Affymax, Inc. (Nasdaq:AFFY) today reported financial results for the second quarter ended June 30, 2010. Net income for the second quarter of 2010 was $17.3 million compared to a net loss of $22.1 million for the second quarter of 2009. The company received milestone payments of $30.0 million from Takeda Pharmaceutical Company Limited for database lock of the Hematide™/peginesatide Phase 3 clinical trials. Due to the recognition of revenue from these milestone payments, Affymax was profitable in the quarter ended June 30, 2010. The company continues to expect to incur substantial losses for the foreseeable future.
Affymax recognized revenue for the quarter ended June 30, 2010 of $54.3 million compared to $26.9 million for the quarter ended June 30, 2009. The increase in revenue was the result of its collaboration with Takeda, including the milestone payments.
Research and development expenses for the quarter ended June 30, 2010 were $28.9 million compared to $40.8 million for the quarter ended June 30, 2009. The decrease was primarily due to the completion of the treatment and follow up of the company's Phase 3 clinical trials at the start of 2010.
General and administrative expenses for the quarter ended June 30, 2010 were $8.2 million compared to $8.7 million for the quarter ended June 30, 2009. The decrease was primarily due to lower legal fees.
The company's cash, investments and receivables from Takeda totaled $167.2 million as of June 30, 2010, including $30.0 million in milestone payments.