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What: Shares of biopharmaceutical company Affymax (NAS: AFFY) jumped as much as 11% today after the company reported better-than-expected third-quarter results.
So what: For the quarter, Affymax reported a 3% increase in revenue to $13.6 million, and quarterly loss of $0.68 per share compared to a loss of $0.28 per share last year. Both figures slid ever-so-slightly past Wall Street's expectations for a loss of $0.70 on revenue of $13.4 million. Consistent with its previous guidance, Affymax doesn't anticipate receiving any additional collaborative revenue in 2012, 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.
Now what: 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.
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The article Why Affymax Shares Popped originally appeared on Fool.com.Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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