Affymax, which 18 months ago appeared poised for big things, is dissolving the company and will pay shareholders pennies for the shares that traded at $27 a share before patient deaths led it to pull its Omontys anemia drug from the market.
Affymax, which 18 months ago appeared poised for big things, is dissolving the company and will pay shareholders pennies for the shares that traded at $27 a share before patient deaths led it to pulled its Omontys anemia drug from the market.
The anemia drug Omontys triggered serious allergic reactions long before February's recall, The Wall Street Journal reports.
Without the fuel of Omontys sales, the small drugmaker is basically running on fumes.
In the wake of last month's Omontyx recall, Affymax is jettisoning three-fourths of its staff and considering bankruptcy. Without the fuel of Omontys sales, the small drugmaker is basically running on fumes. And it has to spend money to investigate the hypersensitivity reactions--and patient deaths--that triggered the recall. So, out comes the cost-cutting ax.
Severe hypersensitivity reactions in Omontys patients prompted Affymax and Takeda Pharmaceutical to recall all lots of the anemia drug, designed for use in dialysis patients.
Takeda Pharmaceuticals and Affymax ($AFFY) have sewn up another supply deal for their anemia drug Omontys. DSI Renal, one of the largest dialysis providers in the U.S., agreed to adopt Omontys to treat their patients with chronic kidney disease.
In a major milestone for its anemia franchise, Amgen ($AMGN) is preparing to idle production at its only bulk Epogen plant. The Longmont, CO, facility will remain open, handling quality control and process development for other drugs, but some of its 485 workers will lose their jobs.
Affymax has banked a $50 million check from its partner Takeda after they won FDA approval for an anemia treatment that will now compete with Amgen for market share.
Now that FDA has approved a new, independent amenia drug competitor, will Amgen's versions plummet?