I think the SP should be closer to $8 because Astex has a great pipeline, an approved drug, tons of cash, great partners and a large number of patents. I can't wait to hear something negative from Bucket or Allied.
Much agreed. Astex is obviously finding that SGI is working also.. just initiated Phase I for colorectal cancer.. SGI will fill the gap with generic Dacogen about to enter the market. And look at VIDAZA.. 2 years later and no generic form. Hypomethylating drugs are not that easy to copy and manufacture.. ASTX worth $7 at least!!
ASTX's value is based on the future not the past. Pipeline vs cash flow -- cash flow will drop in the short term -- pipeline is filling up. This is a speculative long term investment.. Payoff will be in late 2014 or in 2015 if there is one.