Inside Affymax management: cash preserved; Will complete investigation if not buy-out
I can clearly see what is going on inside the Affymax's management; They may have some argue they could have lunched the investigation without the recall but others argue recall was the right thing to do since there were 3 deaths involved even though that is considered very small number by any standard (3 out of 25000 patients is exactly 0.012% and not even the 0.02% previously and erroneously mentioned).
But now the management also has a more relaxed feeling as the lay off is provided them the opportunity to either complete the investigation and return the drug to the market or negotiate a less rushed buy-out/merger deal (with a better price). Meanwhile the 25% of the staff that were retained gives them the manpower for both the investigation, the negotiation for any buyout and to run the day to day affairs to maintain the company.
Of course they also know that as the investigation winds down toward a favorable conclusion that more credit facilities will be come available.
Is there a worry that cash may not last? Of course there is always such a worry and that is exactly why they tried in their last PR to force their Japanese partner to contribute more funds towards the investigation threatening that bankruptcy may become an option if they run out of funds with investigation not concluded yet with not buyout or partnership. This was obviously just a not well thought out ploy to force the hand of their partner which obviously backfired with share prices crashing to where they are which by the way is exactly the opportunity that helped me and many others to load up.
Just my take on inside Affymax's management's brain. You can say I have a knack for reading managements minds.
we have seen many companies lay off employees during the reccession....only saves money, and mentioning bk as possibility only keeps the fda on their side......fda wants to see this drug work out......it was fda approved after all.JMHO