柱業務，您是絕對正確的。如果我們看看我們的核心業務，不包括 CHARITE 光盤，它比我們預期的整體市場增長要軟。這主要是由於我們在 2004 年進行的銷售管理組織變革，我們仍在努力擺脫這種變革。相對於產品，在產品方面，我們推出了一些非常好的產品，包括EXPEDIUM，例如掛鉤（聽不清）螺絲系統。作為我們績效評估的一部分，我們最近更換了我們在那裡的高級管理人員，並任命了我們的 DePuy Spine 業務的新總裁 Gary Fishetti (ph)。加里主要在關節方面從事骨科業務。我們期待著我們的 DePuy Spine 業務在未來取得更好的發展。

Great. Thank you. And Helen, just a follow-up, Boston Scientific's legal win in the Netherlands that they were speaking about last week and their plans to try and assert that IP more aggressively throughout Europe. I was wondered if you could provide any perspective on how you're viewing that threat.

偉大的。謝謝你。還有海倫，只是後續行動，波士頓科學公司上週談到了他們在荷蘭贏得的法律勝利，以及他們計劃在整個歐洲更積極地主張知識產權。我想知道您是否可以就您如何看待這種威脅提供任何觀點。

Certainly we're going to be appealing the ruling in the Netherlands. But we also don't necessarily see that being able to go across the borders. So we feel pretty comfortable in terms of our position in Europe with our own intellectual property.

當然，我們將在荷蘭對裁決提出上訴。但我們也不一定看到能夠跨越國界。因此，就我們在歐洲擁有自己的知識產權的地位而言，我們感到非常自在。

Okay, great. Thank you.

好，太棒了。謝謝你。

Glenn Novarro of Banc of America Securities.

美國銀行證券公司的格倫諾瓦羅。

I have a question for Nick, we're starting to hear the other drug-eluting stent players talking about second and third generation DES platforms. I am wondering if you can talk a little bit more about what your next generation platforms are, and am I correct in thinking that your manufacturing issues -- is that what is causing the delay in J&J starting up next generation drug-eluting stent trials? Thanks.

我有一個問題要問尼克，我們開始聽到其他藥物洗脫支架生產商談論第二代和第三代 DES 平台。我想知道您是否可以多談談您的下一代平台是什麼，我認為您的製造問題是否正確 - 是什麼導致強生延遲啟動下一代藥物洗脫支架試驗？謝謝。

Glenn, we obviously are focused on the development of next generation Cypher drug-eluting stent platforms. Obviously with the challenges that we faced with the FDA warning letter situation we have directed our energies to addressing those issues first and foremost. And with regards to the manufacturing constraints as you might imagine, what you need lines to run in and validate new product platforms and at this point in time we've really directed our available manufacturing to support the needs of the marketplace with today's Cypher productline. As you have seen, we continue to be very pleased with the market acceptance of the Cypher drug-eluting stent based upon just an extraordinary body of clinical evidence that shows its superior results as compared to other drug-eluting stent products. But we are coming out of the work we've been doing on the regulatory and manufacturing capacities improving. And we have a pipeline that we believe will continue to allow us to be competitive in the future.

Glenn，我們顯然專注於下一代 Cypher 藥物洗脫支架平台的開發。顯然，由於我們在 FDA 警告信情況下面臨的挑戰，我們已經將我們的精力首先用於解決這些問題。關於您可能想像的製造限制，您需要哪些生產線來運行和驗證新產品平台，此時我們已經真正指導我們可用的製造來支持當今 Cypher 產品線的市場需求。正如您所見，我們繼續對 Cypher 藥物洗脫支架的市場接受度感到非常滿意，這僅基於大量臨床證據表明其與其他藥物洗脫支架產品相比具有更優越的結果。但我們正在擺脫我們一直在提高監管和製造能力方面所做的工作。我們有一條管道，我們相信它將繼續讓我們在未來保持競爭力。

Can you at least comment, I believe your next generation platform I think it went from Steeple Chase or I think you may have renamed it Leo, and that was a cobalt chromium stent coated with Sirolimus. Is that still your next generation platform?

你至少可以評論一下，我相信你的下一代平台我認為它來自 Steeple Chase 或者我認為你可能已經將它重命名為 Leo，那是一個塗有西羅莫司的鈷鉻支架。那仍然是您的下一代平台嗎？

Next generation as defined by an alternative material, yes that would be the cobalt chromium productline. But we have no less than five or six additional PMAs that we plan to submit in 2006 that will continue to expand the productline and the existing Cypher product as well as increased clinical indications. So here again, we've had a difficult situation here with the FDA that is really getting kind of confronted our ability to do product development as we would have liked to.

由替代材料定義的下一代，是的，這將是鈷鉻產品線。但是我們計劃在 2006 年提交不少於五到六個額外的 PMA，這些 PMA 將繼續擴大產品線和現有的 Cypher 產品以及增加的臨床適應症。所以在這裡，我們在 FDA 遇到了一個困難的局面，這真的有點像我們想要的那樣進行產品開發的能力。

Would that also include not only stent and catheter adjustments or redesigns, but would it also include drug combinations? We have been hearing about a Sirolimus/heparin combination. Is that still in development?

這是否不僅包括支架和導管的調整或重新設計，還包括藥物組合嗎？我們一直聽說西羅莫司/肝素組合。那還在開發中嗎？

At this point in time we are looking at a multitude of new drug combinations, and when we are further along on that we will give you better insight as to what (multiple speakers) might look like.

目前，我們正在研究多種新藥組合，當我們進一步研究時，我們將讓您更好地了解（多位發言人）可能是什麼樣子。

Larry Keusch, Goldman Sachs.

拉里·科施，高盛。

I just want to touch on PROCRIT, EPREX. You talked about the volume losses to Amgen. But could you talk about how you think about the overall market and the stability of the market? And then the second part of the question is if you don't get the immediate injunction against Amgen, do you think that you will still see your marketshares continue to decline? And then lastly, just on CHARITE, I'm wondering if you can give us any sense of your thoughts in the cervical spine area, and what you might be doing there? And any feel for sort of how many implants were done with CHARITE either year-to-date or in the quarter or any way that we can just sort of measure how that progress is going? Thank you.

我只想談談 PROCRIT，EPREX。你談到了安進的銷量損失。但是您能談談您對整體市場和市場穩定性的看法嗎？然後問題的第二部分是，如果你沒有立即獲得針對安進的禁令，你認為你的市場份額還會繼續下降嗎？最後，就在 CHARITE 上，我想知道您能否告訴我們您在頸椎區域的想法，以及您可能在那裡做什麼？對於今年迄今為止或在本季度使用 CHARITE 完成了多少次植入，或者我們可以衡量進展情況的任何方式有什麼感覺嗎？謝謝你。

Why don't I handle the first question? What we've seen is continued double-digit market growth -- excuse me we had a little background there. What we've seen is continued double-digit market growth. I think we estimated the third quarter growth in the 12 to 13% range. So healthy growth somewhat slower than what we had seen in prior years. We did see, however, some real improvement in terms of price stability in the market. Prices most recently have become fairly stable. And what you saw in terms of our results, as Helen commented, our share third quarter to third quarter year-to-year was down, and the market growth was not enough to fully offset it. So we had a modest year on year decline. I should say that the rate of share loss has been slowing over the last nine months. So we are pleased about that. We're pleased about the price stability. We're pleased about the market growth.

為什麼我不處理第一個問題？我們看到的是持續兩位數的市場增長——對不起，我們在那裡有一點背景。我們看到的是持續兩位數的市場增長。我認為我們估計第三季度的增長率在 12% 到 13% 之間。如此健康的增長比我們前幾年看到的要慢一些。然而，我們確實看到了市場價格穩定性方面的一些真正改善。最近的價格已經變得相當穩定。正如海倫所說，您從我們的業績中看到的情況是，我們第三季度到第三季度的份額同比下降，市場增長不足以完全抵消它。因此，我們的同比下降幅度不大。我應該說，在過去的九個月裡，股票損失的速度一直在放緩。所以我們對此感到高興。我們對價格穩定感到高興。我們對市場的增長感到高興。

The latest competitive tactic, though, is very difficult to handicap should we be unsuccessful in getting the injunction to which we believe we are entitled because it will reinject tremendous price pressure, and of course because our competitor has a monopoly in one of the product categories we simply can't respond with a white blood cell product of our own. So I think it is very difficult for us to handicap what may happen with share should we be unable to get the injunctive relief to which we believe we are entitled.

但是，如果我們未能成功獲得我們認為我們有權獲得的禁令，那麼最新的競爭策略很難阻礙，因為它將重新註入巨大的價格壓力，當然也因為我們的競爭對手壟斷了其中一個產品類別我們根本無法用我們自己的白細胞產品做出反應。因此，我認為如果我們無法獲得我們認為我們有權獲得的禁令救濟，我們很難阻礙共享可能發生的事情。

And let me just add to that because I did get an update from our legal department regarding the timing, and it will be some months before we even get an answer on the preliminary injunction motion. So there will be some discovery that takes place first, and so we're talking probably four to six months before we even know in terms of an answer on the preliminary injunction request.

讓我補充一下，因為我確實從我們的法律部門得到了關於時間安排的最新消息，而且我們甚至需要幾個月的時間才能得到初步禁令動議的答案。所以首先會有一些發現，所以我們可能要討論四到六個月，甚至在我們知道初步禁令請求的答案之前。

Let me just talk about first the cervical disc. We actually have a product called the Pegasus which we are very excited about. We look to start our ID in the first half of next year and will be launching the product in the second half of next year outside of the United States. And we like the design of that very much indeed. So obviously we need to go through the PMA process and the launch date probably realistically looking at 2009, possibly even 2010 for entry into the United States. But it looks like a very nice product indeed.

讓我先談談頸椎間盤。實際上，我們有一款名為 Pegasus 的產品，我們對此感到非常興奮。我們希望在明年上半年開始我們的 ID，並將在明年下半年在美國以外的地區推出該產品。我們確實非常喜歡這種設計。所以很明顯，我們需要通過 PMA 流程，並且發布日期可能現實地考慮到 2009 年，甚至可能是 2010 年進入美國。但它看起來確實是一款非常不錯的產品。

With regard to the CHARITE, the CHARITE number of procedures in the third quarter were again just over 1000, maybe just short of actually 1100 procedures, which is fairly consistent with both first quarter and second quarter. And we are continuing to encounter the reimbursement issues on the CHARITE disc. And we are making progress, but it's slow progress to date.

CHARITE 方面，第三季度CHARITE 的程序數量再次超過1000 件，可能與實際的1100 件相比還差一點，這與第一季度和第二季度的情況基本一致。我們還在繼續遇到 CHARITE 光盤上的報銷問題。我們正在取得進展，但迄今為止進展緩慢。

And Mike, just any thoughts on the design of the Pegasus?

邁克，對飛馬的設計有什麼想法嗎？

The Pegasus is a very nice design, more what we would term second generation design of cervical disc, and perhaps we can give you more details of that when we have our in-depth review, which we plan for next year for the medical device and diagnostics group.

Pegasus 是一個非常好的設計，我們稱之為第二代頸椎間盤設計，也許我們可以在深入審查時為您提供更多細節，我們計劃明年用於醫療設備和診斷組。

Tao Levy, Deutsche Bank.

德意志銀行的陶·利維。

Just two quick questions. One, and I am sorry if I missed it before -- provide us with an update on the supply of Cypher or of the market that you can supply in the U.S. year end and maybe early next year. And then also I was wondering if you could quickly comment on the legal action you recently brought against Amgen on bundling and what do you expect to happen to that in terms of pricing or volumes to your PROCRIT franchise going forward? Thanks.

只是兩個簡單的問題。一，如果我之前錯過了，我很抱歉 - 向我們提供有關 Cypher 供應或您可以在美國年底或明年初供應的市場的最新信息。然後我還想知道您是否可以快速評論您最近對 Amgen 提起的捆綁法律訴訟，以及您對未來 PROCRIT 特許經營權的定價或數量方面的預期會發生什麼？謝謝。

I guess I wasn't particularly clear. The immediately prior caller asked a similar question on PROCRIT, and we said we really can't handicap what the consequences would be if we are unsuccessful in getting the preliminary injunction. I think Helen indicated that we think it's going to be four to six months before we have a ruling on the preliminary injunction.

我想我不是特別清楚。前一個來電者在 PROCRIT 上提出了類似的問題，我們說如果我們未能成功獲得初步禁令，我們真的不能影響後果。我認為海倫表示，我們認為我們需要四到六個月才能對初步禁令作出裁決。

My apology. I missed that. (multiple speakers) with the Guidant situation.

我很抱歉。我錯過了。 （多位發言者）與Guidant 的情況。

So four to six months before we expect resolution regarding our request for preliminary injunction. It is a significant price increase customers are faced with if they do not move their business to the competitive product. And we will have to determine how best to respond because obviously we can't respond with the white blood cell factor because our competitor has a monopoly in that category. And this is particularly important in oncology clinics and hospitals with large oncology practices. So it is those portions of the business that we would have the greatest concern.

因此，在我們期待關於我們的初步禁令請求的解決之前四到六個月。如果客戶不將業務轉移到有競爭力的產品上，他們將面臨顯著的價格上漲。我們必須確定如何最好地做出反應，因為顯然我們無法用白細胞因子做出反應，因為我們的競爭對手在該類別中具有壟斷地位。這在腫瘤診所和擁有大型腫瘤診所的醫院中尤為重要。因此，我們最關心的是業務的那些部分。

But you would not expect them to proactively start to change their habits?

但你不會指望他們會主動開始改變他們的習慣嗎？

Well, our competitor has, as you probably know, has served notice to their customers that they will not be honoring their current contracts beyond the thirty-day notice period. And unless the customer then moves a very substantial portion of their PROCRIT business to the competitor, then the customer will be faced with sharply increased prices because they will lose the discounts that they are currently enjoying on the Neulasta and/or Neupogen. So that action has already been taken, and that is what prompted our legal action.

好吧，正如您可能知道的那樣，我們的競爭對手已經通知他們的客戶，他們將不會在 30 天通知期之後履行現有合同。除非客戶隨後將很大一部分 PROCRIT 業務轉移給競爭對手，否則客戶將面臨價格大幅上漲的局面，因為他們將失去目前在 Neulasta 和/或 Neupogen 上享受的折扣。所以已經採取了行動，這就是促使我們採取法律行動的原因。

As it relates to Cypher supply, we continue to make progress in our manufacturing operations to ensure increased product availability of the Cypher stent, and we are confident that today we can serve approximately half of the market in the U.S. And we are in the process of adding incremental capacity in our manufacturing facilities, which will be available and validated in the first half of next year, at which time we estimate we can support up to 75% of the U.S. market.

由於與 Cypher 供應有關，我們繼續在製造業務方面取得進展，以確保提高 Cypher 支架的產品可用性，我們有信心今天我們可以服務於美國大約一半的市場。我們正在在我們的製造設施中增加產能，這些產能將於明年上半年投入使用並得到驗證，屆時我們估計可以支持多達 75% 的美國市場。

Bruce Cranna, Leerink Swann.

布魯斯·克蘭納，李林克·斯旺。

Nick, while we have you, can you just quickly comment on whether or not the advent of continuous glucose monitors changes the way you look at the LifeScan business going forward, and whether or not you guys have any plans to go down that read yourself?

尼克，當我們有你的時候，你能不能快速評論一下連續血糖監測儀的出現是否會改變你對 LifeScan 業務未來的看法，以及你們是否有任何計劃去讀自己的書？

Yes, our LifeScan business certainly has established its presence in self-monitoring blood glucose. But as I mentioned, we really are beginning to see a transformation of our thinking from, as we call it sort of measurement to management, diabetes management. And continuous monitoring is an important step along that continuum to create this diabetes management company. So we are actively engaged in research to explore technologies that will allow for continuous glucose monitoring. That provides for the patient benefit of tighter glycemic control. And we also look for opportunities to continue to broaden our portfolio of products in the LifeScan Company. So it is an important next step in the process. And if you can envision a day in the future with continuous glucose monitoring, perhaps there is an opportunity to really create a significant end benefit for patients with diabetes and keep them in tighter control.

是的，我們的 LifeScan 業務無疑已經在自我監測血糖方面確立了自己的地位。但正如我所提到的，我們確實開始看到我們的思維方式發生了轉變，從我們所說的測量到管理，糖尿病管理。持續監測是創建這家糖尿病管理公司的重要一步。因此，我們積極參與研究，以探索能夠持續監測血糖的技術。這為患者提供了更嚴格的血糖控制的好處。我們還尋找機會繼續擴大 LifeScan 公司的產品組合。因此，這是該過程中重要的下一步。而且，如果您可以設想未來的某一天進行持續的血糖監測，那麼也許有機會真正為糖尿病患者創造顯著的最終益處，並使他們得到更嚴格的控制。

Are you more likely to build or buy that capacity?

您更有可能建立或購買該容量嗎？

At this point to comment on that we will explore all opportunities to access that technology, as you might consider we would.

在這一點上評論我們將探索訪問該技術的所有機會，正如您可能認為的那樣。

Okay, and then just a quick one for either Helen or Mike I guess. Can you remind us on the timing of precise carotid stent and (indiscernible) FDA? I can't recall when we expect to hear something back on that.

好的，然後我猜是給 Helen 或 Mike 的一個快速的。你能提醒我們精確頸動脈支架和（聽不清）FDA 的時機嗎？我不記得我們什麼時候希望聽到關於它的消息。

With regards to our carotid stent, I think it has probably been mentioned in the past as a result of the warning letter with the FDA regarding our Cordis cardiology franchise all new product approvals have been sort of held up in that process. And as I mentioned earlier, we are working very diligently to address the issues with the FDA. And we have a meeting with them at the end of this month. And really the launch of that product is contingent upon successful resolution of our current situation with the FDA warning letter.

關於我們的頸動脈支架，我認為過去可能已經提到過，因為 FDA 就我們的 Cordis 心髒病學特許經營發出了警告信，所有新產品的批准都在這個過程中被擱置了。正如我之前提到的，我們正在非常努力地解決與 FDA 的問題。我們將在本月底與他們會面。實際上，該產品的推出取決於通過 FDA 警告信成功解決我們目前的情況。

Bruce Nudell, Sanford Bernstein.

布魯斯·努德爾，桑福德·伯恩斯坦。

In terms of the orthopedic unit growth rate from '99 to 2004 was about 7% in the United States. Do you see a significant elevation of that level going forward? I know knees are a little faster than their historic 10% in the U.S. and hips are probably a little slower. And then on the other front with regards to Endeavor, it did look like there were efficacy differences between Cypher and Endeavor yesterday. And I was wondering how you feel that you are going to competitively respond to that especially in the European market that is price sensitive. Thanks so much.

從 99 年到 2004 年，美國的骨科單位增長率約為 7%。您是否看到該水平的顯著提升？我知道膝蓋比美國歷史上的 10% 快一點，而臀部可能慢一點。然後在另一條戰線上，關於 Endeavor，昨天 Cypher 和 Endeavor 之間確實存在功效差異。我想知道你覺得你將如何應對這一競爭，尤其是在價格敏感的歐洲市場。非常感謝。

Just in terms of the numbers we've grown our orthopedics business in the U.S. at a much faster rate than 7% I think you quoted.

僅就我們在美國的骨科業務增長速度而言，我認為您引用的速度比 7% 快得多。

Units.

單位。

Units?

單位？

Because you had mentioned that unit growth was accelerating, and I was just wondering if you felt that it would be well above that level.

因為你提到單位增長正在加速，我只是想知道你是否覺得它會遠高於那個水平。

Yes, certainly the industry growth rate in units for hips in the U.S. is in the single digits, and also much slower than the growth rate that we've seen in terms of knees. Knees have grown very rapidly and approximate some 500,000 procedures now in the U.S. And so they've certainly grown rapidly. And our business has mirrored that. Except that I mean it is interesting if you take the first nine months of this year, we've seen very strong hip growth particularly internationally, which has been in the strong double-digits area. And there has been very little price internationally coming into actually impact that. Whereas we have seen that continuation if you like of single digits in the U.S. But generally speaking, and I think this is a trend that will continue, we will see knees growing at a faster rate than hips going forward.

是的，當然，美國臀部單位的行業增長率是個位數，而且比我們看到的膝蓋增長率要慢得多。膝蓋的增長非常迅速，現在在美國大約進行了大約 500,000 次手術，因此它們肯定增長迅速。我們的業務也反映了這一點。除了我的意思是有趣的是，如果你看一下今年的前九個月，我們已經看到了非常強勁的臀部增長，特別是在國際上，它一直處於強勁的兩位數區域。國際上幾乎沒有什麼價格真正影響到這一點。雖然如果你喜歡美國的個位數，我們已經看到了這種延續。但總的來說，我認為這是一個將繼續下去的趨勢，我們會看到膝蓋的增長速度比臀部的增長速度更快。

But I guess if units grew in the United States around 7% in aggregate, do you see from '99 - '04 do you see a large uptick in that 7% combined number?

但我猜如果美國的單位總數增長約 7%，您是否看到從 99 年到 04 年，您是否看到 7% 的合併數字大幅上升？

On a go forward basis?

在前進的基礎上？

Yes.

是的。

No, I think on the hips side we will continue to see high single digits growth going forward. I don't think on a unit basis we will see that for hips moving to double digits.

不，我認為在臀部方面，我們將繼續看到高個位數的增長。我不認為在一個單位的基礎上，我們會看到臀部移動到兩位數。

Okay. And then Endeavor.

好的。然後是奮進。

With regards to Endeavor, Bruce, obviously as you heard yesterday, Medtronic was unsuccessful in meeting its primary endpoint of in segment late loss with the Endeavor product having 0.3 mm versus 0.13 mm for the Cypher stent. And as well, secondary endpoints of in-stent late loss 0.6 mm for Endeavor versus 0.15 mm for Cypher were statistically significant, along with in segment binary restenosis rates between the two products. And from our perspective the report out of Endeavor really just expanded the extensive clinical data that has been available either through randomized controlled clinical trials or large-scale patient registries, that just continue to validate and support the excellent safety profile across a broad range of patient types and lesion types here. So when you think about the Cypher stent in over 1.5 million patients have been treated with Cypher since its release. And what we plan to do is to continue to reinforce the clinical experience and patient benefits that are realized with Cypher across a broad range of patient and lesion types. And that really is the essence of our marketing approach, a commercial strategy against Endeavor or any other stent that is in the market today.

關於 Endeavor，Bruce，很明顯，正如您昨天聽到的那樣，美敦力未能成功達到其主要終點，即 Endeavor 產品的分段晚期丟失，其 Cypher 支架為 0.3 毫米，而 Cypher 支架為 0.13 毫米。同樣，Endeavor 的支架內晚期丟失 0.6 mm 與 Cypher 的 0.15 mm 的次要終點以及兩種產品之間的分段二元再狹窄率具有統計學意義。從我們的角度來看，Endeavor 的報告實際上只是擴展了通過隨機對照臨床試驗或大規模患者登記可獲得的廣泛臨床數據，這些數據只是繼續驗證和支持廣泛患者的出色安全性類型和病變類型在這裡。因此，當您想到 Cypher 支架自發布以來，已有超過 150 萬患者接受了 Cypher 治療。我們計劃做的是繼續加強 Cypher 在廣泛的患者和病變類型中實現的臨床經驗和患者利益。這確實是我們營銷方法的精髓，是針對 Endeavor 或當今市場上任何其他支架的商業策略。

Would you consider a head to head?

你會考慮正面交鋒嗎？

At this point in time it is really not ours to do. I think we have established a threshold here for new market entrance into the drug-eluting stent market. And so from my perspective it is the next entrant has to be able to meet the thresholds that have been established by Cypher.

在這個時間點上，這真的不是我們要做的。我認為我們在這里為新的市場進入藥物洗脫支架市場設立了門檻。因此，從我的角度來看，下一個進入者必須能夠達到 Cypher 設定的門檻。

Sara Michelmore, SG Cowen & Company.

Sara Michelmore, SG Cowen & Company。

Just a question for Nick on the ortho clinical diagnostics, how sustainable should we think is that double-digit growth? And could you discuss the timeframe in which you think that Veridex will be a growth driver for that group of companies? And then just a quick follow-up for Helen, Helen if there is any updates on the filing timelines for TNC 114 or Hydromorphone. Thanks.

只是尼克關於鄰接臨床診斷的一個問題，我們應該認為兩位數的增長有多可持續？您能否討論一下您認為 Veridex 將成為該集團公司增長動力的時間範圍？如果 TNC 114 或氫嗎啡酮的提交時間表有任何更新，海倫只是快速跟進。謝謝。

With regards to the ortho clinical diagnostics business the results we're seeing today are really the result of new product launches that we've had in the business. It is the continued market penetration of our automated blood bank products, continued growth of our ECI equipment and relationship that we have established with Quest Laboratories for ECI infectious diseases in the U.S. and continued growth in our clinical chemistry business, which is really being fueled through the launch of our VITROS 5.1 instrument platform and then the new assays that are being launched on to that system. So the sustainability of this we've really sort of directed our OCD franchise to get focused on research that provides assays that create high-value clinical contents for our customers. And I think we can see this continuing into the near future. And we have confidence in the portfolio of new products that we're developing in the OCD franchise.

關於鄰接臨床診斷業務，我們今天看到的結果實際上是我們在業務中推出的新產品的結果。這是我們自動化血庫產品的持續市場滲透、我們的 ECI 設備的持續增長以及我們與美國 ECI 傳染病的 Quest Laboratories 建立的關係以及我們臨床化學業務的持續增長，這確實是通過推動我們的 VITROS 5.1 儀器平台的推出，然後是在該系統上推出的新檢測。因此，為了實現這種可持續性，我們確實在某種程度上指導了我們的強迫症專營權，專注於提供為我們的客戶創造高價值臨床內容的分析的研究。我認為我們可以看到這種情況持續到不久的將來。我們對我們在強迫症系列中開發的新產品組合充滿信心。

As it relates to Veridex, and I think it's important to recognize that Veridex is truly changing the standard of care in oncology diagnostics. The CellSearch technology is the first of its kind technology. And as with these types of innovation, it takes time. It takes time to change the paradigm of the clinicians that use these products, specifically in pathology. We are very confident in the science. The science has been recognized in journals like in JAMA and Lancet. So we are going to continue to invest in this business. We believe it has a long-term growth potential, not just in breast cancer, but perhaps in other cancers to include lung and prostate and colon cancer. So I think certainly with our commitment to investing in the long-term and in platforms such as Veridex, we do see it to be an important part of our future in our diagnostic businesses.

因為它與 Veridex 有關，我認為重要的是要認識到 Veridex 正在真正改變腫瘤診斷的護理標準。 CellSearch 技術是同類技術中的首創。與這些類型的創新一樣，這需要時間。改變使用這些產品的臨床醫生的範式需要時間，特別是在病理學方面。我們對科學非常有信心。該科學已在 JAMA 和 Lancet 等期刊中得到認可。因此，我們將繼續投資於這項業務。我們相信它具有長期的增長潛力，不僅在乳腺癌中，而且可能在其他癌症中，包括肺癌、前列腺癌和結腸癌。因此，我當然認為，憑藉我們對長期投資和 Veridex 等平台的投資，我們確實認為它是我們未來診斷業務的重要組成部分。

With regard to your questions about the filing timelines on the OROS Hydromorphone, we do anticipate submitting the complete response as we had indicated by the end of the year. And that is still on track to do that. And then with the PNC 114 the first part of that rolling submission was filed in late September, and the complete filing should be in by the end of the year, as well.

關於您對 OROS 氫嗎啡酮申報時間表的問題，我們確實預計會在年底前提交完整的答复。這仍然是在按計劃進行。然後使用 PNC 114，滾動提交的第一部分在 9 月下旬提交，完整的提交也應該在今年年底之前提交。

Glenn Reicin, Morgan Stanley.

Glenn Reicin，摩根士丹利。

Hi, good morning, it is Matt Miksic for Glenn. A question on orthopedics; I know you mentioned some of the pricing pressure coming in Japan. But I was wondering if you had any comments on the U.S. pricing market for recon. And then I also had a follow-up on mix.

嗨，早上好，我是格倫的 Matt Miksic。關於骨科的問題；我知道你提到了日本的一些定價壓力。但我想知道您是否對美國偵察定價市場有任何評論。然後我也跟進了混音。

As I mentioned earlier, aside from Japan we do see an environment where there will be lower prices being taken in the marketplace in the U.S.

正如我之前提到的，除了日本，我們確實看到了美國市場上價格較低的環境。

So just be crystal clear it was the negative price in the U.S. excluding mix?

因此，非常清楚這是美國的負價格，不包括混合？

No, I don't think we were --.

不，我不認為我們是——。

You look at them together?

你一起看嗎？

I don't think we will move into that territory. Plus also there still remains some interesting new technology that we can introduce for the benefit of patients which may have an impact positively on mix.

我不認為我們會進入那個領域。此外，我們還可以引入一些有趣的新技術來造福患者，這可能會對混合產生積極影響。

So lower price increases then is what you're saying?

那麼較低的價格上漲是你的意思嗎？

I think the environment is one where the healthcare system is truly looking for good value for money, and I think that is an environment where companies have got to be cognizant of. And that is going to be one where there is probably less opportunity to take upward pricing action.

我認為環境是醫療保健系統真正尋求物有所值的環境，我認為這是公司必須認識到的環境。這將是一個可能很少有機會採取向上定價行動的地方。

Okay, and then on -- question on mix I was wondering in the areas of highly cross-linked poly or mobile bearing knees, do you see an opportunity there for DePuy to have mix, continued mix improvements there? Or do you feel like those have run their course?

好的，然後——關於混合的問題我想知道在高度交聯的多聚體或移動軸承膝蓋領域，你是否認為 DePuy 有機會在那裡進行混合，繼續改進混合？或者你覺得那些人已經完成了他們的課程？

I think on the hip side we've seen mix essentially run its course. I mean, if we take our individual portfolio we have strong metal on metal. We have a reasonable proportion of ceramic on ceramic. But when we look at our polyethylene, particularly for the hip, it is virtually all cross-linked polyethylene. Moving on to knees, there is some continued opportunity with regard to the different polyethylenes. But the real, as you mentioned, possibility in terms of any added value is with regard to mobile bearing knees. And we continue to see very strong growth, very strong growth of mobile bearing knees in the U.S.

我認為在時尚方面，我們已經看到 mix 基本上是順其自然的。我的意思是，如果我們採用我們的個人投資組合，我們就會擁有強大的金屬對金屬。我們在陶瓷上有合理的陶瓷比例。但是，當我們查看我們的聚乙烯時，尤其是用於臀部的聚乙烯，它實際上全是交聯聚乙烯。轉向膝蓋，關於不同的聚乙烯，還有一些持續的機會。但是，正如您所提到的，就任何附加值而言，真正的可能性在於移動軸承膝蓋。我們繼續看到非常強勁的增長，美國移動軸承膝的增長非常強勁。

Any plans to do say sort of what has been called a next generation of highly cross-linked poly like these annealed or (indiscernible) physical manipulated products?

有沒有計劃說像這些退火或（聽不清的）物理操作產品那樣的下一代高度交聯聚合物？

Not from our perspective.

不是從我們的角度來看。

Great. Thank you.

偉大的。謝謝你。

Elizabeth I think we have time for one more question.

伊麗莎白 我想我們還有時間再問一個問題。

(indiscernible) of CSFB.

（音頻不清晰）CSFB。

Given that Guidant is your largest acquisition, what do you mean by considering ultimatives and have you had any discussions with Guidant on these alternatives? In addition for your previous filings, do you still expect the transaction to close in the fourth quarter? Thank you.

鑑於 Guidant 是您最大的收購，您考慮終極方案是什麼意思？您是否與 Guidant 就這些替代方案進行過討論？除了您之前提交的文件，您是否仍預計交易將在第四季度完成？謝謝你。

I think we were very clear at the start of the call that my initial statement would stand-alone, and I have no further comment to make on the Guidant transaction.

我認為在電話會議開始時我們非常清楚我的初始聲明將是獨立的，我對 Guidant 交易沒有進一步的評論。

Well, I think that brings our conference call to a close. In closing, let me say that we are pleased that once again our broad based business model has permitted us to achieve solid short-term financial results while aggressively investing to fuel long-term growth. We look forward to meeting with you in January when we will be joined by our Chairman and Chief Executive Officer, Bill Weldon. And we will have an opportunity to review our full year '05 results, '06 expectations, and our strategic direction.

好吧，我認為這使我們的電話會議結束。最後，讓我說，我們很高興我們基礎廣泛的商業模式再次使我們能夠實現穩健的短期財務業績，同時積極投資以推動長期增長。我們期待在 1 月份與您會面，屆時我們的董事長兼首席執行官 Bill Weldon 將與您會面。我們將有機會回顧我們 05 年全年的業績、06 年的預期和我們的戰略方向。

Thank you for your continued interest and support. Have a great day.

感謝您一直以來的關注和支持。祝你有美好的一天。

This concludes today's Johnson & Johnson conference call. You may now disconnect.

今天的強生電話會議到此結束。您現在可以斷開連接。