Affymax Reports Second Quarter 2014 Financial Results

CUPERTINO, Calif.--(BUSINESS WIRE)--

Affymax, Inc. AFFY today reported financial results for the second quarter ending June 30, 2014. The net income for the second quarter of 2014 was $7.2 million (or $0.19 per share) compared to net income of $15.4 million (or $0.41 per share) for the second quarter of 2013.

Net income for the quarter resulted from receipt of written notice of termination of the Collaboration and License Agreement from Takeda on June 10, 2014. As a result of termination of the agreement the Company has been relieved of the entire balance of the launch loan due Takeda of $8.2 million. The liability was derecognized and recorded as a credit to other income on the Condensed Statement of Comprehensive Income (Loss). The income had previously been recognized for tax purposes and no tax liability will result as the company will still be in a loss position for 2014.

AFFYMAX, INC.
CONDENSED BALANCE SHEETS
(in thousands, except share data)
		June 30,					December 31,
		2014					2013
		(unaudited)
Assets
Current assets
Cash		$	3,399				$	5,597
Prepaid expenses		1,055					725
Total current assets		4,454					6,322
Other assets		930					1,121
Total assets		$	5,384				$	7,443
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payable		$	80				$	101
Accrued restructuring		65					315
Other accrued liabilities		69					266
Advance from Takeda		—					8,189
Total current liabilities		214					8,871
Stockholders' equity (deficit)
Common stock: $0.001 par value, 100,000,000 shares authorized, 37,490,095 shares issued and outstanding		37					37
Additional paid-in capital		557,453					556,672
Accumulated deficit		(552,320		)			(558,137		)
Total stockholders' equity (deficit)		5,170					(1,428		)
Total liabilities and stockholders' equity (deficit)		$	5,384				$	7,443

AFFYMAX, INC.
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(in thousands, except per share data)
(Unaudited)
		Three Months Ended June 30,									Six Months Ended June 30,
		2014				2013					2014				2013
Revenue:
Collaboration revenue		$	—			$	525				$	—			$	1,364
License and royalty revenue		42				—					42				5
Total revenue		42				525					42				1,369
Operating expenses:
Research and development		—				2,235					—				12,024
Selling, general and administrative		1,066				528					2,559				25,173
Collaboration cost reimbursement		—				(23,073		)			—				(43,451		)
Impairment (gain on disposal) of prepaid expenses, fixed assets and intangible assets		—				(560		)			—				4,580
Restructuring charge		(71		)		7,124					(172		)		15,340
Total operating expenses		995				(13,746		)			2,387				13,666
Income (loss) from operations		(953		)		14,271					(2,345		)		(12,297		)
Interest income		—				6					—				21
Interest expense		—				(1,073		)			—				(1,565		)
Other income, net		8,162				10					8,162				10
Income (loss) before provision (benefit) for income taxes		7,209				13,214					5,817				(13,831		)
(Benefit) for income taxes		—				(2,158		)			—				(2,158		)
Net income (loss) and comprehensive income (loss)		$7,209				$	15,372				$5,817				$(11,673			)
Net income (loss) per share:
Basic		$	0.19			$	0.41				$	0.16			$	(0.31	)
Diluted		$	0.19			$	0.41				$	0.16			$	(0.31	)
Weighted-average number of shares used in computing net income (loss) per share
Basic		37,490				37,490					37,490				37,480
Diluted		37,490				37,495					37,490				37,480