On Tuesday, Truist Securities sustained its optimistic stance on Affimed (NASDAQ:AFMD) Therapeutics (NASDAQ:AFMD), maintaining a Buy rating and a $25.00 price target for the company's stock. The firm's confidence is rooted in anticipated updates from Affimed's product pipeline in the fourth quarter of 2024.
Earlier in the year, Affimed reported promising preliminary results from studies involving treatments for non-small cell lung cancer (NSCLC), Hodgkin lymphoma (HL), and acute myeloid leukemia (AML).
Affimed has demonstrated potential in its early-stage trials, despite the limited number of participants. Notable achievements include durable responses exceeding seven months in late-stage NSCLC cases, a 50% complete response rate (CRR) in HL, and a 50% complete response or complete response with incomplete blood count recovery (CR/CRi) in relapsed/refractory (r/r) AML.
The management team at Affimed has indicated a strategy to seek partnerships for further development of their pipeline, contingent upon the sustained efficacy and safety of their treatments. This collaborative approach aligns with the company's aim to advance its portfolio.
In light of the second-quarter results, Truist Securities has updated its financial model for Affimed. The firm's continued endorsement of a Buy rating reflects a positive outlook on the company's future performance and the anticipated clinical data set to be revealed later in the year.
In other recent news, Affimed has reported significant clinical progress in their second quarter 2024 earnings and corporate update call. The company's clinical trials are showing promise, particularly in treating non-small cell lung cancer, Hodgkin lymphoma, and acute myeloid leukemia with their innate cell engagers. Affimed's new CEO, Shawn Leland, has highlighted the potential of these programs and the company's focus on securing funding to advance them.
Despite a net loss of €15.5 million for the quarter, Affimed maintains a strong cash position of €34.4 million, expected to fund operations until the second half of 2025. The company plans to provide additional data on their clinical programs in Q4 2024 and is exploring strategic partnerships for further development.
InvestingPro Insights
In alignment with Truist Securities' positive outlook on Affimed Therapeutics (NASDAQ:AFMD), InvestingPro data underscores some key financial metrics that investors may find informative. As of the last twelve months leading up to Q2 2024, Affimed's market capitalization stands at $62.41 million, with a revenue of $7.96 million. Despite a significant revenue decline of 78.06% during this period, the company's gross profit margin remains at 100%, indicating that all revenue is translating into gross profit.
InvestingPro Tips highlight that Affimed holds more cash than debt on its balance sheet, which could provide financial flexibility for the company's operations and pipeline development. Additionally, two analysts have revised their earnings upwards for the upcoming period, suggesting a potential improvement in the company's financial outlook. However, it is also noted that Affimed is quickly burning through cash and analysts do not anticipate the company will be profitable this year, which may raise concerns about long-term sustainability.
For investors seeking a deeper dive into Affimed's financial health and future prospects, InvestingPro offers additional tips and a comprehensive analysis. There are 11 more InvestingPro Tips available at https://www.investing.com/pro/AFMD, providing a more nuanced view of the company's performance and potential investment opportunities.
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