Mass Layoffs at Palo Alto Drug Maker After Lone Product Recalled

Drug maker Affymax is in trouble.

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    NEWSLETTERS

    AP

    These pills can kill.

    Palo Alto drug manufacturer Affymax is in serious trouble -- laying off 75 percent of its workers and in a cash flow situation -- after recalling its lone product, an anemia drug called Omontys, according to Reuters.

    The pill has been found to cause serious side effects in users, including death, according to the news wire. Omontys was recalled on Feb. 23, and the company's stock has since suffered badly.

    Affymax's value dipped 85 percent on the news and plummeted to as low as $1.34 in trading on Monday.

    The drug may be permanently withdrawn pending an investigation with the FDA.

    The company cut 230 jobs, the news wire reported.