Johnson & Johnson Expects Lower Earnings Impact From Intra-Cellular Therapies Acquisition

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Johnson & Johnson Expects Lower Earnings Impact From Intra-Cellular Therapies Acquisition

, MT Newswires - 6:35 AM ET 4/2/2025 mergers-and-acquisitions

06:35 AM EDT, 04/02/2025 (MT Newswires) -- Johnson & Johnson ( JNJ ) expects its pending acquisition of Intra-Cellular Therapies (ITCI) to have a lower impact on full-year earnings than previously estimated.

In January, the pharmaceutical giant struck a $14.6 billion deal to purchase Intra-Cellular, which develops treatments for central nervous system disorders. The proposed transaction was approved by Intra-Cellular's shareholders last week, and Johnson & Johnson ( JNJ ) now expects to complete the deal on or around Wednesday, it said late Tuesday.

The acquisition is set to dilute the company's adjusted earnings by $0.25 a share for 2025, including the impact of financing costs, compared with previous projections for a headwind of between $0.30 and $0.35. Johnson & Johnson ( JNJ ) issued an outlook in January for adjusted EPS to be in a range of $10.50 to $10.70 for the 2025 full year. The current consensus on FactSet is for $10.55.

Johnson & Johnson ( JNJ ) expects the Intra-Cellular deal to accelerate sales growth in 2025 by about 0.8% with roughly $700 million in incremental revenue. The Street is currently looking for $89.98 billion in sales for the year.

The company aims to include these estimates in its full-year guidance when it reports its first-quarter results later this month. For 2026, it anticipates the earnings dilution to be reduced to about $0.21 per share with financing expenses to be partially offset by "operational accretion."

Earlier in the week, Johnson & Johnson ( JNJ ) said the US Bankruptcy Court for the Southern District of Texas rejected its Red River Talc subsidiary's request to confirm its proposed prepackaged bankruptcy plan. The plan relates to the company's several attempts in the past couple of years to settle claims that its talcum powder allegedly caused ovarian cancer.

The drugmaker intends to return to the tort system to challenge the claims instead of pursuing an appeal, it said Monday.

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