Breaking Down Affimed N.V. (AFMD) Financial Health: Key Insights for Investors

You're looking at Affimed N.V., a clinical-stage biotech, and trying to reconcile the promising clinical pipeline with the stark reality of its balance sheet in the 2025 fiscal year. The direct takeaway is this: the company is at a critical inflection point where its scientific potential is running headlong into a severe, near-term liquidity crunch. While Wall Street analysts have maintained a 'Buy' consensus with a price target of up to $3.50 per share, that optimism is currently overshadowed by the cash runway.

Honestly, the biggest risk is the clock: the company's own filing in May 2025 revealed that its cash, cash equivalents, and investments-preliminarily estimated at just €13.0 million at the end of 2024-were only sufficient to fund operations until the end of Q2 2025, a significant downgrade from prior guidance. That's a tight window, especially when the third quarter of 2024 alone saw a net loss of €15.1 million, showing the significant burn rate of a clinical-stage business. We need to dig into what this cash constraint means for their key assets like AFM24 and AFM13, and whether the market's high price target is a realistic opportunity or just a defintely dangerous distraction.

Revenue Analysis

You need to understand that Affimed N.V. (AFMD) is a clinical-stage biopharmaceutical company, which means its revenue is volatile and not based on commercial product sales. The direct takeaway is that the company's revenue has collapsed in 2025, driven by the lumpy nature of collaboration payments and a critical lack of new deals, a trend that culminated in the May 2025 insolvency filing.

Affimed's revenue stream is almost entirely derived from strategic collaborations and licensing agreements with larger pharmaceutical partners like Genentech and Artiva Biotherapeutics. This revenue is not a steady flow from product sales; instead, it comes in large, unpredictable chunks: upfront payments when a deal is signed, and milestone payments when a drug candidate hits a specific clinical or regulatory goal. No product sales means no predictable quarter-to-quarter income.

The year-over-year revenue growth rate shows a brutal contraction. For the trailing twelve months (TTM) ending in November 2025, Affimed N.V. reported revenue of only $0.96 Million USD. Here's the quick math: compared to the $8.94 Million USD in revenue the company generated in the full 2023 fiscal year, that TTM figure represents a decline of over 89%. That is a catastrophic drop in a short period.

The steep decline in revenue is the most significant change. For context, third-quarter revenue in 2024 was just €0.2 million, down sharply from €2.0 million in the same quarter a year earlier. This collapse signals that the company did not achieve significant development milestones or secure new, large upfront collaboration payments in the 2024-2025 period. The revenue composition is simple-it's all collaboration income, and when that dries up, the top line vanishes. This is the core risk in clinical-stage biotech.

The contribution of different business segments to overall revenue is straightforward: 100% of the revenue comes from these collaboration and licensing agreements. There are no meaningful regional or product-based breakdowns to analyze. The key collaborations include:

• Genentech: Strategic collaboration for novel Natural Killer (NK) cell engager-based immunotherapeutics.
• Artiva Biotherapeutics: Collaboration to develop the combination of acimtamig and AlloNK.
• Roivant Sciences Ltd.: License and strategic collaboration for novel ICE (Innate Cell Engager) molecules, including AFM32.

The table below highlights the dramatic revenue trend, which is a major red flag for investors considering the company's financial health, as discussed in more detail at Breaking Down Affimed N.V. (AFMD) Financial Health: Key Insights for Investors.

This trend is defintely the reason the company faced insolvency proceedings in 2025. Next step: You need to map these revenue risks directly to the company's cash burn and liquidity profile.

Profitability Metrics

You're looking at Affimed N.V. (AFMD) profitability, and the most critical context is the company's financial distress, culminating in its May 2025 filing for the opening of insolvency proceedings. This event fundamentally re-shapes the meaning of its 2025 financial metrics. The profitability story here is one of a clinical-stage biotech that failed to achieve commercial-stage revenue to cover its massive research and development (R&D) burn rate.

For a company like Affimed N.V., which relies on collaboration revenue and license fees, traditional profitability is non-existent. Over the last twelve months (LTM) leading up to the insolvency, the company's profitability ratios were deeply negative, reflecting a high cash burn. The LTM Revenue was approximately $6.29 million, which translated directly into the Gross Profit because, as is typical for a pre-commercial biotech, there was effectively no Cost of Goods Sold (COGS). That's a 100% Gross Margin, which sounds good, but it's misleading.

Here's the quick math on the real, bottom-line financial health, using the LTM data before the May 2025 insolvency:

• Gross Profit Margin: 100% ($6.29M Gross Profit / $6.29M Revenue).
• Operating Profit Margin: -1,124.8% ($-70.75M Operating Income / $6.29M Revenue).
• Net Profit Margin: -1,240.7% ($-78.04M Net Income / $6.29M Revenue).

Honestly, a negative 1,240.7% Net Margin is a clear sign the business model, as it stood, was unsustainable. You can see a more in-depth look at the investor base that supported this high-risk model at Exploring Affimed N.V. (AFMD) Investor Profile: Who's Buying and Why?

Operational Efficiency and Profitability Trends

The trend in profitability was a race against the clock. When you look at the Q3 2024 results, just months before the 2025 filing, you see the company trying to manage costs to extend its cash runway, which was projected into Q4 2025. Total revenue for Q3 2024 dropped significantly to just €0.2 million from €2.0 million the year prior, mainly due to the completion of collaboration work.

But, they were cutting expenses hard:

• Research and Development (R&D) expenses decreased to €10.1 million in Q3 2024 from €21.5 million in Q3 2023.
• General and Administrative (G&A) expenses also reduced to €4.3 million from €5.4 million year-over-year.

This cost management improved the Net Loss to €15.1 million in Q3 2024, an improvement from the €24.4 million loss in Q3 2023. Still, a €15.1 million quarterly loss on €0.2 million in revenue shows the operational efficiency was defintely not enough to achieve cash flow neutrality, let alone profit, without a major financing event or a blockbuster partnership.

Comparison with Industry Averages

Comparing Affimed N.V.'s metrics to the broader biotechnology and pharmaceutical industry highlights the extreme risk profile. While the industry is capital-intensive, successful pharmaceutical companies often show strong profitability once a drug hits the market. For instance, the average Return on Equity (ROE) in the US pharmaceutical industry was approximately 10.49% as of March 2025. Affimed N.V.'s Return on Equity (ROE) was a staggering -149.48% in the last 12 months, and its Net Margin was over ten times more negative than its total revenue. This massive disparity illustrates the gap between a pre-revenue, high-burn clinical-stage company and its commercially viable peers.

The table below summarizes the core profitability ratios, showing the stark reality of the company's financial position leading up to the insolvency.

The key takeaway is that Affimed N.V. was operating as a pure R&D engine, with its financial metrics reflecting a complete dependency on external capital, a situation that became untenable by May 2025.

Debt vs. Equity Structure

You're looking at Affimed N.V. (AFMD)'s capital structure, and the short answer is that the structure collapsed in the first half of the 2025 fiscal year. The company's inability to secure additional equity or debt funding led directly to its insolvency filing in May 2025.

The core issue for a clinical-stage biotech is managing cash burn until a drug hits the market, and Affimed N.V.'s financing mix ultimately failed to bridge that gap. The company's total debt in the most recent quarter (MRQ) was approximately $14.35 million. This isn't a massive debt load for a mature company, but for a biotech reliant on capital raises, it became an insurmountable burden when new funding dried up. They were concluded to be 'overindebted' by management, which is a defintely a red flag.

Here's the quick math on their leverage compared to the industry:

• Affimed N.V.'s Total Debt-to-Equity (MRQ): 74.96%
• Biotechnology Industry Average D/E: Approximately 17% (or 0.17)

Affimed N.V.'s D/E ratio was nearly four times the industry average, sitting at 74.96% in the most recent quarter. This high leverage signaled a greater reliance on debt relative to shareholder equity, which is a high-risk position for a company without product revenue. For the clinical-stage biotech sector, equity funding is usually the primary fuel source; debt is often a secondary, less dilutive option, but only when the company meets favorable conditions like a deep pipeline and a cash runway of at least 12 months.

The long-term debt-to-equity ratio was 34.81%, which shows that a significant portion of their debt was long-term, but the total debt burden was still too high given their lack of cash flow from operations. For the year ended December 31, 2023, the company reported a net cash used in operating activities of $63.89 million, illustrating the constant need for external financing. When the market closed the door on new equity or refinancing, the financial situation became immediately critical.

The ultimate action on the debt-vs-equity balance came on May 13, 2025, when Affimed N.V. filed for insolvency proceedings. This move effectively ended any near-term discussion of credit ratings or refinancing activity, as the company was unable to secure the necessary strategic transactions to raise additional capital. The market's assessment was a complete failure of the capital structure strategy. You can dive deeper into the market's reaction by Exploring Affimed N.V. (AFMD) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

The liquidity assessment for Affimed N.V. (AFMD) has a clear, definitive conclusion as of 2025: the company filed for insolvency proceedings in Germany on May 13, 2025, due to a failure to secure sufficient funding to continue operations. This action, driven by overindebtedness (Überschuldung), is the ultimate indicator of a complete liquidity failure, despite earlier financial metrics suggesting some short-term stability.

You're looking for a clear picture of financial health, but honestly, the traditional ratios only tell the story of the lead-up to the collapse. The company's cash runway, which was projected in November 2024 to last into the fourth quarter of 2025 (Q4 2025), was cut short by five months. That's a massive miss on a critical financial projection.

Current and Quick Ratios: A False Sense of Security

Prior to the May 2025 filing, Affimed N.V.'s short-term liquidity ratios looked deceptively strong on paper, which is common for a clinical-stage biotech that often holds significant cash from prior funding rounds and has few immediate liabilities. The most recent quarter (MRQ) figures showed a Current Ratio of 1.93 and a Quick Ratio (acid-test ratio) of 1.71. A ratio above 1.0 typically signals enough current assets (cash, receivables) to cover current liabilities (payables, short-term debt). But this estimate hides the true problem: a massive cash burn rate that quickly eroded the asset base.

• Current Ratio: 1.93 (MRQ)-Seemed healthy, but was unsustainable.
• Quick Ratio: 1.71 (MRQ)-Indicated strong ability to cover immediate debts without selling inventory.

Cash Flow Statements Overview and Working Capital Trends

The true trend was visible in the cash flow statements and the resulting working capital drain. For the trailing twelve months (TTM) leading up to the insolvency announcement, Affimed N.V. reported a net cash outflow from operations of approximately -$85.77 million. This negative operating cash flow (OCF) is the primary driver of working capital depletion for a development-stage company.

Here's the quick math: consistently burning over $7 million per month in operations (which $-85.77 million TTM OCF implies) means any cash raised is a short-term fix, not a sustainable business model. The company's cash, cash equivalents, and investments were only €24.1 million as of September 30, 2024. That cash position was simply inadequate to cover the projected burn rate into Q4 2025, forcing the insolvency filing in May 2025.

The cash flow trends were clear: a desperate need for continuous, large-scale financing to keep the lights on and trials running.

The Liquidity Crisis and Investor Action

The core liquidity strength of any biotech is its cash runway, and Affimed N.V.'s runway ran out. The May 2025 insolvency filing means the company could not meet its obligations as they came due, which is the definition of illiquidity. The shares were suspended from trading and delisted from Nasdaq, a direct and severe consequence of the liquidity crisis. For investors, the lesson is that high-growth, pre-revenue biotechs require a deep dive into the cash burn rate and the certainty of future funding, not just the current ratio.

If you want a more complete picture of the company's former strategic position, you can review the full analysis at Breaking Down Affimed N.V. (AFMD) Financial Health: Key Insights for Investors.

Next Step: Review your portfolio for other clinical-stage biotechs with less than 12 months of cash runway and a TTM Operating Cash Flow deficit exceeding $50 million; Finance: flag these for immediate liquidity risk assessment.

Valuation Analysis

You're looking at Affimed N.V. (AFMD), a clinical-stage biotech, and trying to figure out if it's a bargain or a value trap. Honestly, standard valuation metrics are defintely skewed here. The short answer is that while the stock appears dramatically undervalued on paper, the May 2025 filing for insolvency proceedings overrides almost all traditional analysis, making it a highly speculative asset.

The core issue is that Affimed N.V. is not profitable, which immediately renders key metrics like the Price-to-Earnings (P/E) ratio unavailable or meaningless for the 2025 fiscal year. Similarly, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio is also not applicable because the company has negative Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

What we can look at are the book and sales values. For the 2025 fiscal year, the Price-to-Book (P/B) ratio stood at an extremely low 0.04. This suggests the stock price is just 4% of its Book Value per share of $4.19. A P/B this low usually screams 'undervalued,' but in this case, it's a clear signal of the market pricing in a high risk of liquidation where shareholders may not recover the stated book value.

Here's the quick math on the sales side: with Annual Sales reported around $877 thousand, the Price-to-Sales (P/S) ratio was about 3.33. Also, the company's Market Cap was approximately $1.64 million, but its Enterprise Value was a negative -$12.50 million, which shows a net cash position-a small positive in a tough situation.

• P/E Ratio: Not Applicable (N/A) due to net losses.

• P/B Ratio: 0.04 (Indicates severe undervaluation, but insolvency risk is the driver).

• EV/EBITDA: Not Applicable (N/A) due to negative EBITDA.

Stock Price and Analyst Sentiment

The stock price trend over the last 12 months tells the real story of the company's distress. The price change over the 52 weeks leading up to August 2025 was a brutal -100.00%. This massive decline culminated in the company receiving a Nasdaq delisting notice in May 2025 and subsequently filing for insolvency proceedings. The stock now trades Over-The-Counter (OTC) under the ticker AFMDQ.

When you look at analyst consensus, you see a disconnect. As of November 2025, the overall consensus from analysts is a Hold rating. The average 12-month price target is a highly optimistic $3.50. What this estimate hides is that these targets were likely set before the May 2025 insolvency filing, or they represent a highly speculative outcome where the company successfully restructures or is acquired. You must treat any price target above the current OTC price with extreme caution given the financial reality.

Dividend Policy

As a clinical-stage biotechnology company, Affimed N.V. has no history of paying dividends, and this remains the case for the 2025 fiscal year. The dividend yield is 0.00%, and the payout ratio is N/A. The company is focused on conserving capital for its drug development pipeline, which is standard for the sector, but now it's a matter of survival.

For a more detailed look at the fundamental health of the business, check out the full post: Breaking Down Affimed N.V. (AFMD) Financial Health: Key Insights for Investors.

Risk Factors

You're looking at Affimed N.V. (AFMD) and, honestly, the near-term risk profile is about as stark as it gets. The direct takeaway is this: the company's financial health collapsed in the first half of 2025, culminating in an insolvency filing that makes the stock a highly speculative asset, if tradeable at all.

The core issue is a catastrophic failure to secure necessary funding for a clinical-stage biotech. This isn't just a clinical trial setback; it's a fundamental financial breakdown that overrides all other operational factors. On May 13, 2025, Affimed N.V. announced its decision to file for the opening of insolvency proceedings with the local court in Mannheim, Germany. This action was taken because management concluded the company was overindebted and could not secure the capital needed to continue operations.

Here's the quick math on the financial risk leading up to the filing: as of September 30, 2024, the company's cash, cash equivalents, and investments totaled just €24.1 million. Based on their operating plan, this cash runway was only projected to last into Q4 2025. With a net loss of €15.1 million for the third quarter of 2024, and revenue of only €0.2 million for the same period, the burn rate was unsustainable without a significant capital injection.

The probability of financial distress was effectively 100%.

Operational and Strategic Risks Now Realized

The insolvency filing is the ultimate realization of the strategic risk that all clinical-stage companies face: the inability to transition promising pipeline assets into commercial viability or secure a partnership. While the company's innate cell engagers (ICE®) platform had shown clinical promise-like the AFM13 combination therapy's probability of success (PoS) being raised from 70% to 80% in Hodgkin lymphoma-these positive clinical data points are now overshadowed by the operational halt. The company's focus on clinical priorities and commercial viability, as detailed in their Mission Statement, Vision, & Core Values of Affimed N.V. (AFMD), is now impossible to execute.

This financial failure triggered immediate and severe external risks:

• Nasdaq Delisting: Affimed N.V. received a notice from Nasdaq on April 15, 2025, for failing to meet the $1.00 minimum bid price requirement. The subsequent insolvency filing in May 2025 will result in the suspension and likely delisting of the shares.
• Regulatory Halt: The continuation of clinical trials for key assets like AFM13, AFM24, and AFM28 is now in jeopardy, as funding for regulatory submissions and ongoing trials is gone.
• Competition: The failure to advance their proprietary ROCK® platform and ICE® molecules means competitors in the immuno-oncology space will gain market share without a viable threat from Affimed.

Mitigation Strategies and Their Failure

The primary mitigation strategy-seeking potential investors and strategic partners to raise additional capital-failed. Other efforts, such as reducing operating expenses (R&D expenses dropped to €10.1 million in Q3 2024 from €21.5 million in Q3 2023), were simply not enough to outrun the cash burn. The insolvency filing itself is the final, drastic action taken when all other mitigation efforts were exhausted.

Here is a summary of the most critical financial risks realized in 2025:

The situation is defintely dire. For investors, the concrete next step is to understand the implications of the insolvency proceedings on the remaining assets and the potential for any recovery.

Growth Opportunities

You're looking at Affimed N.V. (AFMD) to understand its future, but the most critical piece of 2025 data is the filing for insolvency on May 13, 2025, which led to the suspension of trading on Nasdaq on May 20, 2025. This fundamental event means the company's growth prospects, as traditionally measured, are now non-existent, and any prior analyst projections represent an unrealized potential.

To be fair, the company's underlying science-its innate cell engager (ICE) platform-did show significant promise before the financial collapse. The growth narrative was entirely dependent on the clinical pipeline, which was delivering strong data in heavily pre-treated cancer populations. That was the opportunity.

Pipeline Potential: The Unrealized Engine

The core growth driver was product innovation, specifically the advancement of its three lead candidates. These programs established clinical proof of concept across both hematological (blood) and solid tumors, positioning the company as a leader in its specific immuno-oncology niche. The data was defintely compelling.

• Acimtamig (AFM13): In combination with allogeneic NK cells for Hodgkin lymphoma, the therapy showed an impressive 86% overall response rate (ORR) and a 55% complete response (CR) rate in a Phase 2 study. This led to a U.S. Food and Drug Administration (FDA) Regenerative Medicine Advanced Therapy (RMAT) designation.
• AFM24: This innate cell engager targeting EGFR (Epidermal Growth Factor Receptor) in non-small cell lung cancer (NSCLC) patients who had exhausted standard care options showed a 24% Objective Response Rate (ORR) and a 71% Disease Control Rate (DCR).
• AFM28: Targeting CD123, AFM28 had exhibited the highest complete response and complete response with incomplete recovery (CRi) rates among anti-CD123 therapies, indicating a potential for market leadership in acute myeloid leukemia.

2025 Financial Estimates vs. Reality

The near-term risks were always centered on cash burn, a common issue for clinical-stage biotechs. While analysts projected significant revenue growth for the 2025 fiscal year, the cash position was the ultimate limiting factor. Here's the quick math on the pre-insolvency outlook:

The company's cash and equivalents of €24.1 million as of September 30, 2024, projected a runway only into the fourth quarter of 2025, even with anticipated proceeds from an At-The-Market (ATM) program and the sale of AbCheck. This short runway, combined with the net loss of €15.1 million in Q3 2024, ultimately forced the insolvency filing in May 2025, well before the anticipated revenue could materialize.

Strategic Partnerships and Competitive Edge

Affimed N.V.'s competitive advantage lay in its proprietary Redirected Optimized Cell Killing (ROCK®) platform, which produces its unique innate cell engagers (ICEs). This platform was designed to harness the power of the patient's own innate immune cells (Natural Killer cells and macrophages) to fight cancer, a distinct approach from T-cell-based therapies. The company had leveraged this platform into key strategic alliances that were meant to drive future growth and provide non-dilutive funding:

• A collaboration with Artiva Biotherapeutics to combine acimtamig (AFM13) with Artiva's allogeneic natural killer (AlloNK) cell therapy.
• A strategic collaboration with Genentech for the development of novel NK cell engager-based immunotherapeutics.
• A license and strategic collaboration agreement with Roivant Sciences Ltd. to develop and commercialize novel ICE molecules, including AFM32.

These partnerships validated the science, but the company's internal financial struggles meant the capital needed to push the lead candidates to market or through later-stage trials was insufficient. The opportunity was there, but the financing wasn't.

If you want to dig deeper into who was holding the stock before the insolvency, you should read Exploring Affimed N.V. (AFMD) Investor Profile: Who's Buying and Why?

Next Step: For any remaining investment, you need to contact the appointed insolvency administrator to understand the process for shareholder value recovery, as the Nasdaq-listed shares are now suspended. Owner: Legal/Finance team.