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Affymax Reports Second Quarter 2014 Financial Results

Companies mentioned in this article: Affymax, Inc.

CUPERTINO, Calif. -- (BUSINESS WIRE) -- 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 Ended
June 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
 


Copyright © Business Wire 2014
Contact:

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