1. No simple explanation for the allergic reactions so now the investigation is gonna get expensive.
2. Takeda execs have a fiduciary duty to write off O than run the risk of throwing good money after bad to salvage it.
3. O still may still have value, but AFFY can only unlock that value by selling its rights to O or diluting shareholders to oblivion.
The best case scenario was that there would be a readily discernible explanation for the adverse reactions. Today's filing was an acknowledgment that no favorable scenarios remain. The workforce and executive layoffs would not have been implemented unless all hope was lost. The only question remaining is whether or not it's worth selling for a buck a share.