Affimed NV (NASDAQ: AFMD) is flying early on in the market this morning, and for good reason. The company announced that it has entered into a collaboration agreement with a member of Roche Group, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The collaboration agreement;
- what we’re seeing from AFMD stock as a result; and
- what we’ll be watching for ahead.
AFMD Climbs On Collaboration Agreement
As mentioned above, Affimed is having an incredibly strong start to the trading session this morning after news broke that the company has entered into a collaboration agreement. In an announcement that came late yesterday, the company announced that it has entered into a strategic collaboration agreement with Genentech. Genentech is a member of Roche Group.
The two companies will work together to develop and commercialize novel NK cell engager-based immunotherapeutics. These immunotherapeutics will be designed to treat various cancer types. Under the terms of the agreement, AFMD will apply its proprietary Redirected Optimized Cell Killing (ROCK®) platform. This platform makes the generation of both NK cell and T cell-engaging antibodies possible. From there, these antibodies will be used to discover and advance innate immune cell engager-based immunotherapeutics of interest to Genentech.
Also under the terms of the agreement, AFMD will be receiving an initial upfront payment of $96 million as well as other near-term funding. The company is also eligible to receive up to $5 billion including development, regulatory and commercial milestones as well as sales royalties.
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.
The above statement was followed up by James Sabry, M.D., Ph.D., Global Head of Partnering at Roche. Here’s what he had to offer:
This collaboration is based on Affimed’s innate immune cell drug discovery and development expertise and our team’s deep understanding of cancer immunology… Our partnership with Affimed provides an opportunity to enhance our existing efforts to understand how the immune system can be activated to help people living with cancer.
What We’re Seeing From The Stock
When we start to invest, one of the first lessons that we learn is that the news causes moves in the market. In the case of Affimed, the news proved to be overwhelmingly positive. Not only will this collaboration provide the company with the help of a talented team, it will provide it with an immediate infusion of funds. So, it comes as no surprise that excited investors are sending the stock soaring in the market this morning. At the moment (10:06), AFMD is trading at $4.10 per share after a gain of $2.50 per share or 156.25% 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 work the company does with Roche and the treatments that are developed as a result of this collaboration agreement. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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