Key Points
- Johnson & Johnson will acquire Intra-Cellular Therapies for $14.6 billion. The deal values Intra-Cellular shares at $132 each, a 39% premium.
- Intra-Cellular’s Caplyta drug generated $175 million in Q3 2024 sales. Analysts expect Caplyta’s sales to top $2.5 billion by 2028.
- Intra-Cellular’s pipeline includes treatments for Alzheimer ’s-related agitation.
- The acquisition is expected to close later this year, pending regulatory approval.
Johnson & Johnson (J&J) has announced plans to strengthen its presence in treating central nervous system disorders by acquiring Intra-Cellular Therapies in a deal valued at $14.6 billion. The healthcare giant will pay $132 per share in cash, representing a 39% premium over Intra-Cellular’s last closing price of $94.87. Following the announcement, shares of both companies experienced gains, with Intra-Cellular’s stock jumping 34% to $127.10 and J&J’s edging up 1% to $143.45.
Intra-Cellular Therapies is known for Caplyta, a once-daily oral treatment for schizophrenia and bipolar depression in adults. The drug generated $175 million in revenue during the third quarter of last year, marking a 38% increase in total prescriptions. According to FactSet, industry analysts anticipate Caplyta’s sales will surpass $2.5 billion by 2028.
The acquisition adds Caplyta to J&J’s portfolio and brings a promising pipeline of drugs under development. These include a potential treatment for anxiety, psychosis, and agitation associated with Alzheimer’s disease, currently undergoing mid-stage clinical trials. Intra-Cellular recently expanded its sales force to tap into growth opportunities with primary care physicians. It is seeking FDA approval to use Caplyta as an adjunct treatment for major depressive disorder.
The acquisition follows Intra-Cellular’s resolution of a patent lawsuit with Sandoz Inc., which allowed a generic version of Caplyta to enter the market by 2040. However, the company still faces other patent disputes in federal court.
J&J plans to finance the acquisition with a combination of cash and debt. Pending regulatory approval, the deal is expected to close later this year. The move solidifies J&J’s strategy to enhance its presence in the neuroscience market, capitalizing on the growing demand for mental health treatments.
