For definitions and the distribution of analyst ratings, and other disclosures, please refer to pages 29 - 30 of this report. ® March 23, 2012 Affymax, Inc. (AFFY) INITIATING COVERAGE LIFE SCIENCES Market Outperform / Speculative Risk Michael G. King, Jr. 212-430-1794 [email protected]When One Against Thirteen Wins Easily MARKET DATA 3/22/2012 Price 12.44 Exchange NASDAQ Target Price 20.00 52 Wk Hi - Low 13.14 - 3.93 Market Cap(MM) 445.0 EV(MM) 346.5 Shares Out (MM) 35.8 Public Mkt Float (MM) 148.1 Avg. Daily Vol 1,186,240 Short Interest 3,160,135 BALANCE SHEET METRICS Cash (MM) 98.5 LTD (MM) $0.0 Total Debt/Capital NA Cash/Share 2.76 Book Value(MM) NA Book Value/Share 2.13 EARNINGS DATA ($) FY - Dec 2011A 2012E 2013E Q1 (Mar) (0.25) 0.87 (0.69) Q2 (Jun) (0.28) (0.44) (0.69) Q3 (Sep) (0.21) (0.74) (0.67) Q4 (Dec) (0.76) (0.67) (0.59) Full Year EPS (1.54) (0.93) (2.63) Revenue (MM) 47.7 100.7 107.0 Net Income (MM) (61.4) (44.8) (128.4) EPS: Non-GAAP EPS shown above VALUATION METRICS Price/Earnings NM NM NM EV/Revenue 7.3x 3.4x 3.2x Y/Y EPS Growth NM 182.8% EV/Sales INDICES DJIA 13,046.1 SP-500 1,392.8 NASDAQ 2,731.5 NBI 1,259.3 Q1 Q2 Q3 Q1 0 3 6 9 12 15 2011 2012 1 Year Price History Created by BlueMatrix 0 5 10 15 20 25 Affymax: Less is More. We are initiating coverage of Affymax, Inc., (AFFY) with a Market Outperform rating and a target price of $20. AFFY is on the brink of FDA approval and launch of its non-EPO erythropoiesis stimulating agent (ESA), peginesatide (previously known as Hematide) for use in the treatment of severe anemia in patients with end-stage renal disease (ESRD) currently on dialysis. In our view, approval is likely by the product’s PDUFA date of March 27, 2012. Upon approval, AFFY will begin to chip away at Amgen’s (AMGN, Not Rated) 20-year monopoly over the dialysis space. We believe that the market uptake of peginesatide will be aided by both its once-monthly dosing regimen (and the inherent pharmcoeconomic benefits compared to Epogen, which is administered on average 13 times per month) and the increasingly cost-conscious nature of dialysis organizations since the introduction of new reimbursement regulations for patients on public insurance. Economic benefits are clear, but will inertia and AMGN’s blocking tactics limit uptake? Although the benefits of peginesatide may be obvious, especially within the already thin margin environment most dialysis organizations exist, the fact remains that AMGN has had a 20-year head start and has been able to secure long-term contracts with the country’s two dominant large dialysis providers (LDOs), DaVita (DVA, Not Rated) and Fresenius (FSNUY, Not Rated). Together these two organizations hold between 65-75% of the dialysis market. However, AFFY has a significant near-term opportunity with the medium and small dialysis organizations (MDOs and SDOs). These providers have had neither the ability to negotiate favorable prices like the LDOs nor therapeutic alternatives. These organizations, which represent ~25% of the market, will likely be the early adopters of peginesatide looking to free themselves from the grip of AMGN’s monopoly. Shares appear poised for a greater than 50% move, little downside risk. Despite the increase in share price in recent days, in our view, the value of AFFY, at roughly $450mm, is held back by two factors: AMGN’s legacy in the dialysis space and the safety signal that was seen in the PEARL study, which explored use of peginesatide in the pre-dialysis setting. We see little risk to approval given the positive 15-1 vote by Oncologic Drugs Advisory Committee (ODAC) in December of 2011. Commercialization of new products is always tricky, especially in the current environment; however, we believe peginesatide is an ideal product for the dialysis market given the new “bundled” pricing structure. In addition, AFFY’s relationship with Takeda (4502-JP, Not Rated) has provided non-diluted financing and will provide the depth and competencies necessary to reach into the marketplace. Despite the pending approval, shares are currently priced significantly below those in its peer group. The company is also followed by only six sell-side analysts, compared to over 40 who cover Amgen. In our view, this informational imbalance presents investors with an opportunity for significant appreciation.
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For definitions and the distribution of analyst ratings, and other disclosures, please refer to pages 29 - 30 of this report.
Affymax: Less is More. We are initiating coverage of Affymax, Inc.,(AFFY) with a Market Outperform rating and a target price of $20. AFFYis on the brink of FDA approval and launch of its non-EPO erythropoiesisstimulating agent (ESA), peginesatide (previously known as Hematide)for use in the treatment of severe anemia in patients with end-stagerenal disease (ESRD) currently on dialysis. In our view, approval is likelyby the product’s PDUFA date of March 27, 2012. Upon approval, AFFYwill begin to chip away at Amgen’s (AMGN, Not Rated) 20-yearmonopoly over the dialysis space. We believe that the market uptake ofpeginesatide will be aided by both its once-monthly dosing regimen (andthe inherent pharmcoeconomic benefits compared to Epogen, which isadministered on average 13 times per month) and the increasinglycost-conscious nature of dialysis organizations since the introduction ofnew reimbursement regulations for patients on public insurance.
Economic benefits are clear, but will inertia and AMGN’s blockingtactics limit uptake? Although the benefits of peginesatide may beobvious, especially within the already thin margin environment mostdialysis organizations exist, the fact remains that AMGN has had a20-year head start and has been able to secure long-term contracts withthe country’s two dominant large dialysis providers (LDOs), DaVita(DVA, Not Rated) and Fresenius (FSNUY, Not Rated). Together thesetwo organizations hold between 65-75% of the dialysis market. However,AFFY has a significant near-term opportunity with the medium and smalldialysis organizations (MDOs and SDOs). These providers have hadneither the ability to negotiate favorable prices like the LDOs northerapeutic alternatives. These organizations, which represent ~25% ofthe market, will likely be the early adopters of peginesatide looking tofree themselves from the grip of AMGN’s monopoly.
Shares appear poised for a greater than 50% move, little downsiderisk. Despite the increase in share price in recent days, in our view, thevalue of AFFY, at roughly $450mm, is held back by two factors: AMGN’slegacy in the dialysis space and the safety signal that was seen in thePEARL study, which explored use of peginesatide in the pre-dialysissetting. We see little risk to approval given the positive 15-1 vote byOncologic Drugs Advisory Committee (ODAC) in December of 2011.Commercialization of new products is always tricky, especially in thecurrent environment; however, we believe peginesatide is an idealproduct for the dialysis market given the new “bundled” pricing structure.In addition, AFFY’s relationship with Takeda (4502-JP, Not Rated) hasprovided non-diluted financing and will provide the depth andcompetencies necessary to reach into the marketplace.
Despite the pending approval, shares are currently pricedsignificantly below those in its peer group. The company is alsofollowed by only six sell-side analysts, compared to over 40 who coverAmgen. In our view, this informational imbalance presents investors withan opportunity for significant appreciation.
2RODMAN & RENSHAW EQUITY RESEARCH
Investment Thesis – Breaking Through the Red Fortress
Affymax is developing peginesatide, previously known as Hematide, as the first truly novel erythropoiesis
stimulating agent (ESA) since the launch of AMGN’s Epogen. While the language of this statement is
simple, the task of developing a small peptide drug that mimics the action of recombinant human
erythropoietin, a 40,000 dalton protein molecule, cannot be overstated. Also not simple, and perhaps
even more complex, will be the market launch of peginesatide. Though the unique once-monthly dosing
requirement of peginesatide can save hundreds of dollars per patient per year for a busy dialysis practice
versus the multiple-times per week dosing for Epogen, AFFY will have to fight the inertia built up over the
past 20 years. This would certainly have applied to the renal dialysis industry of the past; however, a
tectonic shift occurred in 2010 when the Centers for Medicare and Medicaid Services (CMS) changed its
reimbursement policy towards the drugs that are used in dialysis patients and turned them from a profit
center into a cost center. It is on this background that the emergence of peginesatide onto the market
comes with a tailwind blowing behind it.
The problems that Amgen has experienced with Epogen have been well documented and described by
many in the investment community and therefore will only be touched upon minimally in this report.
Suffice it to say that the recent label updates from FDA, based on the results of studies such as TREAT
and CHOIR, have significantly reduced the use of Epogen in the dialysis patient population. For example,
sales of Epogen were $2.040 billion in FY11, vs. $2.569 billion during FY09. While sales of Epogen in the
dialysis market are down from a peak of roughly $4 billion in 2008, the US market is still attractive to a
small company like AFFY. The rest of world (ROW) market opportunity is likewise significant, though
complicated by the presence and competition of biosimilar EPOs.
In mid-2006, AFFY entered into a lucrative partnership with Takeda worth over $600MM in upfront
($132MM) and potential milestones. According to the deal terms, the companies will co-commercialize
peginesatide in the US and Takeda will have an exclusive license to develop and commercialize the drug
in the rest of the world. Takeda showed its dedication to peginesatide with a swift filing of an NDA in
Japan; however, Takeda recently announced that it intends to sub-license the rights to peginesatide in
Japan. On the competitive front, we do not expect AMGN to block commercialization (as it did against
Micera from Roche (RHHBY, Not Rated) given that the peptide sequence of peginesatide is unrelated to
recombinant EPO and does not infringe AMGN’s IP estate.
Affymax, Inc. March 23, 2012
3RODMAN & RENSHAW EQUITY RESEARCH
Investment Risks
Regulatory. Like any pharmaceutical or biotechnology company, marketing and commercialization is
dependent on the ability to obtain approval from FDA and/or foreign regulatory authorities such as EMEA.
Regulatory agencies may not approve peginesatide or may request that additional studies be performed
before approval can be obtained. Peginesatide has a near-term PDUFA date (March 27th, 2012) at which
time it may be rejected or its approval may be delayed, in which case AFFY and Takeda may have to re-
run certain studies. Even if approved, AFFY may be required to conduct additional studies. Additionally,
there is no guarantee that peginesatide will be approved in regions outside of the US. In addition, the
regulatory environment for ESAs has recently been acutely focused in safety. Given that a cardiovascular
safety signal emerged in the PEARL 1 and 2 trials, the FDA may choose to proceed slowly on the
approval of peginesatide despite the 15-1 vote in favor of a recommendation for approval from the ODAC.
Commercial. AFFY is currently developing its first product, peginesatide, which is awaiting an approval
decision by the FDA. AFFY has no other drugs in clinical or pre-clinical development. As a result, any
setback that may occur with respect to whether peginesatide can be made commercially successful will
likely have a negative material impact on the stock.
Competitive. As the only peptide-based therapy for the treatment of anemia, AFFY has a clear
competitive advantage in our view. However, AFFY faces multiple competitive pressures. Should
peginesatide obtain approval in the US, AFFY will face significant competitive pressure from AMGN.
AMGN is significantly larger than AFFY and can deploy more resources. Further, AMGN has more than
20 years of experience and relationships with dialysis organizations. Specifically in the US, AMGN has
already signed long-term contracts with the two largest dialysis organizations: DaVita (exclusive) and
Fresenius (non-exclusive). This may restrict AFFY’s ability to secure business from these organizations.
However, changes in the competitive landscape, such as new entrants or the launch of new drugs ahead
of peginesatide, could materially alter the market potential of the drug. Additionally, AFFY will face
competition from multiple biosimilar versions of EPO, as well as from Mircera. These additional
competitors may have a negative effect on the competitive positioning of peginesatide.
Financial: Like most non-profitable biotechnology companies, AFFY may need to raise additional capital
either through an equity offering or another transaction in the interim, which could result in a dilution of
existing shareholder value. AFFY ended 4Q11 with a cash balance of just under $100 million. The
company expects 2012 operating expenses, net of Takeda reimbursements, to be approximately $135-
$145 million.
Table 1. Upcoming Milestones
Milestones Timing
Peginesatide PDUFA March 27, 2012 Communication of price of peginesatide from AFFY and Takeda 2Q 2012 Formal launch of peginesatide 2Q 2012 Publication of Phase III results 2012 Formal J-code for reimbursement Late 2012/Early 2013 Decision from EMA on European submission Mid 2013
Affymax, Inc. March 23, 2012
4RODMAN & RENSHAW EQUITY RESEARCH
Valuation
Our price target of $20 was derived from the synthesis of four valuation methodologies: discounted cash
flow (DCF), our standard CAGR-driven model, and public company comparable valuation analysis (See
Table 2). Additionally, we recognized that the company’s valuation could be limited by its revenue share
from the peginesatide collaboration. As such, we also valued what those revenues would equate to on a
per share basis ($22.62) based on our projected year-end 2012 share count).
Table 2. Synthesis of Valuation Methodologies
DCF Methodology
In order to arrive a discount cash flow valuation, we first modeled revenues through 2021 for peginesatide
in the US and ROW. For the US, we began by looking at the most recent CMS Renal data, detailing that
380,000 patients are on dialysis in 2011. We then split the US market into 3 segments: patients-treated
at Fresenius centers, patients treated at DaVita centers, and those treated at other centers”. We
modeled in unique market penetration curves for each segment leading us to specific cash flows after
expenses for each year. Our assumptions are described in greater detail in the Peginesatide – Market
Projections section.
We assumed a discount rate of 17.5% to arrive at an equity valuation of $817MM. To this, we added the
current cash on hand to arrive at an enterprise valuation (AFFY has essentially zero debt) of $910MM.
Divided by our projected outstanding shares figures for year-end 2012 of $46.6MM (diluted shares plus
outstanding options and warrants), we arrived at a valuation per share of $19.48. Our model is detailed
Ms. Wheeler has served as vice president, Corporate Communications, for Affymax since April 2010.
From 2007 to 2010, she served as executive director, Corporate Communications, for Affymax. From
2004 to 2007, she served as senior director, Corporate Communications, for Depomed, Inc (DEPO, Not
Rated). From 2000 to 2003, she served as director, Corporate Communications, for Cerus Corporation
(CERS, Not Rated). From 1997 to 2000, she served as director, Corporate Communications, for Coulter
Pharmaceutical, Inc. From 1995 to 1997, she served as director, corporate relations and planning,
Connetics Corporation. Ms. Wheeler serves as a member of the board of directors for the National
Kidney Foundation Northwestern U.S. Division. She earned her MBA from the University of San
Francisco and a B.A. in Biology from San Francisco State University.
Board of Directors
Hollings C. Renton, Chairman of the Board
Mr. Renton retired from chairman of the board at Onyx Pharmaceuticals, Inc. (ONXX, Market
Outperform), a biopharmaceutical and biotherapeutics company, in March 2008, where he also served as
president and chief executive officer from 1993 and as director from 1992. Prior to joining Onyx, Mr.
Renton was the president and chief operating officer of Chiron Corporation (since acquired by Novartis;
NVS, Not Rated). He assumed that position in 1991 on Chiron's acquisition of Cetus Corporation, a
biotechnology company, where he had been president since 1990 and chief operating officer since 1987.
He joined Cetus Corporation in 1981 and was chief financial officer from 1983 to 1987. Mr. Renton
currently serves as the co-chair and lead director of Portola Pharmaceuticals, a pharmaceutical company,
and as a member of the board of directors of Rigel Pharmaceuticals (RIGL, Not Rated), a pharmaceutical
company, Cepheid Corporation (CPHD, Not Rated), a molecular diagnostics company, and the Special
Olympics of Northern California. Mr. Renton holds a M.B.A. from the University of Michigan and a B.S. in
mathematics from Colorado State University.
Christi van Heek
Ms. van Heek is Managing Director of BIO POINT Group, a company which she founded and is focused
on global commercialization, sales, marketing and business development. Ms. van Heek also serves on
the board of directors for Visioneering Corporation. From 1991 to 2003, Ms. van Heek served in various
roles at Genzyme, most recently as corporate officer and president, Therapeutics Division. In addition,
Affymax, Inc. March 23, 2012
27RODMAN & RENSHAW EQUITY RESEARCH
she has held various sales and marketing positions at Genentech, Inc. and Caremark (CVS, Not Rated)
/HHCA. Ms. van Heek holds a B.S.N. from the University of Iowa and received her M.B.A. from
Lindenwood University in St. Louis.
Kathleen LaPorte
Ms. LaPorte, along with other members of the Sprout Group healthcare team, founded New Leaf Venture
Partners (NLV Partners) in July 2005. NLV Partners invests primarily in firms focused on clinical-stage
biopharmaceutical products, early-stage medical devices and molecular diagnostics. In addition, NLV
Partners continues to manage the existing $800 million healthcare technology portfolio of Sprout Group.
Ms. LaPorte joined the Sprout Group in 1993 and became a General Partner in 1994. Between 1987 and
1993, she was a principal at Asset Management Company, a venture capital firm focused on early-stage
investments. Previously, she was a financial analyst with The First Boston Corporation (since acquired by
Credit Suisse; CSGN-CH, Not Rated) . Ms. LaPorte currently serves as a member of the board of
directors of ISTA Pharmaceuticals, Inc. (ISTA, Not Rated), a pharmaceutical company, Transcept
Pharmaceuticals, Inc. (TSPT, Not Rated), a pharmaceutical company, and several privately held
companies. Ms. LaPorte received a M.B.A. from Stanford University Graduate School of Business (Arjay
Miller Scholar) and a B.S., summa cum laude, Phi Beta Kappa, from Yale University.
Keith R. Leonard
Mr. Leonard currently serves as President and CEO of Kythera Biopharmaceuticals, a privately held
company focused on aesthetic medicine which he founded in 2005. Prior to Kythera, Mr. Leonard served
13 years in various roles at Amgen, Inc., most recently as senior vice president, Amgen Europe from
2001 to 2004. Mr. Leonard currently serves as a member of the board of directors of ARYx Therapeutics
(ARYX, Not Rated), a pharmaceutical company. Mr. Leonard holds a M.B.A. from the University of
California, Los Angeles; a M.S. in engineering from the University of California, Berkeley; a B.A. in history
from the University of Maryland; and a B.S. in engineering from the University of California, Los Angeles.
Ted W. Love, M.D.
Dr. Love currently serves as executive vice president, Research and Development at Onyx
Pharmaceuticals, a biopharmaceutical company. From 2001 to 2009, Dr. Love served as the president,
chief executive officer and member of the board of directors of Nuvelo, Inc., a biopharmaceutical
company, and as chairman of Nuvelo's board of directors from 2005 to 2009, prior to its merger with
ARCA biopharma, Inc. From 1998 to 2001, Dr. Love served as senior vice president of Development at
Theravance, Inc. (THRX, Not Rated) (formerly Advanced Medicine, Inc.), a biopharmaceutical company.
From 1992 to 1998, Dr. Love spent six years at Genentech, Inc. in a number of senior management
positions in Medical Affairs and Product Development. Dr. Love also serves as a member of the board of
directors of Santarus, Inc. (SNTS, Not Rated), a pharmaceutical company, and ARCA biopharma, Inc.
(ABIO, Not Rated), a biopharmaceutical company. Dr. Love holds a M.D. from Yale Medical School and a
B.A. from Haverford College.
John A. Orwin, Chief Executive Officer
Mr. Orwin has served as chief executive officer and a member of Affymax’s board of directors since
February 2011. From April 2010 to January 2011, he served as president and chief operating officer of
Affymax. From 2005 to 2010, Mr. Orwin served as vice president and then senior vice president,
BioOncology Business Unit, at Genentech, where he was responsible for all marketing, sales, business
unit operations and pipeline brand management for Genentech's oncology portfolio in the United States.
Affymax, Inc. March 23, 2012
28RODMAN & RENSHAW EQUITY RESEARCH
From 2001 to 2005, Mr. Orwin served in various executive level positions at Johnson & Johnson
overseeing oncology therapeutic commercial and portfolio expansion efforts in the US. He has also held
senior marketing and sales positions at Alza Pharmaceuticals, Sangstat Medical Corporation, Rhone-
Poulenc Rorer Pharmaceuticals and Schering-Plough Corporation. Mr. Orwin holds a M.B.A. from New
York University and a B.A. from Rutgers University.
Daniel K. Spiegelman
Mr. Spiegelman was senior vice president and chief financial officer of CV Therapeutics, Inc. (since
acquired by Gilead; GILD, Not Rated), a publicly traded biopharmaceutical company that is focused on
applying molecular cardiology to the discovery, development, and commercialization of novel, small
molecule drugs for the treatment of cardiovascular diseases. He joined CV Therapeutics in January 1998
as vice president and CFO. Previously, he was employed by Genentech, Inc., where he held a number of
positions in the treasury department, including treasurer. Mr. Spiegelman currently serves as a member of
the board of directors of Anthera Pharmaceuticals, Inc. (ANTH, Not Rated), a biopharmaceutical
company, Omeros Corporation (OMER, Market Outperform), a biopharmaceutical company,
Oncothyreon, Inc. (ONTY, Market Outperform), a biotechnology company, and Cyclacel Pharmaceuticals
(CYCC, Not Rated), Inc., a biopharmaceutical company. He previously served as a director for Xcyte
Therapies, Inc. before its merger with Cyclacel in March 2006. Mr. Spiegelman holds a B.A. in economics
from Stanford University and a M.B.A. from Stanford Graduate School of Business.
John P. Walker
Mr. Walker currently serves as senior advisor to iPierian, Inc. (formerly iZumi Bio, Inc.), a company
focused on drug discovery based on inducible stem cell technology. From 2006 to 2009, Mr. Walker
served as chairman and chief executive officer of Novacea, Inc., a pharmaceutical company, which
merged with Transcept Pharmaceuticals, Inc., a pharmaceutical company, in January 2009. Since 2001,
Mr. Walker, acting as a consultant, served as an investment advisor to MDS Capital Corp., a venture
capital firm; chairman and interim chief executive officer of KAI Pharmaceuticals, Guava Technologies,
Bayhill Therapeutics and Centaur Pharmaceuticals, Inc. From 1993 to 2001, he was chairman, chief
executive officer and a director of Axys Pharmaceuticals Inc. and its predecessor company, Arris
Pharmaceutical Corporation, a pharmaceutical company. Mr. Walker currently serves as chairman of the
board of Bayhill Therapeutics and as a member of the board of directors of Transcept Pharmaceuticals,
Inc., Aerovance, Ceregene, Inc. and Packard Children's Hospital. Mr. Walker is a graduate of the
Advanced Executive Program at the Kellogg School of Management at Northwestern University and holds
a B.A. from the State University of New York at Buffalo.
Affymax, Inc. March 23, 2012
29RODMAN & RENSHAW EQUITY RESEARCH
RODMAN & RENSHAW RATING SYSTEM: Rodman & Renshaw employs a three tier rating system for evaluating both the potentialreturn and risk associated with owning common equity shares of rated firms. The expected return of any given equity is measured on aRELATIVE basis of other companies in the same sector, as defined by First Call. The price objective is calculated to estimate the potentialmovement in price a given equity could achieve given certain targets are met over a defined time horizon. Price objectives are subject toexogenous factors including industry events and market volatility. The risk assessment evaluates the company specific risk and accountsfor the following factors, maturity of market, maturity of technology, maturity of firm, cash utilization, and valuation considerations.Potential factors contributing to risk: relatively undefined market, new technologies, immature firm, high cash burn rates, intrinsic valueweighted toward future earnings or events.
RETURN ASSESSMENT● Market Outperform (Buy): The common stock of the company is expected to outperform a passive index comprised of all the
common stock of companies within the same sector, as defined by First Call.● Market Perform (Hold): The common stock of the company is expected to mimic the performance of a passive index comprised
of all the common stock of companies within the same sector, as defined by First Call.● Market Underperform (Sell): The common stock of the company is expected to underperform a passive index comprised of all
the common stock of companies within the same sector, as defined by First Call.
RISK ASSESSMENT● Speculative - The common stock risk level is significantly greater than market risk. The stock price of these equities is
exceptionally volatile.● Aggressive - The common stock risk level is materially higher than market level risk. The stock price is typically more volatile
than the general market.● Moderate - The common stock is moderately risky, or equivalent to stock market risk. The stock price volatility is typically in-line
with movements in the general market.
Rated Companies mentioned in this reportCompany Ticker R&R Rating Price Mkt Cap 12 Month
Investment Banking Services include, but are not limited to, acting as a manager/co-manager in the underwriting or placement ofsecurities, acting as financial advisor, and/or providing corporate finance or capital markets-related services to a company or one of itsaffiliates or subsidiaries within the past 12 months.
ADDITIONAL DISCLOSURESRodman & Renshaw, LLC. (the "Firm") is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
ANALYST CERTIFICATION
I, Michael G. King, Jr., hereby certify that the views expressed in this research report accurately reflect my personal views about thesubject company(ies) and its (their) securities.
None of the research analysts or the research analyst's household has a financial interest in the securities of Affymax, Inc., CelgeneCorp., Curis, Inc., Omeros Corp, Oncothyreon Inc., ONYX Pharmaceuticals, Orexigen Therapeutics and Rigel Pharmaceuticals (including,without limitation, any option, right, warrant, future, long or short position).
As of Feb 29 2012 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Affymax, Inc.,Celgene Corp., Curis, Inc., Omeros Corp, Oncothyreon Inc., ONYX Pharmaceuticals, Orexigen Therapeutics and Rigel Pharmaceuticals.
Neither the research analyst nor the Firm has any material conflict of interest with Affymax, Inc., Celgene Corp., Curis, Inc., Omeros Corp,Oncothyreon Inc., ONYX Pharmaceuticals, Orexigen Therapeutics, Rigel Pharmaceuticals and Santarus Inc., of which the researchanalyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specificinvestment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, asubstantial portion of which is derived from investment banking services.
The Firm or its affiliates did not receive compensation from Affymax, Inc., Celgene Corp., Curis, Inc., Omeros Corp, Oncothyreon Inc.,ONYX Pharmaceuticals, Orexigen Therapeutics and Rigel Pharmaceuticals for any investment banking services within twelve monthsbefore, but intends to seek compensation from the companies mentioned in this report for investment banking services within threemonths, following publication of the research report.
Neither the research analyst nor any member of the research analyst's household nor the Firm serves as an officer, director or advisoryboard member of Affymax, Inc., Celgene Corp., Curis, Inc., Omeros Corp, Oncothyreon Inc., ONYX Pharmaceuticals, OrexigenTherapeutics, Rigel Pharmaceuticals and Santarus Inc..
The Firm does not make a market in Affymax, Inc. securities as of the date of this research report.
The Firm does make a market in Celgene Corp., Curis, Inc., Omeros Corp, Oncothyreon Inc., ONYX Pharmaceuticals, OrexigenTherapeutics and Rigel Pharmaceuticals securities as of the date of this research report.
Any opinions expressed herein are statements of our judgment as of the date of publication and are subject to change without notice.
Reproduction without written permission is prohibited. The closing prices of securities mentioned in this report are as of Mar 22 2012.Additional information is available to clients upon written request. For complete research report on Affymax, Inc., please call (212)356-0500.
Readers are advised that this analysis report is issued solely for informational purposes and is not to be construed as an offer to sell orthe solicitation of an offer to buy. The information contained herein is based on sources which we believe to be reliable but is notguaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Past performanceis no guarantee of future results.