BioCentury
ARTICLE | Finance

Broken-field runner

Why Receptos may have room to run after $500M run-up on Phase II MS data

September 15, 2014 7:00 AM UTC

Receptos Inc. (NASDAQ:RCPT) already has added more than $500 million in market cap on its Phase II MS data, but a look at how the market previously rewarded Biogen Idec Inc. (NASDAQ:BIIB) for Phase III data for a competing MS drug suggest Receptos could have even more room to run.

Receptos' initial gain came in June when it added $238.1 million in market cap after reporting RPC1063 met the primary endpoint of reducing the cumulative number of total gadolinium-enhancing lesions by 86% from week 12 to week 24 vs. placebo (p<0.0001). Last week, investors added another $242.2 million to the biotech's market cap on updated data that showed six months of the treatment reduced annualized relapse rate (ARR) by up to 53% vs. placebo...