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Receptos Extends Gains On Safety Study, Analyst's Launch

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Receptos Inc (NASDAQ: RCPT) extended its gains Friday a day after it published positive safety results from a study of its colitis drug.

The San Diego-based company is up about 56 percent in the past three months and changed hands recently at $169.83, up 1.1 percent.

UBS' Matthew Rodin launched coverage on the development-stage company Friday with a Buy rating and $225 target, but said there is a "lack of near-term catalysts" for the shares.

Bloomberg reported April 1 that the company is talking with potential buyers. Receptos didn't confirm the report, but repeated that it's seeking development partners for its multiple sclerosis drug, which may require up to a year.

Rodin sees "unrecognized value" in Receptos shares in either a "go-it-alone strategy" or in the event of its acquisition.

The company's ozanimod treatment for multiple sclerosis may offer better safety for patients than Novartis AG's gilenya, which was approved in 2010 and carries a warning for cardiovascular side effects, according to Rodin.

Ozanimod is also in an earlier stage of trials for Crohn's disease and eosinophilic esophagitis.

Rodin estimates peak sales for ozanimod are possibly more than $4 billion.

Latest Ratings for RCPT

DateFirmActionFromTo
Aug 2015WedbushDowngradesOutperformNeutral
Jul 2015Evercore ISI GroupDowngradesBuyHold
Jul 2015NomuraDowngradesBuyNeutral

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Posted-In: Matthew Rodin UBSAnalyst Color Price Target Initiation Analyst Ratings

 

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