💡 Johnson & Johnson: $14.6 billion acquisition strengthens the pharmaceutical giant's position in the neurological drugs market 💊

Johnson & Johnson $JNJ, one of the biggest players in the healthcare industry, has once again shown that growth through strategic acquisitions is their forte.

The company announced last week the purchase of biopharmaceutical firm Intra-Cellular Therapies $ITCI for $14.6 billion (approximately $361 billion)to significantly strengthen its position in the treatment of psychiatric and neurological disorders.

🔑 Key acquisition details:
Caplyta Drug:Intra-Cellular Therapies' flagship product , which is approved for the treatment of schizophrenia, bipolar disorder and depressive conditions, brings a unique advantage - generic versions will not be available until 2040. 📆
Price per share: Johnson & Johnson will pay $132 per share for Intra-Cellular. This is indicative of the confidence the company has in this acquisition.
Timing: The transaction is expected to be completed later this year, allowing J&J to quickly expand its portfolio in key market areas.

📈 J&J's long-term strategy:
This acquisition is another piece to the portfolio that Johnson & Johnson has been patiently building in recent years.

Strengthening the pharmaceutical division: In addition to drugs for neurological disorders , J&J is also pursuing other areas, such as the treatment of skin diseases (acquisition of Yellow Jersey Therapeutics and Numab).

Expansion in medical devices: Acquisitions such as Shockwave Medical ($13.1 billion) or V-Wave ($1.7 billion) show that cardiovascular devices play a key role in their portfolio. ❤️

Investing in the future: Over the past 5 years , this giant has spent over $56.5 billion acquiring smaller companies. As of 2020, there have been a total of 17 acquisitions .

📉 Stock View:
JNJ'scurrent stock price is approximately 20 % below its all-time high, which could be an interesting entry opportunity. On the other hand, the company is bracing for increased competition in some key segments, such as psoriasis treatment, where their drug Stelara faces generic versions.

🔬 Intra-Cellular Therapies:
This company is building on award-winning research Nobel Prize Prize-winning research that revealed new ways drugs work inside cells. As a result, they focus on developing advanced therapies for people with serious psychiatric and neurological conditions. This added value makes the acquisition not only a financial but also a scientific step forward.

The acquisition will not only strengthen their position in key areas, but also provide investors with the opportunity to focus on steady growth over the long term.

What do you think of this move? Is Johnson & Johnson still a good choice for a long-term portfolio?