AFFY  Affymax Inc.

Exchange

NASDAQ

Sector

Consumer Durables

Industry

Major Pharmaceuticals

Market Cap.

2.04M

Current Price

$0.05
+0.0025 (+4.8077%)

Book Price

$-0.18
Overvalued by 424.22%
Financial Institution

Company Metrics

  • P/E 0.6646
  • P/S 46.4173
  • P/B 0.3768
  • EPS 0.0820
  • Dividend 0.0000 / 0.0000 %
  • Avg. Vol. 13,445.00
  • Shares 37.43M
  • Market Cap. 2.04M

Company Description

Affymax, Inc., a biopharmaceutical company, engages in the development of drugs for the treatment of serious and life-threatening conditions. The company is developing Hematide, which is in Phase III clinical trials for the treatment of anemia associated with chronic renal failure. Hematide is a synthetic peptide-based erythropoiesis stimulating agent designed to stimulate production of red blood ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Affymax: Putting The Pieces Together
Seeking Alpha - Aug 24, 2013
Affymax's sole drug product is OMONTYS® (peginesatide) Injection ("OMONTYS"), which was approved by the FDA in 2012 and well received by the medical community as a treatment for anemia due to chronic kidney disease (CKD) in adult patients on ...
Affymax Likely Worthless: Omontys Kills At Least 9x More People Than Epogen
Seeking Alpha - Aug 28, 2013
Affymax, Inc. (AFFY) is a shell company that owns potential future royalty and milestone payments associated with the recently recalled drug Omontys (peginesatide).
Affymax, Inc. Announces a Special Cash Distribution and the Appointment of a ...
Business Wire (press release) - Nov 26, 2014
CUPERTINO, Calif.--(BUSINESS WIRE)--Affymax, Inc. (OTCQB: AFFY) today announced that its Board of Directors has declared a special cash distribution to shareholders in the amount of $0.05 per share.
Affymax CEO steps down as restructuring firm steps in
San Francisco Business Times (blog) - May 15, 2013
Palo Alto-based Affymax (NASDAQ: AFFY) said it will appoint a Brenner Group representative as CEO "in the coming weeks" and name Brenner Group personnel as company officers.
Affymax To Pay $6.5M To End Class Action Over Anemia Drug
Law360 (subscription) - Jul 3, 2014
Law360, New York (July 3, 2014, 6:53 PM EDT) -- Biopharmacuetical company Affymax Inc. has agreed to pay $6.5 million to settle a class action alleging it knowingly misled investors about the dangers of its drug Omontys, which was recalled in 2013 ...
Affymax Board Announces Decision to Dissolve the Company
Business Wire (press release) - Jun 24, 2014
CUPERTINO, Calif.--(BUSINESS WIRE)--Affymax, Inc. (AFFY), a biopharmaceutical company, today announced that its Board of Directors has approved the liquidation and dissolution of the company, subject to stockholder approval, and plans to distribute all ...
How to Protect Your Retirement Plans
Benzinga - Jun 26, 2013
Imagine some unfortunately soul who invested his entire $500,000 savings into Affymax (OTC: AFFY) on February 22. On February 25, he would have lost over $425,000 due to the firm's recall of its core product.
(peginesatide) Injection with Fresenius Medical Care North America
Business Wire (press release) - Jul 12, 2012
DEERFIELD, Ill. & PALO ALTO, Calif.--(BUSINESS WIRE)--Takeda Pharmaceuticals U.S.A. (TPUSA) and Affymax, Inc. (Nasdaq:AFFY) today announced that Takeda Pharmaceuticals America, Inc. (TPA) has entered into a supply agreement for sourcing and ...
Affymax and Takeda Announce a Nationwide Voluntary Recall of All Lots of OMONTYS
Business Wire (press release) - Feb 24, 2013
PALO ALTO, Calif. & OSAKA, Japan--(BUSINESS WIRE)--Affymax, Inc. (Nasdaq: AFFY) and Takeda Pharmaceutical Company Limited (Takeda) today have decided to voluntarily recall all lots of OMONTYS® (peginesatide) Injection to the user level as a result ...
Affymax Is Done. RIP. - TheStreet.com
Blood Drug Woes Could Weigh on FDA and its Approval of New, Copycat Biologic ... - Forbes
Affymax Largely Ducks Investor Suit Over Anemia Drug
Law360 (subscription) - Jan 22, 2014
Law360, Washington (January 22, 2014, 1:52 PM EST) -- A California federal judge on Tuesday trimmed a putative shareholder class action claiming Affymax Inc. and four executives misled investors about safety issues with anemia drug Omontys, ruling the ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for AFFY to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate AFFY's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

Very Poor Cash Return on Invested Capital over the past 5 years

AFFY has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

AFFY has lost $1,911.35 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20092010201120122013
Free Cash Flow -81.64M -49.96M -73.23M -41.24M -
divided by
Invested Capital -82.80M -13.31M 725,000.00 -58.84M -5.60M
Cash ROIC 98.60% 375.36% -10,100.83% 70.09% -

Very Poor Return on Equity over the past 5 years

AFFY has shown an inability to deliver results for shareholders. This could be due to poor management, AFFY operating in a highly competitive industry, or having a weak business in general.

AFFY has generated a $268.51 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20092010201120122013
Net Income -76.53M -14.08M -61.37M -93.41M -14.42M
divided by
Stockholders' Equity 66.91M 72.55M 76.00M 8.28M -1.43M
Return on Equity -114.39% -19.40% -80.75% -1,128.03% -

Poor Business Performance over the past 10 years

AFFY's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

AFFY has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Free Cash Flow -20.08M -24.89M 66.85M -49.06M -66.41M -81.64M -49.96M -73.23M -41.24M -

Low or No Reinvestment of Profits over the past 10 years

AFFY has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to AFFY operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Retained Earnings -87.89M -120.46M -168.75M -211.82M -298.33M -374.86M -388.93M -450.30M -543.71M -558.14M
Retained Earnings Growth - -37.07% -40.09% -25.52% -40.84% -25.65% -3.75% -15.78% -20.74% -2.65%

Erratic Net Profit Margins over the past 10 years

AFFY has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Net Income -21.40M -32.58M -48.29M -43.07M -86.51M -76.53M -14.08M -61.37M -93.41M -14.42M
divided by
Revenue 151,000.00 74,000.00 11.73M 44.34M 82.85M 114.90M 112.52M 47.72M 94.37M 1.37M
Net Profit Margin -14,170.86% -44,021.62% -411.80% -97.14% -104.42% -66.61% -12.51% -128.60% -98.98% -1,053.62%

Erratic Gross Profit Margins over the past 10 years

AFFY has had highly erratic gross profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Gross Profit 151,000.00 74,000.00 11.73M 44.34M 82.85M 114.90M 112.52M -28.59M 49.41M 1.37M
divided by
Revenue 151,000.00 74,000.00 11.73M 44.34M 82.85M 114.90M 112.52M 47.72M 94.37M 1.37M
Gross Margin 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% -59.91% 52.36% 100.00%

Low Capital Intensity over the past 10 years

AFFY has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that AFFY may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Capital Expenditure 134,000.00 127,000.00 1.45M 3.53M 3.78M 716,000.00 730,000.00 1.27M 4.06M -
divided by
Net Income -21.40M -32.58M -48.29M -43.07M -86.51M -76.53M -14.08M -61.37M -93.41M -14.42M
Capital Expenditure Ratio -0.63% -0.39% -3.01% -8.18% -4.37% -0.94% -5.19% -2.06% -4.35% -

No Dividend History over the past 10 years

AFFY has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 305,000.00 326,000.00 1.51M 14.94M 15.22M 18.87M 24.49M 33.29M 36.34M 37.45M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End - - 34.04 21.96 9.95 25.43 6.65 6.61 18.54 0.76
Dividend Yield - - - - - - - - - -

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that AFFY hasn't initiated a stock buyback.
Figures in USD. Fiscal year ends in December
2004200520062007200820092010201120122013
Shares Outstanding 305,000.00 326,000.00 1.51M 14.94M 15.22M 18.87M 24.49M 33.29M 36.34M 37.45M
Stock Bought Back - -6.44% -78.38% -89.91% -1.83% -19.32% -22.96% -26.44% -8.40% -2.95%
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