J&J to acquire psychiatric drugs maker Intra-Cellular for $14.6 billion

Johnson & Johnson agreed to acquire Intra-Cellular Therapies Inc, a company focused on treatments for central nervous system disorders, for about $14.6 billion.

J&J will pay $132 a share, the company said in a statement. That's 39% above the closing price Friday. Bloomberg earlier reported a deal was in the works. Shares of Intra-Cellular rose 36% to $128.72 in trading before the market opened in New York. The stock has gained about 40% over the last 12 months, giving the company a market value of roughly $10 billion.

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 rose last week after Intra-Cellular said it entered into a settlement agreement with Sandoz to resolve patent litigation related to Caplyta, its medication for bipolar depression.

Caplyta generated an estimated $675 million in sales last year. J&J said the therapy has the potential to reach $5 billion in annual revenue. J&J has long been viewed as a likely acquirer of Intra-Cellular, given that both companies have neuroscience drugs, with minimal overlap, as per RBC Capital Markets analyst Brian Abrahams.

J&J is down around 12% over the 12-month period for a market capitalization of $342 billion. The transaction will be funded through a combination of cash on hand and debt,the company stated.

The purchase is expected to close later this year. The deal is biotech's biggest in more than a year. It underscores how health-care deals are ramping up again after slumping in 2024, when big pharma players slowed a post-pandemic dealmaking rush to digest acquisitions.