Johnson & Johnson (JNJ.US) has agreed to acquire Intra-Cellular (ITCI.US) for $132/share, expanding its mental health drug portfolio.

Johnson & Johnson (JNJ.US) has agreed to acquire all outstanding shares of biopharmaceutical company Intra-Cellular Therapies (ITCI.US) for $132.00 per share in cash, valuing the total equity at approximately $14.6 billion. Shares of Intra-Cellular Therapies surged nearly 36% before the market opened on Monday, boosted by the news. The transaction is expected to close later this year, subject to regulatory approvals, Intra-Cellular Therapies' shareholder approval, and other customary closing conditions. The transaction will be funded through a combination of cash and debt. The deal strengthens Johnson & Johnson's portfolio of neurological disease products. Intra-Cellular Therapies focuses on developing and commercializing treatments for central nervous system diseases. The company is currently developing a drug for the treatment of major depressive disorder, which is in late-stage clinical trials. In addition, Intra-Cellular Therapies developed Lumateperone, an oral atypical antipsychotic drug. Lumateperone was approved by the U.S. Food and Drug Administration (FDA) in 2019 for the treatment of schizophrenia and received an expanded indication in December 2021 for the treatment of depressive episodes associated with bipolar disorder. Johnson & Johnson will provide an update on the potential impact of the transaction on adjusted earnings per share during its fourth-quarter earnings call on January 22, 2025.