2013
04/27

Category:
Filing Bankruptcy

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Affymax May Possibly Take Into Account Submitting For Bankruptcy; Slices Staff By Seventy-five %

(Reuters) — Medication producer Affymax Inc said hello may possibly think about marketing by itself or perhaps processing with regard to personal bankruptcy among a variety of ideal options since it struggles with all the recent recollect from the only commercial product, the actual anemia drug Omontys.

Stocks in the firm slipped over 50% to be able to $2. 34 inside extended trade upon Wednesday following becoming ceased previously.

Affymax additionally fired their key commercial officer and also slashed concerning 230 work, or even concerning seventy five % of labor force, within a strategy to reduce costs.

The company said on February 23 that it would certainly remember Omontys, citing serious undesirable activities, which includes death, in individuals taking the medicine. The particular gives fell eighty five percent on the news.

Affymax said it was changing a lot of the routines related to the actual analysis in the recollect in order to their spouse Takeda Pharmaceutical drug Co Ltd because it could hardly estimate if this had enough financial resources to finish the particular investigate.

If the firm and Takeda are not able to swiftly recognize and also correct the cause of the safety issues for the pleasure in the U.S. FOOD AND DRUG ADMINISTRATION, which is extremely uncertain, Omontys might be forever taken from the industry, the firm mentioned.

Affymax noted money equilibrium of around $67 million as of Feb . end. It had liabilities which involved prospective deal production firm responsibilities up to approximately $33 million as well as excellent personal debt responsibilities of up to about $11 , 000, 000 under the existing credit score facility.

It also desires to get between $8 million and also $10,50 mil in charges related to the task cuts.

Stocks of the firm shut hvordan at two dollars. 92 about the Nasadaq.

(Reporting through Zeba Siddiqui inside Bangalore; Modifying by Sriraj Kalluvila)

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