Johnson & Johnson Acquires Intra-Cellular Therapies for $14.6 Billion
Deal News | Jan 13, 2025 | Globenewswire
Johnson & Johnson has announced a definitive agreement to acquire Intra-Cellular Therapies, Inc. for approximately $14.6 billion. This acquisition is set to strengthen Johnson & Johnson's position in the neuroscience sector, particularly with the inclusion of CAPLYTA, a recently FDA-approved treatment for bipolar depression and schizophrenia. The deal is part of Johnson & Johnson’s strategy to enhance its portfolio in the treatment of neuropsychiatric and neurodegenerative disorders. CAPLYTA has a strong clinical pipeline, with potential applications in generalized anxiety disorder and Alzheimer’s disease-related conditions. The acquisition is expected to close by the end of the year, pending regulatory and shareholder approvals. Johnson & Johnson aims to fund the transaction through a mix of available cash and debt, maintaining a strong balance sheet. Advisors for the transaction include Citi and Cravath, Swaine & Moore for Johnson & Johnson, and Centerview Partners, Jefferies, and Davis Polk & Wardwell for Intra-Cellular Therapies.
Sectors
- Pharmaceuticals
- Biotechnology
- Healthcare
Geography
- United States – Both Johnson & Johnson and Intra-Cellular Therapies are based in the United States, and the transaction involves U.S. regulatory approvals.
Industry
- Pharmaceuticals – This industry relates to the development, production, and marketing of drugs and therapies, which is the primary focus of both Johnson & Johnson and Intra-Cellular Therapies.
- Biotechnology – Intra-Cellular Therapies is a biopharmaceutical company, indicating a focus on biotechnology in developing therapies for CNS disorders.
- Healthcare – CAPLYTA and the broader portfolio align with healthcare initiatives focused on neuropsychiatric and neurodegenerative disorders.
Financials
- $132.00 per share – The price per share being paid by Johnson & Johnson for Intra-Cellular Therapies.
- $14.6 billion – The total equity value of the acquisition of Intra-Cellular Therapies by Johnson & Johnson.
- $5 billion+ potential – Estimated peak year sales for CAPLYTA.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Johnson & Johnson | Acquirer | Company | A multinational corporation developing medical devices, pharmaceuticals, and consumer health products. |
| Intra-Cellular Therapies, Inc. | Target Company | Company | A biopharmaceutical company focused on CNS disorder therapeutics. |
| Citi | Financial Advisor to Johnson & Johnson | Company | Provided financial advisory services for the transaction. |
| Cravath, Swaine & Moore | Legal Advisor to Johnson & Johnson | Company | Provided legal advisory services for the transaction. |
| Centerview Partners LLC | Financial Advisor to Intra-Cellular Therapies | Company | Provided financial advisory services to Intra-Cellular Therapies. |
| Jefferies | Financial Advisor to Intra-Cellular Therapies | Company | Assisted Intra-Cellular Therapies with financial advisory services. |
| Davis Polk & Wardwell LLP | Legal Advisor to Intra-Cellular Therapies | Company | Provided legal advice for the acquisition process. |
| Joaquin Duato | CEO of Johnson & Johnson | Person | Oversees strategic decision-making including acquisitions. |
| Sharon Mates | CEO of Intra-Cellular Therapies | Person | Heads Intra-Cellular Therapies, overseeing its strategic direction. |