Affymax, Inc. (Nasdaq: AFFY) today reported financial results for the
first quarter ended March 31, 2012. The net income for the first quarter
of 2012 was $31.5 million (or $0.87 per share) compared to a net loss of
$9.6 million (or $(0.36) per share) for the first quarter of 2011.
Affymax recognized total revenue for the quarter ended March 31, 2012,
of $63.2 million compared to $16.7 million for the quarter ended March
31, 2011. The increase in revenue was the result of $58 million in
milestones earned during the quarter from the company's partner, Takeda
Pharmaceutical Company Limited, under their 2006 collaboration agreement
for Affymax's compound, OMONTYS® (peginesatide) Injection.
Specifically, the company earned a $5 million milestone for the
acceptance of a Marketing Authorization Application in Europe and $53
million in milestones for securing U.S. approval.
Research and development expenses for the quarter ended March 31, 2012,
were $16.1 million compared to $18.2 million for the quarter ended March
31, 2011. The decrease was primarily due to reduced consulting costs as
a result of the completion of the filing of our New Drug Application
with the U.S. Food and Drug Administration (FDA) in May 2011 and reduced
personnel-related costs. This was partially offset by ongoing clinical
trial activity for the company's Phase 3b trial, and an ongoing Phase 2
study in Pure Red Cell Aplasia patients.
Selling, general and administrative expenses for the quarter ended March
31, 2012, were $15.6 million compared to $8.2 million for the quarter
ended March 31, 2011. The increase was primarily due to increases in
commercialization costs as the company prepared for the launch and
commercialization of OMONTYS.
The company had cash and investments of $93.5 million as of March 31,
2012, which only included receipt of $5.0 million of the $58.0 million
of milestones earned during the first quarter of 2012. The remaining
$53.0 million in milestones earned in the first quarter were included in
the $58.3 million balance in receivables from Takeda, as payments of
those amounts had not been received as of March 31, 2012.
"The year is off to a phenomenal start with the approval of OMONTYS on
March 27," said John Orwin, chief executive officer of Affymax. "Since
that time, we secured a product specific Q-code from CMS which will
streamline reimbursement and also launched the product with two product
configurations. We look forward to reporting progress of OMONTYS
adoption and integration by dialysis providers."