Affymax® Reports First Quarter 2010 Financial Results

PALO ALTO, Calif.--(BUSINESS WIRE)-- Affymax, Inc. (Nasdaq: AFFY) today reported financial results for the first quarter ended March 31, 2010. The net loss for the first quarter of 2010 was $7.9 million compared to a net loss of $21.7 million for the first quarter of 2009.

Affymax recognized revenue for the quarter ended March 31, 2010 of $34.7 million compared to $25.9 million for the quarter ended March 31, 2009. The increase in revenue was the result of increased collaboration revenue from its partnership with Takeda Pharmaceutical Company Limited, under their 2006 collaboration for development of Affymax’s compound, Hematide™.

Research and development expenses for the quarter ended March 31, 2010, were $33.1 million compared to $40.4 million for the quarter ended March 31, 2009. The decrease was primarily due to the completion of the treatment and follow up of our Phase 3 clinical trials at the start of 2010.

General and administrative expenses for the quarter ended March 31, 2010 were $9.4 million compared to $7.4 million for the quarter ended March 31, 2009. The increase was primarily due to higher external commercial expenses.

The company’s cash, investments and receivables from Takeda totaled $167.6 million as of March 31, 2010, including a $5.0 million cash milestone payment received in March 2010 from Takeda for the initiation of Phase 3 clinical trials in Japan.

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, recently completed 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)

           
March 31, December 31,
  2010 2009
Assets  
Current assets
Cash and cash equivalents $ 68,188 $ 125,296
Short-term investments 68,949 35,292
Receivable from Takeda 13,555 18,561
Income taxes receivable 125 1,443
Deferred tax assets 1,443 1,443
Prepaid expenses and other current assets   8,420   8,704
Total current assets 160,680 190,739
Property and equipment, net 5,127 5,469
Restricted cash 1,135 1,135
Long-term investments 16,939 7,978
Deferred tax assets, net of current 5,797 5,797
Other assets   307   392
Total assets $ 189,985 $ 211,510
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 3,159 $ 464
Accrued liabilities 10,270 12,594
Accrued clinical trial expenses 36,832 39,499
Deferred revenue 57,603 71,972
UBS loan   9,041   9,192
Total current liabilities 116,905 133,721
Long-term income tax liability 9,425 9,425
Other long-term liabilities   1,453   1,459
Total liabilities   127,783   144,605
 
Stockholders’ equity
Common stock 24 24
Additional paid-in capital 444,940 441,795
Accumulated deficit (382,725

)

 

(374,859 )
Accumulated other comprehensive loss   (37

)

 

  (55 )
Total stockholders’ equity   62,202   66,905
Total liabilities and stockholders’ equity $ 189,985 $ 211,510

AFFYMAX, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

     
Three Months Ended
March 31,
  2010           2009
Collaboration revenue $ 34,646 $ 25,849
License and royalty revenue   4   4
Total revenue   34,650   25,853
Operating expenses
Research and development 33,093 40,447
General and administrative   9,419   7,417
Total operating expenses   42,512   47,864
Loss from operations (7,862 ) (22,011 )
Interest income 97 401
Interest expense (34 )
Other income (expense), net   (67 )   (161 )
Net loss before benefit for income taxes (7,866 ) (21,771 )
Benefit for income taxes     (31 )
Net loss $ (7,866 ) $ (21,740 )
Net loss per share:
Basic and diluted $ (0.33 ) $ (1.32 )
Weighted-average number of shares used in computing basic and diluted net loss per share   23,932   16,488



CONTACT:

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

KEYWORDS:   United States  Asia Pacific  North America  California  Japan

INDUSTRY KEYWORDS:   Health  Biotechnology  Clinical Trials  Pharmaceutical  Other Health  General Health

MEDIA:

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