Johnson & Johnson Expands Neuroscience Portfolio with $14.6 Billion Acquisition

Global healthcare leader Johnson & Johnson (J&J) commenced the J.P. Morgan Healthcare Conference by announcing its intent to acquire Intra-Cellular Therapies in an all-cash transaction valued at $14.6 billion. The offer to purchase all outstanding shares stands at $132 per share, representing a premium of approximately 39% over Intra-Cellular’s closing stock price from the previous Friday.

Intra-Cellular, a biopharmaceutical firm specializing in treatments for central nervous system (CNS) disorders, focuses on developing and marketing products in this therapeutic area. The 23-year-old company’s market capitalization had seen significant growth, doubling since late 2022 to approximately $10 billion prior to the announcement.

The core value of the acquisition centers on Intra-Cellular’s key marketed product, Caplyta (lumateperone), a treatment for schizophrenia and bipolar depression. The therapy generated $481 million in revenue for the first nine months of 2024, marking a 45% increase year-over-year. Analysts anticipate that Caplyta’s potential approval for treating major depressive disorder (MDD) could significantly boost its sales outlook, with some projections reaching a peak of $6 billion.

The timing of the deal follows a favorable legal development for Intra-Cellular. A recent patent settlement extended Caplyta’s market exclusivity until 2040, a significant increase from the previous expiration date of 2036. This extension was noted by financial analysts as a factor that likely enhanced the company’s appeal as a strategic target and added substantial long-term value to Caplyta’s revenue potential.

J&J’s CEO stated that the acquisition is expected to differentiate the company’s portfolio, acting as a strategic growth catalyst for both the near and long term. This move marks the largest acquisition of a biotech company since Pfizer’s purchase of Seagen in March 2022, and the largest in the biopharma sector since Novo Nordisk acquired Catalent in February 2024. The latest deal continues a trend of major strategic purchases by J&J, including the acquisitions of Shockwave Medical and Abiomed in the medtech space in recent years.

Source: https://www.fiercepharma.com/pharma/johnson-johnson-makes-jpm-splash-buying-out-intra-cellular-146b