Celgene To Acquire Receptos For $7.2 Bln.

(RTTNews) - Celgene Corp. (CELG) on Tuesday said it has agreed to buy Receptos Inc. (RCPT) for about $7.2 billion in cash, thus enhancing its Inflammation & Immunology portfolio. Moving ahead, Celgene lifted its financial outlook for 2020 as a result of the acquisition.

Shares of Celgene gained over 5 percent in after hours, while Receptos' shares rose over 10 percent, following the news.

Celgene will acquire Receptos' shares through a wholly-owned subsidiary for $232.00 a share in cash. The transaction has been approved by the boards of directors of both companies and is subject to customary closing condition. The deal is expected to close this year itself.

Celgene said the acquisition of Receptos will significantly enhance its Inflammation & Immunology portfolio, further diversify its revenue beginning in 2019 and beyond, and builds upon Celgene's growing expertise in inflammatory bowel disease.

"The Receptos acquisition provides a transformational opportunity for Celgene to impact multiple therapeutic areas," said Celgene CEO Bob Hugin. "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."

Receptos' Ozanimod is in final-stage Trials for inflammatory bowel disease and multiple sclerosisis, with data expected in 2017. The company expects Ozanimod to be a significant growth driver beyond 2020, with annual sales of $4 billion to $6 billion.

The company reported preliminary net product sales of $2.25 billion for the second quarter compared to $1.85 billion last year, an increase of 22 percent. Second quarter total revenue also increased 22 percent to about $2.28 billion compared to $1.87 billion. Second-quarter preliminary adjusted earnings improved to $1.23 share from $0.90 per share.

For the full year, Celgene continues to expect net product sales of $9 billion to $9.5 billion. The company raised its adjusted earnings outlook to range of $4.75 to $4.85 per share from a prior outlook of $4.60 per share to $4.75 per share.

The company now expects 2020 net product sales to exceed $21 billion, up from the prior target of greater than $20 billion.

RCPT closed Tuesday's regular trade at $207.18, up $10.07 or 5.11%, on the Nasdaq. The stock further gained $21.56 or 10.41%, in after-hours trade.

CELG closed Tuesday's trading at $122.85, up $1.96 or 1.62%, on the Nasdaq. The stock further gained $6.25 or 5.09%, in after-hours trade..