Why Johnson & Johnson's Share Price Is Popping This Month

• J&J bushed Wall Street estimates connected income and profits successful the 3rd quarter.

• The institution precocious announced the acquisition of a biotech with an innovative crab treatment.

• 10 stocks we similar amended than Johnson & Johnson ›

Johnson & Johnson's (NYSE: JNJ) banal terms is up much than 7% since the archetypal trading time of November. What's going connected with this healthcare giant?

Well, J&J posted beardown third-quarter results successful mid-October that bushed Wall Street's estimates. Sales roseate astir 7% implicit the aforesaid 4th past year, to $24 billion, somewhat higher than Wall Street expected. And adjusted net per stock were up 15.7% to $2.80, 3 cents higher than the statement estimate. The institution besides raised afloat 2025 guidance connected gross maturation somewhat to 5.7% implicit 2024 -- ever a bully motion of rising absorption optimism.

And J&J announced it plans to rotation disconnected its slow-growing orthopedics radical wrong 2 years. It volition alternatively absorption connected its cardiovascular and country businesses, some of which person faster maturation and higher margins.

Then, connected Nov. 17, J&J announced it volition get Halda Therapeutics, a clinical-stage biotechnology institution with a proprietary level to make oral, targeted therapies for aggregate types of coagulated tumors, successful peculiar prostate cancer. The woody is for $3.05 cardinal successful currency and is expected to adjacent wrong the adjacent fewer months, taxable to antitrust clearance and different closing conditions.

The acquisition volition broaden J&J's already extended portfolio of oncology drugs.

Just arsenic important, it volition offset immoderate of the contention J&J is facing successful its oncology and immunology drugs similar Tremfya. Other drugmakers, peculiarly AbbVie, person akin drugs connected the marketplace and person been taking marketplace stock from J&J.

J&J besides faces the expiration of its patent for immunology cause Stelara. So the institution -- similar astir large pharmaceutical firms -- is urgently seeking to renew its cause pipeline done acquisitions.

There was a precise invited reception by the marketplace to the announcement connected Halda. The biotech has a cause successful early-stage trials that could dainty metastatic prostate cancer, a deadly signifier of the disease. The cause appears to person the quality to flooded communal types of absorption to attraction of prostate crab with a precision tumor cell-killing approach.

Prostate crab is the astir communal crab diagnosed successful men successful the U.S. and the 2nd astir communal origin of crab deaths successful men. New diagnoses are expected to scope 1.7 cardinal globally by 2030.