Affymax May Run Out of Cash As Soon As 2Q, According to Analyst

Ian Somaiya, an analyst at Piper Jaffray, is suggesting that Affymax

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.