Johnson & Johnson’s stock just hit a 52-week low last week, trading at its lowest point since November 2020 (ah, the good ole days when Tiger King ruled our lives). But instead of moping around like a sad contestant on The Bachelor, J&J is plotting a $10 billion “swing for the fences” acquisition of neuroscience drugmaker Intra-Cellular Therapies. And judging by Intra-Cellular’s stock, which shot up 14% on the news, Wall Street’s giving it a rose.

If you’re wondering, “whats the rush to get this deal done” J&J’s facing a patent cliff that’s about as welcoming as a root canal. Its blood cancer drug, Darzalex, loses exclusivity in 2029, threatening to yank $17 billion out of its revenue stream. Sure, for a company with a $342 billion market cap, it could be worse… but with the stock playing “how low can you go,” Johnson & Johnson needs a win badly. Which is why they want Intra-Cellular’s all star drug Caplyta. This bipolar depression drug made $464 million last year and is eyeing FDA approval to treat major depressive disorder, which could open the floodgates to a massive new market.

Of course, this isn’t J&J’s first acquisition. Last year, the company dropped $13.1 billion on Shockwave Medical to roid up its med-tech division. With an estimated $120 billion in cash and debt capacity, J&J has enough of a buffer to make this deal happen without worrying if they’ll be able to pay the bills.

The biotech sector has been running on fumes when it comes to M&A. In 2024, biotech deals totaled just $45 billion across 30 transactions… a steep drop from $84 billion in 2023. If J&J closes this deal, it would be the biggest since Pfizer’s $43 billion acquisition of Seagen in 2023. The sector could finally get the jolt it’s been desperately waiting for.

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Stock.News has positions in Johnson & Johnson.