PALO ALTO, Calif. (AP) – Biotech drugmaker Affymax Inc. reported a smaller third-quarter loss and said it settled litigation with Johnson & Johnson over its top drug candidate, the anemia treatment peginesatide.
Affymax said it lost $9.8 million, or 28 cents per share, compared with $12 million, or 49 cents per share, a year ago. The company’s research and development costs decreased because it completed clinical trials of peginesatide.
During the quarter it received a $10 million milestone payment from Takeda Pharmaceutical Co. after the Food and Drug Administration accepted their marketing application for peginesatide, a treatment for anemia in patients with chronic kidney failure.
Affymax’s revenue slipped 21 percent to $13.2 million from $16.8 million.
Analysts expected a loss of 32 cents per share on $16.2 million in revenue, according to FactSet.
Affymax also said it settled a lawsuit with Johnson & Johnson’s Janssen Biotech unit over peginesatide. Affymax agreed to pay Janssen $6 million upfront and will make an additional $2 million payment by June 30. It will pay $2.5 million if peginesatide is approved in the U.S. and $2.5 million more if it is approved in Europe. Takeda can reimburse Affymax for up to half of those costs. J&J will also get royalties on sale of peginesatide in Europe, Mexico, Canada, and Japan until mid-2016. Affymax said the royalties will be in the low single digits.
Affymax and Janssen collaborated on research between 1992 and 1995. In October 2010 an arbitration panel determined that Affymax and Janssen co-owned intellectual property related to the drug, including several patents.
The FDA is scheduled to make a decision on peginesatide on March 26. Takeda will pay Affymax $50 million if the drug is approved. In 2011, Affymax said it now expects $25 million to $30 million in payments from Takeda, up from $20 million to $25 million. It also forecast lower operating expenses at $95 million to $100 million, down from $100 million to $105 million.
Date: November 9, 2011
Source: Associated Press
