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Affymax to Reduce Headcount by 75%; Will Evaluate Strategic Alternatives

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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.

Posted-In: News Management

 

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