Seeking Alpha: Receptos Bows Out

The Receptos (NASDAQ:RCPT) story, at least as an independent company, looks as though its coming to a graceful end for shareholders. Rumors of M&A interest have swirled around this biotech for some time now, and rumor became fact on Tuesday when Celgene (NASDAQ:CELG) announced that it had reached an agreement to acquire the company for $232 per share in cash.

Celgene is offering a fair price and you don't often see bidding wars for publicly traded biotechs. "Don't often" is not the same as never, though, and I wouldn't completely dismiss the possibility of another bidder entering the fray. That is not my base-case assumption and I'm not suggesting investors buy Receptos shares now on that basis, but if I were a Receptos shareholder I might think about hanging on for at least a little while longer to see if any rivals emerge.

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Receptos Bows Out

Seeking Alpha: Receptos Continues To Reward

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.

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Receptos Continues To Reward

Seeking Alpha: Receptos Shopping For A Partner With Strong Data In Hand

Receptos (NASDAQ:RCPT) has come along quite nicely since I first wrote about it as a Top Idea in August of 2013. The shares' 150%-plus move has been fueled by strong clinical data, as lead drug RPC1063 ('1063) has shown solid efficacy and cleaner safety in relapsing multiple sclerosis and very encouraging data in ulcerative colitis. The latter has created a very real possibility that '1063 could be a multi-indication blockbuster, as an effective oral therapy for ulcerative colitis and Crohn's disease could be a real blockbuster.

Investors may feel a little starved for big catalysts in 2015. The Phase III RADIANCE and SUNBEAM studies in MS won't have data to show until 2017 and the expectations are already high for the company's expected release of 32-week data from the Phase II ulcerative colitis study. That said, the company may put a new diabetes drug into human studies in 2015 and the company has made no secret that it intends to find a partner for '1063.

These shares aren't nearly the bargain they once were, but there is still significant potential value locked in the MS, UC, and Crohn's programs. It is going to take time to produce the clinical data that it will take to unlock that value, but I'd be in no rush to sell these shares and I would consider them if this recent sell-off continues.

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Receptos Shopping For A Partner With Strong Data In Hand

Seeking Alpha: Receptos Continues To Hit Its Marks

Receptos (RCPT) has given its shareholders a pretty wild ride, even for an early-stage biotech. Up around 125% from when I wrote on it as a Top Idea and 39% from my Christmas Eve update, the intervening time has seen the shares shoot up to $55 (90% higher than the price on Christmas Eve) on expectations for strong Phase II data and rumors of a buyout before the shares were cut in half over two months as that speculation cooled and momentum investors bailed out of biotechs.

Now the roller coaster is shooting higher again as those strong Phase II data on RPC1063 in relapsing multiple sclerosis have materialized. Receptos still has to successfully complete its Phase III study, but the promise in multiple sclerosis can nearly support the stock on its own, let alone adding in the potential from the ulcerative colitis indication and additional compounds in the pipeline.

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Receptos Continues To Hit Its Marks

The Motley Fool: Is Teva Pharmaceutical Industries Ltd Turning a Corner?

Once a darling of the health care space (and a frequent member of "buy and hold forever" lists), Teva Pharmaceuticals (NYSE: TEVA  ) spent about three and a half years in the market's doghouse. Investors bailed out due to worries about competition in the company's lucrative MS franchise, the perception of a dwindling pipeline for major generics, and turmoil in executive leadership. Now it looks as though the company has shored up its MS franchise, rejuvenated its R&D efforts, and become more serious about driving better value in/from the business.

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Is Teva Pharmaceutical Industries Ltd Turning a Corner?

Seeking Alpha: Receptos Coming Along Nicely

In making Receptos (RCPT) an Alpha-Rich pick on August 13, I certainly had bullish expectations for the company and the stock. I was attracted by the company's S1P1 modulator technology and the prospects of the lead drug RPC1063 in both multiple sclerosis and ulcerative colitis. Combined with an earlier-stage drug for eosinophilic esophagitis (for which there are no pharmaceutical treatments) and a preclinical oral GLP-1 program, I thought it likely that Receptos would see a higher share price as the MS program matured and the probability of partnership or acquisition grew.

I didn't expect the pace or magnitude of the move that was to come. Receptos shot up almost 100% in just two months. While at least some of that action was likely due to rumors of multiple bidders for the company and the shares did ease off, Receptos still stands about 60% higher today than it did when I first wrote about it. What's more, incremental data from the RADIANCE multiple sclerosis trial will be pushing the drug forward into a Phase III study. Expectations are definitely higher for these shares now, but given the revenue potential of Receptos' pipeline and the possibility of incremental data points over the next year or two, I can see these shares continuing to move higher.

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Receptos Coming Along Nicely

Seeking Alpha: Receptos Could Meet With A More Positive Reception

Investors do well to be very skeptical of the biotech companies that go public in the late stages of a multi-year bull market. In many cases, bankers, executives, and insiders are looking to cash in on hope and hype and exploit a market that isn't too discriminating about the details. So while I went into researching Receptos (RCPT) with ample skepticism, I walk away more than a little intrigued.

Receptos seems like a pretty straightforward story - basically a "2.0" version of the already-successful oral multiple sclerosis drug Gilenya sold by Novartis (NVS), but one with a potentially much better tolerability profile. Add to that the possibility of clinically meaningful activity in ulcerative colitis and a "call option" drug for eosinophilic esophagitis, and Receptos shares may be as much as 50% undervalued even in this aging biotech bull market. What's more, investors won't have long to wait for significant news, as multiple trial read-outs in 2014 should further clarify the odds and opportunities.

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Receptos Could Meet With A More Positive Reception