JPM Healthcare Conference Week Kicks Off with Deals - J&J Acquires ITCI for $14.6B

The JP Morgan Healthcare Conference kicks off this week in San Francisco

Health Care Conference

This is the keynote event for the healthcare sector and is occurring at a very exciting and interesting time.

There was already one mega deal announced today HERE. 

• JNJ announced the acquisition of ITCI and its schizophrenia drug Caplyta for $132/shr in cash or total equity value of $14.6B. Largest biopharma deal since March 2023 (Pfizer-Seagen) and builds upon the CNS deals announced since (Bristol-Karuna, AbbVie-Cerevel). Last week, Intra-Cellular with a key IP win for Caplyta that sent shares higher +13%.

Others:

• GSK announced the acquisition of IDRx Inc (private) and its lead candidate for the treatment of GIST. IDRX-42 is a highly selective KIT TKI studied in an ongoing phase 1B trial for front-line treatment of GIST. GSK will pay up to $1.15B including $1B upfront.

• LNTH announced the acquisition of Life Molecular Imaging (private) from Life Healthcare Group (LHC.SJ), adding Neuraceq, a globally approved, F-18 radioactive diagnostic agent indicated for PET imaging of the brain to estimate β-amyloid neuritic plaque density in adult patients with cognitive impairment who are being evaluated for AD and other causes of cognitive decline. Deal worth up to $750M, including $350M upfront cash.

With P/E spreads at the levels below and attached, it could make for an interesting year.