Intra-Cellular shares surge amid report J&J exploring possible takeover bid By Investing.com

Investing.com– Shares in Intra-Cellular Therapies (NASDAQ:) surged in premarket trading on Monday on a report that Johnson & Johnson (NYSE:) is considering a bid to acquire the biopharmaceutical company.

Citing sources familiar with the matter, Bloomberg News reported that a deal between both parties could be reached as early as this week. Intra-Cellular has a market value of roughly $10 billion.

The discussions are said to be in an early stage, and no final decision has been made, the report said, adding that there is no guarantee the negotiations will lead to a formal deal. 

Intra-Cellular Therapies is best known for Caplyta, its FDA-approved treatment for schizophrenia and bipolar disorders. The potential acquisition could help J&J expand its neuroscience portfolio and offset revenue challenges anticipated from patent expirations on its blockbuster drugs.

J&J has remained active in pursuing high-growth therapeutic areas, aiming to solidify its pharmaceutical division’s growth amidst intensifying competition.

Intra-Cellular shares jumped by more than 33% ahead of the start of US trading. The stock rose nearly 15% on Friday. 

(Ayushman Ojha contributed reporting.)