Langlui's Big Board and Options Plays

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AFFY - Was the news that BAD??? I didn't think so.

THE BIG PICTURE: Hematide is the company's lead drug candidate and if approved, it would compete in an already competitive market. That market includes Amgen Inc.'s Aranesp.

THE ANALYSIS: Leerink Swann Research analyst Dr. Joshua Schimmer said Hematide's regulatory and commercial prospects are "clouded" by some of the results in the latest studies. In a note to Affymax investors on Monday, he cited some mixed results on effectiveness, though the study met its key goals in that area. But, the safety results could be problematic, he said.

"Nephrologists with whom we have spoken prefer to gain experience with Hematide in the predialysis setting prior to switching their dialysis units over to Hematide, so these results present an incremental commercial hurdle and obvious regulatory concern," he said.