Affimed NV (AFMD) Q3 2024 Earnings Call Highlights: Navigating Financial Challenges with ...

GuruFocus.com
15 Nov 2024
  • Cash and Cash Equivalents: EUR 24.1 million as of September 30, 2024, down from EUR 72 million on December 31, 2023.
  • Net Cash Used in Operating Activities: EUR 11.1 million for the quarter ended September 30, 2024, compared to EUR 18.3 million for the same period in 2023.
  • Total Revenue: EUR 0.2 million for the quarter ended September 30, 2024, compared to EUR 2 million for the same period in 2023.
  • R&D Expenses: EUR 10.1 million for the quarter ended September 30, 2024, compared to EUR 21.5 million in 2023.
  • G&A Expenses: EUR 4.3 million for the quarter ended September 30, 2024, compared to EUR 5.4 million for the same period in 2023.
  • Net Loss: EUR 15.1 million or EUR 0.94 per common share for the quarter ended September 30, 2024, compared to a net loss of EUR 24.4 million or EUR 1.63 per common share for the same period in 2023.
  • Warning! GuruFocus has detected 7 Warning Signs with AFMD.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Affimed NV (NASDAQ:AFMD) has demonstrated clinical proof of concept across three different assets, showing activity in both monotherapy and combination studies.
  • The company's therapies have shown a favorable and differentiated safety profile, even in heavily pretreated patient populations.
  • Affimed NV (NASDAQ:AFMD) continues to observe meaningful and often durable responses in patients, providing confidence in their platform and therapies.
  • The company is actively pursuing a wider range of potential collaborations to accelerate progress and expand strategic options.
  • Affimed NV (NASDAQ:AFMD) is committed to maintaining financial stability and improving its financial health to support ongoing clinical development.

Negative Points

  • Affimed NV (NASDAQ:AFMD) ended the third quarter with a significant decrease in cash, cash equivalents, and investments compared to the previous year.
  • Total revenue for the quarter was significantly lower than the same period last year, indicating financial challenges.
  • The company faces a challenging market environment, which may impact its ability to secure necessary capital.
  • There is uncertainty regarding the durability of responses in some of the clinical trials, as follow-up periods may be too short for meaningful conclusions.
  • Affimed NV (NASDAQ:AFMD) needs to further mature its data to make informed decisions about potential registration trials and partnerships.

Q & A Highlights

Q: Regarding AFM 28, what durability should we expect from the data update at ASH, and can you comment on the mutational status and prior treatment of the patients enrolled? A: Andreas Harstrick, Chief Medical Officer, explained that the six patients reported previously will have a meaningful follow-up period to assess durability. Most of the additional six patients were recruited recently, so their follow-up may be too short for conclusions. About 80% of patients had prior treatment with a hypermethylating agent and venetoclax, 55% with an racy regimen, and roughly a third had a stem cell transplant. Two-thirds had negative molecular profiles.

Q: When would you be in a position to discuss a registrational path with the FDA for AFM 28, and what patient population will you target? A: Andreas Harstrick stated that they plan to add at least one higher dose cohort to capture the full therapeutic potential. The safety profile allows further dose escalation. The patient population will include those with unmet medical needs, having exhausted options like racy or hypermethylating agents, and targeted therapies for specific mutations.

Q: Can you elaborate on broadening the scope of collaborations? A: Shawn Leland, CEO, mentioned that given the financial position, they are evaluating all strategic options, including regional deals, to bring in non-dilutive capital. Previously, the focus was on multinational partnerships, but now they are considering a wider range of collaborations.

Q: What are the data expectations for AFM 24 in December, and will there be enough data by the first half of 2025 to make a development decision? A: Andreas Harstrick noted that the December focus will be on the EGFR wild-type cohort, with response and safety data being the main focus. PFS data will need more time to mature, expected to be presented in the first half of 2025.

Q: What are your thoughts on future prioritization between AFM 13 and AFM 28 given the current cash position? A: Shawn Leland stated that all three programs, including AFM 13 and AFM 28, will continue to be developed in parallel due to compelling and differentiated data addressing significant unmet medical needs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

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