Johnson & Johnson acquires Intra-Cellular Therapies for $14.6 billion

The transaction, expected to close within 2025, grants J&J access to Caplyta (lumateperone), the only FDA-approved treatment for bipolar I and II depression and schizophrenia. Caplyta, which has been growing in market prominence, is anticipated to generate peak annual sales exceeding $5 billion. Additionally, J&J acquires promising pipeline candidates, such as ITI-1284 for anxiety disorders and Alzheimer-related psychosis.

“Building on our nearly 70-year legacy in neuroscience, this unique opportunity to add Intra-Cellular Therapies to our Innovative Medicine business demonstrates our commitment to transforming care and advancing research in some of today’s most devastating neuropsychiatric and neurodegenerative disorders,” said Joaquin Duato, Chairman and Chief Executive Officer, Johnson & Johnson.

Johnson & Johnson plays a significant role in the European pharmaceutical market, generating 24% of its global revenue in Europe in 2023, equivalent to approximately $20.44 billion. It remains to be seen whether Caplyta can eventually be marketed in Europe.

The CNS market expansion follows J&J’s broader efforts to offset revenue losses, such as the upcoming patent expiration for its psoriasis blockbuster Stelara. Recent investments include the $13 billion acquisition of Shockwave Medical to bolster its medtech portfolio.

Intra-Cellular Therapies’ shareholders welcomed the news, with shares surging over 35% in pre-market trading. Following the acquisition, the company will be delisted from the stock exchange.

Meanwhile, Eli Lilly announced a $2.5 billion deal to acquire Scorpion Therapeutics, targeting its oncology program STX-478 for breast and other solid tumors, as part of its push into precision cancer therapies.