BOSTON (TheStreet) -- I have some beefs with Leerink Partners biotech analyst Joe Schwartz and his research note published Wednesday night in which he attempted to rebut my story about Receptos (RCPT) and why an insider stock sale makes an imminent takeout unlikely.
Today during the afternoon hours of trading, RCPT shares came under pressure following a blog post highlighting the Form 4 filed by LLY Ventures Partner last evening (6/16) disclosing the sale of [approximately] 20% stake (equivalent of $40 million), which, in our opinion, could be indirectly viewed as mgmt's lack of willingness for a potential deal in the near future.
Blog post? No, Joe. It was an article written by a business journalist (me) with 25 years of professional experience, published by a well-known digital media company (TheStreet) founded almost 20 years ago. This particular journalist (me) has been writing about the biotech sector and biotech stocks for 14 years, longer than you've been a working sell-side analyst. So Joe, respect your elders and GET OFF MY LAWN!
"In our opinion"? No, that's my opinion. Sort of. I didn't say Receptos management lacks the will to sell the company in the near future. I wrote that Lilly Ventures is represented on Receptos' board of directors by Managing Partner Ed Torres. If Receptos was right now engaged in active sale negotiations, Torres, as a company director, would know about it. Therefore, the sale of Receptos stock by Lilly Ventures and/or Torres doesn't make any sense.