Munich - Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) has today published its financial performance indicators for 2020 and has recorded a solid financial year.
On the day of reporting, December 31, 2020, the Formycon Group's commercial figures had developed as forecast. Consolidated group sales which, in addition to the AG, include the two subsidiaries Formycon 201 Project GmbH and Formycon 203 Project GmbH as well as the 24.9 percent share in the FYB 202 GmbH & Co. KG joint venture, amounted, as forecast, to a total of Euro 34.2 million (previous year: Euro 33.2 million).
Group earnings before interest, taxes and depreciation on fixed assets and intangible assets (EBITDA) amounted to Euro -4.8 million (previous year: Euro -1.4 million) on the day of reporting. The operating result (EBIT) totaled Euro -5.7 million (previous year: Euro -2.3 million). At Euro -5.9 million (previous year Euro -2.3 million), the result for the year was in line with expectations. In line with its growth strategy, Formycon had invested in the development of its own or young pipeline in the 2020 financial year, resulting in a slightly higher negative annual result compared to previous years. In addition to the COVID-19 drug (FYB207), the main development focus was on the as yet unpublished and unpartnered biosimilar candidate FYB206. Formycon was also able to recruit further qualified specialists last year in line with the needs of the development projects and employed 131 people at the end of the reporting period (+16% compared to the previous year).
Current assets consist largely of liquidity and near-liquid assets. As of December 31, 2020, the Formycon Group had a solid capital base, which, including the cash capital increase of around Euro 25.8 million completed in the fourth quarter of 2020, totaled Euro 42.2 million (previous year: Euro 22.4 million) in cash and cash equivalents (cash on hand, checks, bank balances, and securities). Including short-term receivables and other assets worth a further Euro 7.0 million, the Formycon Group holds liquid assets of Euro 49.2 million in total (previous year Euro 27.6 million) and therefore has flexible room for maneuver for the further development of its own or as yet unpartnered projects. In the current phase of the company, Formycon is focusing on the research and development activities of its own and out-licensed biosimilar projects, which are providing the current revenues. After successful approval of the biosimilar candidates, Formycon will also participate in the marketing revenues.
The Group's balance sheet total rose by 41% to around Euro 75.6 million (previous year: Euro 53.6 million) with an equity ratio of 90 percent, unchanged from the previous year. The company has no financial liabilities.
Formycon AG, as the Group's actual operational unit, achieved a turnover of Euro 25.1 million (previous year: Euro 21.0 million) and recorded an EBITDA of Euro -4.7 million (previous year: Euro -1.3 million). Accordingly, this resulted in an EBIT amounting to Euro -5.6 million (previous year: Euro -2.2 million) and an annual result of a rounded Euro -5.7 million (previous year: Euro -2.2 million).
Dr. Nicolas Combé, CFO of Formycon AG, looks back on the past financial year as follows: "Due to the prevailing Corona pandemic, 2020 was a year full of challenges. We are proud of what we have achieved and, in addition to our aspirational biosimilar projects, we have added another asset to the product pipeline with the development of our COVID-19 drug (FYB207). The good liquidity base allows us to operate from a stable position and, in addition to investments in FYB207, also enabled us to intensively further develop the early-stage and as yet unpartnered biosimilar candidate FYB206. Through our well-positioned development organization, we are able to develop up to five projects in parallel, creating further value for Formycon."
The full 2020 annual financial statements / annual report can be found on our website at https://www.formycon.com/en/investor-relations/financial-reports/.
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 antibody-based COVID-19 compounds.
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. In 2019, global sales of biosimilars exceeded USD12 billion. Analysts estimate that this figure could rise to around USD 69 billion by 2025.