Johnson & Johnson (JNJ) has acquired Intra-Cellular Therapics (ITCI) for $14.6 billion, a deal that confirms reports of the biotech company’s acquisition by the pharmaceutical giant. The purchase price values ITCI shares at $132 per share, representing a 39% premium to last week’s closing price.
Intra-Cellular is well-established in the schizophrenia and bipolar disease space with its drug Caplyta, which has shown promise as a treatment for depression. The company recently settled a patent dispute that delays a generic rival until 2040. J&J is also developing a depression-treating pill and sells antipsychotics like Invega Sustenna.
The acquisition makes sense given J&J’s existing products in the neuropsychiatry space, according to analysts. The deal is expected to be accretive to earnings in the first year, with Caplyta likely generating $1 billion-plus in sales by 2025. Analysts note that the acquisition builds on J&J’s commitment to neuropsych and has a strong potential for growth.
In other news, Eli Lilly announced its plan to buy a cancer drug called STX-478 from privately held Scorpion Therapeutics for up to $2.5 billion. The deal comes after Lilly terminated its own PI3Ka program in August.
Source: https://www.investors.com/news/technology/intra-cellular-therapies-johnson-johnson-acquisition