Astex Pharmaceuticals, Inc. (NASDAQ:ASTX.DL)

CAPS Rating: No stars

A pharmaceutical company dedicated to the discovery, development and commercialization of therapies to treat patients with cancer.


Player Avatar zzlangerhans (99.85) Submitted: 9/1/2011 9:32:02 PM : Outperform Start Price: $2.15 ASTX.DL Score: +146.37

The street didn't seem to react one way or the other to Supergen's merger with privately held Astex, and when August came along the stock took its lumps along with the rest of the sector. But when the market recovered it left Supergen behind. It's a little unclear to me why Supergen felt they had to buy a pipeline, given that they were cash flow positive with a potential new Dacogen approval on the way and several other compounds already in clinical trials. But I guess the company knows a lot more than I do about the real potential of their proprietary candidates, and the Astex merger isn't exactly a vote of confidence. It remains to be seen whether the acquisition was worth the painful dilution, but I think the stock has been overly punished for it for the short term.

Featured Broker Partners