Shares of Intra-Cellular Therapies (ITCI) are surging 35% in premarket trading Monday after Johnson & Johnson (JNJ) said it will acquire the biopharmaceutical company for roughly $14.6 billion.

Johnson & Johnson will pay Intra-Cellular shareholders $132 per share, a premium of roughly 40% to the latter's close at the end of last week. Shares jumped 15% to a record closing high of $94.87 Friday after the company announced it had settled a patent lawsuit with Sandoz, which was looking to produce and sell a generic version of Intra-Cellular's Caplyta, which treats schizophrenia and bipolar I and II depression.

The company also has other drugs in the pipeline to treat Alzheimer's Disease and Parkinson's Disease, among others.

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

Deal Seen Closing Later This Year

The companies said the deal is expected to close later this year pending approval from regulators and Intra-Cellular shareholders, with Johnson & Johnson funding the deal through a combination of cash and debt.

The pharmaceutical giant said it "will provide commentary on any potential impact to adjusted earnings per share (EPS) from the transaction" when it provides initial full-year guidance during its fourth-quarter earnings call on Jan. 22.

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