Affymax has been in news only for its negatives. A couple of months ago, on February 25, 2013, the company declared that it would withdraw its sole drug in the market, Omontys. Omontys is an injection of peginesatide which is utilized in the treatment of anemia. On March 18, 2013, the company announced one more adverse statement that it would lay off 75% of its total employee headcount. These strings of negative events culminated into panic across markets. The stock was hugely oversold, but after the string of negative events, majority of the investors sold off their stakes. Some are still holding on the stock; however, are losing their patience. However, the company offers an optimistic story of turnaround. AFFY is sitting on a huge pile of cash of around $100 Million and had a market capitalization of $51.11 Million on March 28, 2013. It is also said that the recall was made way too early as only 0.02% of the patients treated were facing fatal issues. This could also be because of measures which are not in control of the management like process of administration of Omontys or issues of hypersensitivity. With huge cash balance and decreased expenses (75% total employee lay off), the management could finance an investigation against the cases related to side-effects of Omontys. Moreover, Takeda, company with better prospects, if takes over AFFY, it could also mean a survival for AFFY.
You need to get your facts straight. Affy signed over the rights of O to takeda. Takeda now has the responsibility to do the investigation and try to get O back on the market in the U.S. and around the world. If O gets on back on the market then affy shareholders get paid or affy sells there rights outright to takeda or another company. Thats it. Thats the gamble.