2-Star Stocks Poised to Plunge: Affymax?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Affymax (NAS: AFFY) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Affymax's business and see what CAPS investors are saying about the stock right now.

Affymax facts

Headquarters (founded)Palo Alto, Calif. (2001)
Market Cap$452.2 million
IndustryBiotechnology
Trailing-12-Month Revenue$47.7 million
Management

CEO John Orwin

CFO Herbert Cross

Cash/Debt$98.5 million / $0.0 million
CompetitorsAmgen
Roche
Johnson & Johnson

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 24% of the 132 members who have rated Affymax believe the stock will underperform the S&P 500 going forward.

Earlier this week, one of those bears, All-Star TSIF, touched on the stock's seemingly unsustainable valuation:

I suspect the share price and the drug sales of Omontys will be rather ANEMIC in the ... short run.

Overall ... approval of Affymax's injectable drug Omontys, once [monthly] for those with kidney disease, should be lower cost than the monopoly drugs currently on the market.

The rise in share price prior to the announcement pretty much values Affymax [fairly] for now, especially with the split that will go to [Takeda Pharmaceutical]. ... The road to production is generally long and those investing in FDA catalyst drugs are generally not loyal.

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At the time this article was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of Johnson & Johnson.Motley Fool newsletter serviceshave recommended buying shares of Johnson & Johnson and creating a diagonal call position in Johnson & Johnson. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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