3 Things to Watch With Astex Pharmaceuticals (Article; Part II)
In addition to partnering with Eisai and Janssen Cilag on marketing Dacogen, Astex has collaborative clinical-phase agreements with Novartis (NYSE: NVS ) for AT7519, a treatment for leukemia and LEE011, an enzyme inhibitor; AstraZeneca for AZD5363, an orally active, selective protein kinase B inhibitor, and AZD3293, a potential Alzheimer's treatment; and GlaxoSmithKline regarding therapies of Glaxo's choosing with the assistance of Astex Pyramid platform.
These partnerships provide milestone payments, and in some cases cost-sharing initiatives, which allow Astex to carry on multiple trials at the same time.
Finally, with Astex spending so much on researching and developing its now-extensive pipeline, it's imperative that you keep a close eye on its usage of cash.
Astex, thus far, has done a pretty good job of putting itself in position to receive milestone payments from its partners and spend within its means. As of its latest quarter Astex had $122.5 million in cash with no debt. Forming partnerships and Dacogen's approval have made Astex profitable and cash flow positive since 2009. Astex shareholders shouldn't have too much to worry about in terms of cash burn.
Now that you know what to watch for, it should be easier to analyze Astex Pharmaceuticals' successes and pitfalls in the future, and hopefully you'll gain a competitive investing edge.
If you're still craving even more info on Astex Pharmaceuticals, I would recommend adding the stock to your free and personalized Watchlist so you can keep up on all of the latest news with the company.