Johnson & Johnson acquires Intra-Cellular Therapeutics, a company from our portfolio focused on innovative treatments for neurological disorders. The acquisition confirms the value of our selection methodology and delivers an attractive return for our investors.
Johnson & Johnson (J&J) today announced the acquisition of Intra-Cellular Therapeutics. J&J is acquiring this Aescap Life Sciences portfolio company for $132 per share. This represents a 39% premium to Friday’s closing price of $94.87. The deal is valued at $14.6 billion.
A 39% premium may not seem like much. However, there was already some takeover speculation in the share price, which rose earlier as a result. Also, the higher the absolute value, the lower the premium in percentage terms.
Aescap started building a position in Intra-Cellular in June 2023 at a price of $61. Prior to the takeover announcement, the position represented 7.5% of the Life Sciences Fund’s portfolio.
Intra-Cellular Therapies develops medicines for the treatment of neurological disorders. Currently, it has one medicine on the market: Caplyta. Approved for the treatment of bipolar disorder and schizophrenia. Approval is pending for the treatment of depression. It also has several clinical trials underway. These include psychosis associated with Alzheimer’s disease and Parkinson’s disease.
