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Affymax, Inc. (AFFY) Message Board

  • affy_fly affy_fly Jun 20, 2013 2:20 PM Flag

    To Godwinpeak: Takeda is named as defendant, or voluntarily joined as a defendant?

    Hi Godwinpeak, could you answer me the above question? It would be best if you can point out some internet article.

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    • did this happen? Do you have a reference?

    • There will be no article on the internet discussing why Takeda is joined as a defendant. As a retired lawyer with over 30 years practice experience, I do know the answer. In order to be "voluntarily joined" as a defendant, Takeda would have had to file a motion in the securities class action for leave to be added as a defendant. For anyone to do such a thing is as rare as hen's teeth and the times it happens is about the same as the percentage impurities in Ivory Soap. Moreover, I have seen the docket entries for the class action, as well as the original complaint, and Takeda was always a named defendant in the original complaint. There is no Takeda motion to intervene and be named a defendant in the class action.

      The reason Takeda is named as a defendant is (1) because the plaintiff's attorney identified Takeda as potentially liable to AFFY shareholders in the plaintiff class who claim that misleading statements artificially inflated AFFY's share price, and (2) plaintiff's attorney believes he can prove that Takeda owed a duty to the AFFY shareholders to make sure that truthful disclosures were made and is jointly culpable with AFFY in the false and misleading disclosures or failures to disclose about O's actual patient safety profile. Bottom line: Takeda is named as a defendant and did not want seek itself to become a defendant. I hope that answers your question.

      • 1 Reply to godwinpeak
      • You professionally elobarated the logic well. My guess too. Thanks.

        Since Takeda and AFFY are dragged into the same boat, doesn't it motivate Takeda not to sink the boat?! If AFFY go bankruptcy and no meat can be squeezed out, Takeda will be forced to take 100% responsibilty of the liability. On the other hand, if Takeda use the money of lawsuit cost for a buyout of Takeda (say $10/share), not only Takeda can relieve the burden of lawsuit, but also can gain $583M tax credit and obtain the intellectual property. It's a much better deal than lose everything in drain.

        Don't look down on AFFY's intellectual property. Even if Omontys can not go back to the market, chemists can make modifications on Omontys and come out a second generation of Omontys. Johnson Johnson just purcahsed Agon, which has the second generation of MDVN's super prostate cancer drug. If AMGN is smart, AMGN should make a bid to #$%$ the intellectual property, too. So a strategic buyout by Takeda is the best choice for everybody except those class action lawsuit lawyers.

        By the way, what's cost of such class action lawsuit for a company, for example, AFFY and Takeda respectively? What's the typical reward for such lawsuit? What's the estimated number if Takeda do the buyout? What's the number then if AFFY go bankruptcy? Thanks ahead.

 
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