Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of biopharmaceutical company Affymax (OTC:AFFY) jumped as much as 11% today after the company reported better-than-expected third-quarter results.

So what: For the quarter, Affymax reported a 3% increase in revenue to $13.6 million, and quarterly loss of $0.68 per share compared to a loss of $0.28 per share last year. Both figures slid ever-so-slightly past Wall Street's expectations for a loss of $0.70 on revenue of $13.4 million. Consistent with its previous guidance, Affymax doesn't anticipate receiving any additional collaborative revenue in 2012, but it did note that $10.4 million of its $13.6 million in revenue came from payments by Takeda Pharmaceuticals concerning its partnership on Omontys, an injectable anemia treatment.

Now what: With drug approval only being half the battle, it appears that investors are just happy to see revenue streaming in from initial Omontys sales. However, I have to point out that with only one FDA-approved drug on pharmacy shelves and losses mounting, Affymax's run higher may be a bit overdone. It's a bit difficult to support a company that's quadrupled in price and is still two years away, at minimum, from being profitable. Needless to say, I'm perfectly happy remaining an innocent bystander here.

Craving more input? Start by adding Affymax to your free and personalized watchlist so you can keep up on the latest news with the company.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.