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Affimed Shares Soar On $5B Collaboration With Roche's Genentech

Affimed Shares Soar On $5B Collaboration With Roche's Genentech

Affimed NV (NASDAQ: AFMD) shares are trading sharply higher Tuesday after the biopharma announced a collaboration agreement with Roche Holdings AG Basel ADR Common Stock (OTC: RHHBY)'s Genentech unit.

Affimed shares were skyrocketing 148.7 percent to $3.98 at the time of publication Tuesday. 

What Happened

Affimed, which focuses on targeted immunotherapies that use the power of innate and adaptive immunity, namely the NK and T cells, said it has struck a strategic collaboration agreement with Genentech to develop and commercialize novel NK cell engager-based immunotherapeutics to treat multiple cancers.

Affimed said it will leverage its Redirected Optimized Cell Killing platform as well as multiple, undisclosed solid and hematologic tumor targets to generate candidate products.

Both companies will collaborate on discovery, early research and late-stage research phases, while Genentech assumes responsibility for clinical development and commercialization.

Why It's Important

The deal has Genentech paying Affimed $96 million upfront with other near-term committed funding. Affimed would also receive potential regulatory and commercial milestone payments as well as royalties totaling up to $5 billion over time.

"Our partnership with Affimed provides an opportunity to enhance our existing efforts to understand how the immune system can be activated to help people living with cancer," said James Sabry, Roche's global head of partnering.

What's Next

The agreement is subject to customary closing conditions, including antitrust clearance.

The companies expect the deal to close in the third quarter of 2018.

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