Affymax decides to wind up company following demise of Omontys

USA-based biotech firm Affymax (AFFY:OB) says that its board of directors has approved the liquidation and dissolution of the company, subject to stockholder approval, and plans to distribute all available cash to its stockholders.

Based on the information the company currently has available, which is subject to change, Affymax estimates that the aggregate amount of the distribution to stockholders could be a few cents per share, based on 37,490,095 shares of common stock outstanding as of April 30, 2014 and the remaining cash of around $4 million as of May 2014. On June 6, 2013, Affymax common stock was delisted from the Nasdaq, and it has since been trading on the OTC in the range of $0.16 to $1.40.

This decision follows the recent joint announcement by Affymax and Japan’s Takeda Pharmaceutical (TYO: 4502) that Takeda has completed a detailed investigation of the post-marketing reports of serious hypersensitivity reactions including anaphylaxis with anemia drug Omontys (peginesatide), which may be life-threatening or fatal (The Pharma Letter June 15). As announced, Takeda confirmed that no quality or manufacturing issues were present, but it was not able to identify a specific root cause for the reactions that were observed. In light of these findings, Omontys – the US firm’s only drug - would not be permitted to be returned to the market and Takeda is working with the Food and Drug Administration to withdraw approval. Based on this outcome, the board has determined it to be in the best interests of the stockholders to dissolve the company.