Wall Street didn't give Affymax much of a chance at success today in front of an FDA advisory committee, but the Palo Alto, CA-based company clearly proved its skeptics wrong.
Many investors wrote off Affymax in June 2010, as I described in a feature as a couple of weeks ago ahead of this important FDA advisory meeting. That's because a quartet of pivotal clinical trials that enrolled 2,600 patients showed that kidney patients who aren't yet on dialysis had an increased rate of heart-related serious adverse events -- such as heart attack, stroke, congestive heart failure, and death -- when they got the Affymax drug instead of the usual treatment from Amgen. About 21.6 percent of patients on the Affymax drug had those serious adverse events, compared with 17.4 percent on the Amgen drug.
But Amgen's drug has been associated with some well-documented safety issues as well, and Affymax's drug, peginesatide, showed comparable safety and effectiveness in trials that strictly limited enrollment to patients on kidney dialysis. When the total set of evidence was considered, FDA staff said that some of the patients on the Affymax drug may have had worse outcomes because they were sicker when they entered the studies. The FDA has a deadline of March 27 to complete its formal review of the Affymax drug, and if it gives the green light, then peginesatide will be the company's first marketed product, and the first drug ever to directly challenge Amgen's 22-year monopoly in treating anemia of kidney dialysis patients.
Affymax hasn't yet settled on a pricing strategy for its anemia drug, but CEO John Orwin suggested in an interview last month that his company could be in a position to compete by offering a lower-priced, fewer-hassles, yet highly effective alternative. This will be one of the key dynamics to watch as Affymax gets closer to its FDA decision date, and it will be fascinating to see what Amgen does, if anything, to respond.
More from Xconomy.com:
- Affymax Shares Climb As FDA Considers Wider Use for Anemia Drug
- Affymax Hires New CEO, Former Genentecher, to Complete FDA Push With Anemia Drug
- Affymax Tanks on Anemia Results
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
The Nasdaq's 5 Most Hated Stocks
The Nasdaq hasn't had a down month this year, but that's not stopping skeptics from piling onto these five companies.
3 Reasons Investors Are Scared of Biotech Stocks
There's more than one way to see monster drops.
5 of Last Week's Biggest Losers
These five companies went the wrong way this past week.