CAR-T therapies are transforming treatment for certain cancers and raising hopes for patients. Several approved therapies have delivered strong responses for patients with advanced blood cancers where conventional treatments have failed.
It’s no wonder the CAR-T market is expanding rapidly. The global CAR-T therapy market is projected to grow from $2.69 billion in 2022 to $35.9 billion by 2032. This represents a compound annual growth rate of 28.5%. This growth is being fueled by factors like rising cancer cases and advances in gene-editing technologies.
With that lucrative market in sight, drugmakers are now working to strengthen their CAR-T portfolios and extend beyond cancer treatment. Johnson & Johnson (NYSE:JNJ) and Bristol-Myers Squibb Co (NYSE:BMY) are among the drugmakers vying for the CAR-T market share.
Johnson & Johnson Expands Its CAR-T Strategy With Sail Biomedicines Deal
Johnson & Johnson (NYSE:JNJ) has struck a deal to collaborate with Sail Biomedicines to develop in vivo CAR-T therapies for immune-mediated diseases. As part of this deal, Johnson will make $785 million in initial payments to Sail, and an additional $140 million if certain milestones are met.
Johnson has an option to acquire Sail for $2.58 billion. Sail is focused on developing a type of CAR-T therapies that would simplify treatment and make CAR-T therapies more scalable. Johnson said that acquiring Sail would modestly dilute its earnings in the near-term. But that’s a small price to pay compared to what it could be getting.
CAR-T Race Centers on Advanced Therapies and Going Beyond Cancer Treatment
Johnson already has a solid foothold in the CAR-T market. Its flagship therapy is Carvykti, which targets multiple myeloma. Carvykti has been approved in more than a dozen markets and its sales are soaring. The Sail deal gives Johnson a platform to accelerate its progress into next-generation therapies and expand into other disease areas.
Bristol-Myers Squibb Co (NYSE:BMY) has also built a strong presence in the CAR-T therapy market. Its portfolio includes the Breyanzi franchise for various B-cell lymphomas and leukemias. Bristol strengthened its position in this space following its acquisition of Celgene.
The race now centers on developing advanced therapies and diversifying beyond cancer treatment into other diseases.
Hedge Funds Love Johnson More Than Bristol
Both Johnson and Bristol-Myers Squibb Co (NYSE:BMY) are significantly held by hedge fund holders. At the end of the second quarter, 117 hedge funds held positions in Johnson, up from 113 in the previous quarter. Bristol Myers Squibb was held by 74 hedge funds, down from 83 in the prior quarter.
Regarding bearish sentiment, Johnson stock has lower exposure to short sellers. Its short interest stands at 0.90% of float, compared with 2.25% for Bristol Myers.
Is Johnson or Bristol Stock More Attractive?
Both Johnson & Johnson (NYSE:JNJ) and Bristol stand to benefit from the expanding CAR-T therapy market. But Johnson appears to offer a more favorable investment profile in light of its Sail deal, stronger hedge fund interest, and lower short interest.
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