Affymax® Reports Third Quarter 2010 Financial Results

PALO ALTO, Calif.--(BUSINESS WIRE)-- Affymax, Inc. (Nasdaq:AFFY) today reported financial results for the third quarter ended September 30, 2010. The net loss for the third quarter of 2010 was $12.0 million compared to a net loss of $18.4 million for the third quarter of 2009.

Affymax recognized revenue for the quarter ended September 30, 2010 of $16.8 million compared to $29.2 million for the quarter ended September 30, 2009. The decrease in revenue was the result of decreased collaboration revenue, driven primarily by lower reimbursement of clinical trial expenses, from its collaboration with Takeda Pharmaceutical Company Limited.

Research and development expenses for the quarter ended September 30, 2010 were $21.1 million compared to $37.2 million for the quarter ended September 30, 2009. The decrease was primarily due to the completion of the treatment and follow up of Phase 3 clinical trials at the start of 2010.

General and administrative expenses for the quarter ended September 30, 2010 were $7.8 million compared to $10.7 million for the quarter ended September 30, 2009. The decrease was primarily due to lower legal fees.

The company’s cash, investments and receivables from Takeda totaled $140.1 million as of September 30, 2010. This does not include the gross $5.0 million generated from the Azimuth draw in October 2010.

About Affymax, Inc.

Affymax, Inc. is a biopharmaceutical company committed to developing novel drugs to improve the treatment of serious and often life-threatening conditions. Affymax’s product candidate, Hematide™/peginesatide, has been evaluated in Phase 3 clinical trials for the treatment of anemia associated with chronic renal failure. For additional information, please visit www.affymax.com.

This release contains forward-looking statements, including statements regarding financial condition, the continuation and success of the Company’s collaboration with Takeda, timing, design and results of the Company’s clinical trials and drug development program and the timing and likelihood of the commercialization of Hematide. The Company’s actual results may differ materially from those indicated in these forward-looking statements due to risks and uncertainties, including risks relating to the continued safety and efficacy of Hematide in clinical development, the timing of patient accrual in ongoing and planned clinical studies, regulatory requirements and approvals, research and development efforts, industry and competitive environment, intellectual property rights and disputes and other matters that are described in Affymax’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statement in this press release.

 

AFFYMAX, INC.

UNAUDITED CONDENSED BALANCE SHEETS

(in thousands)

   
September 30, December 31,
2010 2009
Assets
Current assets
Cash and cash equivalents $ 50,245 $ 125,296
Short-term investments 55,129 35,292
Receivable from Takeda 4,349 18,561
Income taxes receivable 1,443
Deferred tax assets 1,443 1,443
Prepaid expenses and other current assets   4,583     8,704  
Total current assets 115,749 190,739
Property and equipment, net 4,250 5,469
Restricted cash 1,135 1,135
Long-term investments 30,344 7,978
Deferred tax assets, net of current 5,797 5,797
Other assets   200     392  
Total assets $ 157,475   $ 211,510  
 
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 1,541 $ 464
Accrued liabilities 9,650 12,594
Accrued clinical trial expenses 28,899 39,499
Deferred revenue 31,187 71,972
UBS loan       9,192  
Total current liabilities 71,277 133,721
Long-term income tax liability 9,425 9,425
Other long-term liabilities   1,448     1,459  
Total liabilities   82,150     144,605  
 
Stockholders’ equity
Common stock 24 24
Additional paid-in capital 452,670 441,795
Accumulated deficit (377,443

)

 

(374,859 )
Accumulated other comprehensive income (loss)   74     (55 )
Total stockholders’ equity   75,325     66,905  
Total liabilities and stockholders’ equity $ 157,475   $ 211,510  
 
   

AFFYMAX, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 
Three Months Ended
September 30,
Nine Months Ended
September 30,
2010   2009 2010   2009
Collaboration revenue $ 16,784 $ 29,157 $ 105,771 $ 81,924
License and royalty revenue   6     4     15     13  
Total revenue   16,790     29,161     105,786     81,937  
Operating expenses:
Research and development 21,118 37,237 83,120 118,462
General and administrative   7,781     10,657     25,372     26,763  
Total operating expenses   28,899     47,894     108,492     145,225  
Loss from operations (12,109 ) (18,733 ) (2,706 ) (63,288 )
Interest income 47 164 227 826
Interest expense (35 ) (104 ) (1 )
Other income (expense), net   67     163     (1 )   163  
Net loss before benefit for income taxes (12,030 ) (18,406 ) (2,584 ) (62,300 )
Benefit for income taxes       (24 )       (86 )
Net loss $ (12,030 ) $ (18,382 ) $ (2,584 ) $ (62,214 )
Net loss per share:
Basic and diluted $ (0.49 ) $ (0.97 ) $ (0.11 ) $ (3.43 )
Weighted-average number of shares used in computing basic and diluted net loss per share   24,369     18,951     24,168     18,120  



CONTACT:

Affymax, Inc.
Sylvia Wheeler, 650-812-8861
Vice President, Corporate Communications

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:   Health  Biotechnology  Pharmaceutical

MEDIA:

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