UPDATE: Stifel Nicolaus Downgrades Affymax to Hold on Omontys Recall

Stifel Nicolaus downgraded Affymax AFFY from Buy to Hold and removed the price target of $37.00. Stifel Nicolaus noted, "On Saturday, February 23, 2013, Affymax along with its partner Takeda announced a voluntary recall of all lots of Omontys because of serious hypersensitivity reactions. … We are removing all sales of Omontys until the companies provide a viable path forward, and we are downgrading to hold. Our previous thesis was predicated on the expansion of the Fresenius supply agreement by the end of the current supply agreement in 2Q13. We no longer expect expansion of the agreement. We estimate that AFFY currently has $1.90 cash per share." Affymax closed at $16.52 on Friday.