Oppenheimer Initiates Outperform On Affimed, Sees $14/Share

In a report published Monday, Oppenheimer analyst Christopher Marai initiated coverage of Affimed NV (NASDAQ: AFMD) with an Outperform rating and a price target of $14.Affimed is a clinical-stage biopharmaceutical company discovering and developing highly targeted cancer immunotherapies. The company is currently developing proprietary bispecific biologics (TandAbs), which redirect cells of the immune system to tumors for the treatment of cancer.The company's lead candidate AFM13, a CD30xCD16A TandAb, redirects natural-killer (NK) cells to CD30-expressing lymphomas and is in phase 2 trials. "We anticipate positive data for AFM13 in 4Q15 will lead to registration-worthy P2b trials. We recommend owning AFMD, viewing it as a lower-risk opportunity, as it brings together validated mechanisms-of-action, targets and commercial opportunities for each pipeline compound with upside in rapid routes to registration," analyst Christopher Marai stated.In the report Oppenheimer noted, "We also believe that combination trials of AFM13 with checkpoint inhibitors (PD-1) could yield synergies and profound results that may be superior to nivolumab (anti-PD-1) single agent activity in HL, which yielded breakthrough designation. We anticipate that this could offer AFM13 a top-spot in a $400M+ annual HL market and upside in other CD30+ cancers." Affimed's development pipeline also includes AFM11, a clinical-stage Phase I TandAb that redirects T-cells to CD19 expressing cells. "Finally, AFM21, an EGFRvIII-directed TandAb (CD16 or CD3), despite being clinically derisked in our view, remains early in development and upside to our price target at this time," Marai added.