Johnson & Johnson (J&J) announced on Monday that it has agreed to acquire Intra-Cellular Therapies, a developer of drugs for brain diseases, in an all-cash deal worth $132 per share, amounting to about $14.6 billion.
The acquisition is the largest biotech deal since early 2023 and comes as J&J looks to expand its presence in the neuroscience market. The company’s CEO, Joaquin Duato, said that the deal builds on J&J’s nearly 70-year legacy in neuroscience and demonstrates its commitment to transforming care and advancing research in devastating neuropsychiatric and neurodegenerative disorders.
Intra-Cellular Therapies is developing a medicine called Caplyta, which has already been approved by the US FDA for treating schizophrenia and bipolar depression. The company recently asked the FDA to expand the approval of Caplyta to include major depressive disorder, a condition that affects about 10 times as many people as have schizophrenia.
The acquisition is also significant because it gives J&J access to Intra-Cellular’s pipeline, which includes two closely watched depression drugs: seltotrexant and aticaprant. Additionally, J&J will gain the rights to Intra-Cellular’s ITI-1284, a drug in Phase 2 testing for generalized anxiety disorder and psychosis related to Alzheimer’s disease.
Analysts say that the acquisition makes strategic sense for J&J, which has been funneling most of its money into cancer and immune system drugs. However, with the success of Caplyta and other psychiatric disorders, J&J is shifting its focus towards this area.
“The deal is a much-needed win for the neuroscience space,” said Paul Matteis, an analyst at Stifel. “It’s a testament to the large market opportunities for diseases like schizophrenia, depression, and epilepsy.”
The acquisition is expected to be completed later this year, with J&J funding it through cash on hand and debt.
Source: https://www.biopharmadive.com/news/johnson-johnson-intra-cellular-acquire-deal-schizophrenia-caplyta/737126