GREENWICH, Conn., Oct. 9, 2013 /PRNewswire/ -- Sarissa Capital
today issued the following open letter to shareholders of Astex
Pharmaceuticals, Inc. (NASDAQ: ASTX):
Dear Fellow Shareholders,
We recently learned that an Astex partnered cancer drug is about
to enter Phase III clinical trials. LEE-011 is an orally
available CDK4/6 inhibitor with potentially broad clinical
application in the treatment of cancer that is being developed by
Novartis in collaboration with Astex. On October 4, Novartis submitted to
clinicaltrials.gov their intention to initiate a Phase III clinical
study of the drug in patients with advanced breast cancer in
December 2013. We believe this
represents a major milestone for LEE-011, and that the apparent
rapid pace of LEE-011's clinical development reflects Novartis'
perception of the drug's potential. Given the imminent
expiration of the Otsuka tender offer, we are troubled that Astex
management did not disclose this information to Astex
shareholders. Instead, Astex shareholders must proactively
search a US government web site in order to be informed about an
important milestone in the clinical development of a potentially
significant Astex partnered drug.
While we are very excited about this partnered program, we were
recently informed by Astex management that this program was
inconsequential to their company's valuation. Others beg to
differ with regard to the promise of CDK4/6 inhibitors.
Notably, Pfizer's CDK4/6 inhibitor, termed palbociclib
(palbo), recently received FDA's breakthrough therapy designation
and at least one analyst has estimated revenues for palbo could
approach $9 billion[1]. Given
the new fact that this drug is about to enter Phase III trials, we
find it hard to believe that the current value of LEE-011 to Astex
is inconsequential.
The above represents to us yet another example of how the timing
of the current proposed transaction with Otsuka at the proposed
price does not make sense.
We reiterate that we do NOT intend to tender our shares at this
price and we urge all Astex shareholders NOT to tender their shares
at this price.
Sincerely,
/s/ Alexander J. Denner,
Ph.D.
/s/ Richard C. Mulligan, Ph.D.
/s/ Mayu Sris
[1] ISI, International Strategy & Investment Group,
LLC, Healthcare Research: Biotechnology &
Pharmaceuticals (August 2013).
Consent of the author or publication was neither sought nor
obtained to use the report mentioned herein.
SOURCE Sarissa Capital