Astex Pharmaceuticals, Otsuka Pharmaceutical deal
Hedge fund Sarissa Capital Management said it does not plan to tender its shares in Astex at the $8.50 price per share at which Otsuka is acquiring the cancer company. Sarissa, which holds a 5% stake in Astex, said the company did not reach out to all potentially interested bidders and the price significantly undervalues Astex. Sarissa - which was founded last year by Alex Denner after he stepped down as managing director of entities associated with Carl Icahn - also said Astex's auction process was "biased towards a transaction that would preserve the existing infrastructure of Astex rather than obtain the high value transaction." Otsuka is making Astex a subsidiary.
Additionally, Sarissa said it is "inexplicable" that Astex is aiming to close its sale before two upcoming data milestones for SGI-110 that Sarissa said could "definitively illustrate" the value of the second-generation version of Astex's Dacogen decitabine, which is approved to treat myelodysplastic syndrome (MDS). In August, Astex said SGI-110 led to an overall remission rate of 25% in 67 evaluable patients with acute myelogenous leukemia (AML). Additional data are expected in December and next year. ...