The board of directors of biopharmaceutical company Affymax has approved the liquidation and dissolution of the company, subject to stockholder approval, and plans to distribute all available cash to its stockholders.
The company estimates the aggregate amount of the distribution to stockholders could be a few cents per share, based on 37,490,095 shares of common stock outstanding as of April 30, and the remaining cash of approximately $4 million as of May.
This decision follows the recent detailed investigation by Takeda Pharmaceutical of post-marketing reports of serious hypersensitivity reactions for OMONTYS, including anaphylaxis, which may be life threatening or fatal. Takeda confirmed no quality or manufacturing issues were present, but it was not able to identify a specific root cause for the reactions observed. OMONTYS will not be returned to the market and Takeda is working with the FDA to withdraw approval. Based on this outcome, Affymax determined it to be in the best interests of the stockholders to dissolve the company.
The plan of liquidation and dissolution involves an orderly wind down of the company's remaining business and operations.
If, prior to its dissolution, the company receives an offer for a transaction that will provide superior value to stockholders, taking into account all factors that could affect valuation including timing, certainty of payment and closing and proposed terms and other factors, the plan of liquidation and dissolution could be abandoned in favor of such a transaction.