Affymax Shares Plummet After Anemia Drug Omontys Is Recalled

By on February 25, 2013

Affymax, a Palo Alto, California-based biopharmaceutical company, has recalled an anemia treatment for kidney dialysis patients following the death of three dialysis patients in February.  The patients were said to have died from severe allergic reactions to Omontys, Affymax’s only approved drug.

Shares are down 85% intraday, falling $14 per share to trade at $2.45, roughly equal to its per-share cash position.

The U.S. Food and Drug Administration disclosed on Sunday that it had been informed of 19 reports of anaphylaxis, a serious allergic reaction, and that three  patients had died.  Other patients needed rapid medical care or hospitalization.

All lots of Omontys have been recalled and physicians and doctors have been informed that patients should not use the medicine, Affymax and its partner Takeda Pharmaceutical said in a joint statement.