Affymax Reports Second Quarter 2014 Financial Results

Affymax, Inc. (OTCQB:AFFY) today reported financial results for the second quarter ending June 30, 2014. The net income for the second quarter of 2014 was $7.2 million (or $0.19 per share) compared to net income of $15.4 million (or $0.41 per share) for the second quarter of 2013.

Net income for the quarter resulted from receipt of written notice of termination of the Collaboration and License Agreement from Takeda on June 10, 2014. As a result of termination of the agreement the Company has been relieved of the entire balance of the launch loan due Takeda of $8.2 million. The liability was derecognized and recorded as a credit to other income on the Condensed Statement of Comprehensive Income (Loss). The income had previously been recognized for tax purposes and no tax liability will result as the company will still be in a loss position for 2014.

AFFYMAX, INC.

CONDENSED BALANCE SHEETS

(in thousands, except share data)

June 30,

December 31,

2014

2013

        
      
      
        
        
        
        
        
          (unaudited)
        
        
        
        
        
        
        
        
        
      
      
        
          

Assets

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Current assets
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash
        
        
        
        
          $
        
        
          3,399
        
        
        
        
        
        
        
        
          $
        
        
          5,597
        
        
        
      
      
        
          Prepaid expenses
        
        
        
        
          1,055
        
        
           
        
        
        
        
        
        
          725
        
        
           
        
      
      
        
          Total current assets
        
        
        
        
          4,454
        
        
        
        
        
        
        
        
          6,322
        
        
        
      
      
        
          Other assets
        
        
        
        
          930
        
        
           
        
        
        
        
        
        
          1,121
        
        
           
        
      
      
        
          Total assets
        
        
        
        
          $
        
        
          5,384
        
        
           
        
        
        
        
        
        
          $
        
        
          7,443
        
        
           
        
      
      
        
          

Liabilities and Stockholders’ Equity (Deficit)

        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Current liabilities
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts payable
        
        
        
        
          $
        
        
          80
        
        
        
        
        
        
        
        
          $
        
        
          101
        
        
        
      
      
        
          Accrued restructuring
        
        
        
        
          65
        
        
        
        
        
        
        
        
          315
        
        
        
      
      
        
          Other accrued liabilities
        
        
        
        
          69
        
        
        
        
        
        
        
        
          266
        
        
        
      
      
        
          Advance from Takeda
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          8,189
        
        
           
        
      
      
        
          Total current liabilities
        
        
        
        
          214
        
        
           
        
        
        
        
        
        
          8,871
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Stockholders’ equity (deficit)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Common stock: $0.001 par value, 100,000,000 shares authorized, 
          37,490,095 shares issued and outstanding
        
        
        
        
          37
        
        
        
        
        
        
        
        
          37
        
        
        
      
      
        
          Additional paid-in capital
        
        
        
        
          557,453
        
        
        
        
        
        
        
        
          556,672
        
        
        
      
      
        
          Accumulated deficit
        
        
        
        
          (552,320
        
        
          )
        
        
        
        
        
        
          (558,137
        
        
          )
        
      
      
        
          Total stockholders’ equity (deficit)
        
        
        
        
          5,170
        
        
           
        
        
        
        
        
        
          (1,428
        
        
          )
        
      
      
        
          Total liabilities and stockholders’ equity (deficit)
        
        
        
        
          $
        
        
          5,384
        
        
           
        
        
        
        
        
        
          $
        
        
          7,443
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    
      
        
           
        
      
      
        
          

AFFYMAX, INC.

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands, except per share data)

(Unaudited)

Three Months EndedJune 30,

Six Months Ended

June 30,

2014

2013

2014

2013

        
        
           
        
      
      
        
          Revenue:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Collaboration revenue
        
        
        
        
          $
        
        
          —
        
        
        
        
        
        
          $
        
        
          525
        
        
        
        
        
        
        
        
          $
        
        
          —
        
        
        
        
        
        
          $
        
        
          1,364
        
        
        
      
      
        
          License and royalty revenue
        
        
        
        
          42
        
        
           
        
        
        
        
          —
        
        
           
        
        
        
        
        
        
          42
        
        
           
        
        
        
        
          5
        
        
           
        
      
      
        
          Total revenue
        
        
        
        
          42
        
        
           
        
        
        
        
          525
        
        
           
        
        
        
        
        
        
          42
        
        
           
        
        
        
        
          1,369
        
        
           
        
      
      
        
          Operating expenses:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Research and development
        
        
        
        
          —
        
        
        
        
        
        
          2,235
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
          12,024
        
        
        
      
      
        
          Selling, general and administrative
        
        
        
        
          1,066
        
        
        
        
        
        
          528
        
        
        
        
        
        
        
        
          2,559
        
        
        
        
        
        
          25,173
        
        
        
      
      
        
          Collaboration cost reimbursement
        
        
        
        
          —
        
        
        
        
        
        
          (23,073
        
        
          )
        
        
        
        
        
        
          —
        
        
        
        
        
        
          (43,451
        
        
          )
        
        
        
      
      
        
          Impairment (gain on disposal) of prepaid expenses, fixed assets and 
          intangible assets
        
        
        
        
          —
        
        
        
        
        
        
          (560
        
        
          )
        
        
        
        
        
        
          —
        
        
        
        
        
        
          4,580
        
        
        
      
      
        
          Restructuring charge
        
        
        
        
          (71
        
        
          )
        
        
        
        
          7,124
        
        
           
        
        
        
        
        
        
          (172
        
        
          )
        
        
        
        
          15,340
        
        
           
        
      
      
        
          Total operating expenses
        
        
        
        
          995
        
        
           
        
        
        
        
          (13,746
        
        
          )
        
        
        
        
        
        
          2,387
        
        
           
        
        
        
        
          13,666
        
        
           
        
      
      
        
          Income (loss) from operations
        
        
        
        
          (953
        
        
          )
        
        
        
        
          14,271
        
        
        
        
        
        
        
        
          (2,345
        
        
          )
        
        
        
        
          (12,297
        
        
          )
        
        
        
      
      
        
          Interest income
        
        
        
        
          —
        
        
        
        
        
        
          6
        
        
        
        
        
        
        
        
          —
        
        
        
        
        
        
          21
        
        
        
      
      
        
          Interest expense
        
        
        
        
          —
        
        
        
        
        
        
          (1,073
        
        
          )
        
        
        
        
        
        
          —
        
        
        
        
        
        
          (1,565
        
        
          )
        
        
        
      
      
        
          Other income, net
        
        
        
        
          8,162
        
        
           
        
        
        
        
          10
        
        
           
        
        
        
        
        
        
          8,162
        
        
           
        
        
        
        
          10
        
        
           
        
      
      
        
          Income (loss) before provision (benefit) for income taxes
        
        
        
        
          7,209
        
        
        
        
        
        
          13,214
        
        
        
        
        
        
        
        
          5,817
        
        
        
        
        
        
          (13,831
        
        
          )
        
        
        
      
      
        
          (Benefit) for income taxes
        
        
        
        
          —
        
        
           
        
        
        
        
          (2,158
        
        
          )
        
        
        
        
        
        
          —
        
        
           
        
        
        
        
          (2,158
        
        
          )
        
        
           
        
      
      
        
          Net income (loss) and comprehensive income (loss)
        
        
        
        
          $7,209
        
        
           
        
        
        
        
          $
        
        
          15,372
        
        
           
        
        
        
        
        
        
          $5,817
        
        
           
        
        
        
        
          $(11,673
        
        
          )
        
      
      
        
          Net income (loss) per share:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          

Basic

        
        
        
        
          $
        
        
          0.19
        
        
        
        
        
        
          $
        
        
          0.41
        
        
        
        
        
        
        
        
          $
        
        
          0.16
        
        
        
        
        
        
          $
        
        
          (0.31
        
        
          )
        
        
        
      
      
        
          Diluted
        
        
        
        
          $
        
        
          0.19
        
        
        
        
        
        
          $
        
        
          0.41
        
        
        
        
        
        
        
        
          $
        
        
          0.16
        
        
        
        
        
        
          $
        
        
          (0.31
        
        
          )
        
        
        
      
      
        
          Weighted-average number of shares used in computing net income 
          (loss) per share
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          37,490
        
        
        
        
        
        
          37,490
        
        
        
        
        
        
        
        
          37,490
        
        
        
        
        
        
          37,480
        
        
        
      
      
        
          Diluted
        
        
        
        
          37,490
        
        
        
        
        
        
          37,495
        
        
        
        
        
        
        
        
          37,490
        
        
        
        
        
        
          37,480
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
    
    

Affymax, Inc.Lisa Maxson, 650-812-8700