Affimed Reports 2023 Financial Results and Operational Progress

Rhea-AI Summary

Affimed N.V. (AFMD) reports positive results from clinical trials for AFM24 and acimtamig, with plans for further data updates in Q2 2024. The company has completed restructuring, focusing on advancing its three clinical programs. Cash runway is secured until H2 2025. Financially, the company saw a decrease in revenue and an increase in net loss for the year ended December 31, 2023.

Positive

• Positive clinical results from AFM24 and acimtamig trials.
• Completion of restructuring to focus on clinical programs.
• Cash runway secured until H2 2025.
• Anticipated data updates for clinical trials in Q2 2024.

Negative

• Decrease in revenue for the year ended December 31, 2023.
• Increase in net loss for the year ended December 31, 2023.

Oncology Doctor

The reported clinical responses in the Phase 1/2a study of AFM24 in non-small cell lung cancer (NSCLC) patients are indicative of the therapeutic potential of the drug, particularly in a cohort that has been heavily pretreated and is EGFR-wildtype. The disease control rate of 73 percent, including one complete response and three partial responses, signals a positive trend in the efficacy of the drug. As an oncologist, it is encouraging to see such results, especially considering the limited treatment options available for patients who have already undergone extensive therapies. The upcoming mature progression free survival (PFS) data and initial efficacy data from the EGFR-mutant NSCLC cohorts will be critical in determining the broader applicability of the drug and its potential impact on patient survival and quality of life.

Financial Analyst

From a financial perspective, the cash runway into the second half of 2025, with €72.0 million in cash, cash equivalents and investments, offers Affimed a buffer to continue their clinical trials without immediate funding concerns. However, the substantial decrease in cash reserves from €190.3 million at the end of 2022 to €72.0 million at the end of 2023 should be noted by investors. This burn rate, coupled with the net loss of €105.9 million for the year, may raise questions about long-term financial sustainability and the need for additional capital infusions in the future. Nevertheless, positive clinical trial results can often lead to strategic partnerships or provide a favorable position in seeking additional funding.

Market Research Analyst

The immuno-oncology market is highly competitive, with numerous companies seeking to develop innovative treatments. Affimed's focus on innate immunity to fight cancer positions them within a niche yet rapidly evolving segment of the market. The promising clinical results reported could enhance their standing within the industry and potentially attract partnership opportunities. However, the actual market impact will depend on the long-term efficacy and safety data, regulatory approvals and the ability to commercialize their treatments effectively. Investors should monitor the upcoming data releases in Q2 2024 closely, as these will be pivotal in assessing the market potential of Affimed's drug candidates.

• AFM24 combination with atezolizumab (AFM24-102): Follow-up of the Phase 1/2a combination study confirmed four responses in the non-small cell cancer (NSCLC) EGFR-wildtype cohort: one complete response (CR), three partial responses (PR), and seven stable disease patients in the 15 heavily pretreated patients who were evaluated.
  Mature progression free survival (PFS) data from the 15 EGFR-wildtype NSCLC patients and initial efficacy data from the EGFR-mutant NSCLC cohorts are expected in Q2 2024.
  
• Acimtamig (AFM13) combination with AlloNK® (AB-101) natural killer (NK) cells (LuminICE-203): Company on track to report initial efficacy and safety data in Q2 2024.
• AFM28: Currently enrolling patients in the sixth and final cohort of the Phase 1 dose-escalation study in patients with CD123-positive relapsed/refractory (r/r) AML.
• Restructuring completed: Company is focused on advancing its three clinical programs.
• Cash runway into H2 2025: As of December 31, 2023, cash, cash equivalents and investments were €72.0 million.

MANNHEIM, Germany, March 28, 2024 (GLOBE NEWSWIRE) -- Affimed N.V. (Nasdaq: AFMD) (“Affimed” or the “Company”), a clinical-stage immuno-oncology company committed to giving patients back their innate ability to fight cancer, today reported financial results and provided an update on clinical and corporate progress for the year ended December 31, 2023.

“The clinical achievements in 2023 with our three programs, AFM24, acimtamig, and AFM28, provide a strong foundation for us to deliver on meaningful clinical milestones across the portfolio in 2024 and beyond,” said Dr. Andreas Harstrick, Chief Medical Officer and interim Chief Executive Officer at Affimed. “We have seen compelling responses in treatment refractory NSCLC EGFR-wt patients and will report mature PFS data of these patients as well as response data from the NSCLC EGFR-mut cohort in the second quarter. With the LuminICE-203 study of acimtamig with AlloNK successfully launched in 2023, we are progressing toward an initial data update in the second quarter. The long-term follow-up data for study for the AFM13-104, presented at ASH, demonstrating that approximately 30% of patients remain in remission beyond 1 year, have further enhanced our confidence in the therapeutic potential of acimtamig in combination with NK cells. Finally, AFM28 has reached the final dose level in the escalation study providing the basis for continued development. With all three clinical programs moving forward, we are focused on the execution of these programs confident in Affimed’s ability to fulfill our overarching mission of delivering innovative therapies to cancer patients.”

Program Updates

AFM24 (EGFR/CD16A tumors)

• As of January 4, clinical response update to the Phase 1/2a AFM24-102 trial in EGFR-wt NSCLC reported 4 confirmed responses, including 1 CR, 3 PRs, and 7 stable diseases in 15 heavily pre-treated patients, resulting in a disease control rate of 73 percent. All patients were pre-treated with platinum-based chemotherapy and checkpoint inhibitors PD [L]-1. Based on the promising results, Affimed expanded enrollment in this cohort to 40 patients.
  In addition, the company continues to enroll in the EGFR-mut NSCLC cohort for a planned number of 25 patients.
  Mature PFS data from the first 15 patients from the EGFR-wt cohort and response data from the EGFR-mut cohort are expected in Q2 2024.

Acimtamig (AFM13; CD30/CD16A tumors)

• Initial safety and efficacy data from the LuminICE-203 (AFM13-203) study expected in Q2 2024. LuminICE-203 is a Phase 2 clinical study investigating acimtamig in combination with Artiva’s AlloNK cells in patients with r/r classical Hodgkin lymphoma (HL). Safety Review Committee meeting and initiation of enrollment in cohorts 3 and 4 is expected mid-April.
• Updated Phase 1/2 AFM13-104 study data demonstrated an ORR of 97% and a CR rate of 78% in 32 patients with r/r HL, presented at ASH 2023. As of the cutoff date, the median EFS was 9.8 months with 84% patients alive at 12 months. The median duration of response was 8.8 months. The treatment regimen continues to demonstrate a good safety and tolerability profile with no cases of cytokine release syndrome (CRS), immune effector cell-associated neurotoxicity syndrome (ICANS) or graft versus host disease (GVHD) of any grade. The oral presentation included a total of 42 patients enrolled, with 36 patients treated at the recommended Phase 2 dose (RP2D). All patients were heavily pretreated and refractory to their most recent line of therapy with active progressive disease at the time of enrollment.

AFM28 (CD123/CD16A)

• Completed enrollment of the fifth cohort, recruiting patients in the sixth and final cohort in the multi-center Phase 1 open-label, dose-escalation study (AFM28-101), of AFM28 monotherapy in CD123-positive r/r AML. No dose-limiting toxicities were reported. Further clinical development of AFM28 is planned in combination with an allogeneic off-the-shelf NK cell product.
  

Corporate Restructuring:

• The corporate restructuring announced earlier this year has been fully implemented.
• The restructuring included a streamlining of operations resulting in a 50% reduction in the Company’s workforce.
• The Company is focusing resources on advancing its clinical programs, AFM24, acimtamig, and AFM28, through the various stages of development.
  

Upcoming Milestones:

• Data from the NSCLC expansion cohorts in the Phase 1/2a AFM24+atezolizumab combination study expected in Q2 2024.
• Initial data readout from the LuminICE-203 (AFM13 combination with AlloNK NK cells) study expected in Q2 2024.
• Further progress updates from AFM28-101 dose escalation expected in Q2 2024.
  

Full Year 2023 Financial Highlights
Affimed’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standard Board (IASB). The consolidated financial statements are presented in Euros (€), the Company’s functional and presentation currency.

As of December 31, 2023, cash, cash equivalents and investments totaled €72.0 million compared to €190.3 million on December 31, 2022. Based on our current operating plan and assumptions, we anticipate that our liquidity will support operations into H2 2025.

Net cash used in operating activities for the year ended December 31, 2023, was €110.3 million compared to €104.9 million for the year ended December 31, 2022.

Total revenue for the year ended December 31, 2023, was €8.3 million compared with €41.4 million for the year ended December 31, 2022. Revenue in 2022 and 2023 predominantly relates to the Roivant and Genentech collaborations for which we have now completed the work assigned to us under the respective collaboration agreements.

Research and development expenses for the year ended December 31, 2023, were €95.0 million compared to €98.8 million in 2022.

General and administrative expenses for the year ended December 31, 2023, were €24.7 million compared to €32.1 million for the year ended December 31, 2022. The decrease was due to a decline in legal, consulting and insurance expenses, as well as share-based payment expenses.

Net finance income/costs for the year ended December 31, 2023, were €0.7 million compared to €2.1 million for the year ended December 31, 2022. Net finance income/costs are largely due to foreign exchange gains/losses related to assets denominated in U.S. dollars as a result of currency fluctuations between the U.S. dollar and Euro during the year.

The weighted number of common shares outstanding for the year ended December 31, 2023, was 14.9 million, adjusted to reflect the impact of the reverse stock split executed in the first quarter of 2024.

Net loss for the year ended December 31, 2023, was €105.9 million, or €7.09 loss per common share compared with a net loss of €86.0 million, or €6.04 loss per common share, for the year ended December 31, 2022.

Additional information regarding these results is included in the notes to the consolidated financial statements as of December 31, 2023, included in Affimed’s filings with the U.S. Securities and Exchange Commission (SEC).

Note on International Financial Reporting Standards (IFRS)
Affimed prepares and reports consolidated financial statements and financial information in accordance with IFRS as issued by the IASB. None of the financial statements were prepared in accordance with U.S. Generally Accepted Accounting Principles. Affimed maintains its books and records in Euro.

Conference Call and Webcast Information
Affimed will host a conference call and webcast on March 28, 2024, at 8:30 a.m. EDT / 13:30 CET to discuss full year 2023 financial results and corporate developments.

The conference call will be available via phone and webcast. The live audio webcast of the call will be available in the “Webcasts” section on the “Investors” page of the Affimed website at https://www.affimed.com/investors/webcasts-and-corporate-presentation/. To access the call by phone, please use link: https://register.vevent.com/register/BI43eadbb12f6143a5bdcb2c9549ef2e76, and you will be provided with dial-in details and a pin number.

Note: To avoid delays, we encourage participants to dial into the conference call 15 minutes ahead of the scheduled start time. A replay of the webcast will be accessible at the same link for 30 days following the call.

About Affimed N.V.
Affimed (Nasdaq: AFMD) is a clinical-stage immuno-oncology company committed to giving patients back their innate ability to fight cancer by actualizing the untapped potential of the innate immune system. The Company’s innate cell engagers (ICE®) enable a tumor-targeted approach to recognize and kill a range of hematologic and solid tumors. ICE® are generated on the Company’s proprietary ROCK® platform which predictably generates customized molecules that leverage the power of innate immune cells to destroy tumor cells.  A number of ICE® molecules are in clinical development, being studied as mono- or combination therapy. Headquartered in Mannheim, Germany, Affimed is led by an experienced team of biotechnology and pharmaceutical leaders united by a bold vision to stop cancer from ever derailing patients’ lives. For more about the Company’s people, pipeline and partners, please visit: www.affimed.com.

Forward-Looking Statement
This press release contains forward-looking statements. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “intend,” “look forward to,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions. Forward-looking statements appear in a number of places throughout this release and include statements regarding the Company’s intentions, beliefs, projections, outlook, analyses and current expectations concerning, among other things, the potential of acimtamig (AFM13), AFM24, AFM28 and the Company’s other product candidates, the value of its ROCK® platform, its ongoing and planned preclinical development and clinical trials, its corporate restructuring, the associated headcount reduction and the impact this may have on Company’s anticipated savings and total costs and expenses, its collaborations and development of its products in combination with other therapies, the timing of and its ability to make regulatory filings and obtain and maintain regulatory approvals for its product candidates, its intellectual property position, its collaboration activities, its ability to develop commercial functions, clinical trial data, its results of operations, cash needs, financial condition, liquidity, prospects, future transactions, growth and strategies, the industry in which it operates, the macroeconomic trends that may affect the industry or the Company, such as the instability in the banking sector experienced in the first quarter of 2023, impacts of the COVID-19 pandemic, the benefits to Affimed of orphan drug designation, the impact on its business by political events, war, terrorism, business interruptions and other geopolitical events and uncertainties, such as the Russia-Ukraine conflict, the fact that the current clinical data of acimtamig in combination with NK cell therapy is based on acimtamig precomplexed with fresh allogeneic cord blood-derived NK cells from The University of Texas MD Anderson Cancer Center, as opposed to Artiva’s Allo-NK NK cells and other uncertainties and factors described under the heading “Risk Factors” in Affimed’s filings with the SEC. Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements, and the Company assumes no obligation to update these forward-looking statements, even if new information becomes available in the future.
        
Investor Relations Contact
Alexander Fudukidis
Director, Investor Relations
E-Mail: a.fudukidis@affimed.com
Tel.: +1 (917) 436-8102

Affimed N.V.
Consolidated statements of comprehensive loss
(in € thousand)
		2023			2022			2021
Revenue		8,275			41,353			40,366
Other income and expenses – net		4,697			1,417			1,310
Research and development expenses		(94,958	)		(98,814	)		(81,488	)
General and administrative expenses		(24,675	)		(32,075	)		(24,218	)
Operating loss		(106,661	)		(88,119	)		(64,030	)
Finance income / (costs) – net		726			2,117			6,509
Loss before tax		(105,935	)		(86,002	)		(57,521	)
Income taxes		(3	)		(2	)		(2	)
Loss for the period		(105,938	)		(86,004	)		(57,523	)
Other comprehensive loss
Items that will not be reclassified to profit or loss
Equity investments at fair value OCI – net change in fair value		0			(6,047	)		(7,693	)
Other comprehensive loss		0			(6,047	)		(7,693	)
Total comprehensive loss		(105,938	)		(92,051	)		(65,216	)
Basic and diluted loss per share in € per share (undiluted = diluted)		(7.09	)		(6.04	)		(4.81	)
Weighted number of common shares outstanding		14,939,916			14,236,229			11,950,238

Affimed N.V.
Consolidated statements of financial position
(in € thousand)
		December 31, 2023		December 31, 2022
ASSETS
Non-current assets
Intangible assets		25		58
Leasehold improvements and equipment		4,905		3,823
Right-of-use assets		8,039		561
		12,969		4,442
Current assets
Cash and cash equivalents		38,529		190,286
Investments		33,518		0
Other financial assets		851		0
Trade and other receivables		5,327		2,697
Inventories		463		628
Other assets and prepaid expenses		5,500		2,459
		84,188		196,070
TOTAL ASSETS		97,157		200,512
EQUITY AND LIABILITIES
Equity
Issued capital		1,500		1,493
Capital reserves		593,666		582,843
Fair value reserves		(1,231)		(1,231)
Accumulated deficit		(536,128)		(430,190)
Total equity		57,807		152,915
Non current liabilities
Borrowings		6,319		11,687
Contract liabilities		464		1,083
Lease liabilities		6,660		176
Total non-current liabilities		13,443		12,946
Current liabilities
Trade and other payables		18,916		19,077
Borrowings		5,833		5,930
Lease liabilities		539		396
Contract liabilities		619		9,248
Total current liabilities		25,907		34,651
TOTAL EQUITY AND LIABILITIES		97,157		200,512

Affimed N.V.
Consolidated statements of cash flows
(in € thousand)
		2023		2022		2021
Cash flow from operating activities
Loss for the period		(105,938)		(86,004)		(57,523)
Adjustments for the period:
- Income taxes		3		2		2
- Depreciation and amortization		1,749		2,899		1,334
- Net gain from disposal of subsidiary		(4,339)		0		0
- Net loss on disposal of leasehold improvements and equipment		82		0		0
- Share-based payments		10,714		19,110		11,820
- Finance income / (costs) – net		(726)		(2,117)		(6,509)
		(98,455)		(66,110)		(50,876)
Change in trade and other receivables		1,093		2,113		(2,369)
Change in financial assets		(851)		0		0
Change in inventories		100		(207)		(175)
Change in other assets and prepaid expenses		(2,737)		1,075		(2,274)
Change in trade, other payables, provisions and contract liabilities		(9,766)		(41,048)		(29,990)
		(110,616)		(104,177)		(85,684)
Interest received		1,743		564		0
Paid interest		(1,393)		(1,277)		(905)
Paid income tax		(3)		(2)		(2)
Net cash used in operating activities		(110,269)		(104,892)		(86,591)
Cash flow from investing activities
Purchase of intangible assets		0		(37)		(1,654)
Purchase of leasehold improvements and equipment, including upfront payments for right-of-use assets		(3,729)		(659)		(2,196)
Cash received from the sale of financial assets		938		6,301		0
Cash paid for investments in financial assets		(34,246)		0		0
Cash received from sale of subsidiary		978		0		0
Net cash (used)/generated in investing activities		(36,059)		5,605		(3,850)
Cash flow from financing activities
Proceeds from issue of common shares, including exercise of share-based payment awards		235		95,907		124,460
Transaction costs related to issue of common shares		(35)		(6,037)		(7,412)
Proceeds from borrowings		0		0		17,500
Transaction costs related to borrowings		0		0		(311)
Repayment of lease liabilities		(491)		(733)		(564)
Repayment of borrowings		(5,929)		(580)		(92)
Net cash (used)/generated in financing activities		(6,220)		88,557		133,581
Exchange rate related changes of cash and cash equivalents		791		3,386		7,636
Net changes to cash and cash equivalents		(152,548)		(10,730)		43,140
Cash and cash equivalents at the beginning of the period		190,286		197,630		146,854
Cash and cash equivalents at the end of the period		38,529		190,286		197,630

Affimed N.V.
Consolidated statements of changes in equity
(in € thousand)
		Issued		Capital		Fair Value			Accumulated			Total
		capital		reserves		reserves			deficit			equity
Balance as of January 1, 2021		983		345,164		1,720			(275,874)			71,993
Issue of common shares		240		114,197								114,437
Exercise of share-based payment awards		11		2,906								2,917
Equity-settled share-based payment awards				11,820								11,820
Loss for the period									(57,523)			(57,523)
Other comprehensive loss						(7,693)						(7,693)
Balance as of December 31, 2021		1,234		474,087		(5,973)			(333,397)			135,951
Balance as of January 1, 2022		1,234		474,087		(5,973)			(333,397)			135,951
Issue of common shares		259		89,545								89,804
Exercise of share-based payment awards		0		101								101
Equity-settled share-based payment awards				19,110								19,110
Transfer of cumulative loss on sale of financial assets						10,789			(10,789)			0
Loss for the period									(86,004)			(86,004)
Other comprehensive loss						(6,047)						(6,047)
Balance as of December 31, 2022		1,493		582,843		(1,231)			(430,190)			152,915
Balance as of January 1, 2023		1,493		582,843		(1,231)			(430,190)			152,915
Issue of common shares		7		109								116
Equity-settled share-based payment awards				10,714								10,714
Loss for the period									(105,938)			(105,938)
Balance as of December 31, 2023		1,500		593,666		(1,231)			(536,128)			57,807

What positive clinical results were reported for AFM24 in the Phase 1/2a trial?

AFM24 reported four responses in the NSCLC EGFR-wildtype cohort, including one complete response, three partial responses, and seven stable disease patients.

What data updates are expected in Q2 2024 for AFM24?

Mature progression free survival data from the EGFR-wildtype NSCLC patients and initial efficacy data from the EGFR-mutant NSCLC cohorts are expected.

What is the status of the acimtamig combination with AlloNK study (LuminICE-203)?

Initial efficacy and safety data are expected to be reported in Q2 2024.

What is the focus of Affimed's restructuring?

The company is focusing on advancing its three clinical programs, AFM24, acimtamig, and AFM28.

What is the cash runway for Affimed?

Cash, cash equivalents, and investments totaled €72.0 million as of December 31, 2023, securing the company until H2 2025.

What financial highlights were reported for the year ended December 31, 2023?

The company saw a decrease in revenue and an increase in net loss for the year ended December 31, 2023.