Please ensure Javascript is enabled for purposes of website accessibility

Why Affimed N.V. Stock Is Soaring Today

By Prosper Junior Bakiny - Mar 10, 2021 at 1:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors are thrilled with the biopharmaceutical company's latest clinical update.

What happened

Shares of Affimed N.V. (AFMD -3.53%) are rising sharply on Wednesday following the company's release of a clinical update regarding one of its pipeline candidates. As of 1:40 p.m. EST, Affimed's stock was up by 15.2% after rising by as much as 20.7% earlier in the day.

So what

Affimed NV is investigating AFM13 as a treatment for relapsed or refractory CD30-positive peripheral T-cell lymphoma (PTCL). Today, the company announced that it would continue enrolling patients for a phase 2 clinical trial for AFM13 after a preplanned interim futility analysis demonstrated positive results.

The analysis showed that the response rate in cohort A in the trial achieved a predefined threshold for the continuation of the study. Meanwhile, the response rate in cohort B was comparable enough to that of cohort A to justify combining both into a single cohort.

Microscopic view of cancer cell.

Image source: Getty Images.

Now what

According to the study's principal investigator Won Seog Kim, PTCL is an aggressive and difficult-to-treat form of cancer that requires new therapeutic options. Affimed's AFM13 takes a different approach than most other cancer therapies. The goal of this treatment is to restore "a patient's innate immune system function."

If Affimed's AFM13 proves safe and effective in clinical trials, it could turn into a cash cow for the company. But there is still a long road ahead for this pipeline candidate, and there are still significant obstacles for the company to overcome. Further, Affimed currently has no products on the market. With that in mind, and while it might be worth keeping an eye on Affimed, I think it is too early to initiate a position in this healthcare stock

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Affimed N.V. Stock Quote
Affimed N.V.
$3.28 (-3.53%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.