The outlook has not changed except for the shorts who want to instill fear and who are pretty adamant about the non-return of a drug that is linked to fatalities. If you think that this is the case then please don't look at the chain of events that have just occurred on ARIAD Pharmaceuticals -- ARIA.
All that I can tell you is that Takeda is in control here. The investigation is ongoing per management.
AFFY's lights are still on. Cash in the bank and a low burn rate.
I suspect that more updates will follow.
BTW, I'm long ARIA and AFFY...many other biotechs too that were faded and are currently reversing.
Do the lawyers for the many lawsuits work for free? I wonder how AFFY will pay all the lawyers for the humongous lawsuits. I wonder how many millions each family will justly receive for the horrific pain and suffering and death wrought by O. These are financial considerations that are important.
GlaxoSmithKline has paid out at least $750 million to settle more than 50,000 Avandia lawsuits and has set aside more than $6 billion for all litigation and settlements related to the drug.
In 2011, the company agreed to pay $68.5 million to settle cases in 37 states and the District of Columbia. The same year, AstraZeneca also set aside $647 million to resolve global lawsuits claiming Seroquel causes diabetes.
Just a few examples of what much larger law suits have paid out. But my point is that AFFY is facing litigation on a much smaller scale so if there any punitive and legal penalties, they would probably be in the tens of millions. Nothing too extreme. Also considering, that Omontys has yet to be proven as the sole cause of death, (or even a contributing factor), and that there are several issues being brought up about the manufacturer and dialysis centers, I'd call the possibility of a worst case litigation for AFFY, pretty slim. Just my reasoning.