FDA Policy Change: Only One Pivotal Trial Required
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy JNJ?
The New England Journal of Medicine reports: "Sounding Board announces a new FDA policy that the default requirement for FDA approvals will be one robust pivotal trial plus confirmatory evidence, rather than two trials." Publicly traded companies in the space include AstraZeneca (AZN), Bristol Myers (BMY), Eli Lilly (LLY), GSK (GSK), Johnson & Johnson (JNJ), Merck (MRK), Novartis (NVS), Pfizer (PFE), Roche (RHHBY) and Sanofi (SNY).
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Analyst Views on JNJ
Wall Street analysts forecast JNJ stock price to fall
20 Analyst Rating
13 Buy
7 Hold
0 Sell
Moderate Buy
Current: 243.330
Low
190.00
Averages
218.50
High
240.00
Current: 243.330
Low
190.00
Averages
218.50
High
240.00
About JNJ
Johnson & Johnson and its subsidiaries are engaged in the research and development, manufacture, and sale of a range of products in the healthcare field. The Company’s segments include Innovative Medicine and MedTech. The Innovative Medicine segment is focused on various therapeutic areas, including immunology, infectious diseases, neuroscience, oncology, pulmonary hypertension, cardiovascular and metabolism. Its products include REMICADE (infliximab), SIMPONI (golimumab), SIMPONI ARIA (golimumab), STELARA (ustekinumab), TREMFYA (guselkumab), EDURANT (rilpivirine), and INVEGA SUSTENNA/XEPLION (paliperidone palmitate). The MedTech segment includes a portfolio of products used in cardiovascular, orthopedics, surgery, and vision categories. The Cardiovascular portfolio includes electrophysiology products to treat heart rhythm disorders and circulatory restoration products (Shockwave) for the treatment of calcified coronary artery disease (CAD) and peripheral artery disease (PAD).
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Breakthrough Therapy Designation: Johnson & Johnson's subcutaneous Rybrevant Faspro has received Breakthrough Therapy Designation from the FDA for adult patients with advanced head and neck squamous cell carcinoma, marking a significant advancement in cancer treatment.
- Clinical Trial Support: This designation is supported by data from the Phase 1b/2 OrigAMI-4 study, where Rybrevant Faspro demonstrated rapid and durable responses in heavily pretreated patients, enhancing its competitive position in the market.
- Multiple Indications: Rybrevant Faspro is already approved for various indications in the treatment of non-small cell lung cancer and is being evaluated for use in other solid tumors, including colorectal cancer, showcasing its broad therapeutic potential.
- Stock Performance: Although Johnson & Johnson shares closed at $243.33 on Tuesday, down 0.05%, the Breakthrough Therapy Designation may boost market expectations for its future performance and enhance investor confidence.
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- Massive Investment: Johnson & Johnson has announced an investment of over $1 billion in a next-generation cell therapy manufacturing facility in Montgomery County, Pennsylvania, which is expected to create over 500 biomanufacturing jobs and 4,000 construction jobs, significantly boosting the local economy.
- Significant Economic Impact: This investment is part of the company's broader $55 billion commitment to U.S. investments by 2029, aimed at enhancing its manufacturing capacity in the U.S. to meet the needs of patients, thereby increasing the company's competitiveness in the global market.
- Innovative Manufacturing Capability: The new facility will utilize cutting-edge cell therapy technologies to support Johnson & Johnson's portfolio of transformational medicines for cancer, immune-mediated, and neurological diseases, further solidifying its leadership in the life sciences sector.
- Local Government Support: The Governor of Pennsylvania highlighted that the state's leadership in life sciences and advanced manufacturing has attracted companies like Johnson & Johnson to increase their investments, demonstrating effective execution of the state's economic development plan and strategic investments in key industries.
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- Investment Announcement: Johnson & Johnson is expanding its U.S. footprint with a significant investment exceeding $1 billion.
- Focus on Cell Therapy: The investment will be directed towards the establishment of a manufacturing facility in Pennsylvania, specifically for next-generation cell therapy.
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- Leadership Changes: NIH Director Jay Bhattacharya is set to take on the role of acting CDC Director until President Trump appoints a permanent replacement, reflecting significant leadership shifts within the Trump administration's health department.
- Resignation of Predecessor: Former acting CDC Director Jim O’Neill resigned as part of a leadership shake-up, also stepping down from his role as Deputy Health Secretary, and is expected to be nominated by Trump to lead the National Science Foundation, indicating a focus on scientific leadership.
- Dismissal Due to Policy Misalignment: HHS Secretary Robert F. Kennedy Jr. fired former CDC Director Susan Monarez less than a month into her tenure, citing her failure to align with the Trump administration's healthcare policies, highlighting the administration's strict adherence to policy coherence.
- Industry Implications: Amid these changes, pharmaceutical companies like Pfizer and Johnson & Johnson are experiencing market volatility, with Pfizer's valuation still not recovering, illustrating the fragility of the industry in light of shifting governmental policies.
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- Tech Stocks Surge: Nvidia's shares rose 2% following a multiyear partnership with Meta, which will utilize millions of Nvidia chips for its data center expansion, thereby enhancing its competitive edge in the tech sector.
- Oil Price Impact: WTI crude oil prices increased by 3.4% amid concerns over potential hostilities between the U.S. and Iran, raising costs for gasoline, transportation, and goods, which could negatively affect several stocks in the portfolio.
- Cybersecurity Concerns: Despite Palo Alto Networks exceeding earnings expectations, its stock fell 7.3% due to ongoing fears that AI could erode its market share, although the CEO argues that increased AI usage will drive demand for security solutions.
- Pharmaceutical Breakthrough: Bristol Myers' FDA-approved drug Camzyos has contributed to a 27% stock price increase over three months, but setbacks in trials for its Alzheimer's treatment raise investor caution regarding future performance.
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- Stock Sale Announcement: Officer Timothy Schmid intends to sell 22,623 shares of Johnson & Johnson's common stock.
- Market Value: The total market value of the shares to be sold is approximately $5.53 million.
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