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Johnson & Johnson (JNJ) Taps Sail Biomedicines in Bid for CAR-T Edge Over Bristol Myers Squibb

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.

READ NEXT: Should You Buy Lockheed Martin After Its Strong Q2 Earnings Rally? and Why TotalEnergies (TTE) Could Be a Strong Energy Stock to Buy. 

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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