RHHBF - Affimed: AFM24's Update Was Good Acimtamig's Should Be Better
2024-06-11 08:37:32 ET
Summary
- Affimed's 06/01/24 update on AFM24 means the company has a second viable commercial asset. This is why the stock popped after ASCO.
- Acimtamig's update is due before the end of this month. If it is positive, the stock should run again for a possible 3-5x.
- Although the company will likely raise capital after the announcement, I am comfortable owning shares into the action and I am a fan now for the longer term.
- The stock is currently trading below a $100M valuation, which makes it more of a high risk/high reward play. And as such, is not suitable for all investors.
Introduction
Affimed N.V. ( AFMD ) recently reported a clinical update for AFM24 on 05/23/24 in its ASCO abstract release. The results were positive and then reinforced with an additional update on 06/01/24 (see below). These updates keep the doors open for the company to pursue this second, wholly owned, commercial asset targeting a large oncology market. The stock popped ~70% early last week on the news, breaking $8/s briefly before tracking back to Monday's close of $6.12/s or ~$92M valuation.
A legitimate question of whether the company would conduct a necessary follow-on offering (or PIPE these days) on this data is out there. The fact that AFMD has not done so yet is a good sign in my opinion. Not because they don't need the money, rather, I think they have better news coming soon for their lead asset, acimtamig (AFM13). If I am right, I think the value of the company could increase 3-5x or more in the short term, which would enable the subsequent raise to take place at a higher valuation. For those of us anxiously waiting, the acimtamig update could be as soon as this week and no later than the end of this month....
Affimed: AFM24's Update Was Good, Acimtamig's Should Be Better