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Affimed Reports Financial Results for Second Quarter 2018 and Operational Progress

August 8, 2018 7:32 AM

Heidelberg, Germany, August 8, 2018 - Affimed N.V. (Nasdaq: AFMD), a clinical stage biopharmaceutical company focused on discovering and developing highly targeted cancer immunotherapies that harness the power of innate and adaptive immunity (NK and T cells), today reported financial and operational results for the quarter ended June 30, 2018.

"We are continuing to progress according to plan with all of our pipeline programs. For our most advanced program, AFM13, clinical development is on track and we are in ongoing discussions with clinical and regulatory experts to define future development paths," said Dr. Adi Hoess, Affimed's CEO. "In addition, we are deepening our understanding of the cellular and molecular mechanisms underlying our engagers' activation of innate immune cells for tumor cell killing, which is important for advancement and expansion of our pipeline."

Second Quarter Pipeline Progress

NK cell engager programs

AFM13 (CD30/CD16A)

AFM24 (EGFR/CD16A)

AFM26 (BCMA/CD16A)

NK cell engager opportunities

T cell engager programs

AFM11 (CD19/CD3)

AMV564 (CD33/CD3), developed by Amphivena

Second Quarter Corporate Updates

Financial Highlights
(Figures for the second quarter and six months ended June 30, 2018 and 2017 represent unaudited figures)

Cash and cash equivalents totaled €47.4 million as of June 30, 2018 compared to €39.8 million as of December 31, 2017. The increase was primarily attributable to the net proceeds of €19.7 million from the public offering in February 2018, partially offset by Affimed's operational expenses.

Net cash used in operating activities was €15.2 million for the six months ended June 30, 2018 compared to €13.1 million for the six months ended June 30, 2017. The increase was primarily related to higher cash expenditure for research and development (R&D) in connection with Affimed's clinical development programs.

Revenue for the second quarter of 2018 was €0.2 million compared to €0.5 million for the second quarter of 2017. Revenue in the 2018 period was solely derived from AbCheck services while revenue in the 2017 period relates to Affimed's former collaboration with Amphivena and AbCheck services.

R&D expenses for the second quarter of 2018 were €7.1 million compared to €5.4 million for the second quarter of 2017. The increase was primarily related to higher expenses for AFM13 and AFM11.

G&A expenses for the second quarter of 2018 were slightly higher at €2.2 million compared to €2.0 million for the second quarter of 2017.

Net loss for the second quarter of 2018 was nearly unchanged at €8.0 million, or €0.13 per common share, compared to a net loss of €7.9 million, or €0.18 per common share, for the second quarter of 2017. The increase in operating expenses was offset by finance income of €1.1 million in the second quarter of 2018, whereas finance costs of €1.2 million were shown in the second quarter of 2017.

Note on IFRS Reporting Standards

Affimed prepares and reports the consolidated financial statements and financial information in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). None of the financial statements were prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States. Affimed maintains its books and records in Euro.

Conference Call and Webcast Information
Affimed's management will host a conference call to discuss the company's financial results and recent corporate developments today at 8:30 a.m. ET. A webcast of the conference call can be accessed in the "Events" section on the "Investors & Media" page of the Affimed website at http://www.affimed.com/events.php. A replay of the webcast will be available on Affimed's website shortly after the conclusion of the call and will be archived on the Affimed website for 30 days following the call.

About Affimed N.V.

Affimed (Nasdaq: AFMD) engineers targeted immunotherapies, seeking to cure patients by harnessing the power of innate and adaptive immunity (NK and T cells). We are developing single and combination therapies to treat cancers and other life-threatening diseases. For more information, please visit www.affimed.com.

FORWARD-LOOKING STATEMENTS
This press release 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. Forward-looking statements appear in a number of places throughout this release and include statements regarding our intentions, beliefs, projections, outlook, analyses and current expectations concerning, among other things, the value of our ROCK(TM) platform, our ongoing and planned preclinical development and clinical trials, our collaborations and development of our products in combination with other therapies, the timing of and our ability to make regulatory filings and obtain and maintain regulatory approvals for our product candidates our intellectual property position, our collaboration activities, our ability to develop commercial functions, expectations regarding clinical trial data, our results of operations, cash needs, financial condition, liquidity, prospects, future transactions, growth and strategies, the industry in which we operate, the trends that may affect the industry or us and the risks uncertainties and other factors described under the heading "Risk Factors" in Affimed's filings with the Securities and Exchange Commission. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements, and we assume no obligation to update these forward-looking statements, even if new information becomes available in the future.

Affimed Investor Contact:
Gregory Gin, Head of Investor Relations
E-Mail: [email protected]

Affimed Media Contact:
Anca Alexandru, Head of Communications, EU IR
E-Mail: [email protected]

AFFIMED N.V.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Affimed N.V.
Unaudited consolidated statements of comprehensive loss (in € thousand)

For the three months
ended June 30
For the six months
ended
June 30
2017 2018 2017 2018
Revenue 508 150 907 682
Other income - net 93 49 84 38
Research and development expenses (5,431) (7,149) (10,873) (13,545)
General and administrative expenses (1,969) (2,164) (4,215) (4,202)
Operating loss (6,799) (9,114) (14,097) (17,027)
Finance income / (costs) - net (1,169) 1,100 (1,625) 811
Loss before tax (7,968) (8,014) (15,722) (16,216)
Income taxes 21 0 20 (1)
Loss for the period (7,947) (8,014) (15,702) (16,217)
Other comprehensive income
Items that will not be reclassified to profit or loss
Equity investments at fair value OCI - net change in fair value 0 406 0 211


Other comprehensive income
0 406 0 211
Total comprehensive loss (7,947) (7,608) (15,702) (16,006)

Loss per share in € per share

(undiluted = diluted)
(0.18) (0.13) (0.37) (0.28)

Affimed N.V.
Consolidated statements of financial position (in € thousand)

December 31, 2017 June 30, 2018
(unaudited)
ASSETS
Non-current assets
Intangible assets 65 72
Leasehold improvements and equipment 1,113 1,230
Long term financial assets 0 7,536
1,178 8,838
Current assets
Inventories 241 267
Trade and other receivables 1,102 1,024
Other assets 800 1,974
Cash and cash equivalents 39,837 47,412
41,980 50,677
TOTAL ASSETS 43,158 59,515
EQUITY AND LIABILITIES
Equity
Issued capital 468 624
Capital reserves 213,778 237,905
Other reserves 0 7,536
Accumulated deficit (182,667) (198,884)
Total equity 31,579 47,181
Non-current liabilities
Borrowings 4,086 2,869
Total non-current liabilities 4,086 2,869
Current liabilities
Trade and other payables 4,180 5,926
Borrowings 3,083 3,083
Contract liabilities 230 456
Total current liabilities 7,493 9,465
TOTAL EQUITY AND LIABILITIES 43,158 59,515

Affimed N.V.
Unaudited consolidated statements of cash flows (in € thousand)

For the six months
ended June 30
2017 2018
Cash flow from operating activities
Loss for the period (15,702) (16,217)
Adjustments for the period:
- Income taxes (20) 1
- Depreciation and amortization 169 199
- Gain from disposal of leasehold improvements and equipment (20) 0
- Share based payments 1,018 937
- Finance income / costs - net 1,625 (811)
(12,930) (15,891)
Change in trade and other receivables (250) 88
Change in inventories (53) (26)
Change in other assets (404) (1,159)
Change in trade, other payables and contract liabilities 657 1,970
Cash used in operating activities (12,980) (15,018)
Interest received 25 58
Paid interest (128) (196)
Net cash used in operating activities (13,083) (15,156)
Cash flow from investing activities
Purchase of intangible assets (23) (26)
Purchase of leasehold improvements and equipment (349) (298)
Cash received from the sale of leasehold improvements
and equipment
18 1
Cash paid for investments in financial assets (4,655) 0
Cash received from maturity of financial assets 9,209 0
Net cash used for investing activities 4,200 (323)
Cash flow from financing activities
Proceeds from issue of common shares 17,901 25,042
Transaction costs related to issue of common shares (1,481) (1,686)
Proceeds from borrowings 2,500 0
Transaction costs related to borrowings (11) 0
Repayment of borrowings 0 (1,500)
Cash flow from financing activities 18,909 21,856
Exchange-rate related changes of cash and cash equivalents (947) 1,198
Net changes to cash and cash equivalents 10,026 6,377
Cash and cash equivalents at the beginning of the period 35,407 39,837
Cash and cash equivalents at the end of the period 44,486 47,412

Affimed N.V.
Unaudited consolidated statements of changes in equity (in € thousand)

Issued capital Capital reserves



Fair value
reserves
Accumulated deficit Total
equity
Balance as of January 1, 2017 333 190,862

0
(152,444) 38,751
Issue of common shares 106 15,910 16,016
Equity-settled share based
payment awards
1,018 1,018
Issue of warrant note (loan Silicon Valley Bank) 51

51
Loss for the period (15,702) (15,702)
Balance as of June 30, 2017 439 207,841

0
(168,146) 40,134
Revaluation shares Amphivena (first time adoption IFRS 9)

7,325
7,325
Balance as of January 1, 2018 468 213,778



7,325
(182,667) 38,904
Issue of common shares 156 23,190 23,346
Equity-settled share based
payment awards
937 937
Loss for the period (16,217) (16,217)
Other comprehensive income 211 211
Balance as of June 30, 2018 624 237,905 7,536 (198,884) 47,181

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