J&J boosts neuroscience with $14.6bn Intra-Cellular buyout

Johnson & Johnson (J&J) is set to enhance its neuroscience portfolio by acquiring Intra-Cellular Therapies in a transaction valued at approximately $14.6 billion. This strategic acquisition will provide J&J with access to Intra-Cellular’s innovative drugs targeting central nervous system disorders, most notably the antipsychotic medication Caplyta (lumateperone).

Caplyta, an oral medication administered once daily, has already received approval from the U.S. Food and Drug Administration (FDA) for treating adults diagnosed with schizophrenia and depressive episodes related to bipolar I or II disorder. It can be used both as a standalone treatment and in conjunction with lithium or valproate. Schizophrenia and bipolar disorder are significant public health concerns in the United States, affecting roughly 2.4 million and 6.1 million adults, respectively.

In addition to its current uses, a supplemental new drug application has been submitted to the FDA for Caplyta's use as an adjunctive treatment for major depressive disorder, a condition impacting an estimated 21 million adults in the U.S. Furthermore, late-stage clinical trials are being conducted to explore Caplyta’s efficacy in treating other mental health disorders.

The acquisition also encompasses a phase 2 drug candidate under evaluation for generalized anxiety disorder and psychosis and agitation related to Alzheimer’s disease. This addition complements J&J’s existing focus areas, bolstering its clinical-stage pipeline.

Jennifer Taubert, Executive Vice President and Worldwide Chairman of Innovative Medicine at J&J, expressed enthusiasm about the acquisition, highlighting the potential to improve care for patients with neuropsychiatric and neurodegenerative disorders. She emphasized the goal of significantly advancing treatment options and enhancing the quality of life for millions globally.

The acquisition agreement, anticipated to be finalized later this year pending regulatory approvals, stipulates that J&J will purchase all outstanding shares of Intra-Cellular Therapies for $132 per share in cash.

Sharon Mates, Chairman and CEO of Intra-Cellular Therapies, commented on the acquisition, acknowledging the success of Caplyta and the strong pipeline built by the company’s dedicated team. She expressed pride in the impact their work has had on hundreds of thousands of patients. Mates also noted J&J’s longstanding commitment to neuroscience, expressing optimism about reaching more patients worldwide through the collaboration.

This acquisition aligns with J&J’s ongoing efforts to expand its capabilities in neuroscience, providing new avenues for research and development in treating complex mental health conditions. By integrating Intra-Cellular Therapies’ discoveries and expertise, J&J aims to enhance its therapeutic offerings and address the growing demand for effective mental health treatments.