In a significant move that marks the largest biotech acquisition since 2023, Johnson & Johnson has announced its agreement to purchase neuroscience drugmaker Intra-Cellular Therapies for £14.6 billion. The New Jersey-based pharmaceutical giant will pay £132 per share, representing a premium of nearly 40 per cent above Intra-Cellular’s Friday closing price.
The deal emerges as part of a broader wave of acquisitions announced during the opening day of the annual JPMorgan healthcare conference, with total deals reaching £18.5 billion. This surge in merger activity signals a potential revival in the biotech sector, which experienced a notable slowdown in 2023.
Intra-Cellular, specialising in treatments for central nervous system disorders, brings its flagship drug Caplyta to the table. The medication, already approved for bipolar depression in the US, generated £464 million in sales during 2023. The US Food and Drug Administration is currently evaluating Caplyta’s potential approval for major depressive disorder treatment, which could substantially expand its market reach.
The acquisition represents Johnson & Johnson’s most substantial biotech purchase since its £30 billion takeover of Actelion in 2017. The move appears strategically timed, as the pharmaceutical company faces significant revenue challenges with its blockbuster cancer treatment Darzalex approaching patent expiration in 2029, potentially resulting in a £17 billion revenue decline.
This strategic acquisition strengthens Johnson & Johnson’s position in the neuroscience sector, despite the historically challenging nature of drug development in this field. The company’s executive vice-president of innovative medicines, Jennifer Taubert, emphasised the deal’s potential to expand their impact on patients living with neuropsychiatric and neurodegenerative disorders.
The market responded positively to the announcement, with Intra-Cellular’s shares surging nearly 35 per cent to £127 on Monday morning, building upon Friday’s 15 per cent gain following the resolution of a patent dispute with Sandoz regarding Caplyta’s generic version rights until 2040.
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