On Thursday, Stifel maintained its "Hold" rating and a $5.00 price target for NASDAQ:AFMD, Affimed (NASDAQ:AFMD) Therapeutics. The firm's analysis followed the appointment of a new CEO, Shawn Leland, and the progression of the company's oncology assets. Affimed's three key assets are undergoing single-arm trials, with a focus on their development in treating various cancers.
The company's Acimtamig (CD30xCD16A)/AlloNK has shown promise in replicating high activity against refractory/relapsed Hodgkin Lymphoma, as evidenced by academic research. The current sample size of 12 patients is expected to double by the fourth quarter of 2024, which should provide more substantial support for the drug. However, there is uncertainty regarding whether Acimtamig will receive full investment to complete its pivotal trial, as Affimed's commentary has not made this clear.
AFM24 (EGFRxCD16A), which appears to be emerging as the lead asset, is slated to include 40 patients with EGFRwt NSCLC in a combination trial with atezolizumab (PD-L1) by the fourth quarter. This trial size is considered significant enough to potentially interpret the drug's activity, especially when compared to anecdotes of salvage atezolizumab monotherapy.
Meanwhile, AFM28 (CD123xCD16A) remains fully owned by Affimed and is in the dose expansion phase to further explore early activity signals. The next 12 months are critical for Affimed as strategic prioritization and funding decisions are anticipated to be necessary to potentially unlock the value of these oncology assets.
In other recent news, Affimed N.V. has seen significant developments. The immuno-oncology company recently named Shawn M. Leland as its new Chief Executive Officer. Leland, with over 15 years of pharmaceutical and biotechnology industry experience, is expected to drive Affimed's growth and strategy, especially in the advancement of its clinical programs.
Affimed also reported positive clinical data across all three of its clinical programs: AFM24, Acimtamig, and AFM28. This data was highlighted in its Q1 2024 update, which also revealed a net loss of €19.2 million for the quarter and a robust cash position of €48.5 million. Despite facing patient enrollment challenges, the company expects to provide further updates in Q3 2024.
In addition to these developments, Affimed plans to submit clinical data to a scientific conference and has implemented strategic plans for managing its cash flow and supporting business development.
InvestingPro Insights
As Affimed Therapeutics (NASDAQ:AFMD) navigates through a pivotal stage with its oncology assets, insights from InvestingPro provide a financial perspective on the company's position. With a market capitalization of $57.86 million and a negative P/E ratio reflecting its current lack of profitability, Affimed holds more cash than debt, which is a positive sign for its financial health. This is further supported by the fact that the company's liquid assets exceed its short-term obligations, giving it some financial flexibility in the near term.
InvestingPro Tips highlight that analysts have recently revised their earnings expectations upwards for the upcoming period, suggesting a potential improvement in the company's financial outlook. However, they also forecast a sales decline in the current year and do not anticipate the company will be profitable this year. The stock's price has experienced significant volatility, with a notable decline over the last three months.
For investors considering AFMD, it's important to note that the company is quickly burning through cash, which could impact its ability to fund ongoing trials and operations. The stock is currently in oversold territory according to the Relative Strength Index (RSI), which could be of interest to those looking for potential entry points. For more detailed analysis and additional InvestingPro Tips, there are 12 more listed on the InvestingPro platform for Affimed Therapeutics.
These financial metrics and expert insights can help investors weigh the risks and opportunities as Affimed Therapeutics works towards potentially unlocking the value of its oncology assets.
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