UPDATE: Dawson James Initiates Astex Pharmaceuticals at Market Outperform
Dawson James initiated coverage on Astex Pharmaceuticals (NASDAQ: ASTX) with a Market Outperform rating and a $5 price target.
Dawson James noted, "You say you would like other valuation metrics? How about $130MM in cash at the end of FY 3Q12? Financial guidance for FY12 is for $70MM in royalty revenue and is likely to be conservative. In our estimation, the 10-year Dacogen royalty revenue is worth $2.20 per share on an NPV basis alone. Finally, the company is advancing its pipeline, which includes SGI-110, a next-generation HMA with improved pharmacologic properties, and HSP90 inhibitor AT13387, both of which show promising data to date."
Astex Pharmaceuticals closed at $2.61 on Monday.
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