A deal could be reached as soon as this week, according to the people, who asked not to be identified discussing confidential information. While discussions are ongoing, they may not lead to an agreement and other suitors could also emerge, they said. 

Shares in Intra-Cellular have risen about 40% over the last 12 months, giving the company a market value of roughly US$10 billion (RM45.09 billion). 

Intra-Cellular develops new treatments for mental health disorders and neurological conditions, and is currently working on a drug for major depressive disorder that’s in late-stage trials. Its stock jumped last week, after Intra-Cellular said it’s entered into a settlement agreement with Sandoz to resolve patent litigation related to Caplyta, its medication for bipolar depression. 

J&J is down around 12% over the 12-month period for a market capitalisation of US$342 billion. 

A representative for J&J declined to comment, while a spokesperson for Intra-Cellular couldn’t immediately be reached for comment.

If announced, the deal would be the biggest biotech transaction in more than a year. It would underscore how healthcare transactions are ramping up again after slumping in 2024, when big pharma players slowed a post-pandemic dealmaking rush to digest acquisitions. This month, medical device maker Stryker Corp agreed to buy Inari Medical Inc for about US$4.9 billion. 

J&J is going back on the offence after spinning off its consumer health division and striking a US$13.1 billion takeover of heart device maker Shockwave Medical. The company has been working to maintain growth, as it faces the loss of exclusivity for the psoriasis treatment Stelara.

“We certainly still have the financial capability and the power to be able to do deals, regardless of what size they are,” Nauman Shah, global head of business development for J&J’s pharmaceutical segment, said in an interview with Bloomberg in June at the BIO International Convention. “We’re going to focus more on deals that are in that five to let’s even call it US$20 billion range, if they make sense.”

J&J’s deliberations come on the eve of the healthcare industry’s annual confab in San Francisco. While the timing is fluid, companies often announce transactions around the JPMorgan Healthcare Conference.

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