McNicoll Lewis & Vlak Maintains Buy on Astex Pharmaceuticals After 3Q EPS Beat

McNicoll Lewis & Vlak has published a research report on Astex Pharmaceuticals ASTX after the company reported 3Q EPS that beat analyst projections. In the report, MLV writes, "Last week, Astex Pharmaceuticals, Inc. reported a net loss of $1.1 million or ($0.01) per share, beating our projection of ($0.07) per share. Dacogen royalty revenue was higher than we projected by more than $2.0 million. Astex guided to royalty revenue of $61.5 million in FY:11, higher than we projected. We expect royalty revenue to increase to $65.0 million for FY:12 after possible approval of Dacogen for the treatment of elderly patients with AML on or near the PDUFA date of March 6, 2012. Astex expects to transfer selected assets and spin off an independent, publicly traded company called Montigen, Inc. before year-end." MLV maintains its Buy rating and $6.50 price target on Astex Pharmaceuticals, which is currently trading