Affimed (AFMD) AI Stock Analysis

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Affimed

(NASDAQ:AFMD)

42Neutral

Affimed's overall stock score reflects its financial struggles, with declining revenue and increasing losses being major concerns. The stock is technically weak, and the valuation is challenging due to negative earnings. Positive aspects from the earnings call, such as strategic progress in clinical trials and reduced losses, provide some optimism but are outweighed by financial and operational challenges.

Positive Factors

Business Development

Management indicated that the three December datasets have enabled more substantive business development discussions.

Clinical Data

AFMD highlighted positive data from the LuminICE-203 study in cHL, showing significantly higher ORR compared to the only currently available option.

Negative Factors

Funding and Financial Constraints

The initiation of the PTCL cohort in LuminICE-203 is contingent upon securing additional capital.

Stock Price Reaction

The stock responded negatively to the news, which is viewed as an overreaction given Affimed’s trio of interesting datasets.

Affimed (AFMD) vs. S&P 500 (SPY)

Market Cap

$8.68M

Dividend YieldN/A

Average Volume (3M)96.94K

Price to Earnings (P/E)―

Beta (1Y)2.54

Revenue Growth-95.23%

EPS Growth-325.89%

CountryUS

Employees76

SectorHealthcare

Sector Strength78

IndustryBiotechnology

Share Statistics

EPS (TTM)-3.64

Shares Outstanding15,227,463

10 Day Avg. Volume131,222

30 Day Avg. Volume96,938

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)1.50

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$11.00

Price Target Upside1829.82% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Affimed Business Overview & Revenue Model

Company DescriptionAffimed N.V. (AFMD) is a clinical-stage biopharmaceutical company focused on discovering and developing highly targeted immuno-oncology therapies. The company specializes in the research of innate cell engagers to harness the body's immune system to fight cancer. Affimed's core products are based on its proprietary ROCK platform, which enables the creation of bispecific and trispecific antibodies designed to treat hematologic and solid tumors.

How the Company Makes MoneyAffimed primarily generates revenue through collaboration and license agreements with pharmaceutical companies, where they develop and commercialize their drug candidates. These agreements often include upfront payments, milestone payments based on the achievement of clinical, regulatory, and commercial milestones, and royalties on sales of commercialized products. Additionally, Affimed may receive funding from grants and research collaborations that support their development programs. Significant partnerships with larger pharmaceutical companies also contribute to their revenue by providing financial support and resources for advancing their therapeutic candidates through clinical trials.

Affimed Financial Statement Overview

Summary

Affimed is experiencing significant financial challenges, with declining revenues and increasing losses. The company's high leverage and negative cash flows raise concerns about its ability to sustain operations without external financing. Despite these challenges, the company holds a modest cash reserve, which provides some liquidity cushion.

Income Statement

Neutral

The company's revenue has decreased significantly, from $41.35M in 2022 to $0.877M in the TTM. The gross profit margin remains at 100%, but the net profit margin is extremely negative due to high losses, with a negative net income of $69.97M in the TTM. The EBIT and EBITDA margins are also deeply negative, indicating operational challenges.

Balance Sheet

Neutral

The debt-to-equity ratio has increased, suggesting rising leverage, with total debt at $12.89M against stockholders' equity of $17.19M. The equity ratio is declining, reflecting reduced equity relative to total assets. However, the company maintains a reasonable amount of cash and short-term investments at $24.94M.

Cash Flow

Negative

Operating cash flow and free cash flow are negative, indicating cash burn issues, with operating cash flow at -$76.90M in the TTM. The free cash flow growth rate is negative, suggesting increasing cash flow challenges. The ratios of cash flow to net income are unfavorable, highlighting cash flow inefficiencies.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
877.00K	8.28M	41.35M	40.37M	28.36M	21.39M
	Gross Profit
877.00K	8.28M	41.35M	40.37M	28.36M	21.39M
	EBIT
-70.21M	-106.66M	-88.12M	-64.03M	-34.72M	-32.38M
	EBITDA
-65.19M	-102.38M	-81.47M	-64.01M	-34.23M	-30.97M
	Net Income Common Stockholders
-69.97M	-105.94M	-86.00M	-57.52M	-41.37M	-32.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.15M	72.90M	190.29M	197.63M	146.85M	104.14M
	Total Assets
6.50M	97.16M	200.51M	225.13M	175.72M	112.36M
	Total Debt
4.80M	19.35M	18.19M	18.69M	1.30M	3.19M
	Net Debt
649.00K	-19.18M	-172.10M	-178.94M	-145.56M	-92.05M
	Total Liabilities
105.72M	39.35M	47.60M	89.18M	103.73M	73.69M
	Stockholders Equity
-99.22M	57.81M	152.91M	135.95M	71.99M	38.67M
Cash Flow		Free Cash Flow
-77.44M	-114.00M	-105.59M	-90.44M	-19.84M	-30.53M
	Operating Cash Flow
-76.90M	-110.27M	-104.89M	-86.59M	-19.40M	-29.06M
	Investing Cash Flow
19.68M	-36.06M	5.61M	-3.85M	8.01M	4.34M
	Financing Cash Flow
714.00K	-6.22M	88.56M	133.58M	69.25M	26.04M

Affimed Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.57

Price Trends

50DMA

0.92

Negative

100DMA

1.44

Negative

200DMA

2.80

Negative

Market Momentum

MACD

-0.07

Positive

RSI

20.23

Positive

STOCH

3.59

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFMD, the sentiment is Negative. The current price of 0.57 is below the 20-day moving average (MA) of 0.79, below the 50-day MA of 0.92, and below the 200-day MA of 2.80, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 20.23 is Positive, neither overbought nor oversold. The STOCH value of 3.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AFMD.

Affimed Risk Analysis

Affimed disclosed 67 risk factors in its most recent earnings report. Affimed reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Affimed Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	48 Neutral	$6.27B	1.17	-48.19%	2.68%	17.28%	1.24%
ADAP	46 Neutral	$66.06M	―	-273.36%	―	194.23%	45.50%
NKTX	43 Neutral	$115.66M	―	-31.94%	―	―	30.76%
AFMD	42 Neutral	$8.68M	―	-151.46%	―	-95.23%	-325.89%
FATE	42 Neutral	$104.21M	―	-54.21%	―	-78.55%	-0.92%
KPTI	36 Underperform	$32.49M	―	41.08%	―	-0.55%	49.85%

* Healthcare Sector Average

Performance Comparison

AFMD

Affimed

0.57

-5.53

-90.66%

FATE

Fate Therapeutics

0.90

-5.86

-86.69%

KPTI

Karyopharm Therapeutics

3.96

-16.14

-80.30%

ADAP

Adaptimmune Therapeutics

0.22

-1.15

-83.94%

NKTX

Nkarta

1.51

-7.24

-82.74%

Affimed Earnings Call Summary

Earnings Call Date: Mar 27, 2025 | % Change Since: -31.33% | Next Earnings Date: May 21, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted significant progress in clinical trials, particularly with AFM24 and AFM28, and a strategic focus on partnerships and financial health. However, there were notable challenges, including a decline in revenue and reduced cash reserves. Despite these challenges, the company's efforts to improve its financial position and strategic focus are promising.

Highlights

Clinical Proof of Concept Across Multiple Assets

Affimed has demonstrated clinical proof of concept across three different assets spanning solid tumors and hematologic malignancies, showing activity in both monotherapy and combination studies.

Positive Outcomes for AFM24

In the AFM24-102 trial, 71% disease control rate was observed with a median progression-free survival of 5.9 months in non-small cell lung cancer patients.

AFM28 Achievements

AFM28, targeting CD123 for acute myeloid leukemia, has shown a favorable safety profile with no dose-limiting toxicities at a 300 mg weekly dose.

Financial Health and Strategic Focus

Net loss decreased from EUR 24.4 million in Q3 2023 to EUR 15.1 million in Q3 2024. The company is focused on improving financial health and pursuing strategic partnerships.

Lowlights

Revenue Decline

Total revenue for the quarter ended September 30, 2024, was EUR 0.2 million, compared with EUR 2 million for the quarter ended September 30, 2023.

Decreased Cash Reserves

Cash and investments decreased to EUR 24.1 million at the end of Q3 2024, down from EUR 72 million at the end of 2023.

R&D and G&A Expense Reductions

R&D expenses decreased to EUR 10.1 million compared to EUR 21.5 million in 2023, and G&A expenses were EUR 4.3 million compared to EUR 5.4 million in 2023.

Company Guidance

During the Affimed Q3 2024 earnings call, significant financial and operational metrics were presented, highlighting the company's progress and future expectations. Affimed reported a cash balance of EUR 24.1 million at the end of Q3 2024, down from EUR 72 million at the end of 2023, indicating a reduction due to operational activities. The net cash used in operating activities was EUR 11.1 million for Q3 2024 compared to EUR 18.3 million in Q3 2023, reflecting improved operational efficiency. Total revenue for the quarter was EUR 0.2 million, a decrease from EUR 2 million in the same period last year, while R&D expenses were reduced to EUR 10.1 million from EUR 21.5 million in Q3 2023. Affimed also reported a net loss of EUR 15.1 million, improving from a net loss of EUR 24.4 million in Q3 2023. The company anticipates that its current financial resources, including expected proceeds from the ATM program and the sale of AbCheck, will fund operations into the fourth quarter of 2025. These metrics underscore Affimed's strategic focus on financial health and operational efficiency as it advances its clinical programs and seeks potential partnerships.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.