First Berlin Equity Research Maintains Buy Rating for Formycon AG

First Berlin Equity Research GmbH has published a new research update on Formycon AG (ISIN: DE000A1EWVY8), reiterating its Buy recommendation and maintaining a price target of €80. The update follows the release of Formycon’s H1/24 financial results, which were in line with expectations.

Formycon reported revenue of €26.8 million for H1/24, compared to €43.8 million in H1/23. Adjusted EBITDA stood at €-2.1 million, matching the forecast in the FY/24 guidance upgrade. The company has improved its FY/24 guidance for adjusted EBITDA to €-5 million to €5 million, largely due to stronger contributions from the Lucentis biosimilar, FYB201.

Significant developments include an upgrade in working capital expectations due to an earlier positive opinion from the EMA on the Stelara biosimilar, FYB202. This approval, expected early Q4, positions Formycon to receive a cash milestone in 2024 instead of 2025. Additionally, Formycon has negotiated better payment terms for FYB206 development costs.

FYB201, launched in 2022, is the first of six biosimilars expected by the end of the decade. The immediate focus is on FYB202, with an impending FDA approval and projected high royalty rates.