Munich – Formycon AG has completed a capital increase against cash contributions from its approved capital, and under exclusion of subscription rights, in the amount of 435,920 shares. With the successful completion of this transaction, the company’s registered capital rises from EUR 8,626,683.00 to EUR 9,062,603.00, an increase of EUR 435,920.00. The newly issued shares have been privately placed to selected institutional investors and family offices, notably including a U.S. healthcare fund, at a price of EUR 25.50 per share. Proceeds from the share placement in the gross amount of EUR 11,115,960.00 will flow entirely to the company and are to be used to advance and expand the company’s biosimilar development programs in accordance with its plans, thus further strengthening the market position which Formycon has already achieved. With this capital transaction, the company’s total holdings in cash and marketable securities will rise to approx. EUR 21.3 million. The entry of a major U.S. fund into the Formycon investor base underscores the high level of interest among international investors in the rapidly developing market for biosimilar drugs, as well as the strategic importance to the company of the North American market. First Berlin Securities Brokerage GmbH served as advisor to Formycon for this transaction.
Formycon is a leading, independent developer of high-quality biopharmaceutical medicines, especially biosimilars. The company focuses on treatments in ophthalmology, immunology and on other key chronic diseases, covering the entire value chain from technical development to the clinical phase III as well as the preparation of dossiers for marketing approval. With its biosimilars, Formycon is making a major contribution towards providing as many patients as possible with access to vital and affordable medicines. Formycon currently has four biosimilars in development. Based on its extensive experience in the development of biopharmaceutical drugs, the company is also working on the development of an innovative COVID-19 drug FYB207.
Since their introduction in the 1980s, biopharmaceuticals have revolutionized the treatment of serious diseases such as cancer, diabetes, rheumatoid arthritis, multiple sclerosis and eye diseases. In the coming years, many of these biotech drugs will lose their patent protection – and by 2020, medications with revenues of approximately USD 100 billion will be off patent. Biosimilars are follow-on versions of biopharmaceuticals, for which exclusivity has expired. They are approved via stringent regulatory pathways in highly regulated markets (such as EU, US, Japan, Canada, Australia) based on proven similarity of the biosimilar with the originator biopharmaceutical reference product. Global sales of biosimilars are estimated to exceed $15 billion by 2020. By 2030, analysts estimate that this figure could rise to over $60 billion.