Despite insider sale, Receptos stock surges on takeover rumors
- Lilly Ventures sold 25% of its holdings in Receptos last week, but the stock surged on rumors of a buyout.
- Receptos has a promising drug under development for treatment of multiple sclerosis (MS) and other autoimmune disorders.
- Before takeover rumors started, the stock was trading at roughly $150. It closed last night at $177.48 and traded as high as $195.39.
It's not clear what's driving the actions of the current stakeholders in Receptos, but it is clear that the company is in play. There are rumors that several companies, including AstraZeneca, Teva and Gilead have expressed interest in buying Receptos. There have been a number of discussions lately suggesting that the biopharma M&A craze may be overheated, but there are companies out there that know how to unearth value.
During the first quarter of 2015, the value of M&As, which was more than $166 bilion, exceeded the entire value for all of 2014. Will a Receptos deal contribute to Q2 deal values? Possibly, but it's not a done deal---yet.