Receptos (NASDAQ:RCPT) is the gift that keeps on giving for its shareholders, with the shares up another 75% since my last piece and up close to 1,100% since my initial write-up on the shares as a Top Idea in August of 2013. Sock away a few 1,000%-ers in your investing career, and you'll do pretty well.
I
don't believe Receptos is just a product of the biotech boom (or
bubble, depending upon your point of view). This company seems to have a
legitimate blockbuster in ozanimod (formerly/also known as RPC1063), as
this drug appears to be very effective in both multiple sclerosis and
ulcerative colitis, and possibly effective in Crohn's disease as well.
Add in more long-dated options like RPC4046 for eosinophilic esophagitis
and a potential oral GLP-1 drug for the type 2 diabetes market, and
it's not hard to see why this is a hot stock in the space.
Receptos's
finer qualities are no secret now. Valuing biotechs is an inexact
science, at best, and I'd be in no hurry to sell these shares if I owned
them, but I don't see the sort of discount to fair value that I look
for when considering new purchases. That said, Receptos is assumed to be
for sale to the right bidder, and I wouldn't underestimate the sort of
price the company could get from a Big Pharma that feels it badly needs a
multi-billion dollar drug to boost its business.
Read more here:
Receptos Continues To Reward
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