Investing.com — Johnson & Johnson (NYSE:) is considering a bid for a biopharmaceutical company Intracellular w (NASDAQ:), Bloomberg News reported on Sunday, citing sources familiar with the matter.
The Bloomberg report stated that an agreement could be reached between the two parties as early as this week. Intra-Cellular's market cap is about $10 billion.
Intracellular Therapies is best known for Caplyta, an FDA-approved treatment for schizophrenia and bipolar disorders. A potential acquisition could help Johnson & Johnson expand its neuroscience portfolio and offset expected revenue challenges from patent expirations on its blockbuster drugs.
Discussions are said to be still at an early stage, and a final decision has not yet been made. There is no guarantee that the negotiations will lead to a formal agreement, according to the sources, according to the report.
Shares of Intra-Cellular rose nearly 15% on Friday, reflecting investors' expectations of a potential deal.
Johnson & Johnson has remained active in pursuing high-growth therapeutic areas, with the goal of enhancing the growth of its pharmaceutical division amidst intense competition.
