Intra-Cellular Therapies Stock Shines Amid Market Slump On J&J’s $14.6B Buyout Deal: Retail Brims With Optimism

Intra-Cellular Therapies' stock (ITCI) surged over 35% in premarket trading on Monday, poised for its best-ever open and a record high, even as broader market futures grappled with weak tech stock performance. 

The biotech firm announced it would be acquired by Johnson & Johnson (JNJ) in a $14.6 billion cash deal, valuing ITCI shares at $132 each, which represents about 40% premium to previous close.

The transaction, funded through a mix of cash and debt, is expected to close later this year, subject to shareholder and regulatory approvals. Once completed, ITCI shares will be delisted from the Nasdaq. 

Johnson & Johnson plans to maintain its capital allocation strategy, including R&D investment, dividends, and strategic share buybacks.

ITCI sentiment and message volume Jan 13 premarket as of 7:40 am ET | source: Stocktwits

Following the announcement, sentiment for ITCI on Stocktwits turned 'extremely bullish,' and the stock became one of the platform's top 20 trending symbols. 

Some retail investors speculated that J&J secured a bargain deal amid a flurry of positive chatter.

Shares of J&J, meanwhile, were flat premarket Monday following a more than 2% dip over the last week, with retail sentiment on Stocktwits turning 'bullish.’

ITCI's flagship product, Caplyta, is a once-daily oral therapy approved for treating schizophrenia and depressive episodes linked to bipolar disorders, which reportedly raked in sales of $464 million in 2023.

The company recently reached a favorable patent settlement with Sandoz, ensuring no generic Caplyta will launch until 2040. Analysts at BofA Securities raised ITCI's price target to $118 on Sunday, citing the settlement's positive implications.

According to the Financial Times, the deal highlights J&J's strategic response to looming patent cliffs, including its projected $17 billion revenue loss when its Darzalex treatment for rare blood cancers loses exclusivity in 2029.

The report added that the acquisition marks a bright spot for the biotech sector, which saw M&A activity plunge in 2024. Pharma companies spent $45 billion across 30 deals — nearly half the prior year's total.

ITCI stock gained 12.7% over the past 12 months.

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