In connection with settlement arrangements between UBS and various U.S. regulatory agencies, including the Securities and Exchange Commission relating to sales and marketing practices of ARS, in November 2008, the company accepted an offer from UBS AG of Series C-2 ARS Rights relating to the ARS that were purchased through UBS. These ARS Rights provided the company the option to require UBS to repurchase, at par, the ARS beginning on June 30, 2010, or prior to such date, UBS had the option to buy, at par, the ARS. In connection with the settlement, UBS offered a loan which the company accepted in December 2009. The loan was secured by the ARS and ARS Rights as collateral and was subject to collateral maintenance requirements.
After the sale to UBS, the company continues to hold ARS with a fair value of $3.8 million that remain classified as long-term securities. These remaining ARS are comprised of a municipal issuance collateralized by student loans guaranteed by the U.S. government under the Federal Family Education Loan Program and a closed end preferred issuance.
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, Hematide™/peginesatide, completed Phase 3 clinical trials for the treatment of anemia associated with chronic renal failure. For additional information, please visit www.affymax.com.
Contact:
Affymax, Inc. Sylvia Wheeler, 650-812-8861 Vice President, Corporate Communications
