Celgene agrees $7.2 billion takeover bid for Receptos

In a move that confirms the continuation of the biotech acquisition boom, US major Celgene (Nasdaq: CELG) late yesterday revealed it had entered into a definitive agreement to acquire Receptos (Nasdaq: RCPT).

Under the terms of the merger agreement, which is expected to close in the third quarter of this year, Celgene will pay $232.00 per share in cash, or a total of around $7.2 billion, net of cash acquired. News of the agreed deal pushed Celgene’s shares up 5.82% to $30 in after-hours trading on Tuesday. Trading in Receptos was halted ahead of the announcement, but the shares jumped more than 10% to $228.60 post close.

Celgene is paying a premium of 41% Receptos’ closing price on March 31, the day before Bloomberg reported on the takeover interest, the news agency recalled yesterday. Later unconfirmed reports suggested that Receptos rejected a $200 per share offer from Anglo-Swedish pharma major AstraZeneca (LSE: AZN), as well as from Gilead and Teva. It was reported that the company said the offers undervalued its worth. It is reportedly seeking $350 per share.