Johnson & Johnson in Advanced Talks to Acquire $10B CNS Biopharma Star Intra-Cellular Therapies

Zhitong Finance APP learned from informed sources that Johnson & Johnson (JNJ.US) is in talks to acquire Intra-Cellular Therapies, Inc., a biopharmaceutical company focused on treating central nervous system disorders. The two parties may reach an agreement as early as this week. However, although negotiations are still ongoing, an agreement may not be reached, and other bidders may emerge.

A representative of Johnson & Johnson declined to comment, while a spokesperson for Intra-Cellular Therapies could not be reached for comment immediately.

If announced, the deal would become the largest biotechnology transaction in more than a year, highlighting a renewed heating up of healthcare deals in 2024 after a slowdown, when major pharmaceutical companies paused their post-pandemic deal-making spree to digest acquisitions. Earlier this month, medical device maker Stryker (SYK.US) agreed to acquire Inari Medical (NARI.US) for approximately $4.9 billion.

It is reported that over the past 12 months, the share price of Intra-Cellular Therapies, Inc. has increased by approximately 40%, bringing the company's market value to about 10 billion US dollars. Intra-Cellular Therapies develops new therapies for psychiatric and neurological disorders and is currently working on a drug for major depressive disorder, which is in the late-stage trial phase.

In addition, Intra-CellularLast week, onceIntra-Cellular Therapies, Inc. announced a settlement agreement with Sandoz to resolve patent litigation related to its bipolar depression treatment drug Caplyta, following which the company's stock price surged significantly.

By contrast, Johnson & Johnson's stock price has fallen by about 12% in 12 months, with a market value of $342 billion. Previously, Johnson & Johnson spun off its consumer health division and acquired Shockwave Medical, a cardiac device manufacturer, for $13.1 billion, and is now launching a new offensive. The company is facing the risk of losing exclusive rights to its psoriasis treatment drug Stelara and has been striving to maintain growth.

Nauman Shah, Global Head of Business Development for Johnson & Johnson's pharmaceuticals division, said in an interview at the BIO International Convention in June: "We certainly still have the financial strength and capability, regardless of the size of the deal." "If these deals make sense, we will focus more on these five deals, which could even be called $20 billion deals."

Johnson & Johnson's discussions took place on the eve of the annual healthcare industry conference held in San Francisco. Although the timing is uncertain, the company typically announces deals around the time of the J.P. Morgan Healthcare Conference.