Wedbush Sees Bidding War For Receptos Inc

Receptos Inc

may become the object of a bidding war based on the value of its prospective treatment for multiple sclerosis and inflammatory bowel disease, an analyst said Tuesday. Wedbush's Liana Moussatos raised her target on Receptos 64 percent to $348 and which she estimated is a likely acquisition price. San Diego-based Receptos is seeking a partner to develop its ozanimod MS and bowel disorder treatment. A report surfaced in April that partnership talks had sparked potential acquisition interest. http://www.bloomberg.com/news/articles/2015-04-01/receptos-said-to-get-takeover-interest-amid-partnership-talks Moussatos said comments from Receptos in a conference call a month later, that it could commercialize ozanimod without a partner, was "a message to potential acquirers that their bids were too low." Receptos "could get close to $350 a share," Moussatos said. An unconfirmed report on June 9, noted by Moussatos Tuesday, suggested that Receptos is holding out for $350 a share, and had rejected bids from AstraZeneca plc

, Teva Pharmaceutical Industries Ltd

and Gilead Sciences, Inc.

. http://www.proactiveinvestors.co.uk/companies/news/107864/astrazeneca-to-miss-out-on-us-drug-deal-sources-107864.html Moussatos, who reiterated an Outperform rating on Receptos said its ozanimod drug could post peak annual sales of $15 billion, given about 3 million potential patients. Receptos' prospective treatment for an inflammation of the esophagus, called RPC4046, could produce peak annual sales of $1 billion, with a potential piece going to AbbVie Inc

, while Receptos' GLP-1 diabetes drug could hit $5 billion in peak annual sales, according to Moussatos.