Celgene Corporation (CELG) Inks Deal to Buy Receptos (RCPT) for $7.2B


Celgene Corporation (NASDAQ: CELG) signed a definitive agreement to acquire Receptos (NASDAQ: RCPT) for $232 per share or a total of approximately $7.2 billion.

The stock price of Celgene closed $122.85 per share, up by more than 1% today. The stock climbed additional 5.5% to $129.72 per share after-hours.

The shares of Receptos closed $208.18 a piece, up by more than 5%. The stock surged additional 10% to $228.03 during the extended trading hours.

According to Celgene, the acquisition would significantly boost its Inflammation & Immunology (I&I) portfolio.

In a statement Bob Hugin, chairman and CEO of Celgene said, “The Receptos acquisition provides a transformational opportunity for Celgene to impact multiple therapeutic areas. This acquisition enhances our I&I portfolio and allows us to leverage the investments made in our global organization to accelerate our growth in the medium and long-term.”

Under the terms of the transaction, Celgene will acquire all of the outstanding shares of Receptos through a tender offer. The company will buy all the remaining shares of Receptos that are not tendered through a second-step merger, which will be completed shortly after the tender offer.

The board of directors of Celgene and Receptos approved the transaction, subject to customary closing conditions. The companies expect to close the deal this year.

Celgene is an ideal partner to maximize Ozanimod’s potential

Ozanimod will be added to Celgene’s pipeline of potential disease-altering medicines and investigational compounds.

Ozanimod demonstrated several areas of potential advantage over existing oral therapies for the treatment of ulcerative colitis (UC) and relapsing multiple sclerosis (RMS) based on clinical studies. Celgene said Ozanimod has the potential to become the first SIP receptor modulators to be approved for inflammatory bowel disease (IBD).

Faheen Hasnain, president and CEO of Receptos said, “In Celgene, we have found the ideal partner to maximize the potential of Ozanimod and our promising pipeline in order to improve the lives of patients worldwide.”

On the other hand, Celgene’s I&I President Scott Smith said Ozanimod is a highly differentiated next-generation SIP receptor modulator with important efficacy and safety features.”

Ozanimod “demonstrated robust clinical activity with impressive immune-inflammatory modulating properties in phase II trials,” added Smith.

Celgene preliminary results for the second quarter

Celgene also disclosed its preliminary financial results for the second quarter of 2015. The company said its preliminary net product sales were $2.25 billion, up by 22% from $1.85 billion in the same period last year.

Its total revenue also increased 22% to $2.28 billion from $1.87 billion in the same quarter last year. Its adjusted earnings were $1.23 per share, up 37% from $0.90 per share a year earlier.

For the fiscal 2015, Celgene maintained its total net product sales outlook of around $9 billion to $9.5 billion. The company raised its adjusted earnings guidance in the range of $4.75 to $4.85 per share.