Californian biopharmaceutical company Affymax could be up for grabs after the firm has been forced to fire 75% of its workforce following the recall of its only drug.
About 230 positions will be cut while the firm hires a bank to evaluate a number of options including the possible sale of the company or assets, merger, restructuring, winding down operations or bankruptcy.
The move comes after Affymax was forced to recall its only drug Omontys (peginesatide) in February after the anaemia treatment was found to cause severe hypersensitivity reactions where three patients died. An investigation is on-going as to the reason behind the reactions.
“While this decision [to cut jobs] was extremely difficult, aligning and managing our limited resources around our product investigation is our most important priority,” said John Orwin, chief executive of Affymax.
The news in recent months has seen the company’s stock plummet. The share price plunged as much as 85% at one point when it was announced in February that the Takeda-partnered Omontys would be recalled. And shares dropped further after the news of job cuts.
According to a filing from Affymax there could be question marks around the investigation into the hypersensitivity reactions. “With limited funds and resources, the company may not be able to complete the investigation or ever identify the causes of the safety concerns,” Affymax said.
