Affymax board decides to dissolve company

Affymax Inc. announced that its board of directors has approved the liquidation and dissolution of the company, subject to stockholder approval, and plans to distribute all available cash to its stockholders as soon as legally permitted and reasonably practicable. The company said in a news release that 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, 2014 and the remaining cash of approximately $4 million as of May 2014.

Affymax intends to call a meeting of its stockholders to seek approval of the dissolution and will file proxy materials with the Securities and Exchange Commission as soon as practicable, according to the news release.

This decision follows the recent announcement that Affymax and Takeda Pharmaceutical Company Limited would end Omontys product collaboration in September.

The companies said they completed an investigation following reports of serious hypersensitivity reactions including anaphylaxis. No quality or manufacturing issues were found, but the companies could not identify a specific root cause for the reactions that were observed. Ninety-eight adverse events tied to the drug were reported to the FDA.