UPDATE: Piper Jaffray Says Affymax May Run Out of Cash as Early as the Second-Quarter
In a note released late Tuesday morning, Piper Jaffray Analyst Ian Somaiya stated that Affymax (NASDAQ: AFFY) has no timeline for the re-introduction of its recently pulled drug Omontys, and had no estimate on when the investigation into the drug would end.
With Omontys off the market, Amgen's (NASDAQ: AMGN) anemia drug has been able to gain market share, allowing the company to benefit from Affymax's decline.
The company has $67 million in cash, but is burdened with over $50 million in outstanding liabilities as of the end of February. This capital burn has the company running out of cash as early as the second-quarter.
Following the report, shares of Affymax traded down 7.72 percent to $1.25, while Amgen traded up 3.37 percent to $105.78 per share.
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