Johnson & Johnson (JNJ, Financial) has agreed to acquire all outstanding shares of biopharmaceutical company Intra-Cellular Therapies (ITCI) for $132.00 per share in cash, valuing the total equity at approximately $14.6 billion. Following this announcement, Intra-Cellular Therapies' stock surged nearly 36% in pre-market trading. The acquisition is expected to close later this year, pending regulatory approvals, shareholder consent from Intra-Cellular Therapies, and other customary conditions.
This strategic acquisition will be financed through a combination of cash and debt and aims to enhance Johnson & Johnson's portfolio in the neuroscience sector. Intra-Cellular Therapies specializes in developing and commercializing treatments for central nervous system disorders. The company is currently advancing a drug for major depressive disorder, which is in late-stage trials.
Additionally, Intra-Cellular Therapies has developed Lumateperone, an oral atypical antipsychotic. Lumateperone received approval from the U.S. Food and Drug Administration (FDA) in 2019 for treating schizophrenia and gained an expanded indication in December 2021 for depressive episodes associated with bipolar disorder.
Johnson & Johnson plans to discuss the potential impact of this acquisition on its adjusted earnings per share during its fourth-quarter earnings call scheduled for January 22, 2025.
