Earnings - March 25, 2015
Heidelberg, Germany, March 25, 2015 – Affimed N.V. (Nasdaq: AFMD), a clinical-stage biopharmaceutical company developing highly targeted cancer immunotherapies, today reported financial results for the fourth quarter and year ended December 31, 2014.
“2014 has been a year in which the potential of cancer immunotherapies has been recognized by both clinical experts and the capital markets. Affimed has benefitted from our successful Nasdaq IPO, which has enabled us to advance our two lead bispecific TandAb antibody clinical programs that are based on recruiting immune cells,” said Dr. Adi Hoess, CEO of Affimed. “Immune cell recruitment has shown a huge potential and, in addition to T-cell engagement, Affimed is the leader in target-specific Natural Killer (NK)-cell engagement. We remain on target for interim data from our phase 2 clinical trial for AFM13, the most advanced NK-cell engager, later this year.”
Dr. Hoess added: “Looking forward toward the rest of the year, we have conducted initial evaluation of our compounds in combination with other anti-cancer agents, including checkpoint inhibitors. We believe that the strength of our NK-cell engagement with its advantageous safety profile supports this investigation and look forward to providing an update on these efforts in the first half of 2015.”
(Figures for the fourth quarter 2014 and 2013 represent unaudited figures)
Cash and cash equivalents totaled €39.7 million on December 31, 2014 compared to €4.2 million on December 31, 2013. The increase was primarily attributable to the completion of Affimed’s initial public offering of its common shares on September 17, 2014, the pre-IPO Series E financing in July 2014, including equity and the loan agreement with Perceptive Advisors, as well as payments from the Amphivena and Leukemia & Lymphoma Society (LLS) collaborations.
Net cash used in operating activities for the fourth quarter 2014 was €5.4 million compared to €2.3 million for the fourth quarter 2013. Net cash used in operating activities was €10.5 million for the twelve months ended December 31, 2014 compared to €5.7 million for the twelve months ended December 31, 2013. The increase was primarily related to the increase in cash based expenses for research and development (R&D) in connection with our development and collaboration programs and general and administrative expenses in relation to the preparation for the IPO and other financing transactions. Revenue for the fourth quarter of 2014 was €81 thousand compared to €4.6 million for the fourth quarter of 2013 due to milestone achievement-related revenue recognition under the Amphivena collaboration in the 2013 period. Revenue for the full year 2014 was €3.4 million compared to €5.1 million for the full year 2013. Revenue in both periods was primarily derived from Affimed’s collaborations with Amphivena and the LLS as well as from third party services rendered by AbCheck.
R&D expenses for the fourth quarter 2014 were €4.1 million compared to €5.4 million for the fourth quarter 2013. For the full year 2014 R&D expenses were €9.6 million compared to €14.4 million for the year 2013. The 33% decrease is primarily related to a credit to the share-based payment expense resulting from a re-measurement gain at consummation of the IPO.
Net loss for the fourth quarter 2014 was €5.3 million or €0.22 per common share, compared to a net loss of €2.6 million, or €0.17 per common share for the fourth quarter 2013. Net loss for the full year 2014 was €0.3 million or €0.01 per common share, compared to a loss of €26.1 million or €1.76 per common share for the full year 2013. The decrease is primarily related to a credit to the share–based payment expense resulting from a re-measurement gain at consummation of the IPO. These financial results for the fourth quarter 2014 and 2013 as well as for the full year 2014 and 2013 include certain non-operational and non-monetary effects due to Affimed’s corporate reorganization in connection with the IPO. Additional information regarding these results is included in the notes to the consolidated financial statements as of December 31, 2014 and “Item 5. Operating and Financial Review and Prospects,” which will be included in Affimed’s Annual Report on Form 20-F as filed with the SEC.
Note on IFRS Reporting Standards
Affimed prepares and reports the consolidated financial statements and financial information in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). None of the financial statements were prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States. Affimed maintains its books and records in Euro.
Conference call and webcast information
Affimed’s management will host a conference call to discuss the company’s financial results and recent corporate developments today at 8:30 a.m. EST. A webcast of the conference call can be accessed in the “Events” section on the “Media” page of the Affimed website at http://www.affimed.com/events.php. A replay of the webcast will be available on Affimed’s website shortly after the conclusion of the call and will be archived on the Affimed website for 30 days following the call.
Affimed N.V. (Nasdaq: AFMD) is a clinical-stage biopharmaceutical company focused on discovering and developing highly targeted cancer immunotherapies. Affimed’s product candidates are being developed in the field of immuno-oncology, which represents an innovative approach to cancer treatment that seeks to harness the body’s own immune defenses to fight tumor cells. The most potent cells of the human defense arsenal are types of white blood cells called Natural Killer cells, or NK-cells, and T-cells. Affimed’s proprietary, next-generation bispecific antibodies, called TandAbs for their tandem antibody structure, are designed to direct and establish a bridge between either NK-cells or T-cells and cancer cells, triggering a signal cascade that leads to the destruction of cancer cells. Affimed has focused its research and development efforts on three proprietary TandAb programs for which it retains global commercial rights.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact are forward-looking statements, which are often indicated by terms such as "anticipate," "believe," "could," "estimate," "expect," "goal," "intend," "look forward to", "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions. Forward-looking statements are based on management’s beliefs and assumptions and on information available to management only as of the date of this press release. These forward-looking statements include, but are not limited to, statements regarding the risk of cessation or delay of any of the ongoing or planned clinical studies and/or development of our product candidates. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including, without limitation, risks associated with our clinical development activities, regulatory oversight, product commercialization, intellectual property claims, and the risks, uncertainties and other factors described under the heading "Risk Factors" in Affimed’s filings with the Securities and Exchange Commission. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements, and we assume no obligation to update these forward-looking statements, even if new information becomes available in the future.
Adi Hoess, CEO
Phone: +49 6221 65307-0