Publication of insider information in accordance with Article 17 of the Regulation (EU) No 596/2014 Ad-Hoc announcement // July 24, 2017, 08:05 CET
- Co-investment planned for drug development cooperation with Santo Holding
- Participation of up to 30% in development costs and future revenue from marketing of FYB202
- Funding secured through private placement transaction
Munich – Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY), a leading independent developer of biosimilar drugs, today announced the signing of a term sheet for the joint development of FYB202 under a co-investment arrangement with Santo Holding (Deutschland) GmbH. Under the terms of the agreement, Formycon is to make an in-kind contribution of its FYB202 project, with Formycon participating in up to 30% of total costs and revenue and Santo holding the remaining interest of at least 70%. The objective will be to drive forward with the development of FYB202 through to regulatory approval. Once the pilot phase has been successfully completed, development costs, including project investments to date, will be borne by the two partners in proportion to their ownership stakes. From the standpoint of Formycon, its participation of up to 30% in worldwide marketing proceeds from FYB202 represents a significant step forward in its strategic development and marks a key advance on its path to becoming an integrated pharmaceutical company.
In addition, the company today announced the closing of a private placement transaction, generating gross issuance proceeds of EUR 6.00 million. Under the transaction, Formycon placed 190,500 shares newly issued from its approved capital to selected institutional investors at a price of EUR 31.50 per share, thereby raising its legal registered capital (Grundkapital) likewise by EUR 190,500.00, from EUR 9,099,603.00 to EUR 9,290,103.00. The new shares will be approved for trading on the Frankfurt Stock Exchange following completion of issuance.
Proceeds from the transaction will be used to fund the planned co-investment as well as ongoing development of the company’s biosimilar drug portfolio, so that its already established market position may be further strengthened. Formycon currently holds, with the inclusion of short-term receivables, cash and cash equivalents of approx. EUR 22 million. Formycon was advised on the capital-raising transaction by First Berlin Securities Brokerage GmbH.