It’s been a bad day for Affimed (NASDAQ:AFMD) stock. The company is down over 36% in afternoon trading, and it’s largely thanks to some rough news about one of the company’s big new releases. More specifically, Affimed’s AFM-13 treatment turned in its phase 2 REDIRECT data, and the news wasn’t as good as it might have been.
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There were some bright spots in the report. AFM13 targets T-cell lymphoma, particularly lymphoma that is in an advanced stage, either relapsed or refractory. The treatment yielded an objective response rate of 32.4%. It also offered a complete response rate of 10.2%.
However, since the product ultimately proved less durable than expected, the company decided to change its focus. Now, Affimed will use AFM13 in concert with AB-101. The combination is likely to hit tumors harder and provide better durability.
Recent moves from analysts in the sector suggest that the news may not be as bad as investor response suggests. Wells Fargo (NYSE:WFC) recently maintained its “overweight” rating on the company and upgraded the price target from $7 to $8. Meanwhile, Piper Sandler conducted a similar move, upgrading its price target from $6 to $7 and maintaining its “overweight” rating.
Overall, analyst consensus opinion considers Affimed a “Strong Buy.” The company’s average price target of $6.17 per share suggests 376.45% upside potential.
