Munich – Formycon AG (ISIN: DE000A1EWVY8/ WKN: A1EWVY) has today announced its figures for the first nine months of the 2020 fiscal year.
Sales and other income of the Formycon Group totaled EUR 23.5 million as of September 30 of this year (prior year period: EUR 26.8 million). Earnings before interest, taxes and depreciation on fixed assets and intangible assets (EBITDA) amounted to EUR -2.0 million (previous year: balanced at EUR 0.0 million). The operating result (EBIT) as well as the net result amounted to a rounded EUR -2.7 million (previous year: EUR -0.7 million each) and were thus in line with the forecasts. Formycon is consistently working on building and developing its own pipeline and is investing in organizational development, such as the expansion of internal capacities and far-reaching measures to further digitalize processes.
The reported sales revenues result from reimbursements for development work in the licensed-out projects or projects developed in partnership (FYB201, FYB202 and FYB203). For the 2020 fiscal year, revenues of between EUR 35.0 and 40.0 million are still anticipated at Group level.
The Formycon Group’s stocks of liquid assets, which comprise cash, checks, bank deposits and securities, totaled EUR 19.2 million as of September 30, 2020. Including short-term receivables from deliveries and services, as well as other assets worth around EUR 4.3 million, the Formycon Group held liquid assets totaling EUR 23.6 million on the day of reporting. The cash capital increase announced in October 2020 with gross proceeds of EUR 25.75 million, which was fully subscribed by the strategic investor the Active Ownership Group, has now been fully implemented. The company’s liquid assets have increased accordingly to almost EUR 50 million.
In the first nine months of the year, Formycon AG – as the company’s actual operational unit – achieved a turnover of EUR 18.0 million (same period last year: EUR 16.2 million). The company’s nine-month result was EUR -2.8 million compared to EUR -0.8 million in the previous year.
“The figures for the first nine months meet our expectations. By consistently developing our pipeline and our organization, we believe we are well positioned for the future. In addition, with the Active Ownership Group, we have been able to gain a strategic and long-term oriented investor and at the same time strengthen our liquidity base for the further projects and the development of our company,” comments CFO Dr. Nicolas Combé.
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.