Introduction

In an explosive move that stunned the biotech world and investors alike, Affimed N.V. (NASDAQ: AFMD) saw its stock surge by over 500% intraday on May 16, 2025. The penny stock, which had been trading around $0.06 per share, skyrocketed to a high of $0.41 on unprecedented volume, sending shockwaves through the U.S. equities market.

But what exactly happened with Affimed today? Is this just another short-lived meme stock rally, or is there real substance behind this jaw-dropping gain?

In this article, we dissect the reasons behind the rally, provide background on the company, examine the market reaction, and offer key insights for investors trying to make sense of this breakout.

Who Is Affimed N.V. (AFMD)?

Affimed N.V. is a clinical-stage biopharmaceutical company based in Germany and the Netherlands. It specializes in immuno-oncology — a revolutionary area of cancer treatment that harnesses the body’s immune system to attack tumors.

The company’s proprietary technology platform, ROCK® (Redirected Optimized Cell Killing), is designed to engage natural killer (NK) cells and T cells to fight cancer in a targeted way. The goal is to develop safer and more effective therapies than conventional chemotherapy or radiation.

Affimed’s core development programs have been focused on:

• AFM13: Targeting CD30-positive lymphomas
• AFM24: Targeting EGFR-expressing solid tumors
• Preclinical pipeline in both hematologic and solid tumors

The company has previously partnered with large biopharma players, including Roche and MD Anderson Cancer Center.

What Triggered Today’s 500% Stock Surge?

The stock’s surge was primarily driven by two key developments:

1. Strategic Partnership and Licensing Deal

On the morning of May 16, 2025, Affimed announced a major licensing and development agreement with a global pharmaceutical company (name not officially disclosed at the time of writing, though rumors point to a mid-sized U.S.-based biotech).

According to the press release:

• Affimed is granting exclusive rights to co-develop and commercialize AFM13 in selected global markets.
• The deal includes an upfront cash payment of $100 million, with potential milestone payments totaling over $800 million.
• Royalties in the high-single to low-double-digit range on net sales.

This immediately positioned Affimed as a suddenly well-funded, high-potential biotech — something the market hadn’t priced in.

2. Positive Interim Clinical Trial Data

In addition to the partnership news, Affimed released interim data from a Phase 2 clinical trial of AFM13 in patients with relapsed/refractory Hodgkin lymphoma.

The highlights:

• Overall response rate (ORR): 69%
• Complete response (CR): 41%
• Low levels of treatment-related toxicities

These results exceeded market expectations and suggested that AFM13 could be a viable, less toxic alternative in this treatment space.

How the Market Reacted

• Trading Volume: Over 1 billion shares traded by mid-afternoon, compared to an average daily volume of just 5 million — a clear sign of both institutional and retail interest.
• Options Activity: Unusual call volume and elevated implied volatility reflected speculative sentiment.
• Short Squeeze Potential: AFMD was heavily shorted prior to the news. The surge likely triggered margin calls and forced short-covering, accelerating the rally.

By noon, the stock had touched $0.41 — a more than 580% gain from yesterday’s close of $0.06 — before pulling back slightly on profit-taking.

Financial Background of Affimed

As of its last quarterly filing:

• Market Cap (pre-surge): ~$10 million
• Cash on hand: ~$22 million
• R&D Expenses: $12.6 million per quarter
• No approved products; all revenues from grants and collaborations

The newly announced deal, with its $100 million upfront payment, extends the company’s cash runway significantly, reducing concerns over near-term dilution or bankruptcy risk.

Is the Rally Justified? Or Is It Hype?

Reasons Supporting the Rally:

• Affimed now has a strong cash position — a key concern in biotech investing.
• AFM13 shows compelling clinical efficacy in a niche oncology market.
• Validation from a larger partner boosts credibility.
• Short squeeze dynamic added fuel to the fire.

Caution Flags:

• The company still lacks FDA-approved products.
• Biotech rallies can be notoriously short-lived, especially among microcaps.
• Regulatory approval for AFM13 could still be years away.
• If the rumored partner pulls back or trial results don’t hold, gains could unwind.

Investor Sentiment on Social Media and Forums

The stock quickly gained traction on platforms like Stocktwits, Reddit’s r/pennystocks, and Twitter/X, with users comparing AFMD to past runners like SIGA, SAVA, and MNKD.

Trending hashtags included:

• #AFMD500
• #BiotechBoom
• #ImmunoOncology

Retail investors piled in, many trying to ride the momentum while others warned about chasing parabolic spikes.

Analyst and Institutional Response

While no major Wall Street firms had coverage of AFMD prior to today, smaller research outlets began issuing speculative buy ratings, citing the improved fundamentals post-deal.

Several institutional biotech-focused funds may consider building speculative positions following confirmation of the partnership terms.

If larger brokerages initiate coverage, that could provide additional upward momentum — but that typically takes weeks.

What Should Retail Investors Do Now?

If you missed the early move, it’s important to approach AFMD with caution. Consider:

• Waiting for a consolidation phase before entering
• Watching for the official filing of the licensing agreement
• Monitoring further clinical trial updates for AFM13
• Avoiding excessive leverage or margin positions

Biotech breakouts are often event-driven and can retrace quickly. While the long-term outlook may now be more favorable, near-term volatility is virtually guaranteed.

Conclusion

The 500%+ rally in Affimed (AFMD) is a textbook example of how a single announcement — when it involves both strategic funding and clinical success — can completely change a company’s narrative.

AFMD was seen just yesterday as a struggling microcap biotech. Today, it’s the center of attention on Wall Street and Main Street.

Whether this marks the beginning of a sustained uptrend or a brief moment in the spotlight will depend on how the company executes from here. But for now, it has everyone watching — and that, in the world of small-cap biotech, is already a huge win.

Disclaimer

This article is for informational and educational purposes only. It does not constitute investment advice or a recommendation to buy or sell any securities. The views expressed are based on public data and may change without notice. Readers should consult a licensed financial advisor before making investment decisions. Paisonomics and its authors are not responsible for any losses incurred from reliance on this content.