Affymax Announces Reduction in Force to Align Resources Around Ongoing Product Investigation
Affymax, Inc. (Nasdaq: AFFY) today announced 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 OMONTYS® (peginesatide) Injection following the nationwide
voluntary recall of product from the market. This action will reduce the
company’s workforce by approximately 230 employees (or 75%), which
includes its commercial and medical affairs field organizations as well
as other officers and employees.
“I would like to sincerely thank all of our departing employees and
recognize their important and valued contributions to the company,” said
John Orwin, chief executive officer of Affymax. “While this decision was
extremely difficult, aligning and managing our limited resources around
our product investigation is our most important priority.”
The company also announced that it will retain a bank to evaluate
strategic alternatives for the organization, including the sale of the
company or its assets, or a corporate merger. The company is considering
all possible alternatives, including further restructuring activities,
wind-down of operations or even bankruptcy proceedings.
About Affymax, Inc.
Affymax, Inc. is a biopharmaceutical company based in Palo Alto,
California. Affymax's mission is to discover, develop and deliver
innovative therapies that improve the lives of patients with kidney
disease and other serious and often life-threatening illnesses. For
additional information, please visit www.affymax.com.
This release contains forward-looking statements, including
statements regarding the potential attributes and safety profile of
OMONTYS, the continuation and success of Affymax's collaboration with
Takeda, ongoing product investigation, and strategic alternatives for
Affymax. Affymax's actual results may differ materially from
those indicated in these forward-looking statements due to risks and
uncertainties, including risks relating to the recall and adverse
events, ability to identify the causes of safety issues, ability to
continue as a going concern, ability to continue the investigation and
satisfy regulatory requirements to re-introduce OMONTYS to the market
and other factors affecting the commercial potential of OMONTYS, the
continued safety and efficacy of OMONTYS, the industry and competitive
environment, regulatory requirements or actions by the FDA or other
regulatory authorities including withdrawal, existing and potential
future litigation, ability to significantly reduce costs of operations
in a timely manner, financing requirements and our ability to continue
as a going concern, access to capital and other matters that are
described in Affymax's most recent 8K and 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. Affymax undertakes no obligation to update any
forward-looking statement in this press release except as required by
law.
