Exhibit 99.1
Corporate Contact:
Sylvia Wheeler
Vice President, Corporate Communications
Affymax, Inc.
650-812-8861
AFFYMAX® REPORTS FIRST QUARTER 2011 FINANCIAL RESULTS
PALO ALTO, Calif., May 9, 2011 — Affymax, Inc. (Nasdaq: AFFY) today reported financial results for the first quarter ended March 31, 2011. The net loss for the first quarter of 2011 was $9.6 million compared to a net loss of $7.9 million for the first quarter of 2010.
Affymax recognized revenue for the quarter ended March 31, 2011 of $16.7 million compared to $34.7 million for the quarter ended March 31, 2010. The decrease in revenue was the result of decreased collaboration revenue from its partnership with Takeda Pharmaceutical Company Limited, under their 2006 collaboration for development of Affymax’s compound, peginesatide (formerly known as Hematide™).
Research and development expenses for the quarter ended March 31, 2011, were $18.1 million compared to $33.1 million for the quarter ended March 31, 2010. The decrease was primarily due to the completion of the treatment and follow up of Phase 3 clinical trials in 2010.
General and administrative expenses for the quarter ended March 31, 2011 were $8.2 million compared to $9.4 million for the quarter ended March 31, 2010. The decrease was primarily due to reductions in legal costs and consulting services.
The company had cash and investments of $153.1 million as of March 31, 2011, including $54.1 million in net proceeds from the company’s recent follow on offering in March.
About Affymax, Inc.
Affymax, Inc. is a biopharmaceutical company committed to developing novel drugs to improve the treatment of serious and often life-threatening conditions. Affymax’s product candidate, peginesatide, recently completed Phase 3 clinical trials for the treatment of anemia associated with chronic renal failure. For additional information, please visit www.affymax.com.
This release contains forward-looking statements, including statements regarding financial projections and condition, milestones expected to be accomplished, continuation and success of the Company’s collaboration with Takeda, timing, design and progress of the Company’s peginesatide development program and the timing and potential regulatory approval and commercialization of peginesatide. The Company’s actual results may differ materially from those indicated in these forward-looking statements due to risks and uncertainties, including risks relating to our ability to submit a New Drug Application (NDA) in the second quarter, the completeness of the NDA filing, risks relating to data quality and integrity particularly in non-inferiority designed trials, risks related to the continued safety and efficacy of peginesatide in clinical development, the potential for once per month dosing and room temperature stability, timing of patient accrual in ongoing and planned clinical studies, regulatory requirements and approvals, research and development efforts, industry and competitive environment, intellectual property rights and disputes and potential for costs, disruptions and consequences of litigation, financing requirements and ability to access capital, and other matters that are described in Affymax’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update any forward-looking statement in this press release.
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AFFYMAX, INC.
BALANCE SHEETS
(in thousands)
|
| March 31, |
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| 2011 |
| December 31, |
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Assets |
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Current assets |
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Cash and cash equivalents |
| $ | 96,142 |
| $ | 63,499 |
|
Short-term investments |
| 45,856 |
| 33,582 |
| ||
Deferred tax assets |
| 438 |
| 438 |
| ||
Prepaid expenses and other current assets |
| 1,752 |
| 2,023 |
| ||
Total current assets |
| 144,188 |
| 99,542 |
| ||
Property and equipment, net |
| 3,782 |
| 3,982 |
| ||
Restricted cash |
| 1,135 |
| 1,135 |
| ||
Long-term investments |
| 9,928 |
| 19,876 |
| ||
Deferred tax assets, net of current |
| 6,802 |
| 6,802 |
| ||
Other assets |
| 50 |
| 50 |
| ||
Total assets |
| $ | 165,885 |
| $ | 131,387 |
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Liabilities and Stockholders’ Equity |
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Current liabilities |
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Accounts payable |
| $ | 1,042 |
| $ | 321 |
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Accrued liabilities |
| 13,510 |
| 11,594 |
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Accrued clinical trial expenses |
| 8,189 |
| 11,247 |
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Payable to Takeda |
| 4,859 |
| 5,958 |
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Deferred revenue |
| 7,000 |
| 18,497 |
| ||
Total current liabilities |
| 34,600 |
| 47,617 |
| ||
Long-term income tax liability |
| 10,303 |
| 10,249 |
| ||
Other long-term liabilities |
| 938 |
| 974 |
| ||
Total liabilities |
| 45,841 |
| 58,840 |
| ||
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Stockholders’ equity |
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Common stock |
| 35 |
| 25 |
| ||
Additional paid-in capital |
| 518,494 |
| 461,425 |
| ||
Accumulated deficit |
| (398,524 | ) | (388,934 | ) | ||
Accumulated other comprehensive income (loss) |
| 39 |
| 31 |
| ||
Total stockholders’ equity |
| 120,044 |
| 72,547 |
| ||
Total liabilities and stockholders’ equity |
| $ | 165,885 |
| $ | 131,387 |
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AFFYMAX, INC.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
|
| Three Months Ended |
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|
| 2011 |
| 2010 |
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Revenue: |
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Collaboration revenue |
| $ | 16,679 |
| $ | 34,646 |
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License and royalty revenue |
| 4 |
| 4 |
| ||
Total revenue |
| 16,683 |
| 34,650 |
| ||
Operating expenses: |
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|
|
|
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Research and development |
| 18,149 |
| 33,093 |
| ||
General and administrative |
| 8,166 |
| 9,419 |
| ||
Total operating expenses |
| 26,315 |
| 42,512 |
| ||
Loss from operations |
| (9,632 | ) | (7,862 | ) | ||
Interest income |
| 44 |
| 97 |
| ||
Interest expense |
| (36 | ) | (34 | ) | ||
Other income (expense), net |
| 34 |
| (67 | ) | ||
Net loss before provision (benefit) for income taxes |
| (9,590 | ) | (7,866 | ) | ||
Provision for income taxes |
| 1 |
| — |
| ||
Net loss |
| $ | (9,591 | ) | $ | (7,866 | ) |
Net loss per common share: |
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|
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Basic and diluted |
| $ | (0.36 | ) | $ | (0.33 | ) |
Weighted-average number of common shares used in computing basic and diluted net loss per common share |
| 26,354 |
| 23,932 |
| ||