Cantor Fitzgerald cuts Affimed stock rating on insolvency news

Published 14/05/2025, 13:38
Cantor Fitzgerald cuts Affimed stock rating on insolvency news

On Wednesday, Affimed Therapeutics (NASDAQ:AFMD) saw its stock rating downgraded from Overweight to Neutral by Cantor Fitzgerald, following the company’s announcement of insolvency proceedings under German law. The stock, currently trading at $0.13, has plummeted over 80% in the past week, according to InvestingPro data, bringing its market capitalization to just $2.2 million. The biopharmaceutical firm, unable to secure necessary capital, has been unable to finalize a reverse merger, establish a partnership, or obtain bridge financing for its key drug candidates, AFM13 and AFM24. While InvestingPro data shows the company holds more cash than debt on its balance sheet, the rapid cash burn rate has become a critical concern. InvestingPro subscribers have access to 18 additional key insights about Affimed’s financial health.

Affimed’s AFM13 is developed for the treatment of lymphoma, while AFM24 targets non-small cell lung cancer (NSCLC). Both drugs are considered critical to the company’s pipeline. However, in the current market climate, which is characterized by risk aversion, Affimed has struggled to advance these projects despite several attempts.

The analyst from Cantor Fitzgerald expressed disappointment over the lack of materialization of a financial solution for Affimed, which has been actively seeking options. The company’s efforts to find a reverse merger, a partnership, or bridge financing have been unsuccessful, which has led to the initiation of insolvency proceedings.

The possibility of a potential buyer recognizing residual value in Affimed’s pipeline or its innate cell engager platform is deemed unlikely. The analyst suggests that the company has likely already explored this avenue to no avail. With the current developments, the prospects for Affimed to overcome its financial hurdles appear dim.

The downgrading of the stock reflects the analyst’s view on the reduced likelihood of a positive turnaround for Affimed in the near term. The company’s financial struggles and the initiation of insolvency proceedings signal significant challenges ahead for the biopharmaceutical firm. InvestingPro data reveals the stock has lost 97% of its value over the past year, with technical indicators suggesting oversold conditions.

In other recent news, Affimed N.V. is set to be delisted from the Nasdaq Stock Market following an insolvency filing, with trading suspension beginning on May 20, 2025. The delisting decision stems from public interest concerns, questions about shareholder equity, and compliance issues with Nasdaq’s listing requirements. Additionally, Leerink Partners downgraded Affimed’s stock rating to Market Perform from Outperform, reducing the price target to $0.39 due to funding and regulatory challenges. Despite these setbacks, Affimed reported promising results for AFM24 in treating non-small cell lung cancer, with higher drug exposure leading to better patient outcomes. The study showed improved response rates and progression-free survival for those with higher exposure to AFM24. Affimed also faces a Nasdaq notice for not meeting the minimum bid price requirement, with a deadline of October 13, 2025, to regain compliance. The company is exploring options to address this issue while continuing its focus on developing cancer therapies. These developments highlight the challenges and potential within Affimed’s ongoing clinical programs.

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