Receptos Said to Get Takeover Interest Amid Partnership Talks
2015-04-01 19:42:28.955 GMT
By Ed Hammond, Cynthia Koons and Manuel Baigorri
(Bloomberg) -- Receptos Inc., the drugmaker that’s seeking
a development partner for its multiple sclerosis treatment, is
fielding takeover interest from potential buyers, people with
knowledge of the matter said.
Receptos has been seeking a partner to develop ozanimod,
which is a potential treatment for MS as well as inflammatory
bowel disease. The partnership discussions, with as many as ten
companies, led to the takeover interest, the people said.
Receptos is working with an investment bank as it explores
its options, the people said.
The company, with a $5.3 billion market value, still favors
a partnership agreement and no sale is imminent, the people
said. Part of the logic for a potential buyer is that the cost
of partnering would be high, making the additional expense of an
outright acquisition relatively appealing, one person said.
Receptos’s most promising product, a treatment for the most
common form of MS, is in advanced clinical trials. The disease,
which robs patients of muscle coordination and balance, affects
2.3 million people worldwide, according to the National Multiple
Sclerosis Society. Drugs typically have wholesale prices of more
than $50,000 a year.
“We have publicly announced a partnering process, we’re
speaking to a number of partners and that process is continuing
and progressing,” said Graham Cooper, Receptos’s chief
financial officer. “These processes often take as much as nine
to 12 months to finalize.”
Cooper declined to comment on sale speculation.
Ulcerative Colitis
Ozanimod is also being tested as a treatment for ulcerative
colitis and Crohn’s disease, which are gastrointestinal
inflammatory disorders. The drugmaker said in October 2014 that
a mid-stage trial in ulcerative colitis was successful and it
will start a final-stage trial this year. It also has plans for
a mid-stage trial in Crohn’s disease.
A sale of the San Diego-based company would be the latest
in a string of multi-billion dollar deals struck by companies
looking for new drug prospects. Pharmaceutical and biotechnology
companies agreed about $100 billion of takeovers in the first
three months of 2015, data compiled by Bloomberg show, more than
twice the value announced a year before.
Receptos is also developing oral treatments for
eosinophilic esophagitis, an inflammation of the foodpipe.
Founded in 2009, Receptos conducted an initial public
offering in 2013, raising $73 million by selling shares at $14
each. Two of its executives -- Chief Executive Officer Faheem
Hasnain and Chairman William Rastetetter -- previously worked at
Biogen, which makes the multi-billion dollar multiple sclerosis
medicine Tecfidera.
For Related News and Information:
Pharma’s Comeback Deals Keep Drug M&A on Track to Reach Records
Busiest Day for Health-Care Deals Is Set to Spawn More: Real M&A
Top Stories:TOP<GO>
--With assistance from Caroline Chen in San Francisco.
To contact the reporters on this story:
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net;
Cynthia Koons in New York at +1-212-617-5253 or
ckoons@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Fournier
2015-04-01 19:42:28.955 GMT
By Ed Hammond, Cynthia Koons and Manuel Baigorri
(Bloomberg) -- Receptos Inc., the drugmaker that’s seeking
a development partner for its multiple sclerosis treatment, is
fielding takeover interest from potential buyers, people with
knowledge of the matter said.
Receptos has been seeking a partner to develop ozanimod,
which is a potential treatment for MS as well as inflammatory
bowel disease. The partnership discussions, with as many as ten
companies, led to the takeover interest, the people said.
Receptos is working with an investment bank as it explores
its options, the people said.
The company, with a $5.3 billion market value, still favors
a partnership agreement and no sale is imminent, the people
said. Part of the logic for a potential buyer is that the cost
of partnering would be high, making the additional expense of an
outright acquisition relatively appealing, one person said.
Receptos’s most promising product, a treatment for the most
common form of MS, is in advanced clinical trials. The disease,
which robs patients of muscle coordination and balance, affects
2.3 million people worldwide, according to the National Multiple
Sclerosis Society. Drugs typically have wholesale prices of more
than $50,000 a year.
“We have publicly announced a partnering process, we’re
speaking to a number of partners and that process is continuing
and progressing,” said Graham Cooper, Receptos’s chief
financial officer. “These processes often take as much as nine
to 12 months to finalize.”
Cooper declined to comment on sale speculation.
Ulcerative Colitis
Ozanimod is also being tested as a treatment for ulcerative
colitis and Crohn’s disease, which are gastrointestinal
inflammatory disorders. The drugmaker said in October 2014 that
a mid-stage trial in ulcerative colitis was successful and it
will start a final-stage trial this year. It also has plans for
a mid-stage trial in Crohn’s disease.
A sale of the San Diego-based company would be the latest
in a string of multi-billion dollar deals struck by companies
looking for new drug prospects. Pharmaceutical and biotechnology
companies agreed about $100 billion of takeovers in the first
three months of 2015, data compiled by Bloomberg show, more than
twice the value announced a year before.
Receptos is also developing oral treatments for
eosinophilic esophagitis, an inflammation of the foodpipe.
Founded in 2009, Receptos conducted an initial public
offering in 2013, raising $73 million by selling shares at $14
each. Two of its executives -- Chief Executive Officer Faheem
Hasnain and Chairman William Rastetetter -- previously worked at
Biogen, which makes the multi-billion dollar multiple sclerosis
medicine Tecfidera.
For Related News and Information:
Pharma’s Comeback Deals Keep Drug M&A on Track to Reach Records
Busiest Day for Health-Care Deals Is Set to Spawn More: Real M&A
Top Stories:TOP<GO>
--With assistance from Caroline Chen in San Francisco.
To contact the reporters on this story:
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net;
Cynthia Koons in New York at +1-212-617-5253 or
ckoons@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Fournier