Formycon announces positive financial results for first half of 2015

Munich – Formycon, the biosimilars company, has closed the first half of its fiscal year 2015 with very successful financial results. Consolidated revenue for the period ending June 30, 2015, was EUR 9.8 million, an increase of EUR 2.24 million over the prior-year period. Net income for the six-month period was EUR 1.53 million, with the decrease of almost EUR 1 million from the prior-year period due largely to increased material and staff expenses related to investments in projects to develop new biosimilar drugs. As of the period closing date, Formycon Group held more than EUR 20.56 million in consolidated cash and marketable securities. The company’s equity capital ratio rose from 83.4 percent to 89.8 percent.

Formycon AG, the parent and primary operating entity, as well as the entity conducting core R&D activities, reported unconsolidated revenue of EUR 7.1 million (prior-year period: 7.4 million) and unconsolidated after-tax earnings of EUR 1.65 million (2.41 million). The company continues to anticipate a full-year profit for both the consolidated group and the unconsolidated parent entity.

“We are very satisfied with these half-year results,” said Dr. Nicolas Combé, CFO of Formycon. “Because we are investing significant amounts into the development of our biosimilar candidates and are, moreover, in a growth phase, our expense levels have increased according to plan. These are investments which are serving to build our company’s long-term future.”

With out-licensing deals now signed with Santo Holding GmbH for two of the three product candidates currently in development, Formycon has a strong partner at its side. “This has put a solid foundation into place for our product candidates and their future market launch,” explained Combé. “Furthermore, this partnership gives us the financial flexibility to proceed deliberately and confidently with our own biosimilar development efforts, as we expand our R&D pipeline step by step.”

Under the terms of the licensing agreement signed in May 2015 for FYB203, the company’s second biosimilar drug, Formycon received a multi-million-euro up-front payment from Santo. Formycon will, moreover, receiving payments for further product development all the way through to regulatory approval. Since December 2013, when the company signed its out-licensing deal with Santo Holding for FYB201, its first product candidate, Formycon has been receiving ongoing payments. Its third project under development, FYB202, is currently in pre-clinical testing.