• Already established trustful collaboration in contract development and manufacturing results in investment through takeover of 9.08% of shares via cash capital increase
  • Gross-proceeds in the amount of EUR 82.84 million to maintain Formycon’s high development pace and operational progress
  • Transaction opens up possibility of jointly leveraging long-term strategic opportunities across development, manufacturing and commercial value streams

Munich, Germany/Budapest, Hungary – Formycon AG (FWB: FYB) (“Formycon”) today announced that Hungary based specialty pharmaceutical company Gedeon Richter Plc. (“Gedeon Richter“) becomes strategic investor via cash capital increase from authorized capital in the amount of 9.08% of Formycon’s share capital.

Both companies are convinced of the huge potential of biosimilars and share the strategic proximity as well as the respective expertise in their fields of activity.

The clear focus of Formycon as a leading dedicated and independent developer of biosimilars and the operating radius of Gedeon Richter as a major multinational company with core competences in research and manufacturing, combine complementary strengths under the same vision as both companies are highly driven to improve patient’s access to important biologic therapies.

Based on the resolutions of Formycon’s Management Board and Supervisory Board, Gedeon Richter subscribed a cash capital increase of 9.08% in a private placement. The Company’s registered share capital will be increased by partially utilizing the authorized capital from currently EUR 16,053,025.00 by EUR 1,603,877.00 to EUR 17,656,902.00 by issuing 1,603,877 new no par-value bearer shares, each with a nominal value of EUR 1.00 of the share capital, against cash contribution. The placement price per new share is EUR 51.65 and represents the mean average value between today’s XETRA closing price and the volume-weighted average price of the shares over the last thirty trading days. Shareholders’ subscription rights for the new shares were excluded in accordance with § 4 (3) of the Articles of Association. Gedeon Richter will be subject to a customary lock-up obligation of 180 days.

The total inflow of funds amounts to EUR 82.84 million and will be used primarily for the further development of Formycon‘s existing biosimilar pipeline, especially FYB206, FYB208 and FYB209. In addition, the start of FYB210, a new biosimilar candidate, is planned for second half of this year.

“Robust supply and cost-competitive manufacturing are becoming increasingly important as a key component of the biosimilar value chain. Over the past few years, we have established a very trustful and successful operational cooperation with Gedeon Richter by utilizing their state-of-the-art manufacturing capabilities and I am very happy that we can enrich this partnership now even further. This transaction has the potential to generate strong momentum as it enables both parties to jointly leverage strategic long-term opportunities,” comments Dr. Stefan Glombitza, CEO of Formycon AG.

“From a financing perspective the cash funding secures the undamped simultaneous development of our competitive biosimilar candidates while adding a renowned collaboration partner as anchor investor who is clearly welcomed by our supervisory board and management board,” adds Enno Spillner, CFO of Formycon AG.

“The capital increase announced today serves to reinforce our strategic partnership with Formycon, with the aim of broadening patient access to biological therapies globally. Joining forces in this way will provide scale benefits and new business opportunities for both parties, while ensuring mission critical knowledge and experience transfer in a fast-evolving industry,” adds Gábor Orbán, CEO of Gedeon Richter Plc.