) recently announced that Japanese based Otsuka Pharmaceutical
Co., Ltd. will acquire the former for approximately $8.50 per
The transaction has been approved by the board of both the
companies. The purchase price of $8.50 per share represents a
premium of 48% to Astex Pharma's average closing stock price in
the last 30 days. The total consideration comes to $886
The acquisition is expected to close by year-end. Shares of
Astex Pharma reacted positively to the news. We are positive on
the acquisition. We believe the acquisition of Astex Pharma will
boost Otsuka Pharma's pipeline for neuroscience, cardiovascular
and oncology. It will also provide Otsuka Pharma access to Astex
Pharma's proprietary drug discovery platform, Pyramid.
Astex Pharma primarily focuses on the development of molecule
therapeutics in the field of oncology. The company currently has
just one marketed product, Dacogen (injection), indicated for the
treatment of patients suffering from myelodysplastic syndrome
(MDS). Dacogen was approved by the U.S. Food and Drug
Administration in 2006.
Dacogen has been licensed to
Eisai Co., Ltd.
). We note that Astex Pharma receives development and license
revenue from partnered programs and royalty revenues relating to
the sales of Dacogen.
Dacogen was approved in Europe in 2012 for the treatment of
acute myeloid leukemia (AML) in patients above 65 years of
Key pipeline candidates at Astex Pharma include SGI-110, which
is being evaluated for a variety of hematological and solid tumor
oncology indications, including MDS, AML, ovarian cancer and
liver cancer and AT13387, which is being evaluated for the
treatment of prostate and lung cancers.
We note that shares of Astex Pharma jumped last week after the
company reported positive top line results from the ongoing phase
II study on its candidate, SGI-110 for AML and MDS
Astex Pharma currently carries a Zacks Rank #3 (Hold). Right
) looks attractive with a Zacks Rank #2 (Buy).
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