Affymax slashes workforce following Omontys problems; evaluating options

US biopharma company Affymax (Nasdaq: AFFY) says that it will reduce its workforce as part of a plan to focus the company’s resources on the ongoing investigation of reported hypersensitivity reactions in patients receiving the anemia drug Omontys (peginesatide) Injection following the nationwide voluntary recall of product from the market. Affymax' shares plunged nearly 57% to $1.27 in extended trade on Monday.

Last month, Affymax and its licensee, Japan’s Takeda Pharmaceutical (TYO: 4502) decided to voluntarily recall all lots of Omontys Injection to the user level as a result of new post-marketing reports regarding serious hypersensitivity reactions, including anaphylaxis, which can be life-threatening or fatal (The Pharma Letter February 25). That news caused the firm’s stock to nose dive 87% to $2.97. To date, fatal reactions have been reported in around 0.02% of patients following the first dose of intravenous administration.

This action will reduce the company’s workforce by around 230 employees (or 75%), which includes its commercial and medical affairs field organizations as well as other officers and employees.