UPDATE: Piper Jaffray Downgrades Affymax to Neutral Following Omontys Recall

Piper Jaffray downgraded Affymax AFFY from Overweight to Neutral and removed the $37.00 price target. Piper Jaffray commented, "We are downgrading AFFY to Neutral following a voluntary safety recall of Omontys. We expect the stock to approach cash value (~$2 per share) tomorrow as investors take into account the lack of visibility on reintroduction of the drug and more importantly the difficult task of repairing a negative safety perception. This combined with a potential delay in approval in Europe and need for additional financing in the future could prevent the stock from recovering in the next 6-9 months." Affymax closed at $16.52 on Friday.