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Affymax, Inc. Message Board

  • shabamoon shabamoon Apr 13, 2013 3:28 PM Flag

    Why bk not possible and not an option.

    Not only bk is not an option there has been strong indications that the company is not even thinking that despite all their the public future damage control statements:

    1-Any dummy know that no sane company ever pays their largest and practically only debt ($12 million in Affymax's case) days before filling bk. Their payment of this large bank loan was and is , in my view, a death nail in the coffin of bk speculators;

    2- No sane company or a bk judge will ever even consider a bk when there are no debt as such just based on non-proven lawsuits which company is on the record to claim they are all baseless;

    3- Even if a bk judge agrees to hear the case he/she will throw it out immediately because of all the potential hundreds of millions in future earnings, including royalties and milestones again while there are no debts;

    4-the company has absolutely no incentive and many disincentives for bk; They have insurance to cover the lawsuits (which by the way are absolutely baseless as company is done everything according to FDA's recommendation and the problem has not been the medication but allergic reactions to the medication which applies to nearly ALL medications in the market;

    5-If there was any incentive regarding the lawsuits to file are now irrelevant because Takeda now holds the future of Omontys and they are the ones with deep pocket and are also named in every lawsuit.

    I believe a buy-out is what the company is seriously considering at this very moment but they are also content to await Takeda's investigation of Omontys's recall issues and hopefully using those funds to go after other drugs, buy back shares, etc.

    Sentiment: Strong Buy

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