Johnson & Johnson to Acquire Intra-Cellular Therapies in $14.6 Billion Deal

Johnson & Johnson (J&J) announced on Monday its plan to acquire neurological drug maker Intra-Cellular Therapies in a $14.6 billion deal, marking its largest acquisition in over two years. The move is aimed at bolstering J&J’s presence in the lucrative brain disease treatment market, according to Reuters.

The acquisition comes as J&J continues to reshape its business following the spin-off of its consumer health unit in 2023. Over the past few years, the company has made strategic investments to strengthen its pharmaceutical and medical device divisions. Notably, J&J struck a $13.1 billion deal to purchase Shockwave Medical in 2024, demonstrating its commitment to expanding its healthcare portfolio.

Speaking at a prominent industry conference in San Francisco, J&J CEO Joaquin Duato highlighted the significance of this latest move. “These deals do not happen every day, and as a matter of fact, for us, larger deals are more outliers,” he said, per Reuters.

Intra-Cellular Therapies is best known for its oral drug Caplyta, which is approved in the U.S. to treat schizophrenia and bipolar depression. The acquisition will provide J&J with immediate access to the drug, as well as several experimental treatments currently in development. Caplyta generated $481.3 million in sales in the first nine months of 2024, with analysts predicting that annual sales could surpass $1 billion next year. Furthermore, the drug is not expected to face generic competition until 2040, according to data compiled by LSEG.

J&J’s offer to buy Intra-Cellular Therapies includes a payment of $132 per share, representing a 39% premium over the stock’s closing price on Friday. Following the announcement, Intra-Cellular shares jumped 34% to $128 in afternoon trading, while J&J’s stock rose by 1.5%.

The acquisition is part of a broader trend in the pharmaceutical sector, with experts predicting increased dealmaking in 2025. Bankers attending the San Francisco conference believe the industry could see more than $10 billion in transactions this year, driven by expectations of reduced antitrust scrutiny after President-elect Donald Trump assumes office on January 20, according to Reuters.

Source: Reuters