The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Robert Cyran
NEW YORK, Jan 13 (Reuters Breakingviews) - The $344 bln healthcare firm has spent years dealing with lawsuits and pruning assets. Meanwhile, novel drug developers’ stocks have been stuck in purgatory for a decade, making them look cheap. For giants like Johnson & Johnson in need of new products an M&A solution is obvious.
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CONTEXT NEWS
Johnson & Johnson said on Jan. 13 it had agreed to buy Intra-Cellular Therapies for $132 a share, or approximately $14.6 billion, in cash. That is a 39% premium compared to closing stock prices on Jan. 10, the last day of trading before the announcement.
Intra-Cellular’s drug Caplyta, which has been approved to treat depressive disorder associated with bipolar disease and schizophrenia, had $481 million of sales in the first nine months of 2024. The company said in its third-quarter conference call that the drug represents at least a $5 billion annual opportunity within ten years.
(Editing by Jonathan Guilford and Pranav Kiran)
((For previous columns by the author, Reuters customers can click on CYRAN/robert.cyran@thomsonreuters.com))
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