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Johnson & Johnson to Acquire Intra-Cellular Therapies in $14.6 Billion Deal
Key Takeaways
Intra-Cellular Therapies saw a significant rise in its stock prices following an announcement from Johnson & Johnson regarding its acquisition plans for the biopharmaceutical firm. Shareholders of Intra-Cellular will receive $132 per share, giving the company an estimated valuation of around $14.6 billion. Intra-Cellular is known for its drug Caplyta, which addresses schizophrenia and bipolar I and II depression, and it is actively developing additional treatments that target Alzheimer’s Disease and Parkinson’s Disease.
Shares of Intra-Cellular Therapies (ITCI) surged by 35% in premarket trading on Monday after Johnson & Johnson (JNJ) revealed its intentions to acquire the company for approximately $14.6 billion.
The acquisition agreement includes a payment of $132 per share for Intra-Cellular shareholders, representing a premium of about 40% from the company’s closing price at the end of last week. The stock enjoyed a notable rise of 15%, achieving a record closing high of $94.87 on Friday, following the announcement of a patent lawsuit settlement with Sandoz, which was aiming to produce a generic version of Caplyta.
Intra-Cellular is advancing its product pipeline with other potential drugs targeting Alzheimer’s and Parkinson’s diseases, highlighting its role in addressing critical mental health and neurological conditions.
Johnson & Johnson’s CEO, Joaquin Duato, emphasized that this acquisition strategically enhances their portfolio, providing a catalyst for both near- and long-term growth, and delivering substantial value to patients, healthcare systems, and shareholders alike.
Deal Expected to Close Later This Year
The completion of the deal is anticipated before year-end, subject to regulatory approvals and consent from Intra-Cellular’s shareholders. Johnson & Johnson plans to finance the acquisition through a mix of cash and debt options.
The pharmaceutical leader is set to provide further insights on the potential impact of this transaction on its adjusted earnings per share (EPS) during its upcoming fourth-quarter earnings call on January 22.
In premarket trading, Intra-Cellular shares climbed to an impressive $127.90, while Johnson & Johnson’s stock remained relatively stable at $142.49.
Source
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