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Johnson & Johnson announced Monday its agreement to acquire biopharmaceutical company Intra-Cellular Therapies Inc. for approximately $14.6 billion, expanding its portfolio of treatments for neuropsychiatric and neurological disorders.

The deal, valued at $132 per share in cash, marks a significant addition to Johnson & Johnson’s innovative medicine business. Intra-Cellular Therapies' stock surged over 34% to $127.58 following the announcement and will be delisted from the Nasdaq Global Select Market once the transaction is complete.

“This unique opportunity to add Intra-Cellular Therapies to our innovative medicine business demonstrates our commitment to transforming care and advancing research in some of today’s most devastating neuropsychiatric and neurodegenerative disorders,” said Johnson & Johnson Chair and CEO Joaquin Duato.

The acquisition includes Intra-Cellular Therapies’ flagship product, CAPLYTA, an FDA-approved oral therapy for schizophrenia and bipolar depression, and ITI-1284, a pipeline drug being evaluated for generalized anxiety disorder and Alzheimer’s-related psychosis. CAPLYTA is also under FDA review as an adjunctive treatment for major depressive disorder.

Dr. Sharon Mates, Chair and CEO of Intra-Cellular Therapies, said in a statement, “Johnson & Johnson’s longstanding commitment to neuroscience aligns perfectly with our mission. Together, we can reach even more patients around the world.”

The transaction is expected to close later this year, pending regulatory and stockholder approvals.

Cravath, Swaine & Moore LLP is advising Johnson & Johnson, with Citi serving as its financial adviser. Intra-Cellular Therapies is represented by Davis Polk & Wardwell LLP, while Centerview Partners LLC and Jefferies act as its financial advisers.

The Cravath team includes partners Robert I. Townsend III, Ting S. Chen, and Jin-Kyu Baek. Davis Polk’s team includes partners Michael Davis and Lee Hochbaum. Skadden, Arps, Slate, Meagher & Flom LLP is advising Centerview and Jefferies.