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NEW BRUNSWICK, N.J. - Johnson & Johnson (NYSE: JNJ) is set to complete its acquisition of Intra-Cellular Therapies on or about April 2, 2025, following approval from Intra-Cellular Therapies’ shareholders on March 27, 2025. This strategic move is anticipated to boost Johnson & Johnson’s sales growth by about 0.8% in 2025, contributing an estimated $0.7 billion in incremental sales.
The acquisition, however, is expected to dilute Johnson & Johnson’s adjusted earnings per share (EPS) by approximately $0.25 for 2025, marking an improvement from the previously estimated $0.30 to $0.35 range announced during the company’s fourth-quarter 2024 earnings call. By 2026, the earnings dilution is projected to decrease to around $0.21 per share as the impact of financing costs is expected to be mitigated by operational accretion.
Upon finalizing the transaction, Intra-Cellular Therapies’ common stock will no longer be traded on the NASDAQ Global Select Market. Johnson & Johnson plans to incorporate these financial estimates into its full-year 2025 outlook, which will be presented in its first-quarter results on April 15, 2025.
This announcement serves as a correction to a previous statement that inaccurately reported the closing of the transaction. The acquisition is part of Johnson & Johnson’s ongoing commitment to healthcare innovation and its mission to address complex diseases through advanced treatments and personalized healthcare solutions.
The press release contains forward-looking statements and highlights potential risks and uncertainties that could affect the outcome of the acquisition and subsequent integration of Intra-Cellular Therapies’ programs and products. These include challenges in product development, regulatory approvals, commercial success, manufacturing, currency exchange, interest rate fluctuations, competition, patent disputes, changes in laws and regulations, litigation, government action, shifts in market behavior, and healthcare cost containment trends.
Johnson & Johnson and Intra-Cellular Therapies caution against reliance on these forward-looking statements, which are based on current expectations and are subject to risks that could cause actual results to differ materially. Both companies will continue to comply with legal requirements to update any forward-looking statements as new information becomes available.
This news article is based on a press release statement from Johnson & Johnson.
In other recent news, Johnson & Johnson’s legal challenges have been at the forefront, with a U.S. Bankruptcy Court Judge rejecting the company’s third attempt to use bankruptcy to settle talc-related claims. This decision allows claimants to proceed with jury trials in state courts, marking a significant development for the thousands of women alleging that the company’s talc products caused ovarian cancer. Johnson & Johnson had previously set aside a reserve of $11.6 billion for these settlements, reflecting a $13.5 billion nominal value after accounting for payments made in 2024. Despite the setback, analysts from TD Cowen and UBS have maintained their Buy ratings on the company’s stock, with price targets of $185 and $180, respectively.
Additionally, a Johnson & Johnson unit has been ordered to pay $1.64 billion in a whistleblower lawsuit related to the unlawful promotion of HIV drugs Prezista and Intelence. The verdict includes $360 million for violations of the federal False Claims Act and $1.28 billion in civil penalties. The company has expressed confidence that the verdict will be overturned on appeal, arguing that the promotion of its medications was consistent with FDA-approved labels. Meanwhile, Johnson & Johnson is expected to issue a statement outlining its next steps regarding the talc litigation, as the legal battle moves to trial courts and juries.
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