Affimed NV (NASDAQ: AFMD) is following up on yesterday’s gains in multiples with more strong gains in the market today. So, what’s going on? The comapny announced yesterday in the pre market that it had entered into a collaboration with Roche’s Genentech subsidiary. Of course, the news excited investors, sending the stock soaring. Today, we’ll talk about:
- The agreement;
- what we’re seeing from AFMD stock;
- and what we’ll be watching for ahead.
AFMD Announces Agreement With Roche
As mentioned above, Affimed recently announced that it has entered into a collaboration agreement with one of the largest biotechnology companies in the world, Roche. In the release, the company announced a strategic collaboration with the Roche subsidiary, Genentech.
Under the terms of the agreement, AFMD will work with Genentech to develop and commercialize NK cell engager-based immunotherapies that target multiple cancers. As part of the collaboration, the company will use its proprietary edirected Optimized Cell Killing (ROCK®) platform, enabling the generation of both NK cell and T cell-engaging antibodies. These antibodies will then be used to discover and develope cancer treatments.
Of course, the simple fact that Roche has chosen a small company like AFMD as a partner is enough to send the stock soaring. However, the size of this partnership on financial terms is massive. When it comes to upfront payments, the company will receive an initial payment of $96 million. If that’s not enough to excite, the comapny has the potential to earn up to an additional $5 billion based on development, regulatory and commercial milestones as well as royalties on any treatment developed in the collaboration.
In a statement, Dr. Adi Hoess, CEO at AFMD, had the following to offer:
We are incredibly excited to work with Genentech, a leader in oncology with a long history of excellence in the discovery and development of medicines to treat cancer… This strategic partnership marks an important step on our path to leverage the full potential of innate immune cells in oncology.
What We’re Seeing From The Stock
With the news of the Roche collaboration, it only makes sense that Affimed investors are excited. that excitement was seen yesterday as the stock climbed $3.95 per share or 246.88% to close the session off at $5.55 per share. Nonetheless, the gains are continuing today. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:17), AFMD is trading at $6.45 per share after a gain of $0.90 per share or 16.22% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AFMD. In particular, we’re interested in following the collaboration with Roche as it has the potential to generate substantial revenue ahead. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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