In a new presentation, Evercore ISI analyst Mark Schoenebaum breaks down the recently announced Celgene Corporation CELG 1.73% buyout of Receptos Inc RCPT 0.4%. The deal is valued at about $7.2 billion, and the $232/share price that Celgene is paying represents about a 12 percent premium to the market value of Receptos at the time the deal was announced.
Major Product
Receptos’ major product is Ozanimod, which is in phase 3 testing for two different indications: multiple sclerosis (MS) and ulcerative colitis (UC).
According to Schoenebaum, Ozanimod is similar to Novartis AG NVS 0.26%’s MS drug Gilenya, which currently produces annual sales of about $2.6 billion and is “one of only a few recently approved oral drugs in an MS market historically dominated by injectables.”
However, Schoenebaum points out that subtle differences in Ozanimod’s selectivity could mean that the drug avoids the required warning labels related to slow heart rate and heart block that Gilenya is subject to, which could differentiate Ozanimod from the competition.
When it comes to the UC indication, Schoenebaum once again sees Ozanimod as an active, oral alternative to injectable UC treatments.
Valuation
Evercore is projecting…
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