Back to top

Image: Bigstock

Affimed (AFMD) Surges on Collaboration Contract with Roche (revised)

Read MoreHide Full Article

Shares of Affimed Inc. (AFMD - Free Report) were up a massive 246.8% post announcement of a cancer collaboration agreement with Roche Holding’s (RHHBY - Free Report) subsidiary, Genentech, on Monday Aug 27.

In fact, the stock has skyrocketed 327% year to date, comprehensively outperforming the industry’s increase of 2.4%.


Both companies have entered into a strategic collaboration deal to commercialize and develop a host of immunotherapeutic treatments for multiple cancers.

Financial Details of the Deal

Per the terms of the contract, Affimed will receive an upfront payment of $96 million with potential for an additional $5 billion in milestone payments and royalties on sale. The transaction is expected to close in the third quarter of 2018, subject customary closing conditions and a clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Other Details

Affimed will discover and advance innate immune cell engager-based immunotherapeutics of interest to Genentech, using its proprietary Redirected Optimized Cell Killing platform, which utilizes both NK cells (natural killer cells) and T-cells.

The agreement will include other pipeline candidates from Affimed’s ROCK platform, which are under evaluation for multiple solid and hematologic tumors. While Affimed and Genentech will carry out early-stage and late-stage research phases, Genentech will be solely responsible for clinical development and commercialization worldwide.

The transaction looks to be a strategic fit for Affimed as it will boost its cashflow to a great extent. The influx of $96 million will be a great drive for the company. Moreover, Affimed has potential back load of milestone payments worth $5 billion. Hence, the company will not need to raise cash.

Affimed N.V. Price and Consensus

Affimed N.V. Price and Consensus | Affimed N.V. Quote

Zacks Rank & Stocks to Consider

Affimed currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the pharma sector are Illumina, Inc. (ILMN - Free Report) and Gilead Sciences, Inc. (GILD - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina’s earnings estimates have been raised 12.1% for 2018 and 10% for 2019 over the past 60 days. The stock has soared 57.8% so far this year.

Gilead Sciences’ earnings estimates have been moved 7.5% north for 2018 and 1.9% for 2019 over the past 60 days. The stock has gained 4.6% year to date.

(We are reissuing this article to correct a mistake. The original article, issued August 29, 2018, should no longer be relied upon.)

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Roche Holding AG (RHHBY) - free report >>

Gilead Sciences, Inc. (GILD) - free report >>

Illumina, Inc. (ILMN) - free report >>

Affimed N.V. (AFMD) - free report >>