Shares of Intra-Mobile Therapies (ITCI) are surging 35% in premarket buying and selling Monday after Johnson & Johnson (JNJ) mentioned it can purchase the biopharmaceutical firm for roughly $14.6 billion.

Johnson & Johnson can pay Intra-Mobile shareholders $132 per share, a premium of roughly 40% to the latter’s shut on the finish of final week. Shares jumped 15% to a report closing excessive of $94.87 Friday after the corporate introduced it had settled a patent lawsuit with Sandoz, which was trying to produce and promote a generic model of Intra-Mobile’s Caplyta, which treats schizophrenia and bipolar I and II melancholy.

The corporate additionally has different medicine within the pipeline to deal with Alzheimer’s Illness and Parkinson’s Illness, amongst others.

«This acquisition additional differentiates our portfolio, serves as a strategic near- and long-term progress catalyst for Johnson & Johnson and provides compelling worth to sufferers, well being techniques and shareholders,» Johnson & Johnson CEO Joaquin Duato mentioned.

Deal Seen Closing Later This 12 months

The businesses mentioned the deal is predicted to shut later this 12 months pending approval from regulators and Intra-Mobile shareholders, with Johnson & Johnson funding the deal via a mixture of money and debt.

The pharmaceutical large mentioned it «will present commentary on any potential impression to adjusted earnings per share (EPS) from the transaction» when it offers preliminary full-year steerage throughout its fourth-quarter earnings name on Jan. 22.

Intra-Mobile shares had been up 35% to a report $127.90 lower than an hour earlier than the bell Monday, whereas Johnson & Johnson shares had been little modified at $142.49.