Good morning, everyone, and welcome to another working week. We hope the weekend respite was relaxing and invigorating, because that familiar routine of deadlines, online meetings, and the like has predictably returned. Of course, some folks have a more challenging re-entry if they are attending the J.P. Morgan Healthcare Conference, a sort of Woodstock for investors. As for us, we are busy firing up the coffee kettle to brew another cup of stimulation — our choice today is coconut rum — and foraging for items of interest. Kindly see the list below. Meanwhile, we hope you have a simply smashing day and conquer the world. And of course, do keep in touch. Insights and hot tips are always appreciated. …
Johnson & Johnson agreed to buy Intra-Cellular Therapies in a deal worth $14.6 billion, another sign of reentry into neuroscience by large drugmakers and a sizeable purchase that will provide a boost as the industry gathers for one of its largest events of the year, STAT says. With the acquisition, J&J will get Intra-Cellular’s Caplyta, which is approved to treat schizophrenia and bipolar-related depression. Intra-Cellular last month filed the drug with U.S. regulators as a treatment that could be combined with regular antidepressants to treat major depressive disorder, potentially opening up a substantial market. The move by J&J, which also sells Spravato for treatment-resistant depression, reflects how the pharmaceutical industry has come back to neuropsychiatric drug development after largely leaving the field two decades ago, scooping up the smaller biotechs that have steadily been making progress in the hard-to-crack area.
Seeking to build up its cancer business, GSK agreed to buy IDRx for $1 billion upfront, STAT notes. The deal, which includes another $150 million in milestone payments, gives GSK an experimental treatment for a rare gastrointestinal cancer. The announcement comes as much of the biopharma world gathers in San Francisco for the J.P. Morgan conference. Companies and investors are looking for M&A to provide a jolt of energy to the industry, and while the GSK deal will generate headlines, the $1 billion acquisition continues a streak of relatively paltry purchases in recent months compared to the megadeals of past years. The IDRx deal gives GSK another play in cancer as it aims to grow its oncology business. The company has high hopes for its antibody drug conjugate Blenrop in blood cancer, and has touted its approved drug Ojjaara, which it also picked up through acquisition.
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