After the markets closed last night, drugmaker Affymax Inc. (NASDAQ: AFFY) said that it would cut 230 workers (75% of its workforce) and “evaluate strategic alternatives” for the company. Shares are getting pounded this morning before the markets open.
In last night’s announcement, Affymax said it was taking these steps “to focus the company’s resources on the ongoing investigation of reported hypersensitivity reactions” to its leading drug. The company was forced to recall its anemia drug, Omontys, in February after 50 patients developed severe allergic reactions to the injectable drug and five people died. Affymax really has no other drug pipeline available to take up the slack from the recall, which may turn out to be permanent. Japan’s Takeda Pharmaceutical Co. is a partner with Affymax in making and distributing Omontys.
Among the strategic alternatives the company is considering are further restructuring, a “wind-down of operations, or even bankruptcy proceedings.”
Shares of Affymax are down more than 56% in premarket trading this morning, at $1.27, well below the 52-week range of $2.26 to $27.74.
Smart Investors Are Quietly Loading Up on These “Dividend Legends”
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats.
There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside.
If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.