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

Core Insights - Johnson & Johnson's stock price has increased over 7% since the beginning of November, driven by strong third-quarter results that exceeded Wall Street expectations [1] - The company reported nearly 7% sales growth year-over-year, reaching $24 billion, and adjusted earnings per share rose 15.7% to $2.80, surpassing consensus estimates [1] - J&J raised its full 2025 revenue growth guidance to 5.7% over 2024, indicating management's optimism [1] Business Strategy - J&J plans to spin off its slow-growing orthopedics group within two years, focusing instead on its faster-growing cardiovascular and surgery businesses [2] - The acquisition of Halda Therapeutics for $3.05 billion aims to enhance J&J's oncology portfolio, particularly in prostate cancer treatments [4] Market Response - The market reacted positively to the Halda acquisition announcement, as the biotech has a promising drug in early-stage trials for metastatic prostate cancer [7] - J&J's oncology and immunology drugs face competition, particularly from AbbVie, making the acquisition strategically important [5] Industry Context - The expiration of the patent for J&J's immunology drug Stelara highlights the urgency for the company to renew its drug pipeline through acquisitions [6] - Prostate cancer is a significant health concern, with new diagnoses expected to reach 1.7 million globally by 2030, underscoring the importance of J&J's new drug developments [9]