Shares of Johnson & Johnson (NYSE:JNJ) hit a new all-time high yesterday and have continued upward today, despite some negative news for the company last night. It was denied FDA approval for the acute coronary syndrome indication of its blood thinning drug Xarelto.

In this video, Motley Fool health-care bureau chief Brenton Flynn tells investors why this highlights a very difficult and very expensive trend for Big Pharma, but also points out that a company as large and diversified as Johnson & Johnson can weather the blow much more easily than some of the smaller players.

Brenton Flynn has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.