PALO ALTO, Calif., May 15 /PRNewswire-FirstCall/ -- Affymax, Inc. today reported financial results for the first quarter ended March 31, 2007. The net loss for the first quarter of 2007 was $7.2 million compared to a net loss of $6.7 million for the first quarter of 2006.
Affymax recognized revenue for the quarter ended March 31, 2007 of $7.3 million compared to $8,000 for the quarter ended March 31, 2006. The increase in revenue was the result of collaboration revenue from its partnership with Takeda Pharmaceutical Company Limited, under their 2006 collaboration for development of Affymax’s lead compound, Hematide(TM).
Research and development expenses for the quarter ended March 31, 2007, were $11.9 million compared to $6.5 million for the quarter ended March 31, 2006. The increase was primarily due to additional expenses related to Phase 2 clinical development of Hematide in both renal and oncology indications, manufacturing and analytical costs at multiple contract sites in preparation for the initiation of Phase 3 clinical trials as well as increased personnel costs.
General and administrative expenses for the quarter ended March 31, 2007 were $5.3 million compared to $887,000 for the quarter ended March 31, 2006. The increase was primarily due to higher stock based compensation, personnel costs and audit fees.
The company’s unrestricted cash and investments balance as of March 31, 2007 was $226.7 million, and reflected a $10 million milestone payment received from Takeda during the quarter.
“We’re off to a strong start in 2007,” said Arlene M. Morris, president and chief executive officer of Affymax, Inc. “Our business is sound with a strong balance sheet, a formidable, engaged partner, and solid Phase 2 clinical data, which are key elements as we prepare to begin Phase 3 clinical trials with Hematide for the treatment of anemia in renal indications.”
About Affymax, Inc.
Affymax, Inc. is a biopharmaceutical company focused on developing novel peptide-based drugs to improve the treatment of serious and often life- threatening conditions. Affymax’s lead product candidate, Hematide(TM), is currently in Phase 2 clinical trials for the treatment of anemia associated with chronic kidney disease and cancer. For additional information, please visit www.affymax.com.
This release contains forward-looking statements, including statements regarding the timing, design and results of the Company’s clinical trials and drug development program and the timing and likelihood of the commercialization of Hematide. 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 the continued safety of Hematide in clinical development, regulatory requirements for approvals, research and development efforts, industry and competitive environment, intellectual property rights and disputes and other matters that are described in the Company’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.
AFFYMAX, INC. UNAUDITED CONDENSED BALANCE SHEETS (in thousands) March 31, December 31, 2007 2006 Assets Current assets Cash and cash equivalents $83,459 $147,541 Restricted cash 1,051 1,051 Short-term investments 143,236 76,751 Related party receivable 5,235 10,191 Prepaid expenses and other current assets 4,698 4,576 Total current assets 237,679 240,110 Property and equipment, net 2,539 2,014 Restricted cash 1,135 1,135 Long-term investments -- 6,133 Deferred tax asset 4,400 -- Other assets 922 596 Total assets $246,675 $249,988 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $8,746 $9,113 Accrued liabilities 2,174 2,566 Income tax payable 330 -- Capitalized lease obligations, current 277 293 Total current liabilities 11,527 11,972 Deferred revenue 118,738 120,821 Other long term liabilities 4,725 156 Capitalized lease obligations, net of current 84 140 Total liabilities 135,074 133,089 Stockholders’ equity Common stock 15 15 Additional paid-in capital 287,596 285,771 Deferred stock-based compensation (74) (94) Deficit accumulated during the development stage (175,920) (168,749) Other comprehensive loss (16) (44) Total stockholders’ equity 111,601 116,899 Total liabilities and stockholders’ equity $246,675 $249,988 AFFYMAX, INC. UNAUDITED CONDENSED STATEMENTS OF OPERATIONS (in thousands, except per share data) Three Months Ended March 31, 2007 2006 Collaboration revenue $7,318 $-- License and royalty revenue 6 8 Total revenue 7,324 8 Operating expenses Research and development 11,858 6,453 General and administrative 5,332 887 Total operating expenses 17,190 7,340 Loss from operations (9,866) (7,332) Interest income 3,015 690 Interest expense (5) (33) Other income (expense), net 15 3 Net loss before provision for income taxes (6,841) (6,672) Provision for income taxes 330 -- Net loss (7,171) (6,672) Accretion of mandatorily redeemable convertible preferred stock -- (193) Net loss attributable to common stockholders $(7,171) $(6,865) Net loss per common share: Basic and diluted $(0.48) $(20.34) Weighted-average number of common shares used in computing basic and diluted net loss per common share calculations 14,860 338
Affymax, Inc.
CONTACT: Sylvia Wheeler, Executive Director, Corporate Communications ofAffymax, Inc., +1-650-812-8861; or Daryl Messinger of WeissComm Partners,+1-415-999-2361, for Affymax, Inc.
Web site: http://www.affymax.com//
