Celgene Announces $7.2 Billion Deal To Buy Receptos

Celgene Corp. on Tuesday said it signed a deal to buy Receptos Inc. for $7.2 billion. That will further diversify the company's revenue beginning in 2019 and beyond, and build upon Celgene's growing expertise in treating inflammatory bowel disease, the company said in a statement. The deal adds Ozanimod, a drug under trial to treat ulcerative colitis and relapsing multiple sclerosis. Annual sales of the drug are expected to peak between $4 billion and $6 billion. Celgene also upped its 2015 EPS guidance to $4.75 to $4.85 a share from a previous range of $4.60 to $4.75 a share, and increased its 2020 net product sales to exceed $21 billion, up from a previous target of more than $20 billion. Shares of Celgene rose 4.8% in after hours Tuesday after ending the regular session up 1.6%. Shares of Receptos, which ended Tuesday up 5.1%, were halted late Tuesday.