UPDATE: UBS Starts Receptos, Inc (RCPT) at Buy; Analyst Says it May Retain Global Rights on Ozanimod
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Rating Summary:
4 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 10 | New: 43
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UBS initiated coverage on Receptos, Inc (NASDAQ: RCPT) with a Buy rating and a price target of $225. Analyst Matthew Roden pointed to unrecognized value in a "go-it-alone strategy."
Roden explained, "Receptos is a clinical-stage biotech company that we believe is strongly positioned to launch a new oral sphinogosine 1-phosphate (S1P) receptor modulator in multiple indications. Ozanimod (RPC1063) is in Phase-3 for relapsing multiple sclerosis (MS) and moderate to severe ulcerative colitis (UC), as well as in Phase-2 for Crohn's Disease (CD). We see ozanimod as a differentiated asset from Gilenya, although we model UC and CD as a larger opportunity than MS. We are cognizant of the lack of near-term catalysts, but we see unrecognized value in a go it-alone strategy (which we'd support), or acquisition, given multiple parties likely interested in de-risked growth products."
"Our call is that we believe Receptos will try to retain global rights, which looks feasible considering the balance sheet and ability to raise capital. This puts us above consensus, which generally models Receptos as having regional partnerships or profit splits. Keeping WW rights concentrates value, resulting in our Street-high PT of $225," added the analyst.
For an analyst ratings summary and ratings history on Receptos, Inc click here. For more ratings news on Receptos, Inc click here.
Shares of Receptos, Inc closed at $167.97 yesterday.
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