Shares of Johnson & Johnson (JNJ) traded in the green on Friday afternoon after the American healthcare group secured a positive review for its new therapy drug from the European health committee.
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The drug, Nipocalimab, is a lab-made antibody (a type of protein) that blocks something called FcRn—this helps to lower harmful antibodies in the body. The drug is designed as an add-on to standard therapy for the treatment of generalized myasthenia gravis (gMG), a muscle-weakening disease.
gMG causes symptoms such as weak arms or legs, double vision, difficulty in speaking or swallowing, and shortness of breath, among others. However, Johnson’s medicine seeks to treat the symptoms in persons aged 12 and older who have certain antibodies (AChR or MuSK) linked to gMG.
‘A Vital Step Forward’
According to Johnson & Johnson, the European Medicines Agency’s Committee for Medicinal Products for Human Use (CHMP) recommended the drug for approval by the European Commission after reviewing its clinical trial studies.
The positive initial feedback marks the first step for the health company’s effort to secure regulatory approval for the drug in the European Union. Johnson requires the stamp of approval from the European Commission before the drug can be produced and sold in the region.
“Today’s positive CHMP opinion is a vital step forward in our unwavering commitment to improve the treatment landscape for people living with generalized myasthenia gravis across Europe,” said Mark Graham, a senior director at Johnson & Johnson’s pharmaceutical arm in the EMEA. “We look forward to the European Commission’s decision, which brings us closer to delivering an innovative treatment option to those who need it most.”
The latest update follows the recent disclosure of the results of Johnson’s 10-year DanGer Shock trial. The study had concluded that Johnson’s subsidiary Abiomed’s Impella CP heart pump could help heart attack survivors live longer.
However, experts have suggested that Johnson’s stock appears undervalued despite the company continuing to build a steady momentum, with medical technology rising as a possible pillar of growth.
Is JNJ a Good Stock to Buy Now?
Turning to Wall Street, Johnson & Johnson’s shares have a Moderate Buy consensus rating on TipRanks, based on nine Buys and nine Holds assigned by 18 Wall Street analysts over the past three months. The average JNJ price target of $181.81 indicates a 3.15% growth potential.
