J&J buys Intra-Cellular

Johnson & Johnson started the year with a bang after announcing a $14.6 billion buy-out of listed company Intra-Cellular Therapies. J&J is paying a 39% premium to Friday's closing price for the biotech company that specialises in products for the central nervous system.

Intra-Cellular owns a treatment for conditions such as bipolar and schizophrenia called Caplyta, which is also showing great results in treating depression. Caplyta recently won a patent settlement which has given the drug exclusivity until 2040. This is definitely the jewel in the crown that J&J is after.

J&J has been a very pedestrian stock over the last 5 years, let's hope the addition of potential blockbusters like Caplyta will give it a boost.