Affimed(AFMD) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company ended Q2 2020 with cash, cash equivalents, and current financial assets of €92.6 million, down from €104.1 million at the end of 2019 [29] - Net cash used in operating activities for Q2 2020 was €15 million, compared to €5.6 million in Q2 2019 [30] - Total revenue for Q2 2020 was €2.9 million, down from €4 million in Q2 2019, primarily related to the Genentech collaboration [30] - Net loss for Q2 2020 was €12.2 million, or €0.16 per common share, compared to a net loss of €10.3 million, or €0.17 per common share in Q2 2019 [31] Business Line Data and Key Metrics Changes - R&D expenses for Q2 2020 were €11.7 million, slightly up from €11.5 million in Q2 2019, mainly related to AFM13 and AFM24 clinical programs [31] - G&A expenses for Q2 2020 were €2.6 million, compared to €2.3 million in Q2 2019, attributed to higher compliance and consulting costs [31] Market Data and Key Metrics Changes - The company is actively recruiting patients for AFM24, targeting EGFR-expressing tumors, with colorectal cancer and non-small cell lung cancer being the most prevalent types expected in the Phase 1 study [42] - The collaboration with Genentech is progressing, with the Phase 1 clinical study of the BCMA/CD16A innate cell engager now enrolling patients [10] Company Strategy and Development Direction - The company is focused on advancing its clinical pipeline, particularly AFM13 and AFM24, while also exploring combination therapies with natural killer cells and checkpoint inhibitors [32][34] - The addition of new members to the supervisory board aims to enhance the company's strategic direction and industry expertise [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges posed by the COVID-19 pandemic, emphasizing ongoing progress in clinical studies [6][7] - The company anticipates presenting interim data for AFM13 in peripheral T-cell lymphoma around mid-2021 [33] Other Important Information - The company secured drug supply for ongoing studies, ensuring uninterrupted treatment for patients [14] - The company is starting IND-enabling studies for new pipeline candidates AFM28 and AFM32 [34] Q&A Session Summary Question: Enrollment pace for AFM24 - Management confirmed that all sites are active in screening patients, and enrollment is proceeding as per protocol [40] Question: Tumor types for AFM24 study - The study is open to all EGFR-expressing tumors, with colorectal and non-small cell lung cancer expected to be the most prevalent [42] Question: Collaborative research revenues stability - Revenue numbers fluctuate based on the hours worked on Genentech programs, typically ranging from €2 million to €5 million [46] Question: Cohort one for AFM24 and translational work - Pre-treatment biopsies are required, and there is a significant correlative science program to assess NK cell activation [48] Question: Future milestones for BCMA innate engager - The company received $96 million in upfront cash and has over $5 billion in potential milestone payments, which will increase as the program progresses [59]