Formycon AG (from First Berlin Equity Research GmbH): Buy

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Original research: Formycon AG – by First Berlin Equity Research GmbH

19.08.2024 / 14:10 Central European Time/Central European Time

Dissemination of a survey, broadcast by EQS News – a service of EQS

Group AG.

The publisher is solely responsible for the content of this research.

the results of this research do not constitute investment advice or a

invitation to conduct certain stock exchange transactions.

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Classification of First Berlin Equity Research GmbH to Formycon AG

Company name: Formycon AG

ISIN code: DE000A1EWVY8

Reason for the research: H1/24 results

Recommendation: Buy

from: 19.08.2024

Target price: EUR80

Target price at sight of: 12 months

Last review change: –

Analyst: Simon Scholes

First Berlin Equity Research has published a research update on Formycon AG

(ISIN: DE000A1EWVY8). Analyst Simon Scholes reiterated his BUY rating and

maintained its price target of EUR 80.00.

Abstract:

Formycon has published its first half 2024 results and held a conference call

analysts. Revenue was in line with our expectations at EUR 26.8 million (H1/23:

EUR 43.8 million) while adjusted EBITDA of EUR -2.1 million (H1/23: EUR 1.1 million) corresponded to the number

published in the FY/24 guidance upgrade of 6 August. In its press release of 6 August

release Formycon raises FY/24 guidance for adjusted EBITDA (EBITDA de

result on equity) to EUR -5 million to EUR -5 million (previously: EUR -15 million to EUR -5 million), mainly as a result of a

stronger than expected contribution of FYB201 (Lucentis biosimilar) to the

result of the at-equity responsible bioeq AG. The company also has its

FY/24 working capital guidance from EUR 10 million – EUR 20 million to EUR 35 million – EUR 45 million due to

an earlier than expected positive opinion from the CHMP (Committee for

Medicines for human use) showing that FYB202 (Stelara

biosimilar) will be approved in the EU in early rather than late Q4.

means that Formycon will receive a cash milestone in 2024 instead of

in 2025. Formycon has also negotiated improved payment terms for the clinical

development costs of FYB206 (keytruda biosimilar). FYB201, which was

launched in the EU, UK and US in 2022, is just the first of six biosimilars

We expect Formycon to be launched this year.

Upcoming biosimilars have higher reference product sales and royalties

rates than FYB201. In our view, the most important launch in the near term will be

Stelara’s biosimilar, FYB202, is expected to receive FDA approval

next month. Stelara generated global revenues of USD 10.9 billion in 2023. This

compared to Lucentis’ revenue of USD 3.6 billion in 2021, the previous year

the launch of biosimilars of the drug. In addition, Formycon will

royalty of 30-40% on FYB202 sales. The current royalty on FYB201 sales is

7-8%. We think investors should buy Formycon stock before the

lucrative FYB202 launch. We maintain our Buy recommendation and price target

from EUR80.

First Berlin equity research with a research update from Formycon AG (ISIN:

DE000A1EWVY8) was published. Analyst Simon Scholes judged

BUY company and confirms its course price of EUR 80.00.

Summary:

Formycon hat that H1/24 published results and a conference call

for analysts absolutely. The Umsatzerlöse is financed with 26.9 million euros.

(H1/23: EUR43.8 million) We expect the company’s EBITDA to have increased

EUR-2.1 million. (H1/23: EUR1.1 million) with the Zahlen übereinstimmte, which in the

Update of the GJ/24 Forecast was published on 6 August. In

ihrer Pressemitteilung vom 6. August hob Formycon die Forgnose für das

adjusted EBITDA (EBITDA against equity-Ergebnis) at EUR-5 million. to 5 million euros. a

(from: EUR 15 million to EUR 5 million)

Shares from FYB201 (Lucentis-Biosimilar) with a stake in at-equity

bilanzierten bioeq AG. These observations are also included in the forecast for

the Working Capital for the Geschäftsjahr 2014 of EUR10 Mio. up to 20 million euros. auf

35 million euros. bis EUR45 Mio., da der Ausschuss für Humanarzneimittel (CHMP) of EMA

if there is a positive attitude, that is there

behind, dass FYB202 (Stelara-Biosimilar) in the EU or Anfang as Ende

the four Quartals-zugelassen became wird. Dies bedeutet, dass Formycon

a meilenstein in bar in the year 2024 and not first 2025 will be there.

Formycon has medical care for the clinical treatment

FYB206 (Keytruda-Biosimilar) costs removed. FYB201,

which was launched in the EU, UK and US in 2022,

This is the first time that biosimilars are used, the Formycon to the end

Years to market. Recent Biosimilars are available

Reference products with higher volumes and higher Lizenzgebuhren than FYB201.

Our insight into the most recent market forces has disappeared

Stelara Biosimilar, FYB202, FDA Guidance for the Following

Monat erwartet wird. Stelara is a well-deserved month in the year 2023

of USD10.9 Billion. Zum Vergleich: Im Jahr 2021, dem letzten Jahr vor der

Introduction of Biosimilars for Lucentis, the target was USD3.6 billion.

Darüber hinaus wird Formycon a Lizenzgebühr of 30-40% on the Umsatz

of FYB202 erhalten. De derzeitige Lizenzgebühr op de Umsatz von FYB201

amounts to 7-8%. If you plan to trade in the lucrative situation

Market research of FYB202 in the Formycon-Aktie invests in sollten. We

Behalten unsere Kaufempfehlung bei een unveränderten Kursziel von EUR80 bei.

Bezüglich der Pflichtangaben gem. §85 Abs. 1 S. 1 WpHG and dev

Perform a full analysis.

You can download the study here: http://www.more-ir.de/d/30549.pdf

Contact us for questions:

First Berlin Equity Research GmbH

Mr. Gaurav Tiwari

Telephone: (0)30 809 39 686

website: www.firstberlin.com

Email: [email protected]

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