Affymax receives $5 million payment for reaching anemia drug development milestone

Affymax receives $5M payment for drug development

PALO ALTO, Calif. — Biotechnology company Affymax Inc. has received a $5 million milestone payment from Takeda Pharmaceutical Co. for the development of a potential anemia treatment.

Affymax said Wednesday that Takeda issued the payment for the startup of late-stage clinical testing of drug Hematide as a treatment for anemia in chronic renal failure patients in Japan.

Affymax is based in Palo Alto, Calif., while Takeda is based in Japan. The companies are collaborating on developing and marketing the drug in the United States. Takeda holds the license to develop it outside the United States.

In January, Affymax said it completed treatment and follow-up of patients enrolled in the four-trial, Phase 3 clinical program for Hematide in the U.S. The company expects to report results from these trials in the second quarter of 2010. The U.S. Phase 3 clinical program enrolled about 2,600 chronic renal failure patients at approximately 400 clinical trial sites.

Affymax shares fell 4 cents to close at $20.43.