Johnson & Johnson is in discussions to acquire Intra-Cellular Therapies, a biopharmaceutical company specializing in treatments for central nervous system (CNS) disorders, in a deal that could be valued at $10 billion.
The potential acquisition marks a significant move in the biotechnology sector, which saw a slowdown in mergers and acquisitions (M&A) activity in 2024. If finalized, this would be the largest biotech transaction in more than a year, signaling a potential resurgence in M&A activity.
Intra-Cellular, which focuses on developing drugs for conditions such as major depressive disorder, generalized anxiety disorder, and Parkinson’s disease, has gained attention for its lead drug, Caplyta. Caplyta, which has already been approved for treating bipolar depression, generated $464 million in sales in 2023, and is under review by the US Food and Drug Administration (FDA) for the treatment of major depressive disorder.
The discussions come amid a challenging year for the biotech industry, where total pharma M&A spending dropped to $45 billion across 30 deals in 2024, down from $84 billion in 2023. A successful acquisition of Intra-Cellular would represent a turnaround for the sector, which has been experiencing reduced deal-making since the pandemic period.
The deal is expected to include a premium on Intra-Cellular’s market value, which was around $10 billion as of January 2025. Although the talks are ongoing, the outcome remains uncertain, and other potential buyers could emerge as well. Industry insiders suggest that an announcement could come soon, potentially coinciding with the annual JPMorgan healthcare conference in San Francisco, where major biotech deals are often unveiled.
For Johnson & Johnson, this would be its first major biotech acquisition since its $30 billion purchase of Actelion, a rare disease drugmaker, in 2017. The company, which currently holds a market value of approximately $342 billion, has also been actively investing in its medical technology division. Recently, it spent $13.1 billion to acquire Shockwave Medical, a heart device maker.
The acquisition talks come at a time when Johnson & Johnson, like other pharmaceutical companies, is preparing for patent expirations that could impact its revenue streams. One of its key products, the blockbuster drug Darzalex, is expected to lose exclusivity by 2029, potentially resulting in a $17 billion loss in revenue.
Intra-Cellular’s potential to provide treatments for mental health disorders and neurological conditions makes it an attractive target for a company like Johnson & Johnson, which has been focusing on expanding its CNS portfolio. The company’s schizophrenia treatment, Lumateperone, is already FDA-approved and is being studied for additional uses, including the treatment of bipolar disorder.
With input from the Financial Times, Bloomberg, and Reuters.
