Intra-Cellular Therapies Stock Pops as Johnson & Johnson Buys Firm for $14.6B | Global News Avenue

Share of intracellular therapies (Information Technology Industry Association) following Johnson & Johnson (Johnson & Johnson) said it would acquire the biopharmaceutical company for approximately $14.6 billion.

Johnson & Johnson will pay Intra-Cellular shareholders $132 per share, a premium of about 40% over the latter’s closing price last weekend. The company’s shares rose 15% and hit a new closing high on Friday after the company announced a settlement in a patent lawsuit with Sandoz, which is seeking to make and sell a generic version of Intra-Cellular’s Caplyta, which treats schizophrenia and I. and bipolar II depression.

The company is also developing other drugs to treat Alzheimer’s disease and Parkinson’s disease, among others.

“This acquisition further differentiates our product portfolio, serves as a near- and long-term strategic growth catalyst for Johnson & Johnson, and delivers compelling value to patients, health systems and shareholders,” Johnson & Johnson said. CEO Joaquín Duato said.

The transaction is expected to close later this year

The deal is expected to close later this year, pending regulatory and Intra-Cellular shareholder approval, and Johnson & Johnson will fund the deal with a combination of cash and debt, the companies said.

The pharmaceutical giant said it “will provide comment on any potential impact of the adjustment” Earnings per share (EPS) The company provided preliminary full-year guidance during its fourth-quarter earnings call on Jan. 22.

Less than an hour before the close on Monday, Intra-Cellular shares were up 35% at a record $127.90, while Johnson & Johnson shares were little changed at $142.49.