Johnson & Johnson (J&J) announced Monday its $14.6 billion acquisition of neurological drug maker Intra-Cellular Therapies, its largest deal in over two years.
The move expands J&J’s portfolio with Caplyta, a U.S.-approved treatment for schizophrenia and bipolar disorder, alongside experimental drugs.
The deal comes as J&J focuses on its pharmaceuticals and medical devices units following its 2023 spin-off of its consumer health business. CEO Joaquin Duato, speaking at an industry conference in San Francisco, noted such large transactions are “outliers” for the company, which completed 75 smaller acquisitions in 2024.
J&J’s offer of $132 per share represents a 39% premium to Intra-Cellular’s Friday closing price, with shares rising 34% after the announcement. J&J plans to fund the acquisition with cash and debt, boosting its neurological treatments portfolio, which includes its $3.16 billion-selling schizophrenia drug, paliperidone.
