Johnson & Johnson has something going on this time. Since November, the stock price has risen over 7%, driven by two core factors:

**1. Q3 Financial Report Discredits Bears**
Sales reached $2.4 billion, a quarter-on-quarter increase of 7%, exceeding Wall Street expectations. Adjusted EPS soared, up 15.7% year-on-year to $2.80, 3 cents higher than market expectations. The management also raised the revenue guidance for 2025 to a growth of 5.7%—this reflects market confidence.

**II. 33 billion RMB invested in the oncology track**
On November 17, J&J announced the acquisition of biotechnology company Halda Therapeutics for $3.05 billion, aiming to secure an oral new drug for prostate cancer. Prostate cancer is the most common cancer among men in the United States, with an estimated 1.7 million new diagnoses globally by 2030 — this is a trillion-dollar blue ocean market.

**Why the rush to buy, buy, buy?** J&J is facing a patent cliff and competitive pressure, with the immunotherapy drug Tremfya being eroded by AbbVie, and the patent for Stelara also nearing expiration. Pharmaceutical giants are frantically replenishing their pipelines. Just this April, they spent $14.6 billion to acquire Intra-Cellular (a neuroscience drug), and now they're doing this.

The market's reaction is very straightforward - this operation is solid.