Affimed downgraded to Market Perform from Outperform at Leerink

Leerink downgraded Affimed (AFMD) to Market Perform from Outperform with a price target of 39c, down from $5. The firm no longer believes it is likely the company will secure funding to continue development of their three clinical innate cell engager programs. Despite promising clinical signals for all three programs, an eight-month active search under their new CEO, Shawn Leland, has not attracted a strategic nor financial partner. Leerink suspects the signals look less promising upon diligence by partners and/or the market opportunities are simply not large enough to justify investment. Further, for the firm, new CBER leadership at FDA reduces the probability of accelerated approval for any cell therapy, including acimtamig + AB101 + IL-2, a regimen which also faces contribution-of-components regulatory questions.