Johnson & Johnson Expands Neurological Disorder Treatment Portfolio with $14.6 Billion Acquisition
In a move to bolster its presence in the market for neurological disorder treatments, Johnson & Johnson has agreed to acquire drugmaker Intra-Cellular Therapies for approximately $14.6 billion. This strategic acquisition will provide J&J with access to Intra-Cellular’s promising oral drug Caplyta, which has already demonstrated significant potential in treating schizophrenia and depressive episodes associated with bipolar disorder.
Strengthening J&J’s Position in the Neurological Disorder Market
The deal marks a significant step forward for J&J as it seeks to drive growth beyond 2025, when its blockbuster psoriasis drug Stelara is expected to face increased competition from biosimilar versions. By acquiring Intra-Cellular, J&J will gain a foothold in the lucrative market for neurological disorder treatments, where Caplyta has already generated $481.3 million in sales in the first nine months of 2024.
Caplyta: A Key Asset in J&J’s Neurological Disorder Portfolio
Intra-Cellular’s Caplyta has been approved to treat schizophrenia and depressive episodes associated with bipolar disorder, and is currently seeking expanded regulatory approval in the U.S. as an add-on therapy for major depressive disorder. Additionally, the company is testing another therapy, ITI-1284, in mid-stage studies for the treatment of generalized anxiety disorder and Alzheimer’s-related psychosis and agitation.
J&J’s Acquisition Spree Continues
This latest deal is part of J&J’s ongoing efforts to drive growth through strategic acquisitions. Last year, the company acquired Numab’s skin disorder drug for $1.25 billion, bought drug developer Proteologix for $850 million, and acquired heart device maker Shockwave Medical in a $13.1 billion deal. J&J also took over V-Wave for $1.7 billion to bolster growth at its medical device business.
Financing the Transaction
J&J expects to fund the transaction with Intra-Cellular, likely to close later this year, through a combination of cash on hand and debt. The deal was first reported by Bloomberg News on January 12, citing people familiar with the matter.
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