J&J sitting on cash, wanting acquisitionsWhile not an exact "fit" with Oncy, maybe a look at M&A activity for Q4 as we close out the year.
Johnson & Johnson plans to tap billions in proceeds from the recent split-off of its consumer-health business to fuel growth in pharmaceuticals and medical technology through capital allocation, which could include new acquisitions and investments in product offerings and robotics.
The New Brunswick, N.J.-based healthcare giant in May sold shares in Kenvue, which owns brands such as Band-Aid and Tylenol, through an initial public offering that netted J&J $13.2 billion in cash.
J&J’s targets for acquisitions are businesses with scientific expertise and commercial capabilities that could benefit from J&J’s global reach, Wolk said. The company’s growth will continue to stem from a 50-50 split between organic, in-house development and expansion through acquisitions and partnerships, as it has historically, he said.
The company could acquire a mix of firms with already approved drugs and those with a late-stage pipeline that could launch a drug by the time a similar drug loses J&J exclusivity, said Damien Conover, director of healthcare equity research at financial-services firm Morningstar's research arm.