Please ensure Javascript is enabled for purposes of website accessibility

Why Affimed Stock Is On Fire Today

By George Budwell – Nov 22, 2021 at 9:22AM

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

The biotech's early-stage trial results are turning heads on Wall Street today.

What happened

Shares of the German cancer immunotherapy company Affimed (AFMD -0.83%) jumped by as much as 25% in premarket trading Monday morning. The biotech's stock is popping in early morning action today in response to overwhelmingly positive early-stage trial results for its lead product candidate, AFM13.

Specifically, Affimed announced that an investigator-initiated phase 1/2 trial evaluating AFM13 in combination with cord blood-derived allogeneic natural killer cells produced a 100% objective response rate in patients with recurrent or refractory CD30-positive lymphomas at the recommended phase 2 dose and after a single treatment cycle. Equally important, the company noted that there were no reports of serious adverse events such as cytokine release syndrome, immune cell-associated neurotoxicity syndrome, or graft-versus-host disease.

Natural killer cells attacking a tumor.

Image source: Getty Images.

So what

Although investors shouldn't draw any firm conclusions from a small, early-stage trial, these preliminary data are eye-catching nonetheless. What's important to understand is that these were heavily pre-treated patients who had progressive disease after their latest line of therapy. That's a tough setting, to put it mildly. And that's what makes this perfect objective response rate at the recommended phase 2 dose all the more impressive.   

Now what

Affimed said it will host a conference call on Dec. 9 at 8:30 a.m. ET to discuss these initial results, as well as the study's next steps. In the interim, aggressive investors might want to consider buying shares of this small-cap biotech. Apart from its handsome organic growth prospects, Affimed stands out as a strong buyout candidate, especially after today's clinical update. Several big pharmas, after all, have shown a keen interest in acquiring early-stage cancer companies with assets that could eventually evolve into franchise-level products.   

George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Premium Investing Services

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