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RBC sees big upside for Astex after SGI-110 topline data

  • RBC's Michael Yee reiterates an Outperform rating on Astex Pharmaceuticals (ASTX) following topline data from an ongoing trial of SGI-110.
  • Yee thinks the shares have significant room to run even after the 18% gain the stock has posted premarket — price target is $9.
  • RBC likes SGI-110 compared to Eisai's (ESALF.PK) Dacogen (indicated for Myelodysplastic syndrome).
Comments (1)
  • Hope4Future
    , contributor
    Comments (155) | Send Message
     
    I have been long ASTX and excited about SGI-110 for some time, but I'm far from an expert. I'm assuming that the 50% remission rate in elderly AML provides evidence that SGI-110 is (as hoped) actually much less toxic than Dacogen. I assume these patients weren't otherwise eligible for chemo but not sure (does anyone know the answer to this?). If so, this is huge (really huge) for elderly AML patients.
    For younger patients, does anyone know the average number of previous treatments? (or is this all 2nd line?). If all second line, is 8/50 (16%) in this cohort an improvement over existing treatments?
    Without this info and toxicity data its hard to know.
    Last- I'm amazed that long time shareholder (w/ Board representation) Abingworth sold all it's shares over the last 2 quarters. What's up with that? Any insight into this would be appreciated because such a move is not a good sign unless there's something else going on with Abingworth.
    28 Aug 2013, 11:55 AM Reply Like
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