AFMD stock is under heavy selling pressure this morning after Affimed NV (NASDAQ:AFMD) announces the termination of Phase 1 clinical program of AFM11, a CD19/CD3-targeting bispecific T cell engager.
AFMD stock Tumbles
Germany based biopharmaceutical company Affirmed NV has been one of the better-known outfits in the cancer drug industry due to the nature of the drugs it produces. The company is engaged in producing cancer drugs that allow patients to regain the strength that is necessary to battle cancer. However, the company made an announcement that would come as a bit of a disappointment for AFMD stock investors as it decided to scrap Phase 1 clinical trials of AFM11.
The drug in question is a precision engager of cells but it seems that the company believes that is resources will be better spend on further investment on the existing cell engager that it already has in its stable. The markets did not welcome the update at all and AFMD stock nosedived by as much as 10% by late morning trade.
In this regard, it needs to be pointed out that Affirmed NV already has two cells engages in the form of AFM12 and AFM24 and the company is going to devote their resources to those two drugs.
The Chief Executive Officer of Affirmed, Dr. Adi Hoess stated, “We have determined that the optimal use of our resources at this time is to advance our innate cell engagers, focusing their development on indications with high unmet need and the potential for a rapid path to regulatory approval.”
Additionally, Affirmed released its financial results for the quarter ended March 2019 as well. The company recorded revenues of 11.4 million Euros, which is a significant jump from revenues of 0.5 million Euros in the same quarter a year ago. However, the big jump in revenue figures is due to the milestone payment of 10.6 million Euros that it received from out of its collaboration with Genentech.
Affirmed recorded cash and deposits at its disposal at 108.8 million Euros, which the company will use in its clinical trials. Total income stood at 1.9 million Euros, up from a net loss of 8.2 million Euros from a year ago. Earnings per share were pegged at .03 Euros per share as opposed to a loss of 0.15 Euros per share a year ago.
AFMD stock is down 10% and now selling at $3, off the session low of $2.91. Affimed’s stock has corrected about 60% from a 52-week high of $7.35.
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