By acquiring Astex, Supergen is expanding its pipeline somewhat. this is a somewhat promising, however, whether this makes the combined entity a more lucrative take over candidate, this is hard to comment on.
SUPG shares fell to 2.85 range or nearly 12% from about 3.2 the day before. The pertinent point to note is that Supergen is paying $25 million cash and about 35% of outstanding stock. In addition, they would pay over $30 million dollars over the next 30 months. So it is interesting to see the market responds with a 12% decline when an impending 35% dilution of shares is concerned. However, the incoming pipeline also has substantial value so an accurate price determination is hard for one person to gage at this point.