April 2, 2015By Mark Terry, BioSpace.com Breaking News Staff
San Diego-based Receptos , announced yesterday that it had completed enrollment in the RADIANCE Phase III trial of ozanimod in patients with Relapsing Multiple Sclerosis (RMS).
The announcement took on a slightly different spin when the company indicated it was looking for a development partner. Unnamed sources indicate that instead of partners, a number of potential buyers have come forward.
Some of this is undoubtedly related to a double batch of good news connected to ozanimod. In October 2014 the company reported positive Phase II results of its TOUCHSTONE trial for use of the drug in moderately-to-severely active Ulcerative Colitis (UC). Based on positive induction period results from the same trial, Receptos plans to start a Phase III trial in UC and a Phase II trial in Crohn’s disease (CD) this year. The drug seems to show promise for the treatment of multiple sclerosis (MS), as well as various forms of inflammatory bowel disease.
In addition, the company is working on a drug for treatment of eosinophilic esophagitis, an inflammation of the throat and esophagus.
Reports indicate the company is working with an investment bank to explores its options. Yesterday stock prices rose 5.2 percent to $173.44, which gives a market value of approximately $5.5 billion. Sources report that Receptos has been in talks with at least 10 other companies, and although there are rumors of takeover interest, the company is primarily interested in a partnership.
“We have publicly announced a partnering process, we’re speaking to a number of partners and that process is continuing and progressing,” said Graham Cooper, Receptos’s chief financial officer in a statement. “These processes often take as much as nine to 12 months to finalize.”
Receptos was founded in 2009. In 2013 the company pulled off an initial public offering that raised $73 million with shares selling at $14 each. The company’s stock has been on a pretty steady incline ever since. On April 4, 2014 shares sold for $37.93. As of today it is selling for $173.18.
Analysts suggest that takeover talks are cropping up because buying the company would be less expensive than a partnership in the long run. The primary competition for the MS market is Biogen, Inc.’s Avonex, which brought in $3.01 billion in sales in 2015. The multiple sclerosis market is projected to be $17 billion annually. The RADIANCE and SUNBEAM Phase III trials are designed to compare the effectiveness of ozanimod to Avonex in patients with RMS. With ozanimod potentially be effective in several different disease markets, it’s easy to see why companies might view Receptos as a good investment.
