Following are comments from the recent news release by the ASTX management and board "If more than 50% of Astex stockholders do not tender their shares into the tender offer by the scheduled expiration date, this would impose substantial additional risk that Otsuka would walk away from the transaction. If this happens, Astex shares could trade at pre-tender offer values substantially below $8.50 per share." This type of comment sounds like it was written by Otsuka and should not be written by ASTX management. ASTX management should still be promoting ASTX and attempting to get a higher price for ASTX investors. Looks like all they want is their bigger salary and bonuses from Otsuka.
Lots of other questionable statements by management in the rebuttal. Lee-011 is part of a $520 million collaboration with Novartis (see 2005 press release) and they are saying that Phase II and Phase III milestones are "minimal"? I highly doubt it. Also the "relatively modest" economic benefit of Lee-011 comment is ridiculous. If Lee-011 is relatively modest to Pfizer's compound it is several hundred million in royalties, which is still worth more than the entire valuation of the deal!
This deal with Otsuka is getting worse by the minute.
What's really unfortunate here is this was Astex's chance to force a higher bid from Otsuka. New material information comes to the table in the form of one of their licensed programs getting to Phase 3 (yes, Phase 3 - none of their other programs are in Phase 3 - hello! is anyone home, hello!) and they just downplay it instead of taking it to Otsuka and saying they should up the bid. Instead the tender offer is not going to go through, and even if Otsuka ups the bid there is no way mgmt can save face because they have shown that they want the deal to go through no matter what the price.
I have more than 100k shares, and I am NOT tendering them. I would love it if Otsuka walked away so I could buy more and then collectively we can oust the criminal management and board as the valuation marches higher over the next year.
The reason why they are pushing so hard for this deal is they want the future equity to be moved to their new jobs and board seats.They do indicate milestone payments but do not disclose. Probably because Manuso does not get 31 million himself! Why not disclose all compound progress. Leo-011 could of been found if you shareholders would of done your due deligence. So they say they have not seen patient data with Leo-011 but yet Novartis is going into phase III trials. It will not be an approved drug for a long time 2016! Shareholders have been waiting a long time especially Supergen shareholders while you Manuso and board members colled bonuses, excessive pay and stock options. Tell the truth!