Could Momenta Deal Give Johnson & Johnson Breakout Momentum?

Johnson & Johnson  (JNJ) – Get Report is making some waves on Wednesday, acquiring Momenta Pharmaceuticals  (MNTA) – Get Report for $6.5 billion.

For its part, Momenta shares are up about 70% into the low-$52s, close to that $52.50 a share offer it received from J&J in the all-cash deal. 

Johnson & Johnson investors aren’t sweating the deal, either. The stock is up about 0.6% on the day, as some analysts have even made the case that the deal undervalues Momenta. 

The deal is expected to close in the second half of 2020 and will be used to bolster Johnson & Johnson’s autoimmune treatments. 

Remember, the company is coming off a top- and bottom-line earnings beat and raised its full-year outlook. Management also spoke favorably about its Covid-19 treatment.

All in all, the stock has been setting up attractively on the charts and the Momenta deal, at least so far, isn’t don’t anything to derail the technicals.

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