On Wednesday, H.C. Wainwright adjusted its outlook on Affimed (NASDAQ:AFMD) Therapeutics (NASDAQ:AFMD), reducing the price target from $10.00 to $7.00, while keeping a Buy rating on the stock. The company's shares, currently trading at $1.51, have experienced a steep 75% decline over the past six months.
According to InvestingPro data, the stock's RSI indicates oversold territory, potentially presenting an opportunity for value investors. The decision follows Affimed's latest clinical update regarding the Phase 1/2 study of AFM24 combined with atezolizumab (AFM24/atezo) in second-line or higher (2L+) NSCLC (non-small cell lung cancer) patients, which was shared on Tuesday.
The update from Affimed showed that the objective response rate (ORR) and median progression-free survival (mPFS) in the EGFR wild-type cohort had slightly decreased in comparison with earlier data. However, these metrics were still competitive when measured against approved treatments.
InvestingPro analysis reveals the company is rapidly burning through cash, with negative free cash flow of $86.22 million in the last twelve months, though it maintains a healthy current ratio of 1.93. In response to these findings, Affimed is planning to test AFM24 at an increased dosage of 720mg, which is higher than the currently used 480mg. The company aims to administer this higher dose to a more consistent and healthier patient group that has not been previously treated with docetaxel.
H.C. Wainwright's revised price target takes into account the potential impact on operational expenses from 2026 onwards, as indicated in the analyst's commentary. Despite the modifications in the clinical approach and the financial projections, the firm maintains its positive stance on Affimed's stock, as evidenced by the continuation of the Buy rating.
Affimed's strategy to explore a higher dosage of AFM24 could pave the way for improved clinical outcomes in the future. The company's effort to refine its patient selection criteria is also expected to contribute to the overall efficacy of the treatment regimen. These developments are part of Affimed's ongoing commitment to enhancing therapeutic options for NSCLC patients.
Based on InvestingPro's Fair Value analysis, the stock appears undervalued at current levels. Subscribers can access 11 additional ProTips and comprehensive financial analysis through the Pro Research Report, offering deeper insights into Affimed's financial health and market position.
In other recent news, Affimed Therapeutics has garnered attention from analysts. Truist Securities maintained a Buy rating on Affimed, steady with a price target of $25.00, while H.C. Wainwright reiterated a Buy rating and a $10 price target.
These ratings come after Affimed disclosed an update on its AFM24-102 trial, which assesses the combination of AFM24 and Atezolizumab in patients with refractory or relapsed EGFR mutant and EGFR wild-type non-small cell lung cancer (NSCLC). The combination treatment continues to exhibit signs of effectiveness, with a reported median progression-free survival (mPFS) of 5.6 months.
Further insights revealed that patients receiving the higher 480 mg dose of AFM24 had better overall response rates, progression-free survival, and overall survival. Consequently, Affimed will proceed with enrolling patients at an increased dose of 720 mg to further examine these preliminary outcomes. The company's management's comments align with the analysis provided by Truist Securities, which appears to support the ongoing development and potential of the AFM24 and Atezolizumab combination therapy.
In financial developments, Affimed reported a reduced net loss in Q3 2024, with total revenue standing at €0.2 million, a decrease from €2 million in the same quarter of the previous year. Despite a decrease in cash balance from €72 million at the end of 2023 to €24.1 million, Affimed expects these resources to sustain operations until the fourth quarter of 2025.
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