Johnson & Johnson will spend more than $14 billion to delve further into the treatment of central nervous system disorders by purchasing Intra-Cellular Therapies.
The health care giant said Monday that it will pay $132 in cash for each share of Intra-Cellular. That represents a 39% premium to Intra-Cellular's closing price of $94.87 on Friday.
Shares of both companies climbed Monday after announcing the deal.
Intra-Cellular Therapies Inc. makes Caplyta, a once-daily pill for treating adults with schizophrenia and depression tied to bipolar disorder. The drug brought in $175 million in last year's third quarter as total prescriptions increased 38%.
Intra-Cellular said last fall it was expanding its sales force to target growth opportunities with primary care doctors. The company also is seeking U.S. Food and Drug Administration approval to use the drug as supplemental treatment for adults with major depressive disorder.
Wall Street expects sales of the drug to grow past $1 billion next year and top $2.5 billion by 2028, according to the data firm FactSet.
Intra-Cellular's pipeline of drugs under development also includes a potential treatment for anxiety and psychosis and agitation tied to Alzheimer's disease. That drug is in mid-stage testing.
J&J, based in New Brunswick, New Jersey, says it will pay for the deal, valued at about $14.6 billion, with a combination of cash and debt. The companies expect the deal to close later this year.
Monday's announcement comes a few days after Intra-Cellular settled a patent lawsuit over when a cheaper, generic version of Caplyta can enter the U.S. market. The company said Friday that drugmaker Sandoz Inc. can start selling a generic version in 2040 or earlier under circumstances it didn't detail in a brief statement.
The company has submitted the deal to federal regulators for review, and it still has other patent cases pending in federal court.
Shares of Intra-Cellular, based in Bedminster, New-Jersey, jumped about 34% to $127.10 Monday. J&J's stock edged up 1% to $143.45
