Johnson & Johnson Eyes Intra-Cellular Therapies Acquisition
Johnson & Johnson (J&J) is in talks to acquire Intra-Cellular Therapies, a biopharmaceutical company focused on treatments for central nervous system disorders, according to sources familiar with the matter.
Deal Talks Intensify
A deal could be reached as soon as this week, according to the sources, who asked not to be identified discussing confidential information. While discussions are ongoing, they may not lead to an agreement and other suitors could also emerge, they said.
Intra-Cellular’s Rise in Value
Shares in Intra-Cellular have risen about 40% over the last 12 months, giving the company a market value of roughly $10 billion.
Intra-Cellular’s Pipeline
Intra-Cellular develops new treatments for mental health disorders and neurological conditions and is currently working on a drug for major depressive disorder that’s in late-stage trials. Its stock jumped last week after Intra-Cellular said it’s entered into a settlement agreement with Sandoz to resolve patent litigation related to Caplyta, its medication for bipolar depression.
Johnson & Johnson’s Performance
J&J is down around 12% over the 12-month period for a market capitalization of $342 billion.
Reactions and Comments
A representative for J&J declined to comment, while a spokesperson for Intra-Cellular could not immediately be reached for comment.
The Deal’s Significance
If announced, the deal would be the biggest biotech transaction in more than a year. It would underscore how healthcare transactions are ramping up again after slumping in 2024, when big pharma players slowed a post-pandemic dealmaking rush to digest acquisitions. This month, medical device maker Stryker agreed to buy Inari Medical for about $4.9 billion.
Johnson & Johnson’s Strategy
J&J is going back on the offence after spinning off its consumer health division and striking a $13.1 billion takeover of heart device maker Shockwave Medical. The company has been working to maintain growth as it faces the loss of exclusivity for the psoriasis treatment Stelara.
Nauman Shah’s Quote
"We certainly still have the financial capability and the power to be able to do deals regardless of what size they are," Nauman Shah, global head of business development for J&J’s pharmaceutical segment, said in an interview with Bloomberg in June at the BIO International Convention. "We are going to focus more on deals that are in that five to let’s even call it $20 billion range if they make sense."
Timing
J&J’s deliberations come on the eve of the healthcare industry’s annual confab in San Francisco. While the timing is fluid, companies often announce transactions around the JPMorgan Healthcare Conference.
Conclusion
The potential acquisition of Intra-Cellular Therapies by Johnson & Johnson would be a significant move in the biotech industry, highlighting the increasing trend of healthcare transactions. The deal, if announced, would be the biggest biotech transaction in over a year, underscoring the growing appetite for deals in the sector.
Frequently Asked Questions
Q: What is the value of Intra-Cellular Therapies?
A: Intra-Cellular has a market value of roughly $10 billion.
Q: What is the focus of Intra-Cellular Therapies?
A: Intra-Cellular develops new treatments for mental health disorders and neurological conditions.
Q: What is Johnson & Johnson’s current market capitalization?
A: J&J is down around 12% over the 12-month period for a market capitalization of $342 billion.
Q: What are the potential implications of this deal?
A: The potential acquisition of Intra-Cellular Therapies by Johnson & Johnson would be a significant move in the biotech industry, highlighting the increasing trend of healthcare transactions.
