Johnson & Johnson Will Buy Cancer Drugmaker Halda Therapeutics for $3.1 Billion

J&J shares are up more than 37% this year. (Mario Tama/Getty Images)

Key Points

• Johnson & Johnson announced a $3.1 billion acquisition of Halda Therapeutics, a privately-held cancer biotech company.
• Halda’s lead drug, HLD-0915, is in Phase 1/2 clinical trials for prostate cancer, utilizing a “hold and kill mechanism.”
• Biotech stocks have risen significantly, with the XBI up over 27% since September, driven by increased acquisitions.

Johnson & Johnson on Monday announced a $3.1 billion deal to buy privately-held cancer biotech Halda Therapeutics, the latest in a cavalcade of biotech acquisitions as the sector has heated up over the past few months.

Halda’s lead drug, called HLD-0915, is being tested in a Phase 1/2 clinical trial as a treatment for prostate cancer. The drug uses what the company calls a “hold and kill mechanism” to target and kill cancer cells, and is one of a number of medicines the company has under development.

Shares of Johnson & Johnson were up 1.9% on Monday, while the S&P 500 was roughly flat. The SPDR S&P Biotech exchange traded fund, which trades under the ticker XBI, was up 1.2%.

Biotech stocks have been on a run in recent months, as an easing of worries over President Donald Trump’s threats to lower drug prices has been met by a wave of biotech deals cut by Big Pharma companies desperate to pad their pipelines. Those acquisitions have come with hefty premiums, and there are signs that bidding wars have been intense and competitive.

Last week, Merck said it would pay $9.2 billion for Cidara Therapeutics, a 109% premium over the closing price the day before the deal, and Pfizer completed its acquisition of the obesity biotech Metsera only after beating a last-minute public effort by Novo Nordisk to spoil the agreement.

The XBI is now up more than 27% since the start of September, a period in which the S&P 500 is up just 4%.

J&J shares are up more than 37% this year, following a series of positive guidance revisions and an improving political backdrop.

“This acquisition further strengthens our deep oncology pipeline with an exciting lead asset in prostate cancer and a platform capable of treating multiple cancers and diseases beyond oncology,” said Jennifer Taubert, J&J’s worldwide chairman for its innovative medicine division, in a statement.

J&J said its expects dilution of $0.15 in 2026 to adjusted earnings per share as a result of the deal.

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com