Shares in medtech giant Johnson & Johnson (JNJ) rose today as it said it would revolutionize cancer treatment following its $3.05 billion acquisition of “hold and kill” biotech Halda Therapeutics.
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Prostate Hopes
Privately-held Halda’s lead drug candidate, HLD-0915, is in early to mid-stage development for the treatment of prostate cancer, of which new diagnoses are projected to reach 1.7 million globally by 2030.
“Given the existing unmet need, this once-daily therapy has the potential to transform patient outcomes with its novel precision cancer cell-killing approach that can overcome mechanisms of resistance to treatment. The acquisition also includes several earlier candidates for breast, lung and multiple other tumor types,” JNJ said.
The novel approach is known as “hold and kill.” It selectively targets tumors and directly kills cancer cells by holding together two types of protein.
John C. Reed, M.D., Ph.D.,Executive Vice President, Innovative Medicine, R&D, Johnson & Johnson, added: “Many therapies lose effectiveness over time due to resistance. Halda’s innovative technology is designed to work even when cancers no longer respond to standard treatments using a novel mechanism that enables the selective killing of cancer cells.”
Major Moves
The cash deal is expected to close within the next few months, subject to antitrust clearance. JNJ has a target of hitting $50 billion in oncology sales by 2030, and this will obviously help it to reach those goals.
The move also marks the medtech conglomerate’s second major deal this year, after its $14.6 billion acquisition of neurological drug maker Intra-Cellular Therapies in January. It’s helped the group’s share price have a very healthy 2025 – see below:
This deal also reinforces its strategy to expand higher-growth healthcare segments through new launches as it navigates the loss of exclusivity for its blockbuster immune disease treatment Stelara.
Is JNJ a Good Stock to Buy Now?
On TipRanks, JNJ has a Moderate Buy consensus based on 13 Buy and 7 Hold ratings. Its highest price target is $230. JNJ stock’s consensus price target is $207.65, implying a 4.47% upside.
