Thursday, August 30, 2018 2:32:01 AM
From the SEC filing:
1. "The financial terms of the Agreement include upfront payments and committed funding over the first 12 months of the collaboration of $96 million"
The company, as is, without this partnership, is projected to have funds to last through Q4 of 2019 (over a year from now). With the $96 million, this will ensure even with increased R&D, they'll have less of a risk for an offering
2. "and up to approximately $5.0 billion in total milestone payments upon successful development and commercialization of all product candidates developed pursuant to the Agreement. Of the $5.0 billion in milestone payments, approximately $250 million relate to development activities, $1.1 billion relate to receipt of regulatory approvals, and $3.6 billion relate to achievement of specified thresholds of worldwide net sales."
This means the $5 billion includes milestones (i.e. think of this as kickbacks, rebates, reimbursements etc.) if various targets are reached.
3. "In addition, Affimed is eligible to receive tiered royalties from Genentech on net sales of licensed product candidates on a product-by-product and country-by-country basis until the later of the date when there are no valid patent claims under Affimed’s licensed patents covering such licensed product in the applicable country and the tenth anniversary of the date of first commercial sale of such licensed product in such country."
This means on top of the $96 million and $5 billion, the company will also receive tiered royalty based on region/country. Typical royalty are in the high single to high double digit figures. If for example in the U.S., net sales are $1 billion, at 15%, that equates to $150 million a year on the royalties alone.
4. "Under the terms of the Agreement, Genentech will be responsible for a majority of the research, development and commercialization costs incurred in respect of each product candidate. The development of each product candidate will be overseen by a joint project team, which will in turn be overseen by a joint research committee, or JRC, consisting of an equal number of representatives of Genentech and Affimed. If the JRC is unable to reach agreement, Genentech generally has final decision-making authority, provided that the JRC may not increase or decrease costs dedicated to Affimed’s research activities under any research plan without Affimed’s consent."
In other words, Genentech is footing the majority of the bill. This is critical. RARELY do I see a large pharma company do this for a biotech company. Generally you see where they will do everything mentioned here but expect the biotech company to foot the bill for development. Phase 3 for example is very costly and can run $300 million+ to a billion+. It sounds like Genentech is willing to foot the majority of expenses, meaning they must see something very promising in Affirmed's pipeline.
Recent AFMD News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/11/2024 11:41:27 AM
- Affimed to Present at the Cantor Global Healthcare Conference 2024 • GlobeNewswire Inc. • 09/10/2024 10:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/05/2024 10:36:26 AM
- Affimed Reports Second Quarter 2024 Financial Results & Business Update • GlobeNewswire Inc. • 09/05/2024 10:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/03/2024 12:03:56 PM
- Affimed Appoints Shawn M. Leland as Chief Executive Officer • GlobeNewswire Inc. • 09/03/2024 11:45:00 AM
- Affimed to Report Second Quarter 2024 Financial Results & Corporate Update on September 5, 2024 • GlobeNewswire Inc. • 08/29/2024 10:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/12/2024 11:56:26 AM
- U.S. Futures Rise on Fed Decision; Oil Gains on Demand Forecasts • IH Market News • 06/12/2024 11:13:28 AM
- Affimed Reports First Quarter 2024 Financial Results & Business Update • GlobeNewswire Inc. • 06/12/2024 10:30:00 AM
- Form 6-K/A - Report of foreign issuer [Rules 13a-16 and 15d-16]: [Amend] • Edgar (US Regulatory) • 06/06/2024 09:13:58 PM
- Affimed to Report First Quarter 2024 Financial Results & Corporate Update on June 12, 2024 • GlobeNewswire Inc. • 06/05/2024 10:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/03/2024 10:04:57 AM
- Affimed Provides Follow-up Data of AFM24 plus Atezolizumab Showing Durable Responses in Heavily Pretreated NSCLC EGFR Wild-type Patients and Positive Initial Data from the NSCLC EGFR Mutant Cohort • GlobeNewswire Inc. • 06/01/2024 05:02:00 PM
- Affimed Receives Fast Track Designation for Combination Therapy of AFM24 with Atezolizumab for EGFR Wild-Type Non-Small Cell Lung Cancer • GlobeNewswire Inc. • 05/29/2024 10:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/28/2024 10:51:29 AM
- Affimed Announces Annual General Meeting of Shareholders • GlobeNewswire Inc. • 05/28/2024 10:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/23/2024 09:22:59 PM
- Affimed Announces Positive Early Efficacy and Progression Free Survival Results of AFM24-102 Study in EGFR Wild-Type Non-Small Cell Lung Cancer at the Annual Meeting of the American Society of Clinical Oncology 2024 • GlobeNewswire Inc. • 05/23/2024 09:05:00 PM
- Affimed Announces Acceptance of an Abstract on Preclinical Data of its Innate Cell Engager AFM28 at the European Hematology Association 2024 Congress • GlobeNewswire Inc. • 05/14/2024 02:05:00 PM
- Affimed Announces Acceptance of AFM24 Clinical Abstract at the 2024 Annual Meeting of the American Society of Clinical Oncology • GlobeNewswire Inc. • 04/24/2024 08:05:00 AM
- Affimed Reports 2023 Financial Results and Operational Progress • GlobeNewswire Inc. • 03/28/2024 10:30:00 AM
- Affimed To Report Full Year 2023 Financial Results & Corporate Update on March 28, 2024 • GlobeNewswire Inc. • 03/21/2024 10:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/11/2024 08:05:48 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 03/06/2024 11:34:50 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM