Affymax Shares Fall Amid Plan to Halt Expansion of Pilot, Pare Loss as Analysts Defend
Shares of Affymax (NASDAQ: AFFY) gapped more than 30 percent lower at Thursday morning's open following an 8-K which disclosed the company will halt the expansion of its Omontys pilot. The company suggested continuing use of Omontys for the management of anemia.
The stock began bouncing shortly after the open as traders began passing around research notes which suggested the news is not as bad as feared.
Affymax shares are now down around 6 percent heading into the last few hours of trade. The stock last traded around $15.60.
In addition to being defended at Stifel Nicolaus and Baird, a Piper Jaffray analyst argued Affymax shares could move into the mid-$20 range by the end of April if a deal for Omontys with Fresenius Medical is agreed upon. Related to the concern of allergic reactions, the Piper analyst noted these reactions were "very small" and should not be concerning to doctors. The analyst believes many doctors prefer Omontys and said "they want to keep their patients on it."
Stifel, Baird and Piper Jaffray maintain their equivalent of a Buy rating on shares of Affymax.
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