Is There Any Hope Left for Affymax?

There's no debating that this weekend's recall announcement from Affymax (NASDAQOTH: AFFY  ) was terrible news. First and foremost, the adverse events that caused patient suffering, and even a few fatalities, is heartbreaking. Meanwhile, the value of the company is now roughly in line with the value of its cash on the balance sheet, implying that investors have little to no hope that Omontys will return to the market.

In the following video, Brenton Flynn provides some more details after listening in on the company's update this morning, and offers an opinion on what existing shareholders -- and those looking to profit from an overreaction -- might do in response.

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  • Report this Comment On February 25, 2013, at 2:26 PM, PinkFloydRoadie wrote:

    Nice video, I tend to agree with all of the comments.

  • Report this Comment On February 26, 2013, at 3:05 PM, NoFoolInvest wrote:

    Nice summary of conference calls. But I slightly disagree with you on stock direction. It can go both ways. If they can't find any way to salvage this drug, it will go down almost zero since they have nothing else. However, if they can fix it in no cost, this stock will bound back more than double.

    However, the trouble is that they still have no idea what went wrong. It doesn't sound manufacturing problem based their comment in the call. I hope that they find a way to screen un-suitable patients out.

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