Affymax May Run Out of Cash As Soon As 2Q, According to Analyst
Ian Somaiya, an analyst at Piper Jaffray, is suggesting that Affymax (NASDAQ: AFFY) may run out of cash sometime in mid-2012.
Somaiya reasons that Affymax has no timeline for potential re-introduction of Omontys and isn't able to estimate when it will complete the investigation surrounding the hypersensitivity issue that led to the recall.
Somaiya notes that Affymax may run out of cash because it only has $67 million in cash, with over $50 million in outstanding liabilities, (as of the end of February).
Some doctors have also suggested the drug may have "suffered permanent damage," and the road to recovery will be long.
AFFY is currently down ~7 percent in Tuesday's session, and was down ~12 percent near the lows of the day.
Latest Ratings for AFFY
|Mar 2013||McNicoll Lewis Vlak||Downgrades||Sell|
|Feb 2013||Lazard Capital Markets||Downgrades||Buy||Neutral|
|Feb 2013||McNicoll Lewis Vlak||Downgrades||Buy||Hold|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.