Down 60%: Affymax Cuts to the Bone

Affymax has collapsed under the weight of a recall of its only product, Omontys. Shares are down 85% in 2013 as what once looked like a promising challenger to Amgen's Epogen is beset by safety questions that could leave it permanently shelved.

Bizarrely shares of Affymax spiked more than 50% in a single day earlier this month, and despite no hard news backing the move, weary shareholders were hoping this was the beginning of a turnaround.

Unfortunately, that doesn't appear to be the case. Affymax fell another 64% today after disclosing that it was slashing its workforce dramatically and reiterating that it was looking at strategic options including bankruptcy. Amgen was up 2% as Omontys is stuck on the sidelines for the foreseeable future.

Health-care analyst David Williamson tackles the days news and spells out what it means for Affymax and investors.

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The article Down 60%: Affymax Cuts to the Bone originally appeared on Fool.com.

David Williamson has no position in any stocks mentioned. Follow him on Twitter: @MotleyDavid.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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