Receptos Continues To Reward
Stephen Simpson, CFA
Stephen Simpson, CFA
Receptos Shopping For A Partner With Strong Data In Hand
Stephen Simpson, CFA
Stephen Simpson, CFA
Aug. 11, 2015, 8:47 AM
- The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR) pertaining to Celgene's (NASDAQ:CELG) bid for Receptos (NASDAQ:RCPT) expired yesterday. This satisfies one of the conditions for the closing of the transaction, expected this quarter.
- Celgene's offer will expire at midnight ET on Monday, August 24, unless extended.
Aug. 3, 2015, 8:42 AM
- Celgene Corporation (CELG) announces plans to offer senior unsecured notes under a shelf registration statement with the Securities and Exchange Commission. The offering is subject to market and other conditions.The interest rate, the maturity dates and other key terms of the offering will be determined at the time of pricing.
- The company anticipates that the net proceeds will finance a portion of the acquisition of Receptos (RCPT) and the remainder for general corporate purposes. This may include further development of Celgene's clinical and pre-clinical programs, capital expenditures, general corporate development activities, meeting working capital needs, share repurchases and repayment of some or all of Celgene's outstanding commercial paper.
- J.P. Morgan, Citigroup, Deutsche Bank, and Merrill Lynch, Pierce, Fenner & Smith Incorporated are acting as joint book-running managers and representatives of the several underwriters. Previously: Celgene to buy Receptos for $7.2B (July 14 2015)
Jul. 16, 2015, 12:31 PM
- UniQure (QURE -0.1%) initiated with Outperform rating by Cowen & Co.
- Axovant Sciences (AXON +2.7%) initiated with Market Outperform rating and price target of $36 (103% upside) by JMP Securities.
- Walgreens Boots Alliance (WBA +1.6%) upgraded to Outperform from Neutral by Credit Suisse. Price target raised to $110 (15% upside) from $90.
- Celgene (CELG +3.1%) maintained with Buy rating by Nomura. Price target raised to $165 (22% upside) from $146. Receptos (RCPT -0.3%) downgraded to Neutral from Buy with a $232 (predictable) price target.
Jul. 15, 2015, 12:45 PM
Jul. 15, 2015, 10:36 AM
- Celgene's (CELG +9.5%) $7.2B deal for Receptos (RCPT +10.3%) is “a great acquisition at a great price," Nomura analysts say, as ozanimod could enable CELG's inflammation and immunology franchise to double peak sales to $10B and reduce reliance on Revlimid to drive future growth, and the acquisition price of less than 2x peak sales is a steep discount relative to recent comparisons.
- Wedbush analyst Liana Moussatos sees plenty of potential upside to justify a rival bidder stepping in for RCPT, noting that she had estimated the company could be valued at $348/share, or ~$10.9B, in a buyout, substantially more than CELG's $232 offer.
- The deal is boosting some biotech names (IBB +1.9%), including PTC Therapeutics (PTCT +11.7%), Celsion (CLSN +7.1%) and Arena Pharmaceuticals (ARNA +6.7%).
Jul. 15, 2015, 9:15 AM
Jul. 14, 2015, 5:15 PM
- Celgene (NASDAQ:CELG) agrees to acquire Receptos (NASDAQ:RCPT) for ~$7.2B in cash, or $232/share, representing a 12% premium to today's closing price.
- CELG says the deal will significantly enhance its inflammation and immunology portfolio, diversify its revenue beginning in 2019 and beyond, and build upon its growing expertise in inflammatory bowel disease.
- The acquisition adds Ozanimod, a drug under trial to treat ulcerative colitis and relapsing multiple sclerosis; annual sales of the drug are expected to peak at $4B-$6B.
- CELG also says it expects Q2 adjusted EPS of $1.23 vs. $1.13 analyst consensus estimate, and net product sales +22% Y/Y to $2.25B; raises FY 2015 EPS guidance to $4.75-$4.85 from a prior $4.60-$4.75.
- CELG +4.4% AH, RCPT halted until 5:30.
Jun. 19, 2015, 9:58 AM| Jun. 19, 2015, 9:58 AM | 9 Comments
Jun. 16, 2015, 2:12 PM
- Receptos (NASDAQ:RCPT) has jumped, +4.4%, to $182.35 on chatter that Wedbush has raised its price target on the stock to $348 and says a takeover is coming.
- The company has been subject to takeover speculation, including suitors like AstraZeneca (NYSE:AZN) talking about a $200/share bid, as well as Teva (NYSE:TEVA) and Gilead (NASDAQ:GILD) discussing $280/share bids.
Jun. 9, 2015, 11:54 AM
- Proactiveinvestors' Philip Waller says if AstraZeneca (AZN -1.1%) doesn't get serious it will miss out on an attractive acquisition candidate that would boost its pipeline, something it needs to do if it hopes to achieve its previously announced goal of $45B in revenues by 2023.
- The target is San Diego, CA-based Receptos (RCPT +0.3%), a clinical stage biopharmaceutical firm with two promising drugs in development: RPC1063 for relapsing multiple sclerosis and inflammatory bowel disorders and RPC4046 for eosinophilic esophagitis.
- The company has already approached Receptos about a $200 per share bid but it was rejected as were higher bids of ~$280 per share from (TEVA -0.3%) and Gilead Sciences (GILD +1.2%). Receptos is reportedly holding out for $350 per share which would value it at ~$11B or a 124% premium to its current valuation.
- An AZN spokesperson says, "We wouldn't comment on market rumour or speculation."
May 5, 2015, 4:59 PM
- Receptos (NASDAQ:RCPT): Q1 EPS of -$1.29 misses by $0.20.
- Revenue of $0 misses by $5.1M.
Apr. 24, 2015, 12:57 PM
- Privately-held French biotech medDay Pharmaceuticals reports results from a Phase 3 clinical trial (MS-SPI) evaluating MD1003, a pharmaceutical-grade biotin, for the treatment of primary and secondary progressive multiple sclerosis. The study met its primary endpoint in the intent-to-treat population with 12.6% of patients treated with MD1003 showing an improvement in EDSS (Expanded Disability Status Scale) or TW25 (a timed 25-foot walk) at Month 9 compared to 0% for placebo (p=0.0051).
- Secondary analyses showed evidence of a decrease in the risk of disease progression. Mean EDSS scores in the treatment group between the start of treatment and Month 12 decreased (-0.03) compared to progression (+0.13) in the placebo cohort (p=0.015). Four percent of patients in the MD1003 group showed EDSS progression at Month 9 confirmed at Month 12 compared to 13% for placebo (p=0.07).
- Biotin is a B-vitamin known as vitamin H or coenzyme R. It plays a key role in cell growth, the production of fatty acids and the metabolism of fats and amino acids.
- The data were presented at the American Academy of Neurology Annual Meeting in Washington, DC. Full results will be submitted for publication in a peer-reviewed journal.
- MS-related tickers: (BIIB -5.9%)(SNY +0.3%)(NVS -0.9%)(TEVA +1.4%)(FWP -0.3%)(OPXA)(RCPT +0.1%)(CHRS -3.3%)(ABBV +1.7%)
Apr. 16, 2015, 10:24 AM
- A Phase 2 clinical trial, TOUCHSTONE, evaluating Receptos' (RCPT +5.3%) ozanimod (RPC1063) for the treatment of ulcerative colitis (UC) met all of its efficacy endpoints with statistical significance after 32 weeks of treatment for the 1 mg dose.
- The randomized, double-blind, placebo-controlled trial assessed two oral doses (0.5 mg and 1 mg) of ozanimod versus placebo in 199 patients with moderate-to-severe UC. In the induction period, all the primary and secondary endpoints were met after eight weeks of treatment. In the maintenance period, 103 patients who achieved a clinical response at Week 8 continued treatment for an additional 24 weeks. The proportion of patients in clinical remission at Week 32 was statistically significant for both dosage arms (p<0.05) compared to placebo. The full data will be presented a future scientific meeting this year.
- The company plans to initiate a Phase 3 trial in 2015 in patients with moderate-to-severe UC as well as a Phase 2 study in Crohn's disease.
Apr. 1, 2015, 3:46 PM
- Receptos (RCPT +9.8%) has popped almost $20 in the past several minutes on rumors of an acquisition bid.
Apr. 1, 2015, 9:57 AM
- Receptos (RCPT -3.7%) completes patient enrollment in its RADIANCE Phase 3 study evaluating ozanimod (RPC1063) in patients with relapsing multiple sclerosis (RMS). The randomized, double-blind trial will assess whether ozanimod is superior to Biogen's (BIIB -2.7%) Avonex (interferon beta-1a) in reducing the annualized relapse rate in patients after two years of therapy.
- Ozanimod is an oral, once-daily selective sphingosine 1-phosphate 1 and 5 receptor modulator being developed for the treatment of autoimmune diseases. It diminishes the activity of autoreactive lymphocytes (white blood cells) which is the cause of many types of autoimmune disorders.
- In a Phase 2 RMS trial, it achieved its primary endpoint of reduction in MRI brain lesion activity.
Mar. 5, 2015, 8:52 AM
- AbbVie's (NYSE:ABBV) extraordinarily generous buyout of Pharmacyclics (NASDAQ:PCYC) is a crystal clear example of how keen big pharma is to boost its prospects with biotech drugs with blockbuster potential. The transaction's $20B tab, backing out PCYC's $1B cash balance, values Imbruvica (ibrutinib) at $40B since Pharmacyclics' commercial partner Johnson & Johnson (NYSE:JNJ) gets 50% of Imbruvica's revenue. This implies a multiple of almost 7x Imbruvica's projected peak sales of $6B. By comparison, Amgen's (NASDAQ:AMGN) takeout of Onyx Pharma and Sanofi's (NYSE:SNY) takeout of Genzyme were both at 5x premiums.
- The looming patent expiration for Humira ($12.5B in sales the past four quarters) undoubtedly provided AbbVie extra incentive to get the deal done.
- Adding 50% of Imbruvica's sales to AbbVie's top line should increase its revenue growth 3 - 7% and EPS growth 8 - 11% through 2020.
- According to RBC analyst Michael Yee, other biotechs on the big ticket acquisition radar are: BioMarin Pharmaceuticals (NASDAQ:BMRN), Dyax (NASDAQ:DYAX), Esperion Therapeutics (NASDAQ:ESPR), United Therapeutics (NASDAQ:UTHR), Vertex Pharmaceuticals (NASDAQ:VRTX), Intercept Pharmaceuticals (NASDAQ:ICPT), Juno Therapeutics (NASDAQ:JUNO), Kite Pharma (NASDAQ:KITE), PTC Therapeutics (NASDAQ:PTCT) and Receptos (NASDAQ:RCPT).
Receptos Inc is a biopharmaceutical company engaged in discovering, developing and commercializing therapeutics for immune disorders. Its product candidates span three distinct specialty disease areas.
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