Johnson & Johnson Announces $14.6 Billion Acquisition of Intra-Cellular Therapies to Strengthen CNS Portfolio

Jan 14, 2025 17:37 CST Updated 17:37

Johnson & Johnson

Medical Device R&D and Manufacturer

On January 13, 2025, the American biopharmaceutical company Intra-Cellular announced that it had reached a definitive acquisition agreement with Johnson & Johnson. Johnson & Johnson will acquire all outstanding shares of Intra-Cellular for $132.00 per share in cash, with a total equity value of approximately$14.6 billion (approximately 106.87 billion RMB)。

Intra-Cellular is aA company dedicated to developing innovative drugs for central nervous system (CNS) diseases.Over the past 12 months, the share price of Intra-Cellular has shown a significant upward trend, with an increase of approximately40%, its current market value has climbed to approximately$10 billion。

Although the transaction itself took place in the biopharmaceutical field, the CNS disease market it involved is closely linked to the medical device industry, offering potential development directions for medical device companies. Johnson & Johnson's strategic layout may become an industry benchmark, sparking more exploration into the innovation of drug-device integration.

Therefore, Siyu MedTech reported this news.

# Acquisition Details

Under the terms of the agreement, Johnson & Johnson will acquire all outstanding shares of Intra-Cellular Therapies for $132.00 per share in cash. Johnson & Johnson plans to finance this acquisition through a combination of existing cash and debt financing.

Johnson & Johnson is expected to maintain a robust balance sheet after the completion of this acquisition, continuing to support its established capital allocation priorities, including R&D investment, dividend distribution, acquisitions, and strategic share repurchases.

This transaction is expected to be completed later this year, subject to the fulfillment of certain conditions including obtaining approval from relevant regulatory authorities, shareholder approval from Intra-Cellular Therapies, and other customary closing conditions for such transactions.

# Core Products

CAPLYTA^®

Intra-Cellular's core product is aMulti-Target Antipsychotic Drug CAPLYTA^®（lumateperone）, which is currently approved by the U.S. FDAThe First and OnlyUseFor TreatmentAdjunctive and Monotherapy for Type I and Type II Bipolar Depression, and has also been approved for use inTreatment of Adult Schizophrenia。

December 2024, CAPLYTA^®A supplemental New Drug Application (sNDA) has been submitted to the U.S. FDA for the drug as an adjunctive treatment for major depressive disorder, and if approved, it is expected to become the standard of care for treating the most common form of depression.

CAPLYTA^®The addition has injected new vitality into Johnson & Johnson's robust therapeutic product lineup, with the potential to exceed $5 billion in peak annual sales.

CAPLYTA^®It is a once-daily oral therapy for the treatment of adult schizophrenia and depressive episodes associated with bipolar I or II disorder (bipolar depression), either as monotherapy or as an adjunctive therapy in combination with lithium or valproate.

ITI-1284

This acquisition also covers ITI-1284, a compound currently in Phase 2 research, which is being targetedGeneralized Anxiety Disorder (GAD) and Alzheimer's Disease-Related PsychosisThe research is expected to further supplement and strengthen Johnson & Johnson's key clinical-stage pipeline in its current focus areas.

R&D Progress of Each Pipeline (Source: Official Website)

# Financial Report Performance

Intra-Cellular's latest financial report shows strong performance in multiple key financial indicators:

Lumateperone Sales Volume$175.2 million, an increase from US$125.8 million in the same period of 2023.39%, mainly due to increased demand. The cumulative sales for 2024 year-to-date (YTD) reached 4.813 billion USD, representing an increase from 3.307 billion USD in 2023.46%。

Selling, General, and Administrative (SG&A) expenses are$132.1 million, year-on-year growth26%, due to the expansion of the sales team and increased marketing, advertising, and administrative expenses to support the company's business growth.

R&D expenses are$66.8 million, year-on-year growth61%, mainly related to the development of products such as lumateperone and other clinical projects.

In addition, as of September 30, 2024, the company's total cash and investments were approximately$1 billion, demonstrating ample financial reserves.

# Full Power

Over the past year, Johnson & Johnson inSpin Off Consumer Health DivisionAfterwards, throughBrand RenewalAndMajor AcquisitionAnd other measures, fully focusedInnovative PharmaceuticalsAndMedical TechnologyTwo major fields have ushered in a "New Johnson & Johnson" era.

Business Performance

Johnson & Johnson Gradually Scales Down Cardiovascular and Metabolic Division, Renaming Pharmaceutical Division in 2023, Continuing to De-emphasize Work in This Area, Focusing Drug R&D on...Oncology, Immunology, NeuroscienceThree Major Therapeutic Areas: Oncology and Immunology Revenue Grew Respectively in Q3 202420.5%、3.3%、1.7% 。

M&A Transactions

Last year, Johnson & Johnson Innovative Pharmaceuticals focused on the layout of the immunology field.

On May 16, 2024, Johnson & Johnson announced that it had reached a definitive agreement to acquire Proteologix, Inc. for $850 million in cash.A biotechnology company focused on researching bispecific antibodies for immune-mediated diseases.

Proteologix's product portfolio under development includesPX128And PX130。PX128is targeting IL-13 andBispecific antibody for TSLP,Intended forModerate to Severe Atopic Dermatitis and Moderate to Severe AsthmaThe treatment is currently ready for Phase I clinical research.

PX130A bispecific antibody targeting IL-13 and IL-22,Intended for moderate to severe atopic dermatitis,Currently in the preclinical stage.Both of these drugs are designed for less frequent dosing, thereby enhancing the convenience of treatment for patients.

On May 28, 2024, Johnson & Johnson announced that it had signed a definitive agreement with Numab Therapeutics to acquire its subsidiary, Yellow Jersey Therapeutics, for $1.25 billion in cash. According to the terms of the deal, upon completion of the acquisition, Johnson & Johnson will gainA dual-antibody drug for skin diseases, NM26.

Johnson & Johnson stated that NM26 has the potential to offer "unique advantages" compared to existing atopic dermatitis therapies, including Sanofi and Regeneron's Dupixent and AbbVie's Rinvoq.

# Behind the Acquisition

In line with the long-term strategy

As the market demand in the field of neuroscience continues to grow, Johnson & Johnson will further solidify its position in the central nervous system treatment market through this acquisition and the expansion of its product pipeline. This will not only enhance Johnson & Johnson's market performance in 2025 and beyond but also provide a strong foundation for its long-term growth.

As early as December 5, 2023, Johnson & Johnson announced the key drivers of the company's long-term competitive growth, stating that it is shifting its focus toCancer, Depression, and Autoimmune DiseasesField.

Company PlanTo provide more than 20 new drugs and over 50ExpansionProduct,The application will cover diseases in multiple neuroscience fields, including but not limited to Alzheimer's disease, Parkinson's disease, and depression.

Addressing the Patent Cliff

On January 23, 2024, Johnson & Johnson announced its 2023 annual performance, with the innovative drug business achieving $54.8 billion in revenue. Sales in the autoimmune field reached $18.052 billion, of which Stelara, the "top seller" in the autoimmune field, had sales of$10.858 billion, an increase of 11.7% year-on-year.

A key patent for Stelara expired in 2023,According to the agreement reached between Johnson & Johnson and its competitors, as biosimilars enter the European market,Stelara's revenue is expected to start declining.By expanding its presence in the neuroscience field, Johnson & Johnson is expected to fill the market gap caused by the expiration of Stelara's patent.

In 2025, Johnson & Johnson's innovative pharmaceuticals sector is expected to make significant progress in the neuroscience field. Through multiple strategies such as major acquisitions, pipeline expansion, and tapping into market potential, the company aims to solidify its position in the central nervous system therapeutics market, laying a strong foundation for long-term future growth.

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