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Stock Analysis & ValuationAffimed N.V. (0HL9.L)

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£0.00
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)11.8011799900
Intrinsic value (DCF)2.382379900
Graham-Dodd Methodn/a
Graham Formula426.50426499900

Strategic Investment Analysis

Company Overview

Affimed N.V. (LSE: 0HL9) is a clinical-stage biopharmaceutical company headquartered in Heidelberg, Germany, specializing in the development of innovative cancer immunotherapies. The company focuses on harnessing the power of innate immunity through its proprietary Redirected Optimized Cell Killing (ROCK®) platform to create next-generation immunotherapies. Affimed’s lead candidate, AFM13, is a bispecific antibody targeting CD30-positive lymphomas, currently in Phase II trials for peripheral T-cell lymphoma and Hodgkin lymphoma. Additionally, the company is advancing AFM24, a tetravalent bispecific innate cell engager (ICE) targeting EGFR-expressing solid tumors, and AFM28 for acute myeloid leukemia. Affimed has strategic collaborations with leading institutions like MD Anderson Cancer Center and Genentech, enhancing its R&D capabilities. Operating in the high-growth oncology immunotherapy sector, Affimed aims to address unmet medical needs in hematologic malignancies and solid tumors, positioning itself as a key player in the evolving biopharmaceutical landscape.

Investment Summary

Affimed N.V. presents a high-risk, high-reward investment opportunity due to its focus on cutting-edge cancer immunotherapies. The company’s clinical-stage pipeline, particularly AFM13 and AFM24, holds significant potential in treating rare and aggressive cancers. However, with a negative net income of -$105.9 million in FY2023 and substantial cash burn (-$110.3 million operating cash flow), Affimed remains highly speculative. Its $29.1 million market cap and beta of 2.072 indicate extreme volatility, typical of early-stage biotech firms. Investors should weigh the promise of its ROCK® platform and collaborations against the inherent risks of clinical trial failures, regulatory hurdles, and funding needs. The lack of revenue diversification (only $8.3 million in FY2023) further underscores dependency on pipeline success.

Competitive Analysis

Affimed N.V. competes in the crowded but high-potential bispecific antibody and innate cell engager (ICE) space. Its ROCK® platform differentiates it by targeting both tumor antigens and immune effector cells, potentially offering superior efficacy compared to traditional monoclonal antibodies. However, the company faces intense competition from larger biopharma firms with deeper pipelines and financial resources. Affimed’s focus on niche indications (e.g., CD30-positive lymphomas) mitigates direct competition but limits near-term commercial opportunities. Its collaborations with MD Anderson and Genentech provide validation but also highlight reliance on partners for development. Financially, Affimed’s cash reserves ($38.5 million) are modest relative to its burn rate, necessitating future dilutive financing or partnerships. The company’s small size and clinical-stage status place it at a disadvantage against commercial-stage peers but allow agility in targeting underserved oncology segments.

Major Competitors

  • Bristol-Myers Squibb (BMY): Bristol-Myers Squibb is a global leader in oncology with blockbuster drugs like Opdivo (nivolumab) and Yervoy (ipilimumab). Its robust pipeline and financial strength dwarf Affimed’s capabilities, but its focus on checkpoint inhibitors rather than bispecifics creates differentiation. Weaknesses include reliance on mature products facing biosimilar competition.
  • Regeneron Pharmaceuticals (REGN): Regeneron excels in bispecific antibodies (e.g., CD20xCD3 bispecific odronextamab) and has a strong commercial infrastructure. Its partnership with Sanofi provides scale, but its broader focus (including non-oncology areas) dilutes resources. Affimed’s niche focus on ICEs could offer a technological edge in specific indications.
  • MorphoSys AG (MOR): MorphoSys, another German biotech, specializes in hematologic malignancies with FDA-approved Monjuvi (tafasitamab). Its commercial experience and partnerships (e.g., Incyte) outpace Affimed, but its reliance on CD19-targeting therapies limits overlap. Affimed’s ICE platform may offer superior safety profiles in certain settings.
  • ImmunoGen (IMGN): ImmunoGen focuses on antibody-drug conjugates (ADCs) like Elahere for ovarian cancer. Its approved products provide revenue stability, but its technology differs from Affimed’s cell-engaging approach. Affimed’s bispecifics could offer broader immune activation compared to ADCs’ cytotoxic payloads.
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