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Astex Pharmaceuticals, AŞ Message Board

  • michaelplongo michaelplongo May 8, 2013 11:48 PM Flag

    May 8th Wall Street Journal online - article re: analyst Michael King

    Michael G. King, the No. 1 pharmaceuticals analyst for 2012, won by making bets on drug makers that other analysts had ignored.

    Among his finds was Astex Pharmaceuticals Inc. Mr. King says he was the only analyst covering the firm initially.

    Astex, a cancer-drug maker, had one approved product when Mr. King recommended buying its shares in August 2012. At the time, investors were down on the stock, in part because its product, Dacogen, was licensed to two other companies and was soon to face competition from generic versions, he says.

    Mr. King believed investors didn't appreciate the steps that Astex management had taken to improve the company's fortunes, including accumulating cash and bolstering its pipeline. Of particular note to Mr. King was Astex's program to find a new use for Dacogen in leukemia. Pivotal trial results were promising. If approved, the new use would protect the therapy from generics for 10 years. And Astex had licensed this leukemia use to Johnson & Johnson for a sizable royalty on any sales outside North America.

    Dacogen was approved by the European Union as a treatment for myeloid leukemia in September. During the period of Mr. King's buy rating, Astex shares rose 28.7%.

    "I make it my goal to find one of these" neglected companies each year, says Mr. King, who worked at Rodman & Renshaw LLC and then Dawson James Securities Inc. last year before joining JMP Group Inc.'s JMP Securities in late December. "The stock has been given up for dead, no one is following it and I bring a fresh set of eyes to that story."

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    • Fresh set of eyes to the story....really. This guy has a bigger ego than crammer. He would love to find one company a year, pump it up, let the bagholders take over the pump and he unwind his position with the help of a few pumpettees bragging it's headed to $9.

      I don't see any disclosure that he owns shares. I also see nothing in here that says that he feels it's not undervalued.

      Sentiment: Sell