J&J Partnership, page-289

Been doing my due dillifgence again on J&J as I am mainly invested in OCC for its ATI procedure and the hope J&J take on a partnership with OCC on the back of results.

The Medical devices area of Johnson and Johnson peaked in 2013 in terms of revenue contribution to J&J business performance. R&D in the area has been pretty steady in the last ten years. Outside of its Pharmaceutical division, J&J has few real growth opportunities. Its business needs a boost. Its seen a massive rise in cellular therapy stocks in the past 18 months and missed out on the action. It recognised the growth opportunity with Fate Therapeutics and partnered with them last year in April 2020.

Fate took a bit of a hit recently despite positive interim clinical data from its iPSC-derived NK Cell Programs for B-cell Lymphoma. The results were good at 71% patients seeing tumours shrink, but not good enough. Gilead shrank tumors for 72% of patients treated in an already completed larger trial. Fate was expected to outperform Gilead's product.

OCC remains a good fit, for what is so little expenditure for a company that makes nearly a billion USD a year in revenues to start buiding a cellular therapies business portfolio for future growth. We are sat on a call option and I'd call it a 70 delta call. Its ridiculously priced for the potential possibilities if a partnership (or takeover) prevails.