Johnson & Johnson announced on Monday that it will acquire Intra-Cellular Therapies Inc. for $14.6 billion, a strategic move to expand its portfolio in the treatment of central nervous system (CNS) disorders. The acquisition, which values Intra-Cellular at $132 per share, represents a 39% premium over the company’s closing price of $94.87 on Friday.
The deal, expected to close later this year, will be funded by a combination of cash and debt, according to Johnson & Johnson, which is headquartered in New Brunswick, New Jersey. The news caused a surge in the stock prices of both companies, with Intra-Cellular’s shares rising approximately 34% to $127.19, while J&J’s stock increased by 1.7% to $144.47.
Intra-Cellular Therapies, based in Bedminster, N.J., is known for developing Caplyta, a medication designed to treat adults with schizophrenia and bipolar disorder-related depression. The once-daily pill generated $175 million in revenue in the third quarter of the previous year, reflecting a 38% increase in prescriptions.
The company is working to expand its reach by targeting primary care physicians and is seeking U.S. Food and Drug Administration (FDA) approval for the drug as an adjunct treatment for major depressive disorder. Analysts predict Caplyta’s sales will exceed $1 billion in the next year and surpass $2.5 billion by 2028, according to FactSet.
Intra-Cellular also has other drugs in its pipeline, including one aimed at treating anxiety, psychosis, and agitation associated with Alzheimer’s disease. This drug is currently in mid-stage clinical trials.
The acquisition of Intra-Cellular aligns with Johnson & Johnson’s strategy to deepen its involvement in the mental health treatment sector, as part of its broader effort to enhance its pharmaceutical division.
The deal follows a legal development for Intra-Cellular, which recently settled a patent dispute regarding the potential market entry of a generic version of Caplyta. Under the settlement, Sandoz Inc. will be allowed to sell a generic version of the drug in 2040, or potentially earlier, under undisclosed conditions. The companies have submitted the deal for federal regulatory review, and Intra-Cellular still faces additional patent-related litigation.
This acquisition further strengthens Johnson & Johnson’s position in the growing field of mental health treatments, as demand for effective therapies in the CNS space continues to rise.
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