Johnson & Johnson (J&J) has reached an agreement to acquire all outstanding shares of biopharmaceutical company Intra-Cellular Therapies for a total equity value of approximately $14.6bn in cash.
Intra-Cellular Therapies focus on developing treatments for central nervous system (CNS) disorders.
With this acquisition, Johnson & Johnson gains Intra-Cellular Therapies’ Caplyta (lumateperone), an oral treatment for schizophrenia and bipolar depression.
Caplyta is said to enhance Johnson & Johnson’s portfolio with $5bn+ peak sales potential, driving sales growth above analyst expectations through the decade.
The deal also includes ITI-1284, a Phase 2 compound in development for generalised anxiety disorder (GAD) and Alzheimer’s-related psychosis and agitation.
Additionally, J&J gained access to a clinical-stage pipeline that further complements and supports its current therapeutic focus.
In December last year, the biopharmaceutical company submitted a supplemental new drug application (sNDA) to the US Food and Drug Administration (FDA) for Caplyta as an adjunctive treatment for major depressive disorder (MDD).
In Phase 3 studies, Caplyta showed significant improvement in depressive symptoms when added to antidepressants.
If approved, the drug could be the first treatment for MDD and bipolar depression in over 15 years. Additional Phase 3 trials are ongoing for bipolar mania and relapse prevention in schizophrenia.
In November 2024, the biopharmaceutical company announced positive results from Phase 3 Study 304 of Caplyta for the treatment of adult patients with schizophrenia.
Johnson & Johnson chairman and CEO Joaquin Duato said: “Building on our nearly 70-year legacy in neuroscience, this unique opportunity to add Intra-Cellular Therapies to our Innovative Medicine business demonstrates our commitment to transforming care and advancing research in some of today’s most devastating neuropsychiatric and neurodegenerative disorders.”
Under the agreement, Johnson & Johnson will acquire all outstanding shares of Intra-Cellular Therapies for $132 per share in cash. The transaction will be funded through a mix of cash and debt.
The deal is expected to close later this year, pending regulatory approvals and stockholder consent. Once completed, Intra-Cellular Therapies’ stock will no longer be traded on the Nasdaq.
Intra-Cellular Therapies Chairman and CEO Sharon Mates said: “Caplyta’s success and the robust pipeline we have built demonstrates the passion and dedication of our talented team, and we are proud of the hundreds of thousands of patients we have helped.”
