J&J Acquires Drugmaker Intra-Cellular Therapies for $14.6B

Johnson & Johnson has announced the acquisition of drugmaker Intra-Cellular Therapies for $132.00 per share in cash and debt, a 60% premium on the company’s closing price on Friday, totaling approximately $14.6 billion.

The pharmaceutical company will acquire Intra-Cellular’s Caplyta, which has been approved to treat schizophrenia and bipolar-related depression. Intra-Cellular registered the drug with U.S. regulators last month as a treatment that might be used in conjunction with standard antidepressants to treat major depressive disorder.

The acquisition also includes ITI-1284, a Phase 2 compound being studied for generalized anxiety disorder and Alzheimer’s disease-related conditions.

“This acquisition further differentiates our portfolio, serves as a strategic near- and long-term growth catalyst for Johnson & Johnson and offers compelling value to patients, health systems and shareholders,” said Joaquin Duato, chairman and CEO, Johnson & Johnson, adding that Intra-Cellular’s portfolio of assets will help the pharma meet its goal of addressing “today’s most devastating neuropsychiatric and neurodegenerative disorders.”

The transaction is expected to close later this year.

Citi is serving as financial advisor to Johnson & Johnson, and Cravath, Swaine & Moore is serving as legal advisor. Centerview Partners LLC and Jefferies are serving as financial advisors to Intra-Cellular Therapies, and Davis Polk & Wardwell LLP is serving as legal advisor.