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8/31 cls

Affymax Inc. (NASDAQ:AFFY)


Ed Arce

Price target




Arce raised his target to $26 from $21, saying the Street does not "fully appreciate" the revenue and earnings potential of Affymax's co-commercialization deal with Takeda Pharmaceutical Co. Ltd. (Tokyo:4502) for once-monthly anemia drug Omontys peginesatide. He believes Affymax could reach sustainable profitability in 2014 based on "strong early adoption" of Omontys by key customers. Arce raised his estimates for the number of U.S. patients who will be on Omontys by year end to nearly 19,000 from 6,500. He anticipates an EU launch of the synthetic peptide-based erythropoiesis-stimulating agent (ESA) in 2Q13 and projects 2013 worldwide Omontys sales of $225.6M. Omontys is approved in the U.S. to treat anemia in chronic kidney disease patients (CKD) on dialysis.


Stifel Nicolaus Weisel

Joel Sendek

Price target




Sendek lowered his target to $10 from $13 after partner Kyowa Hakko Kirin Co. Ltd. (Tokyo:4151) suspended enrollment in the Phase III ATTENTION trial of tivantinib in non-small cell lung cancer (NSCLC) patients due to an imbalance of interstitial lung disease between treatment arms (see B19). He believes this also increases the risk of a setback for the Phase III MARQUEE trial, which he calls the "primary value driver" for the company. MARQUEE is in NSCLC patients, and is being conducted by ArQule and partner Daiichi Sankyo Co. Ltd. (Tokyo:4568; Osaka:4568). Tivantinib is a small molecule inhibitor of c-Met receptor tyrosine kinase.