J&J doubles down on neurological drugs with $14.6 billion Intra-Cellular deal By Reuters

By Bhanvi Satija and Pooyan Singh

(Reuters) – Johnson & Johnson said on Monday it would buy neuropharmaceutical company Intra-Cellular Therapies (NASDAQ: ) for $14.6 billion, its biggest deal in at least two years, boosting its presence in the brain disease treatment market.

The deal is meant to help J&J ( NYSE: ) boost its growth in the drug and medical device business after it spins off its consumer health division in 2023. The company’s blockbuster psoriasis drug, Stelara, is also set to meet several biosimilars competition in the US this year.

The announcement comes as the industry gathers for its annual premium conference, the JPMorgan Healthcare Conference, in San Francisco.Healthcare dealmakers are expecting a revival of more than $10 billion in deals due to the possibility of less antitrust oversight under President-elect Donald Trump.

J&J offered to buy Intra-Cellular for $132 per share, representing a 39% premium to the stock’s closing price on Friday.

Shares of Intra-Cellular rose 35% to $128 in pre-market trading, while J&J was flat.

J&J will have access to Intra-Cellular’s already approved therapy, Caplyta, to treat schizophrenia and depressive episodes associated with bipolar disorder in the United States.

Intra-Cellular is also seeking expanded regulatory approval for Caplyta as an add-on therapy for major depressive disorder.The treatment brought in $481.3 million in sales in the first nine months of 2024. Analysts expect the therapy to bring in next year more than $1 billion in sales, according to data compiled by LSEG.

J&J will also have access to Intra-Cellular’s experimental therapy, ITI-1284, developed for the treatment of generalized anxiety disorder and Alzheimer’s-related psychosis and agitation.

The healthcare giant’s existing portfolio of treatments for neurological disorders includes its nasal spray Spravato, which is approved as an adjunctive therapy for depression, and Concerta for attention deficit hyperactivity disorder.

J&J said it expects to finance the latest deal, which is likely to close later this year, through a combination of cash on hand and debt.

Last year, the company acquired skin disorder drug Numab for $1.25 billion and bought drug developer Proteologix for $850 million.It also acquired a heart device maker Shockwave Medical (NASDAQ: ) in a $13.1 billion deal.