The purchase, which is expected to close later this year pending regulatory and shareholder approvals, will give J&J access to Intra-Cellular’s portfolio of treatments for neuropsychiatric and neurodegenerative disorders.
The move will strengthen J&J’s focus on treatments for brain disorders, aligning with its long-term strategy of enhancing its pharmaceutical business following the 2023 spinoff of its consumer health division.
J&J has agreed to pay US$132 per share in cash for Intra-Cellular, representing a 39 percent premium over the company’s closing share price before the announcement. Intra-Cellular rose by 34 percent in response to the news on Monday (January 13), while shares of J&J experienced a modest 1.5 percent gain that day.
Joaquin Duato, J&J’s CEO, emphasized to shareholders that the deal will enhance the company’s ability to deliver transformative treatments for neuropsychiatric and neurodegenerative disorders.
“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,” he said a press release.
Caplyta stands out for its safety and efficacy profile, with ongoing Phase 3 trials exploring its potential in major depressive disorder (MDD) and bipolar mania. If approved for MDD, Caplyta could become a standard of care, filling a gap in treatment options for one of the most prevalent mental health conditions globally.
In addition to Caplyta, J&J will gain access to Intra-Cellular’s pipeline, which includes ITI-1284, a Phase 2 drug candidate targeting generalized anxiety disorder and Alzheimer’s-related psychosis.
J&J is scheduled to provide further financial details during its Q4 earnings call on January 22.
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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