Affimed Announces Sale of Wholly-Owned Subsidiary AbCheck
- None.
- None.
Insights
The divestiture of AbCheck s.r.o. by Affimed to Ampersand Biomedicines for a total consideration of $6 million can be viewed as a strategic move to streamline Affimed's operations and focus on its core competencies. The transaction structure, with a mix of cash and stock, is indicative of a potentially synergistic deal, where Affimed retains a stake in the future success of AbCheck through Ampersand's equity. The milestone payments tied to AbCheck's existing partnerships offer a form of contingent value rights, providing Affimed with potential future revenue streams.
From a financial perspective, the immediate cash inflow enhances Affimed's liquidity, potentially supporting its ongoing clinical programs and reducing the need for dilutive financing in the near term. The stock component, however, introduces a variable element dependent on Ampersand's performance. Investors should consider the risks associated with this equity stake, including Ampersand's ability to integrate AbCheck and realize its full value.
Analyzing the purchase price against industry benchmarks for similar transactions could offer insights into the valuation of AbCheck. If the price is in line with or exceeds sector averages, it could suggest a favorable deal for Affimed. Conversely, a lower valuation might raise questions about the strategic rationale or the subsidiary's financial health.
The sale of AbCheck should be understood in the broader context of the biotechnology sector, where companies often divest non-core assets to concentrate resources on high-potential projects. For Affimed, this move might signal a sharpened focus on immuno-oncology, a field that is witnessing significant growth and investment. The implications for stakeholders include a potential increase in R&D efficiency and a more streamlined pipeline, which could lead to enhanced shareholder value over time.
Market dynamics, such as the demand for innovative cancer therapies and the competitive landscape of antibody discovery platforms like AbCheck, are crucial factors influencing the deal's impact. If the immuno-oncology market continues to expand, Affimed's strategic divestiture could be seen as a timely decision to capitalize on market trends. Moreover, the milestone payments from AbCheck's existing partnerships could provide Affimed with additional resources to invest in its core business areas, potentially leading to new breakthroughs in cancer treatment.
Legal intricacies of the transaction, such as the adjustments and holdback clause, are standard mechanisms to protect the interests of the acquiring and selling parties. These provisions typically account for any unforeseen liabilities or changes in the subsidiary's value post-acquisition. For Affimed, this legal structuring provides a layer of financial security, ensuring that the company is compensated if certain conditions are not met by Ampersand Biomedicines.
Furthermore, the nature of milestone payments from a pre-existing partnership adds complexity to the deal. Such arrangements require careful drafting to ensure that Affimed's rights to future payments are preserved and enforceable. The legal framework governing these payments will be crucial in determining the extent to which Affimed benefits from AbCheck's ongoing success under new ownership.
MANNHEIM, Germany, Jan. 03, 2024 (GLOBE NEWSWIRE) -- Affimed N.V. (Nasdaq: AFMD) (“Affimed” or the “Company”), a clinical-stage immuno-oncology company committed to giving patients back their innate ability to fight cancer, today announced that it has reached a definitive agreement to sell its wholly-owned subsidiary, AbCheck s.r.o., to Ampersand Biomedicines.
Under the terms of the agreement, Ampersand Biomedicines will acquire AbCheck for a purchase price of
About Affimed N.V.
Affimed (Nasdaq: AFMD) is a clinical-stage immuno-oncology company committed to giving patients back their innate ability to fight cancer by actualizing the untapped potential of the innate immune system. The Company’s proprietary ROCK® platform enables a tumor-targeted approach to recognize and kill a range of hematologic and solid tumors, enabling a broad pipeline of wholly-owned and partnered single agent and combination therapy programs. The ROCK® platform predictably generates customized innate cell engager (ICE®) molecules, which use patients’ immune cells to destroy tumor cells. This innovative approach enabled Affimed to become the first company with a clinical-stage ICE®. Headquartered in Mannheim, Germany, with offices in New York, NY, Affimed is led by an experienced team of biotechnology and pharmaceutical leaders united by a bold vision to stop cancer from ever derailing patients’ lives. For more about the Company’s people, pipeline and partners, please visit: www.affimed.com.
About Abcheck
AbCheck discovers and optimizes human therapeutic antibodies with one of the industry’s most versatile technology platforms. Tailored to specific needs and desired Target Product Profiles, AbCheck leverages both cutting edge (e.g., microfluidics, rabbit mass humanization) and classical (e.g., phage/yeast display libraries) technologies to provide high quality leads. The company has proven its capabilities in multiple partnerships throughout the US and Europe. Following the completion of the transaction, AbCheck will become a wholly-owned subsidiary of Ampersand Biomedicines, a Flagship Pioneering Company. For more information, please visit https://www.abcheckantibodies.com/.
Forward-Looking Statement
This report contains forward-looking statements. 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. Actual results may differ materially from the results anticipated by the Company’s forward-looking statements due to certain risks, uncertainties and other factors described under the heading “Risk Factors” in Affimed’s filings with the SEC. Given these risks, uncertainties, and other factors, you should not place undue reliance on these forward-looking statements, and the Company assumes no obligation to update these forward-looking statements, even if new information becomes available in the future.
Investor Relations Contact
Alexander Fudukidis
Director, Investor Relations
E-Mail: a.fudukidis@affimed.com
Tel.: +1 (917) 436-8102
Media Contact
Mary Beth Sandin
Vice President, Marketing and Communications
E-Mail: m.sandin@affimed.com
FAQ
What is the latest announcement from Affimed N.V. (Nasdaq: AFMD)?
How much is the purchase price for AbCheck s.r.o. in the agreement?
What will Affimed N.V. (Nasdaq: AFMD) receive from the agreement?
Who is acquiring AbCheck s.r.o. from Affimed N.V. (Nasdaq: AFMD)?
