"With drug approval only being half the battle, it appears that investors are just happy to see revenue streaming in from initial Omontys sales. However, I have to point out that with only one FDA-approved drug on pharmacy shelves and losses mounting, Affymax's run higher may be a bit overdone. It's a bit difficult to support a company that's quadrupled in price and is still two years away, at minimum, from being profitable. Needless to say, I'm perfectly happy remaining an innocent bystander here".
Wow, guys dont look at monthly movements in price. Motley has agenda and have no clue on whether a comany is pre-revenue or not and applies the same analysis - hello. Here is my take and what I replied to Fool:
Losses are mounting as expected on initial roll-out? Did you listen to the quarterly call? Not sure I have heard better news in a long time - product acceptance, sales #s, strategic wins...They are funded to profitability for sure.
Your conclusion that it is difficult to support a company whose stock price has quadrupled in price is baseless. Its was a binary decision on whether Omontys was approved or not so of course it could have quadrupled. They were a pre-rev company! Guys, come on that sounds really amateurish comparing to an ongoing entity.
Affy is executing on a major incursion into Amgen 20 year monopoly and they have every single advantage in a comparison chart - and their already deliving and have forecast that seems to support. You didnt comment at all on why you think the core product / business doesnt look good. In fact, your naivety shows when you said "but it did note that $10.4 million of its $13.6 million in revenue came from payments by Takeda Pharmaceuticals concerning its partnership on Omontys, an injectable anemia treatment." Hello... that is their initial sales/profit.