Johnson & Johnson (J&J) has announced it will acquire Intra-Cellular Therapies, a company specialising in central nervous system disorder treatments.

The news was first reported by Bloomberg late on Sunday (12 January) and confirmed by Johnson and Johnson through an official announcement on 13 January.

Intra-Cellular's market value has soared to $10bn after a 40% increase in share price in the 12 months to January. The company is known for its approaches to mental health and neurological disorders, with a major depressive disorder drug currently in late-stage trials.

Its shares rose following a recent settlement with Sandoz over Caplyta, a bipolar depression medication.

Meanwhile, J&J's market capitalisation reportedly stands at $342bn, following a 12% decline over the same one-year period. J&J announced this news as major thought leaders started the first day at the JP Morgan Healthcare conference, taking place in San Francisco from 13-16 January.

This deal will be one of the biggest biotech transactions in more than a year, highlighting a resurgence in healthcare deals after a slump. The potential acquisition comes as J&J seeks to bolster its portfolio following the spin-off of its consumer health division and the $13.1bn acquisition of Shockwave Medical, a heart device manufacturer.

 The move is part of J&J's strategy to sustain growth amid challenges such as the impending loss of exclusivity for its psoriasis treatment, Stelara.

In May 2024, J&J expanded its biotech footprint with the $850m acquisition of Proteologix, which focuses on immune-mediated diseases, with additional milestone payments possible.

Update: This news story was updated on 13 January after Johnson and Johnson officially announced plans to acquire Intracellular Therapeutics. Paragraphs 1, 2, 3 and 4 have been updated with the latest news.