E Celgene To Buy Receptos For $7.3B In All Cash Acquisition

Celgene (CELG) has just announced that it will acquire Receptos (RCPT) for $7.3B in an all cash deal. This translates to approximately a buyout of Receptos for $232 per share. Celgene is a well known cancer pharmaceutical company and its top selling drug is known as Revlimid which is used to treat many types of cancer. 

With this acquisition Celgene gains one of Receptos' top drugs, known as Ozanimod, along with the rest of its pipeline. Ozanimod is a good fit for Celgene because the drug targets Inflammatory Bowel Disease-- IBD -- and Multiple Sclerosis -- MS. More specifically Ozanimod was able to produce potential treatment advantages over existing drugs in both Ulcerative Colitis and Relapsing Multiple Sclerosis. 

If both Phase 3 trials for Ulcerative Colitis and Relapsing Multiple Sclerosis are successful along with regulatory approval then peak sales for both together would come in between $4 to $6 billion. This growth wouldn't be expected to take place for Celgene until 2019 and beyond. 

[Update: Trading in Receptos was halted until 5:30pm ET, is now up 10% AH to $228.]

Disclosure: None.

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