Boston, MA 06/19/2014 (wallstreetpr) – Receptos Inc (NASDAQ:RCPT) has turned to equity offering to raise funds for the development of its lead drug candidate PRC1063 and others. The drug is going through Phase III trial after showing compelling results in its Phase II study. The treatment targets multiple sclerosis (MS).
The company has announced offering of about 4.43 million common stock shares with the possibility of selling additional 664,950 shares if the demand is high. The underwritten shares are being offered at $40.25 per share to the public, and the offering will close next week on June 24.
Receptos Inc (NASDAQ:RCPT) expects to raise about $178.4 million in gross proceeds through the equity offering. It has tapped BMO Capital Markets, Leerink Partners and Credit Suisse Securities to spearhead the offering as book-running managers while Nomura Securities International and Wedbush PacGrow Life Sciences and participating in the offering as acting co-managers.
Once all the due deductions on the gross proceeds are made, Receptos intends to use the funds to finance the clinical trial of its experimental drugs. The main focus in this case is the MS treatment PRC1063, which already boasts strong results from a Phase II study. The remaining funds will be funneled to other drug development and research projects as the company seeks to bring a blockbuster treatment with the potential of increasing its revenue and leading it to profitability.
The company recently reported 1Q2014 results in which in lost $1.01 per share, missing the consensus estimate of a loss of $0.84 per share.
As much as PRC1063 is getting mentioned on the basis of its successful Phase II trial, the company will face it out with several competitors in the market. It will have to wrestle the market from other MS treatments such as Gilenya from Novartis AG (ADR) (NYSE:NVS), Aubagio from Sanofi SA (ADR) (NYSE:SNY) and Tecfidera from Biogen Idec Inc (NASDAQ:BIIB).
It, therefore, means that besides attaining FDA approval for PRC1063, Receptos Inc (NASDAQ:RCPT) will have to work hard on the marketing front to drives sales for the treatment.
Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. We may be compensated for posting this content on our website by EDM Media LLC. For questions, comments or suggestions please contact firstname.lastname@example.org.